MESA LABORATORIES INC (MLAB) Stock Fundamental Analysis
NASDAQ:MLAB - Nasdaq - US59064R1095 - Common Stock - Currency: USD
Taking everything into account, MLAB scores 4 out of 10 in our fundamental rating. MLAB was compared to 55 industry peers in the Life Sciences Tools & Services industry. There are concerns on the financial health of MLAB while its profitability can be described as average. MLAB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MLAB was profitable.
In the past year MLAB had a positive cash flow from operations.
In multiple years MLAB reported negative net income over the last 5 years.
Each year in the past 5 years MLAB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MLAB (-0.46%) is better than 65.45% of its industry peers.
Looking at the Return On Equity, with a value of -1.24%, MLAB is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.79%, MLAB is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
MLAB had an Average Return On Invested Capital over the past 3 years of 1.90%. This is significantly below the industry average of 13.60%.
The 3 year average ROIC (1.90%) for MLAB is below the current ROIC(4.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.46% | ||
| ROE | -1.24% | ||
| ROIC | 4.79% |
ROA(3y)-19.07%
ROA(5y)-11.28%
ROE(3y)-58.62%
ROE(5y)-34.92%
ROIC(3y)1.9%
ROIC(5y)1.6%
1.3 Margins
MLAB has a better Operating Margin (6.78%) than 61.82% of its industry peers.
MLAB's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 62.61%, MLAB belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
In the last couple of years the Gross Margin of MLAB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.78% | ||
| PM (TTM) | N/A | ||
| GM | 62.61% |
OM growth 3Y38.53%
OM growth 5Y0.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.88%
GM growth 5Y2.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MLAB is destroying value.
Compared to 1 year ago, MLAB has more shares outstanding
Compared to 5 years ago, MLAB has more shares outstanding
MLAB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that MLAB is in the distress zone and has some risk of bankruptcy.
MLAB's Altman-Z score of 0.98 is on the low side compared to the rest of the industry. MLAB is outperformed by 63.64% of its industry peers.
The Debt to FCF ratio of MLAB is 4.21, which is a neutral value as it means it would take MLAB, 4.21 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.21, MLAB is doing good in the industry, outperforming 70.91% of the companies in the same industry.
MLAB has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.48, MLAB is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.47
WACC10.14%
2.3 Liquidity
MLAB has a Current Ratio of 0.63. This is a bad value and indicates that MLAB is not financially healthy enough and could expect problems in meeting its short term obligations.
MLAB has a Current ratio of 0.63. This is amonst the worse of the industry: MLAB underperforms 94.55% of its industry peers.
MLAB has a Quick Ratio of 0.63. This is a bad value and indicates that MLAB is not financially healthy enough and could expect problems in meeting its short term obligations.
MLAB has a Quick ratio of 0.47. This is amonst the worse of the industry: MLAB underperforms 94.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The earnings per share for MLAB have decreased strongly by -98.14% in the last year.
Measured over the past years, MLAB shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -39.16% on average per year.
MLAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.46%.
Measured over the past years, MLAB shows a quite strong growth in Revenue. The Revenue has been growing by 15.41% on average per year.
EPS 1Y (TTM)-98.14%
EPS 3Y-62.71%
EPS 5Y-39.16%
EPS Q2Q%-135.41%
Revenue 1Y (TTM)11.46%
Revenue growth 3Y9.35%
Revenue growth 5Y15.41%
Sales Q2Q%5.49%
3.2 Future
Based on estimates for the next years, MLAB will show a very strong growth in Earnings Per Share. The EPS will grow by 403.31% on average per year.
Based on estimates for the next years, MLAB will show a small growth in Revenue. The Revenue will grow by 5.16% on average per year.
EPS Next Y2275.14%
EPS Next 2Y778.38%
EPS Next 3Y403.31%
EPS Next 5YN/A
Revenue Next Year4.4%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1234.57 indicates a quite expensive valuation of MLAB.
Compared to the rest of the industry, the Price/Earnings ratio of MLAB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MLAB is valued quite expensively.
MLAB is valuated quite expensively with a Price/Forward Earnings ratio of 51.98.
MLAB's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, MLAB is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1234.57 | ||
| Fwd PE | 51.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLAB indicates a rather cheap valuation: MLAB is cheaper than 83.64% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MLAB is valued cheaper than 96.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 15.69 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MLAB may justify a higher PE ratio.
A more expensive valuation may be justified as MLAB's earnings are expected to grow with 403.31% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y778.38%
EPS Next 3Y403.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, MLAB is not a good candidate for dividend investing.
In the last 3 months the price of MLAB has falen by -24.57%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 0.50, MLAB pays a better dividend. On top of this MLAB pays more dividend than 96.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, MLAB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of MLAB decreases each year by -0.50%.
MLAB has been paying a dividend for at least 10 years, so it has a reliable track record.
MLAB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.5%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
MLAB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-175.68%
EPS Next 2Y778.38%
EPS Next 3Y403.31%
86.42
-3.89 (-4.31%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.48%
Inst Owner Change0%
Ins Owners4.56%
Ins Owner Change2.58%
Market Cap469.26M
Analysts78
Price Target124.1 (43.6%)
Short Float %3.6%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend0.64
Dividend Growth(5Y)-0.5%
DP-175.68%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-166.14%
Min EPS beat(2)-217.83%
Max EPS beat(2)-114.45%
EPS beat(4)1
Avg EPS beat(4)-72.46%
Min EPS beat(4)-217.83%
Max EPS beat(4)85.76%
EPS beat(8)3
Avg EPS beat(8)303.76%
EPS beat(12)4
Avg EPS beat(12)196.96%
EPS beat(16)7
Avg EPS beat(16)160.77%
Revenue beat(2)1
Avg Revenue beat(2)1.93%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)4.83%
Revenue beat(4)2
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)4.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.6%
Revenue beat(12)4
Avg Revenue beat(12)-1.29%
Revenue beat(16)7
Avg Revenue beat(16)0.59%
PT rev (1m)-14.12%
PT rev (3m)-18.89%
EPS NQ rev (1m)18.02%
EPS NQ rev (3m)-60.48%
EPS NY rev (1m)-61.56%
EPS NY rev (3m)-71.07%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1234.57 | ||
| Fwd PE | 51.98 | ||
| P/S | 1.95 | ||
| P/FCF | 11.09 | ||
| P/OCF | 10.03 | ||
| P/B | 2.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.69 |
EPS(TTM)0.07
EY0.08%
EPS(NY)1.66
Fwd EY1.92%
FCF(TTM)7.79
FCFY9.02%
OCF(TTM)8.62
OCFY9.97%
SpS44.38
BVpS29.43
TBVpS-21.88
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.46% | ||
| ROE | -1.24% | ||
| ROCE | 6.06% | ||
| ROIC | 4.79% | ||
| ROICexc | 5.33% | ||
| ROICexgc | N/A | ||
| OM | 6.78% | ||
| PM (TTM) | N/A | ||
| GM | 62.61% | ||
| FCFM | 17.56% |
ROA(3y)-19.07%
ROA(5y)-11.28%
ROE(3y)-58.62%
ROE(5y)-34.92%
ROIC(3y)1.9%
ROIC(5y)1.6%
ROICexc(3y)2.1%
ROICexc(5y)2.03%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.4%
ROCE(5y)2.02%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y106.13%
ROICexc growth 5Y21.15%
OM growth 3Y38.53%
OM growth 5Y0.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.88%
GM growth 5Y2.57%
F-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.21 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 18.34% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 114.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.98 |
F-Score6
WACC10.14%
ROIC/WACC0.47
Cap/Depr(3y)13.3%
Cap/Depr(5y)13.77%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-98.14%
EPS 3Y-62.71%
EPS 5Y-39.16%
EPS Q2Q%-135.41%
EPS Next Y2275.14%
EPS Next 2Y778.38%
EPS Next 3Y403.31%
EPS Next 5YN/A
Revenue 1Y (TTM)11.46%
Revenue growth 3Y9.35%
Revenue growth 5Y15.41%
Sales Q2Q%5.49%
Revenue Next Year4.4%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y563.53%
EBIT growth 3Y51.48%
EBIT growth 5Y15.93%
EBIT Next Year199.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.79%
FCF growth 3Y6.74%
FCF growth 5Y10.67%
OCF growth 1Y6.06%
OCF growth 3Y6.07%
OCF growth 5Y11.64%