MBC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. There are concerns on the financial health of MBC while its profitability can be described as average. MBC is valued quite cheap, while showing a decent growth score. This is a good combination!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MBC had positive earnings in the past year.
MBC had a positive operating cash flow in the past year.
MBC had positive earnings in each of the past 5 years.
Each year in the past 5 years MBC had a positive operating cash flow.

1.2 Ratios

MBC has a Return On Assets of 2.75%. This is in the lower half of the industry: MBC underperforms 66.67% of its industry peers.
The Return On Equity of MBC (5.98%) is worse than 64.29% of its industry peers.
With a Return On Invested Capital value of 6.58%, MBC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for MBC is below the industry average of 12.68%.

		Industry Rank	Sector Rank
ROA	2.75%
ROE	5.98%
ROIC	6.58%

ROA(3y)6.03%

ROA(5y)5.91%

ROE(3y)13.46%

ROE(5y)10.88%

ROIC(3y)9.96%

ROIC(5y)8.67%

1.3 Margins

With a Profit Margin value of 3.00%, MBC is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
MBC's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.31%, MBC is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MBC has grown nicely.
MBC has a Gross Margin of 31.31%. This is comparable to the rest of the industry: MBC outperforms 52.38% of its industry peers.
MBC's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	8.31%
PM (TTM)	3%
GM	31.31%

OM growth 3Y7.36%

OM growth 5Y4.7%

PM growth 3Y-10%

PM growth 5Y2.03%

GM growth 3Y5.76%

GM growth 5Y2.32%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

MBC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MBC has been increased compared to 1 year ago.
The debt/assets ratio for MBC is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.52 indicates that MBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MBC has a Altman-Z score of 2.52. This is in the lower half of the industry: MBC underperforms 71.43% of its industry peers.
The Debt to FCF ratio of MBC is 7.13, which is on the high side as it means it would take MBC, 7.13 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.13, MBC is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.69 indicates that MBC is somewhat dependend on debt financing.
MBC has a Debt to Equity ratio of 0.69. This is comparable to the rest of the industry: MBC outperforms 40.48% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.69
Debt/FCF	7.13
Altman-Z	2.52

ROIC/WACC0.77

WACC8.57%

2.3 Liquidity

MBC has a Current Ratio of 1.87. This is a normal value and indicates that MBC is financially healthy and should not expect problems in meeting its short term obligations.
MBC has a Current ratio (1.87) which is comparable to the rest of the industry.
A Quick Ratio of 1.13 indicates that MBC should not have too much problems paying its short term obligations.
MBC has a Quick ratio (1.13) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.87
Quick Ratio	1.13

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

MBC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.32%.
MBC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.01% yearly.
MBC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.77%.
Measured over the past years, MBC shows a small growth in Revenue. The Revenue has been growing by 2.48% on average per year.

EPS 1Y (TTM)-24.32%

EPS 3Y-12.38%

EPS 5Y4.01%

EPS Q2Q%-17.5%

Revenue 1Y (TTM)1.77%

Revenue growth 3Y-1.84%

Revenue growth 5Y2.48%

Sales Q2Q%-2.67%

3.2 Future

Based on estimates for the next years, MBC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.40% on average per year.
MBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.63% yearly.

EPS Next Y-21.44%

EPS Next 2Y-13.07%

EPS Next 3Y9.4%

EPS Next 5YN/A

Revenue Next Year-2.4%

Revenue Next 2Y-1.28%

Revenue Next 3Y2.63%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.72, which indicates a very decent valuation of MBC.
92.86% of the companies in the same industry are more expensive than MBC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.39. MBC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.77, the valuation of MBC can be described as reasonable.
83.33% of the companies in the same industry are more expensive than MBC, based on the Price/Forward Earnings ratio.
MBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	10.72
Fwd PE	11.77

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MBC indicates a rather cheap valuation: MBC is cheaper than 90.48% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MBC is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.