Market Cap
US$2.0b
Last Updated
2021/01/23 23:37 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
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with mediocre balance sheet.
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 +/- 7% a week.
Volatility Over Time: MTOR's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
7.2%
MTOR
1.4%
US Machinery
2.3%
US Market
1 Year Return
21.0%
MTOR
27.5%
US Machinery
23.8%
US Market
Return vs Industry: MTOR underperformed the US Machinery industry which returned 27.5% over the past year.
Return vs Market: MTOR underperformed the US Market which returned 23.7% over the past year.
Shareholder returns
| MTOR | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.2% | 1.4% | 2.3% |
| 30 Day | 0.9% | 6.6% | 4.8% |
| 90 Day | 7.9% | 16.1% | 14.5% |
| 1 Year | 21.0%21.0% | 30.7%27.5% | 26.6%23.8% |
| 3 Year | 14.5%14.5% | 29.1%19.9% | 45.0%35.4% |
| 5 Year | 313.3%313.3% | 169.2%139.5% | 126.2%101.0% |
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
2 weeks ago | Simply Wall St
We're Not Counting On Meritor (NYSE:MTOR) To Sustain Its Statutory Profitability4 weeks ago | Simply Wall St
Is There An Opportunity With Meritor, Inc.'s (NYSE:MTOR) 44% Undervaluation?1 month ago | Simply Wall St
Should You Be Excited About Meritor, Inc.'s (NYSE:MTOR) 50% Return On Equity?Valuation
Is Meritor undervalued compared to its fair value and its price relative to the market?
43.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MTOR ($28.23) is trading below our estimate of fair value ($50.11)
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 (8.6x) compared to the US Machinery industry average (33x).
PE vs Market: MTOR is good value based on its PE Ratio (8.6x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: MTOR is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: MTOR is overvalued based on its PB Ratio (4.4x) compared to the US Machinery industry average (3.1x).
Next Steps
Future Growth
How is Meritor forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
11.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MTOR's forecast earnings growth (11.4% per year) is above the savings rate (2%).
Earnings vs Market: MTOR's earnings (11.4% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: MTOR's earnings are forecast to grow, but not significantly.
Revenue vs Market: MTOR's revenue (10.4% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: MTOR's revenue (10.4% 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 (35.1%)
Next Steps
Past Performance
How has Meritor performed over the past 5 years?
3.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MTOR has a large one-off gain of $265.0M impacting its September 30 2020 financial results.
Growing Profit Margin: MTOR's current net profit margins (8%) are higher than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: MTOR's earnings have grown by 3.7% 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 (-15.7%) over the past year, making it difficult to compare to the Machinery industry average (-15.5%).
Return on Equity
High ROE: Whilst MTOR's Return on Equity (50.1%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
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 ($726.0M).
Long Term Liabilities: MTOR's short term assets ($1.3B) do not cover its long term liabilities ($1.7B).
Debt to Equity History and Analysis
Debt Level: MTOR's debt to equity ratio (246.7%) 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 well covered by operating cash flow (21.7%).
Interest Coverage: MTOR's interest payments on its debt are not well covered by EBIT (1.7x coverage).
Balance Sheet
Next Steps
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?
2.8yrs
Average management tenure
CEO
Jay Craig (60 yo)
5.75yrs
Tenure
US$6,349,291
Compensation
Mr. Jeffrey A. Craig, also known as Jay, has been the Chief Executive Officer of Meritor, Inc. (Formerly known as ArvinMeritor, Inc.) since April 29, 2015 and has been its President since June 9, 2014. Mr....
CEO Compensation Analysis
Compensation vs Market: Jay's total compensation ($USD6.35M) is above average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.75yrs | US$6.35m | 0.33% $ 6.7m | |
| Senior VP & CFO | 1.83yrs | US$2.31m | 0.026% $ 539.9k | |
| Executive VP & COO | 1yr | US$2.28m | 0.066% $ 1.3m | |
| Senior VP of Human Resources & Chief Information Officer | 9.5yrs | US$1.74m | 0.060% $ 1.2m | |
| Senior VP | 0.42yr | US$1.11m | no data | |
| VP & Chief Accounting Officer | 5.08yrs | no data | 0.039% $ 792.5k | |
| Senior Director of Investor Relations | no data | no data | no data | |
| VP and Chief Marketing & Communication Officer | 5yrs | no data | no data | |
| Group VP and President of Industrial & North America Aftermarket | 0.67yr | US$853.84k | no data | |
| Group VP & President of North America Truck | 0.92yr | no data | no data | |
| Managing Director of India | 8yrs | no data | no data | |
| VP of Compensation & Benefits and Treasurer | 2.83yrs | no data | no data |
2.8yrs
Average Tenure
53.5yo
Average Age
Experienced Management: MTOR's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.75yrs | US$6.35m | 0.33% $ 6.7m | |
| Independent Non-Executive Chairman | 4.75yrs | US$328.25k | 0.28% $ 5.7m | |
| Independent Director | 6yrs | US$217.90k | 0.095% $ 1.9m | |
| Independent Director | 20.5yrs | US$213.91k | 0.18% $ 3.7m | |
| Independent Director | 15.67yrs | US$205.75k | 0.59% $ 12.0m | |
| Independent Director | 4.33yrs | US$222.32k | 0.068% $ 1.4m | |
| Independent Director | 7.33yrs | US$222.08k | 0.082% $ 1.7m | |
| Independent Director | 1.08yrs | US$198.25k | 0.0079% $ 161.3k | |
| Independent Director | 0.25yr | no data | 0.0019% $ 38.8k | |
| Independent Director | 3.08yrs | US$213.86k | 0.040% $ 821.6k |
5.3yrs
Average Tenure
64yo
Average Age
Experienced Board: MTOR's board of directors are considered experienced (5.3 years average tenure).
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$2.041b
- Shares outstanding: 72.31m
- Website: https://www.meritor.com
Number of Employees
Location
- Meritor, Inc.
- 2135 West Maple Road
- Troy
- Michigan
- 48084
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MTOR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Sep 1997 |
| AID1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 1997 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 23:37 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/09/30 |
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.