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Market Cap

US$1.9b

Last Updated

2021/05/06 22:35 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

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.


Market Performance


7 Day Return

-5.2%

MTOR

3.9%

US Machinery

-0.3%

US Market


1 Year Return

48.5%

MTOR

89.9%

US Machinery

50.2%

US Market

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.


Shareholder returns

MTORIndustryMarket
7 Day-5.2%3.9%-0.3%
30 Day-9.0%5.2%2.2%
90 Day-11.6%15.7%3.8%
1 Year48.5%48.5%94.2%89.9%52.7%50.2%
3 Year27.7%27.7%70.7%60.5%63.4%53.1%
5 Year232.2%232.2%173.2%145.7%129.6%104.0%

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

Valuation

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

32.32x

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).


Future Growth

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

49.7%

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


Past Performance

How has Meritor performed over the past 5 years?

-10.3%

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.


Financial Health

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).


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

Management

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

1.0yrs

Average management tenure


CEO

Chris Villavarayan (50 yo)

0.25

Tenure

US$2,280,787

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 ($USD2.28M) is below average for companies of similar size in the US market ($USD3.76M).

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


Leadership Team

Experienced Management: MTOR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: MTOR's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Meritor, Inc.'s company bio, 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
  • Market Cap: US$1.852b
  • Shares outstanding: 72.58m
  • Website: https://www.meritor.com

Number of Employees


Location

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

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 22:35
End of Day Share Price2021/05/06 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.