MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis
NYSE:MEC - New York Stock Exchange, Inc. - US5786051079 - Common Stock - Currency: USD
MEC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. MEC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MEC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MEC was profitable.
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.
In the past 5 years MEC always reported a positive cash flow from operatings.
1.2 Ratios
MEC has a Return On Assets of 5.08%. This is comparable to the rest of the industry: MEC outperforms 54.69% of its industry peers.
The Return On Equity of MEC (9.10%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.87%, MEC is doing worse than 65.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MEC is significantly below the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 9.1% | ||
| ROIC | 2.87% |
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 (4.09%) which is comparable to the rest of the industry.
MEC has a Operating Margin of 2.34%. This is in the lower half of the industry: MEC underperforms 69.53% of its industry peers.
In the last couple of years the Operating Margin of MEC has grown nicely.
MEC has a Gross Margin of 11.78%. This is amonst the worse of the industry: MEC underperforms 86.72% of its industry peers.
MEC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.34% | ||
| PM (TTM) | 4.09% | ||
| GM | 11.78% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
MEC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.70 indicates that MEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MEC has a Altman-Z score (2.70) which is in line with its industry peers.
The Debt to FCF ratio of MEC is 1.03, which is an excellent value as it means it would take MEC, only 1.03 years of fcf income to pay off all of its debts.
MEC has a better Debt to FCF ratio (1.03) than 85.94% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that MEC is not too dependend on debt financing.
MEC has a better Debt to Equity ratio (0.31) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.28
WACC10.39%
2.3 Liquidity
A Current Ratio of 1.67 indicates that MEC should not have too much problems paying its short term obligations.
The Current ratio of MEC (1.67) is worse than 66.41% of its industry peers.
MEC has a Quick Ratio of 1.67. This is a bad value and indicates that MEC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MEC (0.91) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for MEC have decreased strongly by -64.22% 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 -8.42% 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)-64.22%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-99.37%
Revenue 1Y (TTM)-8.42%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-15.93%
3.2 Future
The Earnings Per Share is expected to grow by 45.70% on average over the next years. This is a very strong growth
MEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.18% yearly.
EPS Next Y67.28%
EPS Next 2Y83.49%
EPS Next 3Y45.7%
EPS Next 5YN/A
Revenue Next Year-0.64%
Revenue Next 2Y5.16%
Revenue Next 3Y3.74%
Revenue Next 5Y3.18%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
MEC is valuated quite expensively with a Price/Earnings ratio of 105.00.
71.09% of the companies in the same industry are cheaper than MEC, based on the Price/Earnings ratio.
MEC is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.59, MEC is valued correctly.
70.31% of the companies in the same industry are more expensive than MEC, based on the Price/Forward Earnings ratio.
MEC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105 | ||
| Fwd PE | 15.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEC is valued cheaply inside the industry as 83.59% 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 98.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.57 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
MEC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MEC's earnings are expected to grow with 45.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y83.49%
EPS Next 3Y45.7%
5. Dividend
5.1 Amount
No dividends for MEC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:MEC (7/3/2025, 7:48:04 PM)
16.8
+0.05 (+0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners62.39%
Inst Owner Change-0.51%
Ins Owners3.86%
Ins Owner Change10.02%
Market Cap343.73M
Analysts82.5
Price Target20.4 (21.43%)
Short Float %2.19%
Short Ratio2.47
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)-57.58%
Min EPS beat(2)-93.61%
Max EPS beat(2)-21.55%
EPS beat(4)0
Avg EPS beat(4)-38.95%
Min EPS beat(4)-93.61%
Max EPS beat(4)-7.3%
EPS beat(8)0
Avg EPS beat(8)-35.93%
EPS beat(12)1
Avg EPS beat(12)-24.56%
EPS beat(16)3
Avg EPS beat(16)66.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-0.21%
Revenue beat(4)1
Avg Revenue beat(4)-4.14%
Min Revenue beat(4)-14.94%
Max Revenue beat(4)1.82%
Revenue beat(8)2
Avg Revenue beat(8)-3.4%
Revenue beat(12)5
Avg Revenue beat(12)-1.61%
Revenue beat(16)7
Avg Revenue beat(16)-1.25%
PT rev (1m)11.11%
PT rev (3m)5.26%
EPS NQ rev (1m)-26.73%
EPS NQ rev (3m)-12.94%
EPS NY rev (1m)-10.17%
EPS NY rev (3m)-6.58%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)1.65%
Revenue NY rev (3m)-3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105 | ||
| Fwd PE | 15.59 | ||
| P/S | 0.62 | ||
| P/FCF | 4.57 | ||
| P/OCF | 3.93 | ||
| P/B | 1.38 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)0.16
EY0.95%
EPS(NY)1.08
Fwd EY6.41%
FCF(TTM)3.68
FCFY21.89%
OCF(TTM)4.28
OCFY25.46%
SpS27.17
BVpS12.22
TBVpS5.24
PEG (NY)1.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 9.1% | ||
| ROCE | 3.47% | ||
| ROIC | 2.87% | ||
| ROICexc | 2.88% | ||
| ROICexgc | 4.64% | ||
| OM | 2.34% | ||
| PM (TTM) | 4.09% | ||
| GM | 11.78% | ||
| FCFM | 13.53% |
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-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 32.49% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 172.21% | ||
| Profit Quality | 330.73% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.7 |
F-Score7
WACC10.39%
ROIC/WACC0.28
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)-64.22%
EPS 3Y-7.93%
EPS 5YN/A
EPS Q2Q%-99.37%
EPS Next Y67.28%
EPS Next 2Y83.49%
EPS Next 3Y45.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.42%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-15.93%
Revenue Next Year-0.64%
Revenue Next 2Y5.16%
Revenue Next 3Y3.74%
Revenue Next 5Y3.18%
EBIT growth 1Y-45.14%
EBIT growth 3Y23.56%
EBIT growth 5YN/A
EBIT Next Year210.61%
EBIT Next 3Y53.94%
EBIT Next 5Y29.05%
FCF growth 1Y6266.39%
FCF growth 3YN/A
FCF growth 5Y59.2%
OCF growth 1Y86.92%
OCF growth 3Y83.81%
OCF growth 5Y21.87%