Meritor, Inc. designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. More Details
Reasonable growth potential and fair value.
Share Price & News
How has Meritor's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MTOR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: MTOR's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MTOR underperformed the US Machinery industry which returned 92.4% over the past year.
Return vs Market: MTOR underperformed the US Market which returned 52.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Meritor's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall StIs Meritor (NYSE:MTOR) Using Too Much Debt?
1 month ago | Simply Wall StShould You Be Excited About Meritor, Inc.'s (NYSE:MTOR) 42% Return On Equity?
2 months ago | Simply Wall StDon't Ignore The Fact That This Insider Just Sold Some Shares In Meritor, Inc. (NYSE:MTOR)
Is Meritor 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: MTOR ($26.84) is trading above our estimate of fair value ($23.22)
Significantly Below Fair Value: MTOR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MTOR is good value based on its PE Ratio (32.3x) compared to the US Machinery industry average (33.9x).
PE vs Market: MTOR is poor value based on its PE Ratio (32.3x) compared to the US market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: MTOR is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: MTOR is good value based on its PB Ratio (3.4x) compared to the US Machinery industry average (3.5x).
How is Meritor forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MTOR's forecast earnings growth (49.7% per year) is above the savings rate (2%).
Earnings vs Market: MTOR's earnings (49.7% per year) are forecast to grow faster than the US market (15.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MTOR's revenue (14.4% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: MTOR's revenue (14.4% 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 MTOR's Return on Equity is forecast to be high in 3 years time
How has Meritor performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MTOR has high quality earnings.
Growing Profit Margin: MTOR's current net profit margins (1.9%) are lower than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: MTOR's earnings have declined by 10.3% per year over the past 5 years.
Accelerating Growth: MTOR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MTOR had negative earnings growth (-85.2%) over the past year, making it difficult to compare to the Machinery industry average (-9.3%).
Return on Equity
High ROE: MTOR's Return on Equity (10.6%) is considered low.
How is Meritor's financial position?
Financial Position Analysis
Short Term Liabilities: MTOR's short term assets ($1.5B) exceed its short term liabilities ($889.0M).
Long Term Liabilities: MTOR's short term assets ($1.5B) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: MTOR's debt to equity ratio (191.7%) is considered high.
Reducing Debt: MTOR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: MTOR's debt is not well covered by operating cash flow (7%).
Interest Coverage: MTOR's interest payments on its debt are not well covered by EBIT (1.8x coverage).
What is Meritor current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MTOR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MTOR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MTOR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MTOR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MTOR is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MTOR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Villavarayan (50 yo)
Mr. Chrishan Anthon Sebastian Villavarayan, also known as Chris, has been Chief Executive Officer, President and Director of Meritor, Inc. since February 28, 2021. Mr. Villavarayan was Executive Vice Presi...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD2.28M) is below average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Experienced Management: MTOR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Experienced Board: MTOR's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MTOR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Meritor, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Meritor, Inc.
- Ticker: MTOR
- Exchange: NYSE
- Founded: 1909
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: US$1.852b
- Shares outstanding: 72.58m
- Website: https://www.meritor.com
Number of Employees
- Meritor, Inc.
- 2135 West Maple Road
- United States
Meritor, Inc. designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/06 22:35|
|End of Day Share Price||2021/05/06 00:00|
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.