MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis
USA - NYSE:MEC - US5786051079 - Common Stock
16.55 USD
-0.14 (-0.84%)
16.55 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MEC. MEC was compared to 130 industry peers in the Machinery industry. The financial health of MEC is average, but there are quite some concerns on its profitability. MEC is quite expensive at the moment. It does show a decent growth rate.
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's Return On Assets of 4.12% is in line compared to the rest of the industry. MEC outperforms 50.00% of its industry peers.
MEC's Return On Equity of 7.24% is in line compared to the rest of the industry. MEC outperforms 46.15% of its industry peers.
The Return On Invested Capital of MEC (1.12%) is worse than 71.54% of its industry peers.
MEC had an Average Return On Invested Capital over the past 3 years of 4.37%. This is significantly below the industry average of 10.24%.
| 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
MEC has a Profit Margin of 3.41%. This is comparable to the rest of the industry: MEC outperforms 42.31% of its industry peers.
The Operating Margin of MEC (0.94%) is worse than 71.54% of its industry peers.
In the last couple of years the Operating Margin of MEC has grown nicely.
The Gross Margin of MEC (10.83%) is worse than 88.46% of its industry peers.
In the last couple of years the Gross Margin of MEC has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MEC is destroying value.
The number of shares outstanding for MEC has been increased compared to 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
MEC has an Altman-Z score of 2.64. 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's Altman-Z score of 2.64 is in line compared to the rest of the industry. MEC outperforms 41.54% of its industry peers.
The Debt to FCF ratio of MEC is 1.01, which is an excellent value as it means it would take MEC, only 1.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.01, MEC belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
MEC has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
MEC has a better Debt to Equity ratio (0.28) than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.11
WACC10.1%
2.3 Liquidity
A Current Ratio of 1.63 indicates that MEC should not have too much problems paying its short term obligations.
MEC has a worse Current ratio (1.63) than 66.15% 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 has a worse Quick ratio (0.86) than 70.00% 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 -147.29% in the last year.
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.
The Revenue has decreased by -1.16% in the past year.
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)-1.16%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%6.59%
3.2 Future
Based on estimates for the next years, MEC will show a very strong growth in Earnings Per Share. The EPS will grow by 23.67% on average per year.
The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y-147.34%
EPS Next 2Y22.31%
EPS Next 3Y23.67%
EPS Next 5YN/A
Revenue Next Year-7.66%
Revenue Next 2Y3.03%
Revenue Next 3Y3.04%
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.
MEC is valuated quite expensively with a Price/Forward Earnings ratio of 34.57.
MEC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MEC is more expensive than 67.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MEC to the average of the S&P500 Index (32.73), we can say MEC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MEC is valued cheaper than 99.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.9 | ||
| EV/EBITDA | 9.44 |
4.3 Compensation for Growth
MEC's earnings are expected to grow with 23.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.31%
EPS Next 3Y23.67%
5. Dividend
5.1 Amount
MEC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.55
-0.14 (-0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners63.82%
Inst Owner Change-0.14%
Ins Owners4.02%
Ins Owner Change1.89%
Market Cap336.30M
Revenue(TTM)581.60M
Net Income(TTM)17.87M
Analysts84.44
Price Target20.15 (21.75%)
Short Float %4.6%
Short Ratio4.21
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)7.73%
PT rev (3m)-7.42%
EPS NQ rev (1m)-134.29%
EPS NQ rev (3m)-103.06%
EPS NY rev (1m)-66.67%
EPS NY rev (3m)-127.78%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-13.05%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-9.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.57 | ||
| P/S | 0.64 | ||
| P/FCF | 4.9 | ||
| P/OCF | 4.25 | ||
| P/B | 1.36 | ||
| P/tB | 3.17 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)-0.28
EYN/A
EPS(NY)0.48
Fwd EY2.89%
FCF(TTM)3.38
FCFY20.39%
OCF(TTM)3.9
OCFY23.55%
SpS25.82
BVpS12.15
TBVpS5.21
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
ROICexgc growth 3Y12.77%
ROICexgc 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 | 2.64 |
F-Score6
WACC10.1%
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)-147.29%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-150%
EPS Next Y-147.34%
EPS Next 2Y22.31%
EPS Next 3Y23.67%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%6.59%
Revenue Next Year-7.66%
Revenue Next 2Y3.03%
Revenue Next 3Y3.04%
Revenue Next 5Y2.02%
EBIT growth 1Y-82.11%
EBIT growth 3Y23.56%
EBIT growth 5YN/A
EBIT Next Year168.32%
EBIT Next 3Y57.98%
EBIT Next 5Y26.31%
FCF growth 1Y990.68%
FCF growth 3YN/A
FCF growth 5Y59.2%
OCF growth 1Y156.52%
OCF growth 3Y83.81%
OCF growth 5Y21.87%
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 4 / 10 to MEC.
What is the valuation status of MAYVILLE ENGINEERING CO INC (MEC) stock?
ChartMill assigns a valuation rating of 3 / 10 to MAYVILLE ENGINEERING CO INC (MEC). This can be considered as Overvalued.
Can you provide the profitability details for MAYVILLE ENGINEERING CO INC?
MAYVILLE ENGINEERING CO INC (MEC) has a profitability rating of 3 / 10.
How financially healthy is MAYVILLE ENGINEERING CO INC?
The financial health rating of MAYVILLE ENGINEERING CO INC (MEC) is 5 / 10.