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MEC

Mayville Engineering Company NYSE:MEC Stock Report

Last Price

US$7.71

Market Cap

US$150.1m

7D

2.8%

1Y

-60.9%

Updated

24 Jun, 2022

Data

Company Financials +
MEC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends0/6

MEC Stock Overview

Mayville Engineering Company, Inc., together with its subsidiaries, operates as a contract manufacturer that serves the heavy and medium duty commercial vehicle, construction and access equipment, powersports, agriculture, military, and other end markets in the United States.

Mayville Engineering Company Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Mayville Engineering Company
Historical stock prices
Current Share PriceUS$7.71
52 Week HighUS$20.99
52 Week LowUS$7.01
Beta0.53
1 Month Change-8.65%
3 Month Change-22.28%
1 Year Change-60.94%
3 Year Change-44.13%
5 Year Changen/a
Change since IPO-53.19%

Recent News & Updates

May 19
We Think Mayville Engineering Company (NYSE:MEC) Is Taking Some Risk With Its Debt

We Think Mayville Engineering Company (NYSE:MEC) Is Taking Some Risk With Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

MECUS MachineryUS Market
7D2.8%1.7%6.6%
1Y-60.9%-20.6%-18.5%

Return vs Industry: MEC underperformed the US Machinery industry which returned -23.4% over the past year.

Return vs Market: MEC underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is MEC's price volatile compared to industry and market?
MEC volatility
MEC Average Weekly Movement7.0%
Machinery Industry Average Movement5.9%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

Stable Share Price: MEC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MEC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19452,200Bob Kamphuishttps://www.mecinc.com

Mayville Engineering Company, Inc., together with its subsidiaries, operates as a contract manufacturer that serves the heavy and medium duty commercial vehicle, construction and access equipment, powersports, agriculture, military, and other end markets in the United States. The company provides a range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. It also supplies engineered components to original equipment manufacturers.

Mayville Engineering Company Fundamentals Summary

How do Mayville Engineering Company's earnings and revenue compare to its market cap?
MEC fundamental statistics
Market CapUS$150.09m
Earnings (TTM)-US$6.17m
Revenue (TTM)US$478.46m

0.3x

P/S Ratio

-25.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEC income statement (TTM)
RevenueUS$478.46m
Cost of RevenueUS$421.03m
Gross ProfitUS$57.43m
Other ExpensesUS$63.60m
Earnings-US$6.17m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.30
Gross Margin12.00%
Net Profit Margin-1.29%
Debt/Equity Ratio41.0%

How did MEC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MEC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MEC?

Other financial metrics that can be useful for relative valuation.

MEC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA6.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does MEC's PS Ratio compare to its peers?

MEC PS Ratio vs Peers
The above table shows the PS ratio for MEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.7x

Price-To-Sales vs Peers: MEC is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.7x).


Price to Earnings Ratio vs Industry

How does MEC's PE Ratio compare vs other companies in the U.S. Machinery Industry?

Price-To-Sales vs Industry: MEC is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Machinery industry average (1.4x)


Price to Sales Ratio vs Fair Ratio

What is MEC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MEC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: MEC is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Share Price vs Fair Value

What is the Fair Price of MEC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MEC ($7.71) is trading below our estimate of fair value ($52.57)

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


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MEC's PEG Ratio to determine if it is good value.


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Future Growth

How is Mayville Engineering Company forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


56.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: MEC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MEC is expected to become profitable in the next 3 years.

Revenue vs Market: MEC's revenue (6.2% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: MEC's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MEC's Return on Equity is forecast to be low in 3 years time (13.2%).


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Past Performance

How has Mayville Engineering Company performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-42.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MEC is currently unprofitable.

Growing Profit Margin: MEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MEC is unprofitable, and losses have increased over the past 5 years at a rate of 42.5% per year.

Accelerating Growth: Unable to compare MEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MEC is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (24%).


Return on Equity

High ROE: MEC has a negative Return on Equity (-3.04%), as it is currently unprofitable.


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Financial Health

How is Mayville Engineering Company's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MEC's short term assets ($153.2M) exceed its short term liabilities ($88.8M).

Long Term Liabilities: MEC's short term assets ($153.2M) exceed its long term liabilities ($151.6M).


Debt to Equity History and Analysis

Debt Level: MEC's net debt to equity ratio (41%) is considered high.

Reducing Debt: Insufficient data to determine if MEC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MEC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MEC has less than a year of cash runway if free cash flow continues to reduce at historical rates of 30.6% each year


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Dividend

What is Mayville Engineering Company current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MEC has not reported any payouts.


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Management

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

6.0yrs

Average management tenure


CEO

Bob Kamphuis (62 yo)

17.42yrs

Tenure

US$3,919,201

Compensation

Mr. Robert D. Kamphuis, also known as Bob, is President and Chief Executive Officer of Mayville Engineering Company, Inc. since 2005 and its Chairman since January 2007. Mr. Kamphuis also serves as a board...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD3.92M) is above average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Bob's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: MEC's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: MEC's board of directors are considered experienced (8.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Mayville Engineering Company, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Mayville Engineering Company, Inc.
  • Ticker: MEC
  • Exchange: NYSE
  • Founded: 1945
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$150.094m
  • Shares outstanding: 20.53m
  • Website: https://www.mecinc.com

Number of Employees


Location

  • Mayville Engineering Company, Inc.
  • 715 South Street
  • Mayville
  • Wisconsin
  • 53050
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.