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 10.8% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Limited growth with imperfect balance sheet.


Similar Companies

3M

NYSE:MMM

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

6.4%

MLAB

-0.4%

US Medical Equipment

-1.4%

US Market


1 Year Return

16.8%

MLAB

20.7%

US Medical Equipment

14.5%

US Market

Return vs Industry: MLAB underperformed the US Medical Equipment industry which returned 20.7% over the past year.

Return vs Market: MLAB exceeded the US Market which returned 14.5% over the past year.


Shareholder returns

MLABIndustryMarket
7 Day6.4%-0.4%-1.4%
30 Day4.2%4.3%1.3%
90 Day16.3%3.4%4.6%
1 Year17.1%16.8%21.7%20.7%17.1%14.5%
3 Year92.3%90.2%95.2%89.4%45.1%35.7%
5 Year243.7%235.5%121.9%97.8%67.1%48.6%

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?

99.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MLAB ($250.25) is trading above our estimate of fair value ($171.89)

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 (99.3x) compared to the Medical Equipment industry average (46.4x).

PE vs Market: MLAB is poor value based on its PE Ratio (99.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MLAB is poor value based on its PEG Ratio (9.2x)


Price to Book Ratio

PB vs Industry: MLAB is overvalued based on its PB Ratio (4.8x) compared to the US Medical Equipment industry average (4.2x).


Next Steps

Future Growth

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

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLAB's forecast earnings growth (10.8% per year) is above the savings rate (1.7%).

Earnings vs Market: MLAB's earnings (10.8% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: MLAB's revenue (16.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: MLAB's revenue (16.9% 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 (14.3%).


Next Steps

Past Performance

How has Mesa Laboratories performed over the past 5 years?

-15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLAB has a large one-off loss of $4.8M impacting its September 30 2019 financial results.

Growing Profit Margin: MLAB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MLAB's earnings have declined by -15.7% per year over the past 5 years.

Accelerating Growth: MLAB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MLAB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.3%).


Return on Equity

High ROE: MLAB's Return on Equity (4.3%) 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 ($270.7M) exceed its short term liabilities ($16.7M).

Long Term Liabilities: MLAB's short term assets ($270.7M) exceed its long term liabilities ($146.6M).


Debt to Equity History and Analysis

Debt Level: MLAB's debt to equity ratio (60.1%) is considered high.

Reducing Debt: MLAB's debt to equity ratio has increased from 37% to 60.1% over the past 5 years.

Debt Coverage: MLAB's debt is not well covered by operating cash flow (20%).

Interest Coverage: Insufficient data to determine if MLAB's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: MLAB's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

0.26%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: MLAB's dividend (0.26%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MLAB's dividend (0.26%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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

What is the CEO of Mesa Laboratories's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Gary Owens (51yo)

2.3yrs

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 ($USD3.27M) is about average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: MLAB's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: MLAB's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$166,64226 Nov 19
John Schmieder
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceUS$238.06
SellUS$1,372,74420 Feb 19
Robert Dwyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,917
Max PriceUS$232.00
SellUS$959,62312 Feb 19
Robert Dwyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,083
Max PriceUS$235.05
SellUS$581,75009 Feb 19
John Schmieder
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$232.70
SellUS$3,190,78011 Dec 18
Evan Guillemin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$218.74

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Management Team

  • John Sakys (50yo)

    CFO, Chief Accounting Officer

    • Tenure: 7.2yrs
    • Compensation: US$1.03m
  • Greg DiNoia (54yo)

    Senior Vice President of Commercial Operations

    • Tenure: 2.1yrs
    • Compensation: US$866.64k
  • Bryan Leo

    Senior Vice President of Operations

    • Tenure: 0yrs
    • Compensation: US$281.45k
  • Garrett Krushefski

    Senior Vice President of Operations

    • Tenure: 0yrs
    • Compensation: US$280.56k
  • Helene Leone

    General Counsel

    • Tenure: 5.9yrs
  • Peter Jung

    Vice President of Corporate Development & Strategy

    • Tenure: 3.8yrs
  • Gary Owens (51yo)

    CEO, President & Director

    • Tenure: 2.3yrs
    • Compensation: US$3.27m
  • Brian Archbold

    Senior Vice President of Continuous Improvement

    • Tenure: 1.9yrs

Board Members

  • David Kelly (77yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$131.33k
  • Evan Guillemin (53yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$132.33k
  • David Perez (60yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$69.64k
  • John Sullivan (66yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$146.83k
  • Robert Dwyer (78yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$124.83k
  • John Schmieder (50yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$124.83k
  • Jenny Alltoft (51yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$54.25k
  • Gary Owens (51yo)

    CEO, President & Director

    • Tenure: 2.3yrs
    • Compensation: US$3.27m

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$1.015b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:39
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
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.