MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis
NYSE:MEC - New York Stock Exchange, Inc. - US5786051079 - Common Stock - Currency: USD
Overall MEC gets a fundamental rating of 4 out of 10. We evaluated MEC against 129 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 is not valued too expensively and it also shows a decent 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.
The reported net income has been mixed in the past 5 years: MEC reported negative net income in multiple years.
MEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MEC has a Return On Assets (2.62%) which is comparable to the rest of the industry.
MEC's Return On Equity of 5.13% is in line compared to the rest of the industry. MEC outperforms 44.00% of its industry peers.
MEC has a Return On Invested Capital (5.85%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MEC is significantly below the industry average of 11.00%.
The last Return On Invested Capital (5.85%) for MEC is above the 3 year average (4.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 5.13% | ||
| ROIC | 5.85% |
ROA(3y)1.28%
ROA(5y)0.09%
ROE(3y)2.74%
ROE(5y)0.46%
ROIC(3y)4.05%
ROIC(5y)N/A
1.3 Margins
MEC has a Profit Margin of 2.01%. This is in the lower half of the industry: MEC underperforms 60.80% of its industry peers.
MEC's Profit Margin has declined in the last couple of years.
The Operating Margin of MEC (4.41%) is worse than 64.00% of its industry peers.
MEC's Operating Margin has declined in the last couple of years.
MEC has a Gross Margin of 12.90%. This is amonst the worse of the industry: MEC underperforms 88.00% of its industry peers.
MEC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.41% | ||
| PM (TTM) | 2.01% | ||
| GM | 12.9% |
OM growth 3YN/A
OM growth 5Y-10.13%
PM growth 3YN/A
PM growth 5Y-23.38%
GM growth 3Y10.38%
GM growth 5Y-3.66%
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.
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
Compared to 1 year ago, MEC has a worse debt to assets ratio.
2.2 Solvency
MEC has an Altman-Z score of 2.62. 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 (2.62) which is comparable to the rest of the industry.
MEC has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
MEC's Debt to FCF ratio of 1.79 is amongst the best of the industry. MEC outperforms 81.60% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that MEC is not too dependend on debt financing.
MEC has a Debt to Equity ratio (0.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.51
WACC11.37%
2.3 Liquidity
A Current Ratio of 1.77 indicates that MEC should not have too much problems paying its short term obligations.
MEC's Current ratio of 1.77 is on the low side compared to the rest of the industry. MEC is outperformed by 65.60% of its industry peers.
MEC has a Quick Ratio of 1.77. 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 0.91 is on the low side compared to the rest of the industry. MEC is outperformed by 74.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
MEC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.48%, which is quite impressive.
Measured over the past years, MEC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.07% on average per year.
Looking at the last year, MEC shows a small growth in Revenue. The Revenue has grown by 7.14% in the last year.
MEC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.67% yearly.
EPS 1Y (TTM)40.48%
EPS 3YN/A
EPS 5Y-16.07%
EPS Q2Q%40%
Revenue 1Y (TTM)7.14%
Revenue growth 3Y18.06%
Revenue growth 5Y10.67%
Sales Q2Q%-14.43%
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 28.03% on average per year.
The Revenue is expected to grow by 0.31% on average over the next years.
EPS Next Y-22.4%
EPS Next 2Y38.11%
EPS Next 3Y28.03%
EPS Next 5YN/A
Revenue Next Year-1.3%
Revenue Next 2Y1%
Revenue Next 3Y1.2%
Revenue Next 5Y0.31%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.54 indicates a quite expensive valuation of MEC.
MEC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. MEC is around the same levels.
Based on the Price/Forward Earnings ratio of 19.27, the valuation of MEC can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MEC.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, MEC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.54 | ||
| Fwd PE | 19.27 |
4.2 Price Multiples
89.60% of the companies in the same industry are more expensive than MEC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEC indicates a rather cheap valuation: MEC is cheaper than 98.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.02 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
MEC's earnings are expected to grow with 28.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.11%
EPS Next 3Y28.03%
5. Dividend
5.1 Amount
No dividends for MEC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.07
-0.54 (-3.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners62.91%
Inst Owner Change6.92%
Ins Owners3.57%
Ins Owner Change3.75%
Market Cap311.04M
Analysts82.86
Price Target21.42 (42.14%)
Short Float %1.94%
Short Ratio2.69
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)-20.33%
Min EPS beat(2)-33.36%
Max EPS beat(2)-7.3%
EPS beat(4)0
Avg EPS beat(4)-17.13%
Min EPS beat(4)-33.36%
Max EPS beat(4)-7.3%
EPS beat(8)0
Avg EPS beat(8)-27.8%
EPS beat(12)3
Avg EPS beat(12)106.9%
EPS beat(16)5
Avg EPS beat(16)100.68%
Revenue beat(2)1
Avg Revenue beat(2)-6.56%
Min Revenue beat(2)-14.94%
Max Revenue beat(2)1.82%
Revenue beat(4)2
Avg Revenue beat(4)-4.08%
Min Revenue beat(4)-14.94%
Max Revenue beat(4)1.82%
Revenue beat(8)4
Avg Revenue beat(8)-2.52%
Revenue beat(12)7
Avg Revenue beat(12)-0.35%
Revenue beat(16)9
Avg Revenue beat(16)-0.59%
PT rev (1m)0%
PT rev (3m)-14.86%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-8.38%
EPS NY rev (1m)-23.79%
EPS NY rev (3m)-23.79%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.54 | ||
| Fwd PE | 19.27 | ||
| P/S | 0.51 | ||
| P/FCF | 5.02 | ||
| P/OCF | 3.96 | ||
| P/B | 1.3 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)0.59
EY3.92%
EPS(NY)0.78
Fwd EY5.19%
FCF(TTM)3
FCFY19.92%
OCF(TTM)3.8
OCFY25.24%
SpS29.5
BVpS11.55
TBVpS4.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 5.13% | ||
| ROCE | 6.81% | ||
| ROIC | 5.85% | ||
| ROICexc | 5.85% | ||
| ROICexgc | 9.3% | ||
| OM | 4.41% | ||
| PM (TTM) | 2.01% | ||
| GM | 12.9% | ||
| FCFM | 10.18% |
ROA(3y)1.28%
ROA(5y)0.09%
ROE(3y)2.74%
ROE(5y)0.46%
ROIC(3y)4.05%
ROIC(5y)N/A
ROICexc(3y)4.06%
ROICexc(5y)N/A
ROICexgc(3y)6.37%
ROICexgc(5y)N/A
ROCE(3y)4.72%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-11.41%
ROICexc growth 3YN/A
ROICexc growth 5Y-6.87%
OM growth 3YN/A
OM growth 5Y-10.13%
PM growth 3YN/A
PM growth 5Y-23.38%
GM growth 3Y10.38%
GM growth 5Y-3.66%
F-Score8
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 43.87% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | 121.57% | ||
| Profit Quality | 506.95% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.62 |
F-Score8
WACC11.37%
ROIC/WACC0.51
Cap/Depr(3y)123.65%
Cap/Depr(5y)94.67%
Cap/Sales(3y)7.44%
Cap/Sales(5y)5.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40.48%
EPS 3YN/A
EPS 5Y-16.07%
EPS Q2Q%40%
EPS Next Y-22.4%
EPS Next 2Y38.11%
EPS Next 3Y28.03%
EPS Next 5YN/A
Revenue 1Y (TTM)7.14%
Revenue growth 3Y18.06%
Revenue growth 5Y10.67%
Sales Q2Q%-14.43%
Revenue Next Year-1.3%
Revenue Next 2Y1%
Revenue Next 3Y1.2%
Revenue Next 5Y0.31%
EBIT growth 1Y47.66%
EBIT growth 3YN/A
EBIT growth 5Y-0.54%
EBIT Next Year168.51%
EBIT Next 3Y43.33%
EBIT Next 5Y19.69%
FCF growth 1Y474.66%
FCF growth 3Y-6.13%
FCF growth 5Y4.75%
OCF growth 1Y124.38%
OCF growth 3Y3.39%
OCF growth 5Y1.91%