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Meritor

NYSE:MTOR
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MTOR
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

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. The last earnings update was 55 days ago. More info.


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MTOR Share Price and Events
7 Day Returns
1.2%
NYSE:MTOR
1.3%
US Machinery
-0.4%
US Market
1 Year Returns
15.1%
NYSE:MTOR
6.4%
US Machinery
4.3%
US Market
MTOR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Meritor (MTOR) 1.2% 17.1% 17.5% 15.1% 238.4% 83.6%
US Machinery 1.3% 6.7% 4.4% 6.4% 56.2% 24.8%
US Market -0.4% 2.8% 2.7% 4.3% 40.9% 38.2%
1 Year Return vs Industry and Market
  • MTOR outperformed the Machinery industry which returned 6.4% over the past year.
  • MTOR outperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
MTOR
Industry
5yr Volatility vs Market

Value

 Is Meritor undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Meritor to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Meritor.

NYSE:MTOR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MTOR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.067 (1 + (1- 21%) (43.27%))
1.289
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.289 * 5.96%)
10.41%

Discounted Cash Flow Calculation for NYSE:MTOR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Meritor is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MTOR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.41%)
2019 195.04 Analyst x5 176.65
2020 202.85 Analyst x2 166.40
2021 238.15 Est @ 17.4% 176.93
2022 269.12 Est @ 13% 181.08
2023 295.81 Est @ 9.92% 180.28
2024 318.77 Est @ 7.76% 175.95
2025 338.71 Est @ 6.25% 169.33
2026 356.31 Est @ 5.2% 161.33
2027 372.19 Est @ 4.46% 152.63
2028 386.84 Est @ 3.94% 143.68
Present value of next 10 years cash flows $1,684.26
NYSE:MTOR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $386.84 × (1 + 2.73%) ÷ (10.41% – 2.73%)
$5,173.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,173.59 ÷ (1 + 10.41%)10
$1,921.55
NYSE:MTOR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,684.26 + $1,921.55
$3,605.82
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,605.82 / 83.50
$43.19
NYSE:MTOR Discount to Share Price
Calculation Result
Value per share (USD) From above. $43.19
Current discount Discount to share price of $23.72
= -1 x ($23.72 - $43.19) / $43.19
45.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Meritor is available for.
Intrinsic value
45%
Share price is $23.72 vs Future cash flow value of $43.19
Current Discount Checks
For Meritor to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Meritor's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Meritor's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Meritor's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Meritor's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MTOR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.06
NYSE:MTOR Share Price ** NYSE (2019-06-26) in USD $23.72
United States of America Machinery Industry PE Ratio Median Figure of 99 Publicly-Listed Machinery Companies 20.58x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Meritor.

NYSE:MTOR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MTOR Share Price ÷ EPS (both in USD)

= 23.72 ÷ 3.06

7.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Meritor is good value based on earnings compared to the US Machinery industry average.
  • Meritor is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Meritor's expected growth come at a high price?
Raw Data
NYSE:MTOR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-5.4%per year
United States of America Machinery Industry PEG Ratio Median Figure of 80 Publicly-Listed Machinery Companies 1.46x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:MTOR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.74x ÷ -5.4%

-1.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Meritor earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Meritor's assets?
Raw Data
NYSE:MTOR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $4.92
NYSE:MTOR Share Price * NYSE (2019-06-26) in USD $23.72
United States of America Machinery Industry PB Ratio Median Figure of 127 Publicly-Listed Machinery Companies 2.31x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.78x
NYSE:MTOR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MTOR Share Price ÷ Book Value per Share (both in USD)

= 23.72 ÷ 4.92

4.82x

* Primary Listing of Meritor.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Meritor is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Meritor's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Meritor has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Meritor expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-5.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Meritor expected to grow at an attractive rate?
  • Meritor's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Meritor's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Meritor's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MTOR Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MTOR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -5.4%
NYSE:MTOR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts -2.8%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MTOR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MTOR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 4,182 248 1
2021-09-30 4,100 232 2
2020-09-30 4,157 285 250 4
2019-09-30 4,412 289 285 7
NYSE:MTOR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 4,403 230 261
2018-12-31 4,313 229 245
2018-09-30 4,178 251 120
2018-06-30 4,020 231 327
2018-03-31 3,811 218 310
2017-12-31 3,551 223 275
2017-09-30 3,347 176 325
2017-06-30 3,153 196 560
2017-03-31 3,074 195 553
2016-12-31 3,089 195 564
2016-09-30 3,199 204 577
2016-06-30 3,324 119 82

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Meritor's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Meritor's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MTOR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Meritor Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MTOR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 3.20 3.20 3.20 1.00
2021-09-30 2.87 2.87 2.87 1.00
2020-09-30 2.74 2.80 2.67 2.00
2019-09-30 3.39 3.61 3.30 5.00
NYSE:MTOR Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.06
2018-12-31 2.83
2018-09-30 1.37
2018-06-30 3.71
2018-03-31 3.50
2017-12-31 3.11
2017-09-30 3.69
2017-06-30 6.39
2017-03-31 6.28
2016-12-31 6.35
2016-09-30 6.40
2016-06-30 0.89

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Meritor is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Meritor's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Meritor has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Meritor performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Meritor's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Meritor's year on year earnings growth rate has been positive over the past 5 years.
  • Meritor's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Meritor's 1-year earnings growth is negative, it can't be compared to the US Machinery industry average.
Earnings and Revenue History
Meritor's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Meritor Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MTOR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 4,403.00 261.00 256.00
2018-12-31 4,313.00 245.00 289.00
2018-09-30 4,178.00 120.00 290.00
2018-06-30 4,020.00 327.00 256.00
2018-03-31 3,811.00 310.00 254.00
2017-12-31 3,551.00 275.00 243.00
2017-09-30 3,347.00 325.00 240.00
2017-06-30 3,153.00 560.00 228.00
2017-03-31 3,074.00 553.00 218.00
2016-12-31 3,089.00 564.00 213.00
2016-09-30 3,199.00 577.00 220.00
2016-06-30 3,324.00 82.00 229.00
2016-03-31 3,392.00 55.00 233.00
2015-12-31 3,435.00 61.00 243.00
2015-09-30 3,505.00 65.00 220.00
2015-06-30 3,585.00 115.00 247.00
2015-03-31 3,655.00 337.00 255.00
2014-12-31 3,745.00 299.00 262.00
2014-09-30 3,766.00 279.00 258.00
2014-06-30 3,713.00 292.00 257.00
2014-03-31 3,727.00 18.00 247.00
2013-12-31 3,681.00 13.00 246.00
2013-09-30 3,672.00 -15.00 242.00
2013-06-30 3,778.00 -53.00 270.00
2013-03-31 3,898.00 34.00 275.00
2012-12-31 4,150.00 67.00 282.00
2012-09-30 4,384.00 69.00 282.00
2012-06-30 4,649.00 104.00 271.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Meritor made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Meritor used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • Meritor has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Meritor's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Meritor has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Meritor's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Meritor's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Meritor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Meritor's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Meritor's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Meritor Company Filings, last reported 2 months ago.

NYSE:MTOR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 445.00 857.00 98.00
2018-12-31 362.00 904.00 127.00
2018-09-30 317.00 818.00 115.00
2018-06-30 303.00 778.00 100.00
2018-03-31 312.00 807.00 100.00
2017-12-31 263.00 816.00 116.00
2017-09-30 293.00 1,040.00 87.00
2017-06-30 -56.00 1,002.00 231.00
2017-03-31 -138.00 1,002.00 138.00
2016-12-31 -185.00 994.00 125.00
2016-09-30 -186.00 996.00 160.00
2016-06-30 -596.00 994.00 129.00
2016-03-31 -601.00 1,003.00 94.00
2015-12-31 -653.00 1,055.00 128.00
2015-09-30 -646.00 1,051.00 193.00
2015-06-30 -591.00 1,097.00 345.00
2015-03-31 -570.00 950.00 207.00
2014-12-31 -576.00 967.00 214.00
2014-09-30 -585.00 955.00 247.00
2014-06-30 -527.00 1,091.00 303.00
2014-03-31 -782.00 1,088.00 233.00
2013-12-31 -808.00 1,138.00 300.00
2013-09-30 -822.00 1,138.00 318.00
2013-06-30 -1,059.00 1,167.00 228.00
2013-03-31 -1,014.00 1,055.00 117.00
2012-12-31 -1,011.00 1,055.00 139.00
2012-09-30 -982.00 1,060.00 257.00
2012-06-30 -933.00 1,057.00 226.00
  • Meritor's level of debt (192.6%) compared to net worth is high (greater than 40%).
  • Meritor had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (26.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Meritor's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Meritor has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Meritor dividends. Estimated to be 0% next year.
If you bought $2,000 of Meritor shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Meritor's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Meritor's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MTOR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MTOR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-09-30
2021-09-30 0.00 2.00
2020-09-30 0.00 2.00
2019-09-30 0.00 2.00
NYSE:MTOR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2011-02-01 0.000 0.000
2010-11-24 0.000 0.000
2010-11-16 0.000 0.000
2010-08-04 0.000 0.000
2010-08-03 0.000 0.000
2010-05-06 0.000 0.000
2010-05-04 0.000 0.000
2010-02-05 0.000 0.000
2010-02-02 0.000 0.000
2009-11-20 0.000 0.000
2009-11-19 0.000 0.000
2009-11-10 0.000 0.000
2009-08-07 0.000 0.000
2009-08-04 0.000 0.000
2009-02-04 0.000 0.000
2008-11-07 0.400 13.900
2008-07-25 0.400 3.826

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Meritor has not reported any payouts.
  • Unable to verify if Meritor's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Meritor's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Meritor has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Meritor's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Meritor's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Meritor afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Meritor has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jay Craig
COMPENSATION $7,842,647
AGE 58
TENURE AS CEO 4.2 years
CEO Bio

Mr. Jeffrey A. Craig, also known as Jay, has been the Chief Executive Officer of Meritor, Inc. (Formerly known as ArvinMeritor, Inc.) since April 29, 2015 and has been its President since June 9, 2014. Mr. Craig served as the Chief Operating Officer of Meritor, Inc. since June 9, 2014 until March 2015. Mr. Craig served as Senior Vice President at Meritor, Inc. from May 2007 to May 2014 and its President of Commercial Truck & Industrial Segment from February 2013 to May 2014. He served as Chief Financial Officer at Meritor, Inc. from February 2009 to January 2013. Mr. Craig served as Principal Accounting Officer of Meritor, Inc. He served as Vice President of Meritor, Inc. from May 2006 to April 2007. He served as Controller of Meritor, Inc. from May 1, 2006 to April 2008. Mr. Craig served as Acting Controller of Meritor, Inc. since May 2008 until January 2009. He was responsible for worldwide financial controls and compliance with Sarbanes-Oxley requirements, financial systems, financial planning and management reporting, accounting policies and external reporting and also been responsible for leading Meritor, Inc.'s efforts to realize overhead cost reduction for indirect materials and savings associated with Performance Plus, its transformational program. He was appointed as Director of Arcosa, Inc. since September 2018. He joined Meritor, Inc. from General Motors Acceptance Corp. where he served as the President and Chief Executive Officer of Commercial Finance from 2001 to April 2006. Mr. Craig served as the President and Chief Executive Officer of Business Credit division of GMAC from 1999 to 2001. He joined GMAC as a General Auditor in 1997 from Deloitte & Touche, where he served as an Audit Partner for 15 years. He has been a Director of Meritor, Inc. since April 29, 2015. Mr. Craig holds a Bachelor of Science degree in Accounting from Michigan State University and a Master of Business Administration from Duke University in Durham, NC.

CEO Compensation
  • Jay's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Jay's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Meritor management team in years:

3.5
Average Tenure
54
Average Age
  • The tenure for the Meritor management team is about average.
Management Team

Jay Craig

TITLE
President
COMPENSATION
$8M
AGE
58
TENURE
4.2 yrs

April Boise

TITLE
Senior VP
COMPENSATION
$2M
AGE
49
TENURE
2.8 yrs

Joe Plomin

TITLE
Senior VP and President of Aftermarket & Industrial & Trailer
COMPENSATION
$3M
AGE
56
TENURE
5.4 yrs

Chris Villavarayan

TITLE
Senior VP & President of Global Truck
COMPENSATION
$2M
AGE
48
TENURE
5.3 yrs

Carl Anderson

TITLE
Senior VP & CFO
TENURE
0.3 yrs

Paul Bialy

TITLE
VP, Controller & Principal Accounting Officer
TENURE
3.5 yrs

John Bennett

TITLE
VP & CTO
TENURE
1 yrs

Tim Heffron

TITLE
Senior VP of Human Resources & Chief Information Officer
COMPENSATION
$1M
AGE
54
TENURE
7.9 yrs

Todd Chirillo

TITLE
Senior Director of Investor Relations

Krista Sohm

TITLE
VP and Chief Marketing & Communications Officer
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the Meritor board of directors in years:

4.4
Average Tenure
65
Average Age
  • The tenure for the Meritor board of directors is about average.
Board of Directors

William Newlin

TITLE
Non-Executive Chairman
COMPENSATION
$375K
AGE
78
TENURE
3.2 yrs

Jay Craig

TITLE
President
COMPENSATION
$8M
AGE
58
TENURE
4.2 yrs

Tom Pajonas

TITLE
Independent Director
COMPENSATION
$245K
AGE
63
TENURE
5.8 yrs

Lloyd Trotter

TITLE
Independent Director
COMPENSATION
$240K
AGE
72
TENURE
4.4 yrs

Rhonda Brooks

TITLE
Independent Director
COMPENSATION
$235K
AGE
65
TENURE
18.9 yrs

Ivor Evans

TITLE
Director
COMPENSATION
$225K
AGE
75
TENURE
14.1 yrs

William Lyons

TITLE
Independent Director
COMPENSATION
$250K
AGE
70
TENURE
6.1 yrs

Jan Bertsch

TITLE
Independent Director
COMPENSATION
$235K
AGE
61
TENURE
2.8 yrs

Rodger Boehm

TITLE
Director
COMPENSATION
$226K
AGE
58
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Meritor individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
16. May 19 Buy Rodger Boehm Individual 14. May 19 14. May 19 2,000 $21.00 $42,000
21. Feb 19 Sell Timothy Heffron Individual 19. Feb 19 19. Feb 19 -36,940 $22.00 $-812,680
19. Feb 19 Sell Chrishan Anton Villavarayan Individual 15. Feb 19 15. Feb 19 -34,246 $21.31 $-729,950
07. Feb 19 Sell Joseph Plomin Individual 06. Feb 19 06. Feb 19 -10,000 $20.63 $-206,256
X
Management checks
We assess Meritor's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Meritor has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do You Like Meritor, Inc. (NYSE:MTOR) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Meritor, Inc.'s (NYSE:MTOR) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Meritor, Inc. (NYSE:MTOR): Earnings Expected To Remain Subdued

Looking at Meritor, Inc.'s (NYSE:MTOR) earnings update in December 2018,. … With trailing-twelve-month net income at current levels of US$120m, the consensus growth rate suggests that earnings will decline to. … In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Meritor in the longer term

Simply Wall St -

Meritor, Inc. (NYSE:MTOR) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in Meritor, Inc. … That means that an insider was selling shares at around the current price of US$20.11. … Over the last year we saw more insider selling of Meritor shares, than buying

Simply Wall St -

A Holistic Look At Meritor, Inc. (NYSE:MTOR)

Looking at the company as a whole, as a potential stock investment, I believe MTOR has a lot to offer. … is a company that has been able to sustain great financial health, trading at an attractive share price.

Simply Wall St -

The Meritor Share Price Is Up 201% And Shareholders Are Boasting About It

(NYSE:MTOR) share price has flown 201% in the last three years. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Meritor achieved compound earnings per share growth of 62% per year.

Simply Wall St -

Meritor, Inc. (NYSE:MTOR) Is Employing Capital Very Effectively

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Should You Think About Buying Meritor, Inc. (NYSE:MTOR) Now?

(NYSE:MTOR), which is in the machinery business, and is based in United States,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Meritor’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Do You Like Meritor, Inc. (NYSE:MTOR) At This P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Meritor, Inc.'s (NYSE:MTOR) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Boasting A 41% Return On Equity, Is Meritor, Inc. (NYSE:MTOR) A Top Quality Stock?

Meritor has a ROE of 41%, based on the last twelve months. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.41. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Meritor Inc (NYSE:MTOR): What We Can Expect From This Growth Stock

On 30 September 2018, Meritor Inc (NYSE:MTOR) released its earnings update. … as earnings are expected to increase by more than twofold next year,

Simply Wall St -

Company Info

Description

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. It operates through two segments, Commercial Truck; and Aftermarket, Industrial and Trailer. The Commercial Truck segment supplies drivetrain systems and components, including axles, drivelines, and braking and suspension systems primarily for medium-and heavy-duty trucks and other applications; and undercarriage products and systems for trailer applications. The Aftermarket, Industrial and Trailer segment supplies axles, brakes, drivelines, suspension parts, and other replacement parts to commercial vehicle and industrial aftermarket customers. It also supplies drivetrain systems and various components, such as axles, drivelines, brakes, and suspension systems for military, construction, bus and coach, fire and emergency, and other applications. The company sells its products under the Meritor, Euclid, Trucktechnic, and Mach brands primarily to OEMs and its parts marketing operations, and dealers, as well as for other independent distributors and service garages in the aftermarket industry in North America, South America, Europe, and the Asia Pacific. The company was formerly known as ArvinMeritor, Inc. and changed its name to Meritor, Inc. in March 2011. Meritor, Inc. was founded in 1921 and is headquartered in Troy, Michigan.

Details
Name: Meritor, Inc.
MTOR
Exchange: NYSE
Founded: 1921
$1,980,502,775
83,495,058
Website: http://www.meritor.com
Address: Meritor, Inc.
2135 West Maple Road,
Troy,
Michigan, 48084,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MTOR Common Stock New York Stock Exchange US USD 15. Sep 1997
DB AID1 Common Stock Deutsche Boerse AG DE EUR 15. Sep 1997
Number of employees
Current staff
Staff numbers
8,600
Meritor employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 23:31
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/11
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.