MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis
USA - NYSE:MEC - US5786051079 - Common Stock
14.85 USD
+0.65 (+4.58%)
14.85 USD
0 (0%)
MEC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. The financial health of MEC is average, but there are quite some concerns on its profitability. MEC has a decent growth rate and is not valued too expensively.
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 (4.12%) which is comparable to the rest of the industry.
The Return On Equity of MEC (7.24%) is comparable to the rest of the industry.
MEC has a worse Return On Invested Capital (1.12%) than 71.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MEC is significantly below the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 7.24% | ||
| ROIC | 1.12% |
ROA(3y)3.88%
ROA(5y)1.52%
ROE(3y)7.44%
ROE(5y)3%
ROIC(3y)4.37%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.41%, MEC is in line with its industry, outperforming 41.41% of the companies in the same industry.
MEC has a worse Operating Margin (0.94%) than 71.88% of its industry peers.
In the last couple of years the Operating Margin of MEC has grown nicely.
MEC has a worse Gross Margin (10.83%) than 88.28% of its industry peers.
MEC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.94% | ||
| PM (TTM) | 3.41% | ||
| GM | 10.83% |
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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MEC has more shares outstanding
MEC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MEC has an improved debt to assets ratio.
2.2 Solvency
MEC has an Altman-Z score of 2.53. This is not the best score and indicates that MEC is in the grey zone with still only limited risk for bankruptcy at the moment.
MEC has a Altman-Z score (2.53) which is in line with its industry peers.
MEC has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
MEC has a Debt to FCF ratio of 1.01. This is amongst the best in the industry. MEC outperforms 88.28% of its industry peers.
MEC has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
MEC's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. MEC outperforms 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.11
WACC10.56%
2.3 Liquidity
MEC has a Current Ratio of 1.63. This is a normal value and indicates that MEC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MEC (1.63) is worse than 67.19% of its industry peers.
MEC has a Quick Ratio of 1.63. This is a bad value and indicates that MEC is not financially healthy enough and could expect problems in meeting its short term obligations.
MEC's Quick ratio of 0.86 is on the low side compared to the rest of the industry. MEC is outperformed by 71.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for MEC have decreased strongly by -112.55% in the last year.
The Earnings Per Share has been decreasing by -7.93% on average over the past years.
The Revenue for MEC has decreased by -16.95% in the past year. This is quite bad
MEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.28% yearly.
EPS 1Y (TTM)-112.55%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-127.78%
Revenue 1Y (TTM)-16.95%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-19.13%
3.2 Future
MEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.31% yearly.
Based on estimates for the next years, MEC will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y-74.75%
EPS Next 2Y55.39%
EPS Next 3Y41.31%
EPS Next 5YN/A
Revenue Next Year-7.1%
Revenue Next 2Y4.42%
Revenue Next 3Y3.94%
Revenue Next 5Y2.93%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MEC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 19.22, which indicates a rather expensive current valuation of MEC.
The rest of the industry has a similar Price/Forward Earnings ratio as MEC.
MEC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEC is valued cheaply inside the industry as 85.16% of the companies are valued more expensively.
MEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MEC is cheaper than 99.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.4 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
MEC's earnings are expected to grow with 41.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.39%
EPS Next 3Y41.31%
5. Dividend
5.1 Amount
No dividends for MEC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.85
+0.65 (+4.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners63.66%
Inst Owner Change4.58%
Ins Owners3.95%
Ins Owner Change9.01%
Market Cap301.75M
Analysts85
Price Target18.7 (25.93%)
Short Float %3.56%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-146.56%
Min EPS beat(2)-199.51%
Max EPS beat(2)-93.61%
EPS beat(4)0
Avg EPS beat(4)-87.01%
Min EPS beat(4)-199.51%
Max EPS beat(4)-21.55%
EPS beat(8)0
Avg EPS beat(8)-54.67%
EPS beat(12)1
Avg EPS beat(12)-40.6%
EPS beat(16)3
Avg EPS beat(16)54.73%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-5.05%
Max Revenue beat(2)-0.21%
Revenue beat(4)0
Avg Revenue beat(4)-5.86%
Min Revenue beat(4)-14.94%
Max Revenue beat(4)-0.21%
Revenue beat(8)2
Avg Revenue beat(8)-3.36%
Revenue beat(12)5
Avg Revenue beat(12)-1.95%
Revenue beat(16)7
Avg Revenue beat(16)-1.4%
PT rev (1m)-14.06%
PT rev (3m)-0.9%
EPS NQ rev (1m)-81.36%
EPS NQ rev (3m)-90.73%
EPS NY rev (1m)-85.19%
EPS NY rev (3m)-86.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.76%
Revenue NY rev (1m)-8.74%
Revenue NY rev (3m)-4.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.22 | ||
| P/S | 0.58 | ||
| P/FCF | 4.4 | ||
| P/OCF | 3.81 | ||
| P/B | 1.22 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)-0.07
EYN/A
EPS(NY)0.77
Fwd EY5.2%
FCF(TTM)3.38
FCFY22.73%
OCF(TTM)3.9
OCFY26.25%
SpS25.82
BVpS12.15
TBVpS5.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 7.24% | ||
| ROCE | 1.35% | ||
| ROIC | 1.12% | ||
| ROICexc | 1.12% | ||
| ROICexgc | 1.83% | ||
| OM | 0.94% | ||
| PM (TTM) | 3.41% | ||
| GM | 10.83% | ||
| FCFM | 13.07% |
ROA(3y)3.88%
ROA(5y)1.52%
ROE(3y)7.44%
ROE(5y)3%
ROIC(3y)4.37%
ROIC(5y)N/A
ROICexc(3y)4.37%
ROICexc(5y)N/A
ROICexgc(3y)6.82%
ROICexgc(5y)N/A
ROCE(3y)5.27%
ROCE(5y)N/A
ROICexcg growth 3Y12.77%
ROICexcg growth 5YN/A
ROICexc growth 3Y14.37%
ROICexc growth 5YN/A
OM growth 3Y13.84%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.8%
GM growth 5Y1.59%
F-Score6
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 27.96% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 0.62 | ||
| Cash Conversion | 184.41% | ||
| Profit Quality | 383.83% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.53 |
F-Score6
WACC10.56%
ROIC/WACC0.11
Cap/Depr(3y)93.16%
Cap/Depr(5y)85.48%
Cap/Sales(3y)5.26%
Cap/Sales(5y)5.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-112.55%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-127.78%
EPS Next Y-74.75%
EPS Next 2Y55.39%
EPS Next 3Y41.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.95%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-19.13%
Revenue Next Year-7.1%
Revenue Next 2Y4.42%
Revenue Next 3Y3.94%
Revenue Next 5Y2.93%
EBIT growth 1Y-82.11%
EBIT growth 3Y23.56%
EBIT growth 5YN/A
EBIT Next Year232.75%
EBIT Next 3Y63.21%
EBIT Next 5Y27.38%
FCF growth 1Y990.68%
FCF growth 3YN/A
FCF growth 5Y59.2%
OCF growth 1Y156.52%
OCF growth 3Y83.81%
OCF growth 5Y21.87%