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%)
We assign a fundamental rating of 3 out of 10 to MEC. MEC was compared to 132 industry peers in the Machinery industry. MEC may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, MEC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- MEC had negative earnings in the past year.
- MEC had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: MEC reported negative net income in multiple years.
- Each year in the past 5 years MEC had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.09%, MEC perfoms like the industry average, outperforming 43.18% of the companies in the same industry.
- MEC has a Return On Equity of 4.99%. This is comparable 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
- MEC has a Profit Margin of 2.29%. This is in the lower half of the industry: MEC underperforms 60.61% of its industry peers.
- MEC's Operating Margin has improved in the last couple of years.
- MEC's Gross Margin of 10.44% is on the low side compared to the rest of the industry. MEC is outperformed by 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.
- MEC has more shares outstanding than it did 5 years ago.
- MEC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.83 indicates that MEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 1.83, MEC is not doing good in the industry: 71.21% of the companies in the same industry are doing better.
- The Debt to FCF ratio of MEC is 4.05, which is a neutral value as it means it would take MEC, 4.05 years of fcf income to pay off all of its debts.
- MEC has a Debt to FCF ratio of 4.05. This is comparable to the rest of the industry: MEC outperforms 59.09% of its industry peers.
- A Debt/Equity ratio of 0.87 indicates that MEC is somewhat dependend on debt financing.
- MEC has a Debt to Equity ratio of 0.87. This is in the lower half of the industry: MEC underperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 1.83 |
ROIC/WACCN/A
WACC10.27%
2.3 Liquidity
- A Current Ratio of 1.82 indicates that MEC should not have too much problems paying its short term obligations.
- MEC has a Current ratio (1.82) which is comparable to the rest of the industry.
- MEC has a Quick Ratio of 1.04. 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 Quick ratio of 1.04. This is in the lower half of the industry: MEC underperforms 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.
- The Revenue for MEC has decreased by -12.38% in the past year. This is quite bad
- The Revenue has been growing slightly by 2.28% on average over the past years.
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
- Based on estimates for the next years, MEC will show a very strong growth in Earnings Per Share. The EPS will grow by 46.41% on average per year.
- The Revenue is expected to grow by 2.02% on average over the next years.
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for MEC. In the last year negative earnings were reported.
- Based on the Price/Forward Earnings ratio of 90.36, the valuation of MEC can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MEC indicates a slightly more expensive valuation: MEC is more expensive than 69.70% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. MEC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 90.36 |
4.2 Price Multiples
- MEC's Enterprise Value to EBITDA ratio is in line with the industry average.
- MEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MEC is cheaper than 96.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 15.01 |
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
- MEC does not give a dividend.
| 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.