NasdaqGS:MLAB

Stock Analysis Report

Executive Summary

Mesa Laboratories, Inc. designs, manufactures, and markets quality control instruments and disposable products in Europe, Africa, Asia, South America, Australia, Canada, and Central America.

Rewards

Earnings are forecast to grow 42.02% per year

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results

Profit margins (4%) are lower than last year (10%)

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Mesa Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MLAB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

MLAB

2.2%

US Medical Equipment

1.5%

US Market


1 Year Return

12.9%

MLAB

22.1%

US Medical Equipment

20.1%

US Market

Return vs Industry: MLAB underperformed the US Medical Equipment industry which returned 22.1% over the past year.

Return vs Market: MLAB underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

MLABIndustryMarket
7 Day-2.4%2.2%1.5%
30 Day-1.4%1.0%1.4%
90 Day12.8%8.7%8.7%
1 Year13.2%12.9%23.0%22.1%22.7%20.1%
3 Year115.2%112.8%84.6%79.4%50.1%40.5%
5 Year265.8%257.1%117.1%94.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Mesa Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

240.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MLAB ($261.84) is trading above our estimate of fair value ($183.18)

Significantly Below Fair Value: MLAB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MLAB is poor value based on its PE Ratio (240.2x) compared to the Medical Equipment industry average (47.1x).

PE vs Market: MLAB is poor value based on its PE Ratio (240.2x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MLAB is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: MLAB is overvalued based on its PB Ratio (4.9x) compared to the US Medical Equipment industry average (4x).


Next Steps

Future Growth

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

42.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLAB's forecast earnings growth (42% per year) is above the savings rate (1.7%).

Earnings vs Market: MLAB's earnings (42% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MLAB's revenue (16.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MLAB's revenue (16.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MLAB's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Mesa Laboratories performed over the past 5 years?

-16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLAB has a large one-off loss of $7.7M impacting its December 31 2019 financial results.

Growing Profit Margin: MLAB's current net profit margins (4%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: MLAB's earnings have declined by -16.7% per year over the past 5 years.

Accelerating Growth: MLAB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MLAB had negative earnings growth (-57.1%) over the past year, making it difficult to compare to the Medical Equipment industry average (7.1%).


Return on Equity

High ROE: MLAB's Return on Equity (1.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mesa Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: MLAB's short term assets ($120.7M) exceed its short term liabilities ($25.2M).

Long Term Liabilities: MLAB's short term assets ($120.7M) do not cover its long term liabilities ($164.1M).


Debt to Equity History and Analysis

Debt Level: MLAB's debt to equity ratio (59.3%) is considered high.

Reducing Debt: MLAB's debt to equity ratio has increased from 39% to 59.3% over the past 5 years.

Debt Coverage: MLAB's debt is well covered by operating cash flow (20.4%).

Interest Coverage: MLAB's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

Inventory Level: MLAB has a low level of unsold assets or inventory.

Debt Coverage by Assets: MLAB's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

0.24%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Mesa Laboratories before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: MLAB's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MLAB's dividend (0.24%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: MLAB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MLAB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MLAB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MLAB'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?

3.2yrs

Average management tenure


CEO

Gary Owens (51yo)

2.4yrs

Tenure

US$3,270,589

Compensation

Mr. Gary M. Owens has been Chief Executive Officer, President and Director of Mesa Laboratories, Inc. since September 1, 2017. Mr. Owens joined as Chief Operating Officer in March 2017. Mr. Owens served as ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD3.27M) is above average for companies of similar size in the US market ($USD2.47M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Owens
CEO, President & Director2.4yrsUS$3.27m0.36% $4.1m
John Sakys
CFO, Chief Accounting Officer7.3yrsUS$1.03m0.080% $916.4k
Gregory DiNoia
Senior Vice President of Commercial Operations2.3yrsUS$866.64k0.033% $382.8k
Helene Leone
General Counsel6.1yrsno datano data
Peter Jung
Vice President of Corporate Development & Strategy4yrsno datano data
Bryan Leo
Senior Vice President of Operations0yrsUS$281.45kno data
Garrett Krushefski
Senior Vice President of Operations0yrsUS$280.56kno data
Brian Archbold
Senior Vice President of Continuous Improvement2.1yrsno data0.0081% $92.9k

3.2yrs

Average Tenure

51yo

Average Age

Experienced Management: MLAB's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Owens
CEO, President & Director2.4yrsUS$3.27m0.36% $4.1m
David Kelly
Independent Director9.3yrsUS$131.33k0.064% $727.9k
Evan Guillemin
Independent Director11yrsUS$132.33k0.82% $9.4m
David Perez
Independent Director1.1yrsUS$69.64k0.0063% $72.0k
John Sullivan
Chairman of the Board2.4yrsUS$146.83k1.63% $18.7m
Robert Dwyer
Independent Director13.8yrsUS$124.83k0.82% $9.3m
John Schmieder
Independent Director4.8yrsUS$124.83k1.72% $19.7m
Jennifer Alltoft
Independent Director0.9yrsUS$54.25k0.0048% $54.7k

3.6yrs

Average Tenure

56.5yo

Average Age

Experienced Board: MLAB's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MLAB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Top Shareholders

Company Information

Mesa Laboratories, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mesa Laboratories, Inc.
  • Ticker: MLAB
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$1.144b
  • Shares outstanding: 4.37m
  • Website: https://www.mesalabs.com

Number of Employees


Location

  • Mesa Laboratories, Inc.
  • 12100 West Sixth Avenue
  • Lakewood
  • Colorado
  • 80228
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLABNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1984

Biography

Mesa Laboratories, Inc. designs, manufactures, and markets quality control instruments and disposable products in Europe, Africa, Asia, South America, Australia, Canada, and Central America. The company’s Instruments segment offers data loggers, which are precision instruments used in critical manufacturing, quality control, and validation applications; medical meters and calibration solutions used to test various parameters of the dialysis fluid, and the calibration and operation of the dialysis machine; gas flow calibration and air sampling equipment that are used for industrial hygiene assessments, calibration of gas metering equipment, and environmental air monitoring; and torque testing systems used for measure bottle cap tightness. This segment’s products are used in healthcare, pharmaceutical, medical device, food and beverage, industrial hygiene, and environmental air sampling industries. Its Sterilization and Disinfection Control segment manufactures and markets biological indicators comprising spore strips, self-contained products, and culture media, as well as process challenge devices; and testing services. This segment also provides chemical indicators that are used to assess the effectiveness of sterilization processes; and cleaning indicators, which are used to assess the effectiveness of cleaning processes. The company’s Cold Chain Monitoring segment offers systems, which are used to monitor various environmental parameters, such as temperature, humidity, and differential pressure for use in hospitals, pharmaceutical and medical device manufacturers, blood banks, pharmacies, and laboratory environments; parameter monitoring services for products in a cold chain; and consulting services. Its Cold Chain Packaging segment offers thermal packaging products, such as coolers, boxes, insulation materials, and phase-change products to control temperature during transport. Mesa Laboratories, Inc. was founded in 1982 and is headquartered in Lakewood, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:42
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.