NYSE:MCRN

Stock Analysis Report

Executive Summary

Milacron Holdings Corp. manufactures, distributes, and services engineered and customized systems within the plastic technology and processing industry in the United States and internationally.


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Milacron Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCRN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

MCRN

-0.3%

US Machinery

-2.0%

US Market


1 Year Return

20.4%

MCRN

-25.9%

US Machinery

-15.1%

US Market

Return vs Industry: MCRN underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: MCRN underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

MCRNIndustryMarket
7 Day-1.6%-0.3%-2.0%
30 Day-0.3%-22.2%-19.7%
90 Day8.0%-31.6%-23.2%
1 Year20.4%20.4%-23.8%-25.9%-13.4%-15.1%
3 Year-0.4%-0.4%-3.3%-10.4%10.9%3.7%
5 Yearn/a18.2%3.2%28.4%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Milacron Holdings undervalued compared to its fair value and its price relative to the market?

34.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCRN ($16.8) is trading below our estimate of fair value ($25.72)

Significantly Below Fair Value: MCRN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MCRN is poor value based on its PE Ratio (40.8x) compared to the Machinery industry average (23.4x).

PE vs Market: MCRN is poor value based on its PE Ratio (40.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MCRN is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MCRN is good value based on its PB Ratio (2.2x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

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

45.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCRN's forecast earnings growth (45.2% per year) is above the savings rate (2.7%).

Earnings vs Market: MCRN's earnings (45.2% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MCRN's revenue (3.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: MCRN's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCRN's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Milacron Holdings performed over the past 5 years?

57.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCRN has high quality earnings.

Growing Profit Margin: MCRN's current net profit margins (2.7%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: MCRN has become profitable over the past 5 years, growing earnings by 57.2% per year.

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

Earnings vs Industry: MCRN had negative earnings growth (-37.4%) over the past year, making it difficult to compare to the Machinery industry average (9.6%).


Return on Equity

High ROE: MCRN's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Milacron Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MCRN's short term assets ($600.0M) exceed its short term liabilities ($223.1M).

Long Term Liabilities: MCRN's short term assets ($600.0M) do not cover its long term liabilities ($891.3M).


Debt to Equity History and Analysis

Debt Level: MCRN's debt to equity ratio (146.2%) is considered high.

Reducing Debt: MCRN's debt to equity ratio has reduced from 251% to 146.2% over the past 5 years.

Debt Coverage: MCRN's debt is not well covered by operating cash flow (10%).

Interest Coverage: MCRN's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: MCRN's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Milacron Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MCRN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MCRN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MCRN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MCRN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCRN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Tom Goeke (60yo)

7.17s

Tenure

US$4,419,238

Compensation

Mr. Thomas J. Goeke, also known as Tom, serves as the Chief Executive Officer at Milacron LLC. Mr. Goeke has been the Chief Executive Officer and President of Milacron Holdings Corp. since September 2012 a ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.42M) is above average for companies of similar size in the US market ($USD2.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Goeke
CEO, President & Director7.17yrsUS$4.42m0.21% $2.5m
Bruce Chalmers
Chief Financial Officer5yrsUS$2.38m0.081% $957.5k
Mark Miller
VP & Chief Human Resources Officer4.5yrsUS$848.29k0.0073% $86.5k
Ling An-Heid
President of Mold-Masters2.08yrsUS$1.77m0.25% $3.0m
Gerrit Jue
President of Fluids3.17yrsUS$937.75k0.011% $135.1k
Bruce Catoen
Chief Technology Officerno datano datano data
Dario Vettor
Chief Information Officerno datano datano data
Hugh O'Donnell
VP, General Counsel & Secretary20.83yrsno data0.033% $389.8k
Michael Crawford
Manager of Corporate Communicationsno datano datano data
Michael Ellis
Director of Global Marketing & Communicationsno datano datano data

4.8yrs

Average Tenure

59yo

Average Age

Experienced Management: MCRN's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Goeke
CEO, President & Director7.17yrsUS$4.42m0.21% $2.5m
James Kratochvil
Independent Director5yrsUS$190.00k0.021% $253.9k
Ira Boots
Non-Executive Chairman7.58yrsUS$500.00k0.073% $860.3k
James Gentilcore
Independent Director5.75yrsUS$177.50k0.049% $582.0k
Timothy Crow
Independent Director2.33yrsUS$170.00k0.016% $187.1k
Waters Davis
Independent Director6.33yrsUS$170.00k0.026% $308.9k
Gregory Gluchowski
Independent Director2.33yrsUS$170.00k0.016% $187.1k
David Reeder
Independent Director2.33yrsUS$170.00k0.016% $187.1k
Rebecca Steinfort
Independent Director2.33yrsUS$170.00k0.016% $187.1k

5.0yrs

Average Tenure

62yo

Average Age

Experienced Board: MCRN's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MCRN insiders have only sold shares 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

Milacron Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Milacron Holdings Corp.
  • Ticker: MCRN
  • Exchange: NYSE
  • Founded: 1860
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$1.184b
  • Shares outstanding: 70.50m
  • Website: https://www.milacron.com

Number of Employees


Location

  • Milacron Holdings Corp.
  • 10200 Alliance Road
  • Suite 200
  • Cincinnati
  • Ohio
  • 45242
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCRNNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2015
RM6DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2015

Biography

Milacron Holdings Corp. manufactures, distributes, and services engineered and customized systems within the plastic technology and processing industry in the United States and internationally. The company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies (Fluids). The APPT segment designs, manufactures, and sells plastic processing equipment and systems, which include injection molding, blow molding, and extrusion equipment; and auxiliary systems and related parts and services. This segment serves companies who serve in the consumer goods, packaging, electronics, medical, automotive, and construction end markets. The MDCS segment designs, manufactures, and sells hot runner systems, process control systems, mold bases and components, and aftermarket parts and related technologies and services for injection molding, as well as maintenance, repair, and operating supplies for plastic processing operations. This segment serves customers in the plastic processing value chain and manufacturing spectrum, including OEMs, molders, and mold makers in the consumer goods, electronics, automotive, packaging, and medical end markets. The Fluids segment manufactures and markets coolants, lubricants, process cleaners, and corrosion inhibitors that are used in metalworking processes, such as cutting, grinding, stamping, forming, and high speed machining. This segment’s products are used in various markets, such as aerospace, medical, automotive, industrial components and machinery, bearings, munitions, packaging, job shops, and glass and mirror production. The company was formerly known as Milacron LLC and changed its name to Milacron Holdings Corp. in May 2012. The company was founded in 1860 and is headquartered in Cincinnati, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 00:54
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.