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.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$23.79|
|52 Week High||US$33.56|
|52 Week Low||US$20.50|
|1 Month Change||-1.57%|
|3 Month Change||-3.33%|
|1 Year Change||-15.73%|
|3 Year Change||23.26%|
|5 Year Change||60.96%|
|Change since IPO||-13.88%|
Recent News & Updates
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...
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...
|MTOR||US Machinery||US Market|
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.
|MTOR Average Weekly Movement||5.8%|
|Machinery Industry Average Movement||5.0%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.4%|
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
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
|MTOR fundamental statistics|
Is MTOR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MTOR income statement (TTM)|
|Cost of Revenue||US$3.33b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 03, 2022
|Earnings per share (EPS)||2.85|
|Net Profit Margin||5.22%|
How did MTOR perform over the long term?See historical performance and comparison
Is Meritor undervalued compared to its fair value and its price relative to the market?
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).
How is Meritor forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
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%)
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 (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.
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 ($1.4B).
Debt to Equity History and Analysis
Debt Level: MTOR's net debt to equity ratio (148.9%) is considered high.
Reducing Debt: MTOR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: MTOR's debt is not well covered by operating cash flow (19.4%).
Interest Coverage: MTOR's interest payments on its debt are well covered by EBIT (3.3x coverage).
What is Meritor current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MTOR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MTOR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MTOR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MTOR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MTOR is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MTOR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Villavarayan (51 yo)
Mr. Chrishan Anthon Sebastian Villavarayan, also known as Chris, has been Chief Executive Officer, President and Director of Meritor, Inc. since February 28, 2021. Mr. Villavarayan was Executive Vice Presi...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($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.
Experienced Management: MTOR's management team is considered experienced (2.4 years average tenure).
Experienced Board: MTOR's board of directors are considered experienced (4.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Meritor, Inc.'s 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
- Implied Market Cap: US$1.667b
- Shares outstanding: 70.08m
- Website: https://www.meritor.com
Number of Employees
- Meritor, Inc.
- 2135 West Maple Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/21 23:38|
|End of Day Share Price||2022/01/21 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.