Meritor Inc(NYSE:MTOR) stock Fundamental Analysis

Fundamental Rating

MTOR gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. Both the profitability and financial health of MTOR have multiple concerns. MTOR has a decent growth rate and is not valued too expensively.

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1. Profitability

1.1 Basic Checks

In the past year MTOR was profitable.

1.2 Ratios

		Industry Rank	Sector Rank
ROA	6.62%
ROE	32.4%
ROIC	9.14%

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

		Industry Rank	Sector Rank
OM	5.73%
PM (TTM)	5.37%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTOR is destroying value.

The number of shares outstanding for MTOR has been reduced compared to 1 year ago.

MTOR has a better debt/assets ratio than last year.

2.2 Solvency

MTOR has an Altman-Z score of 2.72. This is not the best score and indicates that MTOR is in the grey zone with still only limited risk for bankruptcy at the moment.

MTOR has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.

		Industry Rank	Sector Rank
Debt/Equity	1.51
Debt/FCF	N/A
Altman-Z	2.72

ROIC/WACC0.93

WACC9.78%

2.3 Liquidity

MTOR has a Current Ratio of 1.40. This is a normal value and indicates that MTOR is financially healthy and should not expect problems in meeting its short term obligations.

A Quick Ratio of 0.79 indicates that MTOR may have some problems paying its short term obligations.

		Industry Rank	Sector Rank
Current Ratio	1.4
Quick Ratio	0.79

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 233.33% over the past year.

MTOR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.35% yearly.

Looking at the last year, MTOR shows a very strong growth in Revenue. The Revenue has grown by 30.38%.

Measured over the past years, MTOR shows a small growth in Revenue. The Revenue has been growing by 3.68% on average per year.

EPS 1Y (TTM)233.33%

EPS 3Y-4.29%

EPS 5Y10.35%

EPS Q2Q%44.12%

Revenue 1Y (TTM)30.38%

Revenue growth 3Y-2.83%

Revenue growth 5Y3.68%

Sales Q2Q%17.4%

3.2 Future

The Earnings Per Share is expected to grow by 16.45% on average over the next years. This is quite good.

MTOR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.45% yearly.

EPS Next Y36.94%

EPS Next 2Y29.23%

EPS Next 3Y19.9%

EPS Next 5Y16.45%

Revenue Next Year9.16%

Revenue Next 2Y8.33%

Revenue Next 3Y4.68%

Revenue Next 5Y3.45%

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 stable.

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4. Valuation

4.1 Price/Earnings Ratio

MTOR is valuated reasonably with a Price/Earnings ratio of 11.41.

MTOR is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.

Based on the Price/Forward Earnings ratio of 8.09, the valuation of MTOR can be described as reasonable.

The average S&P500 Price/Forward Earnings ratio is at 22.70. MTOR is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	11.41
Fwd PE	8.09

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.75

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.

MTOR's earnings are expected to grow with 19.90% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.31

PEG (5Y)1.1

EPS Next 2Y29.23%

EPS Next 3Y19.9%

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5. Dividend

5.1 Amount

MTOR does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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Meritor Inc

NYSE:MTOR (8/2/2022, 8:22:39 PM)

After market: 36.51 +0.01 (+0.03%)

36.5

+0.01 (+0.03%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryMachinery

Earnings (Last)08-02 2022-08-02/amc

Earnings (Next)11-15 2022-11-15

Inst Owners0%

Inst Owner Change0%

Ins Owners2.1%

Ins Owner Change0%

Market Cap2.59B

Analysts47.5

Price Target37.23 (2%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DP0%

Div Incr YearsN/A

Div Non Decr YearsN/A

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)N/A

PT rev (3m)N/A

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)N/A

EPS NY rev (3m)N/A

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)N/A

Revenue NY rev (3m)N/A

Valuation

		Industry Rank	Sector Rank
PE	11.41
Fwd PE	8.09
P/S	0.63
P/FCF	N/A
P/OCF	N/A
P/B	3.81
P/tB	N/A
EV/EBITDA	10.75

EPS(TTM)3.2

EY8.77%

EPS(NY)4.51

Fwd EY12.35%

FCF(TTM)N/A

FCFYN/A

OCF(TTM)N/A

OCFYN/A

SpS57.85

BVpS9.58

TBVpSN/A

PEG (NY)0.31

PEG (5Y)1.1

Profitability

		Industry Rank	Sector Rank
ROA	6.62%
ROE	32.4%
ROCE	N/A
ROIC	9.14%
ROICexc	N/A
ROICexgc	11.97%
OM	5.73%
PM (TTM)	5.37%
GM	N/A
FCFM	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3Y0%

ROICexcg growth 5Y0%

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

F-Score7

Asset Turnover1.23

Health

		Industry Rank	Sector Rank
Debt/Equity	1.51
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	1.4
Quick Ratio	0.79
Altman-Z	2.72

F-Score7

WACC9.78%

ROIC/WACC0.93

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)233.33%

EPS 3Y-4.29%

EPS 5Y10.35%

EPS Q2Q%44.12%

EPS Next Y36.94%

EPS Next 2Y29.23%

EPS Next 3Y19.9%

EPS Next 5Y16.45%

Revenue 1Y (TTM)30.38%

Revenue growth 3Y-2.83%

Revenue growth 5Y3.68%

Sales Q2Q%17.4%

Revenue Next Year9.16%

Revenue Next 2Y8.33%

Revenue Next 3Y4.68%

Revenue Next 5Y3.45%

EBIT growth 1YN/A

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1YN/A

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1YN/A

OCF growth 3YN/A

OCF growth 5YN/A

Meritor Inc (MTOR) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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