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

Fundamentals

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


Market Performance


7 Day Return

1.7%

MCRN

5.1%

US Machinery

2.3%

US Market


1 Year Return

-6.8%

MCRN

2.8%

US Machinery

5.6%

US Market

Return vs Industry: MCRN underperformed the US Machinery industry which returned 2.8% over the past year.

Return vs Market: MCRN underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

MCRNIndustryMarket
7 Day1.7%5.1%2.3%
30 Day-1.1%-2.1%-1.0%
90 Day-2.0%-1.3%-0.7%
1 Year-6.8%-6.8%5.0%2.8%7.9%5.6%
3 Year7.3%7.3%46.5%37.0%45.6%36.3%
5 Yearn/a59.6%40.4%65.8%47.6%

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?

49.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MCRN ($16.51) is trading below our estimate of fair value ($32.43)

Significantly Undervalued: 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 (34.7x) compared to the Machinery industry average (19.9x).

PE vs Market: MCRN is poor value based on its PE Ratio (34.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 (2.2x).


Next Steps

Future Growth

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

39.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCRN's forecast earnings growth (39.3% per year) is above the savings rate (2.7%).

Earnings vs Market: MCRN's earnings (39.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: MCRN's revenue (1.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MCRN's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MCRN's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has Milacron Holdings performed over the past 5 years?

61.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MCRN has become profitable over the past 5 years, growing earnings by 61.8% 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 (-12.4%) over the past year, making it difficult to compare to the Machinery industry average (18.7%).


Return on Equity

High ROE: MCRN's Return on Equity (6.3%) is considered low.


Return on Assets

ROA vs Industry: MCRN's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: MCRN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Milacron Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MCRN's short term assets ($664.2M) exceeds its short term liabilities ($245.7M)

Long Term Liabilities: MCRN's short term assets (664.2M) do not cover its long term liabilities (953.1M)


Debt to Equity History and Analysis

Debt Level: MCRN's debt to equity ratio (156.7%) is considered high

Reducing Debt: MCRN's debt to equity ratio has reduced from 239.7% to 156.7% over the past 5 years.

Debt Coverage: MCRN's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: MCRN's interest payments on its debt are not well covered by EBIT (2.6x 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

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Milacron Holdings's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Tom Goeke (60yo)

7.1yrs

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 ($USD4.42M) is about average for companies of similar size in the US market ($USD2.69M).

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


Management Age and Tenure

4.7yrs

Average Tenure

59yo

Average Age

Experienced Management: MCRN's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

62yo

Average Age

Experienced Board: MCRN's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: MCRN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$81,45705 Aug 19
Bruce Chalmers
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,993
Max PriceUS$16.31
SellUS$42,38605 Mar 19
Hugh O'Donnell
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares3,021
Max PriceUS$14.03
SellUS$69,30005 Mar 19
Mark Miller
EntityIndividual
Role
Head of Human Resources
VP & Chief Human Resources Officer
Shares4,940
Max PriceUS$14.03
SellUS$72,07005 Mar 19
Gerrit Jue
EntityIndividual
Role
Unit President
President of Fluids
Shares5,137
Max PriceUS$14.03
SellUS$82,14705 Mar 19
Ling An-Heid
EntityIndividual
Role
Unit President
President of Mold-Masters
Shares5,855
Max PriceUS$14.03

Ownership Breakdown


Management Team

  • Hugh O'Donnell (67yo)

    VP, General Counsel & Secretary

    • Tenure: 20.8yrs
  • Bruce Catoen

    Chief Technology Officer

    • Tenure: 0yrs
  • Bruce Chalmers (53yo)

    Chief Financial Officer

    • Tenure: 4.9yrs
    • Compensation: US$2.38m
  • Tom Goeke (60yo)

    CEO, President & Director

    • Tenure: 7.1yrs
    • Compensation: US$4.42m
  • Michael Ellis

    Director of Global Marketing & Communications

    • Tenure: 0yrs
  • Mark Miller (56yo)

    VP & Chief Human Resources Officer

    • Tenure: 4.4yrs
    • Compensation: US$848.29k
  • Dario Vettor

    Chief Information Officer

    • Tenure: 0yrs
  • Gerrit Jue (60yo)

    President of Fluids

    • Tenure: 3.1yrs
    • Compensation: US$937.75k
  • Ling An-Heid (58yo)

    President of Mold-Masters

    • Tenure: 2yrs
    • Compensation: US$1.77m
  • Michael Crawford

    Manager of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Jim Kratochvil (62yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$190.00k
  • Ira Boots (64yo)

    Non-Executive Chairman

    • Tenure: 7.5yrs
    • Compensation: US$500.00k
  • Jim Gentilcore (66yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$177.50k
  • Tom Goeke (60yo)

    CEO, President & Director

    • Tenure: 7.1yrs
    • Compensation: US$4.42m
  • Tim Crow (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$170.00k
  • Waters Davis (65yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$170.00k
  • Greg Gluchowski (54yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$170.00k
  • David Reeder (44yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$170.00k
  • Rebecca Steinfort (49yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$170.00k

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$1.164b
  • Shares outstanding: 70.52m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:32
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.