Update shared on 26 Nov 2025
Analysts have maintained their fair value estimate for Mayville Engineering Company at $23.60 per share, citing the company's expanding exposure to the data center market and expectations of improved profitability as factors supporting this valuation.
Analyst Commentary
Bullish Takeaways- Bullish analysts view Mayville Engineering as a hidden beneficiary of growth in the data center sector, particularly following its recent acquisition that expanded ties to data center customers.
- Expectations are high that the data center market could soon become the largest revenue contributor for the company. This could accelerate growth and enhance profitability.
- The inherently higher margins offered by data center-related business are seen as a catalyst for both near-term and long-term improvements in the company's earnings profile.
- If execution proceeds as anticipated, valuations could rise meaningfully. Some suggest that the stock could eventually be viewed on par with other established companies in the data center space, potentially reaching much higher share prices over time.
- Bearish analysts remain cautious, noting that a positive revision cycle in earnings depends on successful execution in the new end market.
- There are uncertainties regarding whether the company can scale its data center exposure to a level that meaningfully lifts margins and overall profitability.
- Some point out that achieving a valuation similar to larger, established data center firms may be challenging given Mayville’s current size and track record.
- Market recognition and sustained momentum in the stock price are still unproven and may take time to materialize, introducing risks to the bullish case.
What's in the News
- Mayville Engineering Company reiterated earnings guidance for the full year 2025, expecting net sales between $528 million and $562 million. (Key Developments)
Valuation Changes
- Fair Value Estimate remains unchanged at $23.60 per share, reflecting no adjustment to the company's overall valuation.
- Discount Rate has risen slightly from 10.30% to 10.32%, indicating a marginally higher risk premium applied in updated models.
- Revenue Growth projection is unchanged and steady at approximately 9.90% annually.
- Net Profit Margin has fallen moderately from 2.99% to 2.62%, suggesting analysts expect slightly lower profitability going forward.
- Future P/E Ratio has increased from 28.3x to 34.2x, indicating higher expectations for the company's future earnings relative to its price.
Disclaimer
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