NasdaqGS:MTSC

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Executive Summary

MTS Systems Corporation supplies test systems, motion simulators, and sensors in the Americas, Europe, and Asia.


Snowflake Analysis

Very undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has MTS Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTSC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

MTSC

1.1%

US Electronic

1.6%

US Market


1 Year Return

-70.2%

MTSC

-3.4%

US Electronic

4.8%

US Market

Return vs Industry: MTSC underperformed the US Electronic industry which returned -3.4% over the past year.

Return vs Market: MTSC underperformed the US Market which returned 4.8% over the past year.


Shareholder returns

MTSCIndustryMarket
7 Day7.9%1.1%1.6%
30 Day-11.2%-1.0%2.3%
90 Day-5.7%35.0%29.5%
1 Year-69.4%-70.2%-2.3%-3.4%7.1%4.8%
3 Year-64.0%-66.4%20.0%16.6%37.1%28.1%
5 Year-70.1%-73.4%60.6%53.4%67.2%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTSC ($17.26) is trading below our estimate of fair value ($31.07)

Significantly Below Fair Value: MTSC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MTSC is good value based on its PE Ratio (14.7x) compared to the Electronic industry average (20.1x).

PE vs Market: MTSC is good value based on its PE Ratio (14.7x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: MTSC is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MTSC is good value based on its PB Ratio (0.7x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

How is MTS Systems forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTSC's forecast earnings growth (30.1% per year) is above the savings rate (2.2%).

Earnings vs Market: MTSC's earnings (30.1% per year) are forecast to grow faster than the US market (22.8% per year).

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

Revenue vs Market: MTSC's revenue is expected to decline over the next 3 years (-0.07% per year).

High Growth Revenue: MTSC's revenue is forecast to decline over the next 3 years (-0.07% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MTSC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MTS Systems performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTSC has a large one-off loss of $49.9M impacting its March 28 2005 financial results.

Growing Profit Margin: MTSC's current net profit margins (2.6%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: MTSC's earnings have grown by 1.4% per year over the past 5 years.

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

Earnings vs Industry: MTSC had negative earnings growth (-48.9%) over the past year, making it difficult to compare to the Electronic industry average (-6.6%).


Return on Equity

High ROE: MTSC's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is MTS Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MTSC's short term assets ($479.6M) exceed its short term liabilities ($260.4M).

Long Term Liabilities: MTSC's short term assets ($479.6M) do not cover its long term liabilities ($681.8M).


Debt to Equity History and Analysis

Debt Level: MTSC's debt to equity ratio (124.7%) is considered high.

Reducing Debt: MTSC's debt to equity ratio has increased from 28.3% to 124.7% over the past 5 years.

Debt Coverage: MTSC's debt is not well covered by operating cash flow (6.7%).

Interest Coverage: MTSC's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

What is MTS Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MTSC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MTSC'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 MTSC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTSC's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

Randy Martinez (65yo)

0.17

Tenure

US$199,494

Compensation

Mr. Randy J. Martinez serves as Interim President and Chief Executive Officer at MTS Systems Corporation since May 23, 2020. He has been an Independent Director of MTS Systems Corporation since March 31, 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
Randy Martinez
Independent Interim President0.17yrUS$199.49k0.059% $195.7k
Brian Ross
Executive VP & CFO3.17yrsUS$1.08m0.042% $138.2k
David Hore
Executive VP & President of Sensors1yrUS$912.88k0.21% $683.8k
Steven Harrison
Executive VP and President of Test & Simulation3.42yrsUS$1.56m0.037% $122.0k
Mark Losee
Senior VP & Chief Information Officer7.83yrsno datano data
Andrew Cebulla
Director of Investor Relations & Treasurerno datano datano data
Phyllis Nordstrom
Senior VP and Chief Risk & Compliance Officer3.33yrsno datano data
Todd Klemmensen
Senior VP2yrsno data0.025% $81.6k
Amanda Daniel
Senior VP & Chief Human Resources Officerno datano datano data

3.2yrs

Average Tenure

54yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Randy Martinez
Independent Interim President0.17yrUS$199.49k0.059% $195.7k
David Johnson
Independent Director7.08yrsUS$223.82k0.044% $146.9k
David Anderson
Independent Chairman of the Board8.92yrsUS$288.06k0.12% $410.6k
Michael Schrock
Independent Director6.33yrsUS$204.08k0.099% $328.5k
Nancy Altobello
Independent Director1.25yrsUS$152.76kno data
Linda Zukauckas
Independent Director1.25yrsUS$151.10k0.023% $75.9k
Chun Yu
Independent Director7.08yrsUS$186.99k0.11% $363.8k

6.3yrs

Average Tenure

65yo

Average Age

Experienced Board: MTSC's board of directors are considered experienced (6.3 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.


Top Shareholders

Company Information

MTS Systems Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MTS Systems Corporation
  • Ticker: MTSC
  • Exchange: NasdaqGS
  • Founded: 1966
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$332.012m
  • Shares outstanding: 19.24m
  • Website: https://www.mts.com

Number of Employees


Location

  • MTS Systems Corporation
  • 14000 Technology Drive
  • Eden Prairie
  • Minnesota
  • 55344
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTSCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969
MT7DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

MTS Systems Corporation supplies test systems, motion simulators, and sensors in the Americas, Europe, and Asia. The company’s Test & Simulation segment offers road simulators and component test systems, vehicle performance test systems, vehicle dynamics simulators, electrical motors and energy recovery systems, tire performance and rolling resistance measurement systems, and moving ground-plane systems and balances. It also provides systems for the physical characterization of material properties; systems to test durability and performance of implants, prostheses, and other medical and dental materials and devices; products, systems, and software to perform static and fatigue testing of aircraft; products for blades, bearings, and wind turbines; structural engineering systems, such as static and dynamic testing; and seismic simulation tables. In addition, this segment offers installation, product life cycle management, professional training, calibration and metrology, technical consulting, and onsite and factory repair and maintenance services, as well as accessories and spare parts. It serves automobile, truck, motorcycle, motorsports vehicles, construction and agricultural equipment, rail and off-road vehicle manufacturers, and their suppliers, as well as the power generation, aerospace, vehicles, biomedical, structural engineering, oil and gas, wind energy, and other industries. The company’s Sensors segment offers sensors for measurements of vibration, pressure, position, force, and sound; and piezoelectric sensors and components. It serves the automotive, aerospace, industrial, defense, and research and development markets. The company sells its products through direct sales and service organizations, and independent representatives and distributors, as well as through catalogs, Internet, etc. It has a strategic alliance with Auburn University. The company was founded in 1966 and is headquartered in Eden Prairie, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 00:04
End of Day Share Price2020/07/02 00:00
Earnings2020/03/28
Annual Earnings2019/09/28


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.