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MTOR

MeritorNYSE:MTOR Stock Report

Last Price

US$23.79

Market Cap

US$1.7b

7D

-12.5%

1Y

-15.7%

Updated

21 Jan, 2022

Data

Company Financials +
MTOR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance1/6
Financial Health3/6
Dividends0/6

MTOR Stock Overview

Meritor, Inc. designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components in North America, South America, Europe, and the Asia Pacific.

Meritor Competitors

Caterpillar

NYSE:CAT

US$115.8b

Cummins

NYSE:CMI

US$31.9b

Oshkosh

NYSE:OSK

US$8.0b

Allison Transmission Holdings

NYSE:ALSN

US$4.0b

Price History & Performance

Summary of all time highs, changes and price drops for Meritor
Historical stock prices
Current Share PriceUS$23.79
52 Week HighUS$33.56
52 Week LowUS$20.50
Beta2.02
1 Month Change-1.57%
3 Month Change-3.33%
1 Year Change-15.73%
3 Year Change23.26%
5 Year Change60.96%
Change since IPO-13.88%

Recent News & Updates

Dec 14
Here's Why Meritor (NYSE:MTOR) Can Manage Its Debt Responsibly

Here's Why Meritor (NYSE:MTOR) Can Manage Its Debt Responsibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Nov 23
An Intrinsic Calculation For Meritor, Inc. (NYSE:MTOR) Suggests It's 45% Undervalued

An Intrinsic Calculation For Meritor, Inc. (NYSE:MTOR) Suggests It's 45% Undervalued

Does the November share price for Meritor, Inc. ( NYSE:MTOR ) reflect what it's really worth? Today, we will estimate...

Shareholder Returns

MTORUS MachineryUS Market
7D-12.5%-5.1%-6.1%
1Y-15.7%4.6%4.2%

Return vs Industry: MTOR underperformed the US Machinery industry which returned 5.6% over the past year.

Return vs Market: MTOR underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is MTOR's price volatile compared to industry and market?
MTOR volatility
MTOR Average Weekly Movement5.8%
Machinery Industry Average Movement5.0%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
19099,600Chris Villavarayanhttps://www.meritor.com

Meritor, Inc. designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components in North America, South America, Europe, and the Asia Pacific. It operates through two segments, Commercial Truck, and Aftermarket and Industrial. The company offers axles, including front steer and rear drive axles for medium- and heavy-duty commercial vehicles; heavy-duty trailer axles; suspension modules and brake products comprising drum and disc brakes; universal joints and driveline components; trailer air suspension systems and products; transfer cases and drivelines; and advanced suspension modules for use in light-, medium- and heavy-duty military tactical wheeled vehicles.

Meritor Fundamentals Summary

How do Meritor's earnings and revenue compare to its market cap?
MTOR fundamental statistics
Market CapUS$1.67b
Earnings (TTM)US$200.00m
Revenue (TTM)US$3.83b

8.3x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTOR income statement (TTM)
RevenueUS$3.83b
Cost of RevenueUS$3.33b
Gross ProfitUS$505.00m
ExpensesUS$305.00m
EarningsUS$200.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 03, 2022

Earnings per share (EPS)2.85
Gross Margin13.18%
Net Profit Margin5.22%
Debt/Equity Ratio165.4%

How did MTOR perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTOR ($23.79) is trading below our estimate of fair value ($50.94)

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


Price To Earnings Ratio

PE vs Industry: MTOR is good value based on its PE Ratio (8.3x) compared to the US Machinery industry average (27.8x).

PE vs Market: MTOR is good value based on its PE Ratio (8.3x) compared to the US market (16.7x).


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 overvalued based on its PB Ratio (2.9x) compared to the US Machinery industry average (2.7x).


Future Growth

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

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTOR's forecast earnings growth (11.3% per year) is above the savings rate (2%).

Earnings vs Market: MTOR's earnings (11.3% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: MTOR's earnings are forecast to grow, but not significantly.

Revenue vs Market: MTOR's revenue (5.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: MTOR's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTOR's Return on Equity is forecast to be high in 3 years time (22.7%)


Past Performance

How has Meritor performed over the past 5 years?

-23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTOR has high quality earnings.

Growing Profit Margin: MTOR's current net profit margins (5.2%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: MTOR's earnings have declined by 23.1% 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 (-18%) over the past year, making it difficult to compare to the Machinery industry average (34.4%).


Return on Equity

High ROE: Whilst MTOR's Return on Equity (34.15%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Meritor's financial position?


Financial Position Analysis

Short Term Liabilities: MTOR's short term assets ($1.3B) exceed its short term liabilities ($900.0M).

Long Term Liabilities: MTOR's short term assets ($1.3B) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: MTOR's net debt to equity ratio (148.9%) 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 (19.4%).

Interest Coverage: MTOR's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

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.


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

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

2.4yrs

Average management tenure


CEO

Chris Villavarayan (51 yo)

0.92

Tenure

US$7,587,961

Compensation

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 ($USD7.59M) is above average for companies of similar size in the US market ($USD3.73M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: MTOR's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: MTOR's board of directors are considered experienced (4.7 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

Meritor, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Meritor, Inc.
  • Ticker: MTOR
  • Exchange: NYSE
  • Founded: 1909
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Implied Market Cap: US$1.667b
  • Shares outstanding: 70.08m
  • Website: https://www.meritor.com

Number of Employees


Location

  • Meritor, Inc.
  • 2135 West Maple Road
  • Troy
  • Michigan
  • 48084-7186
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:38
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.