Stock Analysis Report

Executive Summary

MTS Systems Corporation supplies test systems, motion simulators, and sensors in the Americas, Europe, and Asia.

Snowflake Analysis

Established dividend payer and good value.

Similar Companies

Share Price & News

How has MTS Systems's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: MT7's share price has been volatile over the past 3 months.

Market Performance

7 Day Return




DE Electronic


DE Market

1 Year Return




DE Electronic


DE Market

Return vs Industry: MT7 underperformed the German Electronic industry which returned -28.3% over the past year.

Return vs Market: MT7 underperformed the German Market which returned -20.9% over the past year.

Shareholder returns

7 Day-3.6%1.5%-0.6%
30 Day-37.0%-17.4%-16.6%
90 Day-55.4%-21.6%-26.0%
1 Year-60.5%-61.6%-26.8%-28.2%-18.6%-20.9%
3 Year-59.4%-62.3%-4.0%-7.1%-19.0%-25.8%
5 Year-69.8%-73.2%53.6%42.4%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is MTS Systems's share price compared to the market and industry in the last 5 years?

Simply Wall St News

No news available


Is MTS Systems undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: MT7 (€17.4) is trading above our estimate of fair value (€15.07)

Significantly Below Fair Value: MT7 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: MT7 is good value based on its PE Ratio (9.3x) compared to the Electronic industry average (18.7x).

PE vs Market: MT7 is good value based on its PE Ratio (9.3x) compared to the German market (16.6x).

Price to Earnings Growth Ratio

PEG Ratio: MT7 is good value based on its PEG Ratio (0.7x)

Price to Book Ratio

PB vs Industry: MT7 is good value based on its PB Ratio (0.7x) compared to the DE Electronic industry average (1.2x).

Next Steps

Future Growth

How is MTS Systems forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MT7's forecast earnings growth (13.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: MT7's earnings (13.3% per year) are forecast to grow slower than the German market (14.1% per year).

High Growth Earnings: MT7's earnings are forecast to grow, but not significantly.

Revenue vs Market: MT7's revenue (5.7% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: MT7's revenue (5.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if MT7's Return on Equity is forecast to be high in 3 years time

Next Steps

Past Performance

How has MTS Systems performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MT7 has a large one-off loss of $41.2M impacting its December 28 2019 financial results.

Growing Profit Margin: MT7's current net profit margins (4.2%) are lower than last year (4.9%).

Past Earnings Growth Analysis

Earnings Trend: MT7's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: MT7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MT7 had negative earnings growth (-2.7%) over the past year, making it difficult to compare to the Electronic industry average (-7.4%).

Return on Equity

High ROE: MT7's Return on Equity (7.7%) is considered low.

Next Steps

Financial Health

How is MTS Systems's financial position?

Financial Position Analysis

Short Term Liabilities: MT7's short term assets ($460.8M) exceed its short term liabilities ($270.4M).

Long Term Liabilities: MT7's short term assets ($460.8M) do not cover its long term liabilities ($570.2M).

Debt to Equity History and Analysis

Debt Level: MT7's debt to equity ratio (110.6%) is considered high.

Reducing Debt: MT7's debt to equity ratio has increased from 25.6% to 110.6% over the past 5 years.

Debt Coverage: MT7's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: MT7's interest payments on its debt are well covered by EBIT (3.5x coverage).

Balance Sheet

Inventory Level: MT7 has a high level of physical assets or inventory.

Debt Coverage by Assets: MT7's debt is not covered by short term assets (assets are 0.9x debt).

Next Steps


What is MTS Systems's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MT7's dividend (6.56%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: MT7's dividend (6.56%) is in the top 25% of dividend payers in the German market (4.86%)

Stability and Growth of Payments

Stable Dividend: MT7's dividends per share have been stable in the past 10 years.

Growing Dividend: MT7's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61%), MT7's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Jeff Graves (58yo)





Dr. Jeffrey A. Graves, also known as Jeff, Ph.D., has been the President and Chief Executive Officer of MTS Systems Corporation since May 7, 2012 and a Director since 2012. Dr. Graves served as the Preside ...

CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.19M) is above average for companies of similar size in the German market ($USD1.10M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.

Leadership Team

Jeffrey Graves
President7.92yrsUS$3.19m0.34% $1.3m
Brian Ross
Executive VP & CFO2.92yrsUS$1.08m0.021% $80.3k
David Hore
Executive VP & President of Sensors0.75yrUS$912.88k0.20% $788.8k
Steven Harrison
Executive VP and President of Test & Simulation3.17yrsUS$1.56m0.034% $133.9k
Mark Losee
Senior VP & Chief Information Officer7.58yrsno datano data
Andrew Cebulla
Director of Investor Relations & Treasurerno datano datano data
Phyllis Nordstrom
Senior VP and Chief Risk & Compliance Officer3.08yrsno datano data
Todd Klemmensen
Senior VP1.75yrsno data0.013% $51.6k
Amanda Daniel
Senior VP & Chief Human Resources Officerno datano datano data


Average Tenure


Average Age

Experienced Management: MT7's management team is considered experienced (3.1 years average tenure).

Board Members

Jeffrey Graves
President7.92yrsUS$3.19m0.34% $1.3m
David Johnson
Independent Director6.83yrsUS$223.82k0.044% $173.5k
Randy Martinez
Independent Director6.08yrsUS$199.49k0.047% $184.1k
David Anderson
Independent Chairman of the Board8.67yrsUS$288.06k0.12% $484.9k
Michael Schrock
Independent Director6.08yrsUS$204.08k0.099% $387.9k
Nancy Altobello
Independent Director1yrUS$152.76kno data
Linda Zukauckas
Independent Director1yrUS$151.10k0.023% $89.7k
Chun Yu
Independent Director6.83yrsUS$186.99k0.11% $429.6k


Average Tenure


Average Age

Experienced Board: MT7's board of directors are considered experienced (6.5 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: MT7 insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

MTS Systems Corporation's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: MTS Systems Corporation
  • Ticker: MT7
  • Exchange: DB
  • Founded: 1966
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$421.890m
  • Listing Market Cap: US$391.049m
  • Shares outstanding: 19.19m
  • Website: https://www.mts.com

Number of Employees


  • MTS Systems Corporation
  • 14000 Technology Drive
  • Eden Prairie
  • Minnesota
  • 55344
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTSCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969
MT7DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969


MTS Systems Corporation supplies test systems, motion simulators, and sensors in the Americas, Europe, and Asia. The company’s Test & Simulation segment offers road simulators and component test systems, vehicle performance test systems, vehicle dynamics simulators, electrical motors and energy recovery systems, tire performance and rolling resistance measurement systems, and moving ground-plane systems and balances. It also provides systems for the physical characterization of material properties; systems to test durability and performance of implants, prostheses, and other medical and dental materials and devices; products, systems, and software to perform static and fatigue testing of aircraft; products for blades, bearings, and wind turbines; structural engineering systems, such as static and dynamic testing; and seismic simulation tables. In addition, this segment offers installation, product life cycle management, professional training, calibration and metrology, technical consulting, and onsite and factory repair and maintenance services, as well as accessories and spare parts. It serves automobile, truck, motorcycle, motorsports vehicles, construction and agricultural equipment, rail and off-road vehicle manufacturers, and their suppliers, as well as the power generation, aerospace, vehicles, biomedical, structural engineering, oil and gas, wind energy, and other industries. The company’s Sensors segment offers sensors for measurements of vibration, pressure, position, force, and sound; and piezoelectric sensors and components. It serves the automotive, aerospace, industrial, defense, and research and development markets. The company sells its products through direct sales and service organizations, and independent representatives and distributors, as well as through catalogs, Internet, etc. It has a strategic alliance with Auburn University. The company was founded in 1966 and is headquartered in Eden Prairie, Minnesota. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 23:17
End of Day Share Price2020/04/06 00:00
Annual Earnings2019/09/28

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.