MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MEC - US5786051079 - Common Stock
18.39 USD
-0.3 (-1.61%)
18.39 USD
0 (0%)
Taking everything into account, MEC scores 3 out of 10 in our fundamental rating. MEC was compared to 132 industry peers in the Machinery industry. Both the profitability and financial health of MEC have multiple concerns. While showing a medium growth rate, MEC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year MEC has reported negative net income.
- In the past year MEC had a positive cash flow from operations.
- In multiple years MEC reported negative net income over the last 5 years.
- Each year in the past 5 years MEC had a positive operating cash flow.
1.2 Ratios
- MEC has a Return On Assets (2.09%) which is in line with its industry peers.
- MEC's Return On Equity of 4.99% is in line compared to the rest of the industry. MEC outperforms 43.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 4.99% | ||
| ROIC | N/A |
ROA(3y)3.88%
ROA(5y)1.52%
ROE(3y)7.44%
ROE(5y)3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of MEC (2.29%) is worse than 60.61% of its industry peers.
- MEC's Operating Margin has improved in the last couple of years.
- MEC has a Gross Margin of 10.44%. This is amonst the worse of the industry: MEC underperforms 87.88% of its industry peers.
- In the last couple of years the Gross Margin of MEC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 2.29% | ||
| GM | 10.44% |
OM growth 3Y13.84%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.8%
GM growth 5Y1.59%
2. Health
2.1 Basic Checks
- MEC does not have a ROIC to compare to the WACC, probably because it is not profitable.
- MEC has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MEC has more shares outstanding
- The debt/assets ratio for MEC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.84 indicates that MEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of MEC (1.84) is worse than 70.45% of its industry peers.
- MEC has a debt to FCF ratio of 4.05. This is a neutral value as MEC would need 4.05 years to pay back of all of its debts.
- MEC has a Debt to FCF ratio (4.05) which is in line with its industry peers.
- A Debt/Equity ratio of 0.87 indicates that MEC is somewhat dependend on debt financing.
- MEC has a worse Debt to Equity ratio (0.87) than 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 1.84 |
ROIC/WACCN/A
WACC10.27%
2.3 Liquidity
- MEC has a Current Ratio of 1.82. This is a normal value and indicates that MEC is financially healthy and should not expect problems in meeting its short term obligations.
- MEC has a Current ratio of 1.82. This is comparable to the rest of the industry: MEC outperforms 40.15% of its industry peers.
- A Quick Ratio of 1.04 indicates that MEC should not have too much problems paying its short term obligations.
- The Quick ratio of MEC (1.04) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- MEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -147.29%.
- Measured over the past years, MEC shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.93% on average per year.
- MEC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.38%.
- MEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.28% yearly.
EPS 1Y (TTM)-147.29%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-150%
Revenue 1Y (TTM)-12.38%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%6.59%
3.2 Future
- MEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.41% yearly.
- MEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.02% yearly.
EPS Next Y-207.31%
EPS Next 2Y-20.25%
EPS Next 3Y46.41%
EPS Next 5YN/A
Revenue Next Year-6.79%
Revenue Next 2Y1.22%
Revenue Next 3Y3.1%
Revenue Next 5Y2.02%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for MEC. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 90.36 indicates a quite expensive valuation of MEC.
- MEC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MEC is more expensive than 69.70% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of MEC to the average of the S&P500 Index (24.26), we can say MEC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 90.36 |
4.2 Price Multiples
- MEC's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, MEC is valued cheaper than 96.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 15.17 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as MEC's earnings are expected to grow with 46.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.25%
EPS Next 3Y46.41%
5. Dividend
5.1 Amount
- No dividends for MEC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MAYVILLE ENGINEERING CO INC / MEC FAQ
What is the ChartMill fundamental rating of MAYVILLE ENGINEERING CO INC (MEC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to MEC.
What is the valuation status for MEC stock?
ChartMill assigns a valuation rating of 3 / 10 to MAYVILLE ENGINEERING CO INC (MEC). This can be considered as Overvalued.
How profitable is MAYVILLE ENGINEERING CO INC (MEC) stock?
MAYVILLE ENGINEERING CO INC (MEC) has a profitability rating of 3 / 10.
What is the expected EPS growth for MAYVILLE ENGINEERING CO INC (MEC) stock?
The Earnings per Share (EPS) of MAYVILLE ENGINEERING CO INC (MEC) is expected to decline by -207.31% in the next year.