MAYVILLE ENGINEERING CO INC (MEC) Stock Fundamental Analysis
USA - NYSE:MEC - US5786051079 - Common Stock
13.01 USD
+0.43 (+3.42%)
13.01 USD
0 (0%)
MEC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 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.
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.
In the past 5 years MEC always reported a positive cash flow from operatings.
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 has a Return On Equity of 7.24%. This is comparable to the rest of the industry: MEC outperforms 46.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.12%, MEC is doing worse than 70.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MEC is significantly below the industry average of 10.01%.
| 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
The Profit Margin of MEC (3.41%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 0.94%, MEC is doing worse than 70.77% of the companies in the same industry.
In the last couple of years the Operating Margin of MEC has grown nicely.
With a Gross Margin value of 10.83%, MEC is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MEC is destroying value.
Compared to 1 year ago, MEC has more shares outstanding
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 2.41 indicates that MEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MEC (2.41) is worse than 60.00% 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.
With an excellent Debt to FCF ratio value of 1.01, MEC belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that MEC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.28, MEC is doing good in the industry, outperforming 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.11
WACC10.14%
2.3 Liquidity
A Current Ratio of 1.63 indicates that MEC should not have too much problems paying its short term obligations.
MEC's Current ratio of 1.63 is on the low side compared to the rest of the industry. MEC is outperformed by 67.69% of its industry peers.
A Quick Ratio of 0.86 indicates that MEC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, MEC is doing worse than 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
MEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -112.55%.
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
Based on estimates for the next years, MEC will show a very strong growth in Earnings Per Share. The EPS will grow by 32.92% on average per year.
The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y-128.41%
EPS Next 2Y60.55%
EPS Next 3Y32.92%
EPS Next 5YN/A
Revenue Next Year-7.52%
Revenue Next 2Y4.42%
Revenue Next 3Y3.18%
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.
With a Price/Forward Earnings ratio of 15.77, MEC is valued correctly.
70.00% of the companies in the same industry are more expensive than MEC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, MEC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEC is valued cheaper than 89.23% of the companies in the same industry.
MEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MEC is cheaper than 99.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.85 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MEC's earnings are expected to grow with 32.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.55%
EPS Next 3Y32.92%
5. Dividend
5.1 Amount
MEC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.01
+0.43 (+3.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners63.82%
Inst Owner Change-0.26%
Ins Owners4.02%
Ins Owner Change1.89%
Market Cap264.36M
Analysts85
Price Target18.7 (43.74%)
Short Float %4.11%
Short Ratio4.19
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)0%
PT rev (3m)-14.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-91.08%
EPS NY rev (1m)-212.5%
EPS NY rev (3m)-116.67%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-10.57%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-7.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.77 | ||
| P/S | 0.5 | ||
| P/FCF | 3.85 | ||
| P/OCF | 3.34 | ||
| P/B | 1.07 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 7.76 |
EPS(TTM)-0.07
EYN/A
EPS(NY)0.82
Fwd EY6.34%
FCF(TTM)3.38
FCFY25.94%
OCF(TTM)3.9
OCFY29.96%
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 | 2.41 |
F-Score6
WACC10.14%
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-128.41%
EPS Next 2Y60.55%
EPS Next 3Y32.92%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.95%
Revenue growth 3Y8.54%
Revenue growth 5Y2.28%
Sales Q2Q%-19.13%
Revenue Next Year-7.52%
Revenue Next 2Y4.42%
Revenue Next 3Y3.18%
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%