NasdaqGS:MTSC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with limited growth.


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


Market Performance


7 Day Return

3.2%

MTSC

2.4%

US Electronic

0.07%

US Market


1 Year Return

8.5%

MTSC

16.3%

US Electronic

8.9%

US Market

Return vs Industry: MTSC underperformed the US Electronic industry which returned 16.3% over the past year.

Return vs Market: MTSC matched the US Market which returned 8.9% over the past year.


Shareholder returns

MTSCIndustryMarket
7 Day3.2%2.4%0.07%
30 Day1.3%3.7%-0.3%
90 Day-1.7%2.3%-1.6%
1 Year11.0%8.5%17.5%16.3%11.3%8.9%
3 Year27.1%18.8%55.8%51.4%46.3%36.8%
5 Year-7.2%-16.8%83.7%74.7%62.1%44.3%

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?

21.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTSC ($55.7) is trading above our estimate of fair value ($47.53)

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


Price To Earnings Ratio

PE vs Industry: MTSC is poor value based on its PE Ratio (21.9x) compared to the Electronic industry average (19.6x).

PE vs Market: MTSC is poor value based on its PE Ratio (21.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MTSC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MTSC is overvalued based on its PB Ratio (2.1x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTSC's forecast earnings growth (19.1% per year) is above the savings rate (2.7%).

Earnings vs Market: MTSC's earnings (19.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: MTSC's revenue (6.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MTSC's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTSC's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has MTS Systems performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History


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 (-12.7%) over the past year, making it difficult to compare to the Electronic industry average (58.6%).


Return on Equity

High ROE: MTSC's Return on Equity (9.9%) is considered low.


Return on Assets

ROA vs Industry: MTSC's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: MTSC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is MTS Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MTSC's short term assets ($467.9M) exceeds its short term liabilities ($248.2M)

Long Term Liabilities: MTSC's short term assets (467.9M) do not cover its long term liabilities (514.6M)


Debt to Equity History and Analysis

Debt Level: MTSC's debt to equity ratio (93.2%) is considered high

Reducing Debt: MTSC's debt to equity ratio has increased from 25.6% to 93.2% over the past 5 years.

Debt Coverage: MTSC's debt is not well covered by operating cash flow (13.3%).

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


Balance Sheet

Inventory Level: MTSC has a high level of physical assets or inventory.

Debt Coverage by Assets: MTSC's debt is covered by short term assets (assets are 1.015030x debt).


Next Steps

Dividend

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

2.16%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MTSC's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MTSC's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: MTSC's dividends per share have been stable in the past 10 years.

Growing Dividend: MTSC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.1%), MTSC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Jeff Graves (58yo)

7.4yrs

Tenure

US$2,863,436

Compensation

Dr. Jeffrey A. Graves, also known as Jeff, Ph.D., has been the President and Chief Executive Officer of MTS Systems Corporation since May 7, 2012 and a Director since 2012. Dr. Graves served as the Preside ...


CEO Compensation Analysis

Compensation vs. Market: Jeff's total compensation ($USD2.86M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

2.4yrs

Average Tenure

53yo

Average Age

Experienced Management: MTSC's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

63yo

Average Age

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$54,34804 Jun 19
Jeffrey Graves
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceUS$54.46
BuyUS$56,30621 May 19
Jeffrey Graves
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceUS$56.31
BuyUS$93,60011 Dec 18
Jeffrey Graves
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$46.80
BuyUS$29,88008 Dec 18
Michael Schrock
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares600
Max PriceUS$49.80
BuyUS$471,06304 Dec 18
Michael Schrock
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,400
Max PriceUS$51.32
BuyUS$24,69103 Dec 18
Steven Harrison
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares521
Max PriceUS$47.39
BuyUS$91,96029 Nov 18
Jeffrey Graves
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$45.98

Ownership Breakdown


Management Team

  • Jeff Graves (58yo)

    President

    • Tenure: 7.4yrs
    • Compensation: US$2.86m
  • Steve Harrison (53yo)

    Executive Vice President

    • Tenure: 0yrs
    • Compensation: US$607.14k
  • Bill Becker (65yo)

    Senior Vice President of Test and Simulation

    • Tenure: 0yrs
    • Compensation: US$535.31k
  • Mark Losee (62yo)

    Chief Information Officer & Senior VP

    • Tenure: 7.1yrs
  • Andy Cebulla

    Director of Investor Relations & Treasurer

    • Tenure: 0yrs
  • David Saylor

    President of MTS Test China

    • Tenure: 2.2yrs
  • David Hore (53yo)

    Executive Vice President

    • Tenure: 0.3yrs
    • Compensation: US$967.60k
  • Brian Ross (43yo)

    Executive VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$788.08k
  • Phyllis Nordstrom

    Chief Risk & Compliance Officer and Senior VP

    • Tenure: 2.6yrs
  • Todd Klemmensen (46yo)

    Senior VP

    • Tenure: 1.2yrs

Board Members

  • Dave Johnson (63yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$207.69k
  • Randy Martinez (64yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$190.97k
  • Dave Anderson (72yo)

    Independent Chairman of the Board

    • Tenure: 8.2yrs
    • Compensation: US$294.06k
  • Gail Steinel (62yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$197.67k
  • Mike Schrock (66yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$193.47k
  • Jeff Graves (58yo)

    President

    • Tenure: 7.4yrs
    • Compensation: US$2.86m
  • Nancy Altobello (61yo)

    Director

    • Tenure: 0.5yrs
  • Linda Zukauckas (57yo)

    Director

    • Tenure: 0.5yrs
  • Kenneth Yu (70yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$178.47k

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$1.077b
  • Shares outstanding: 19.33m
  • 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 and sensors in the Americas, Europe, and Asia. The company’s Test segment offers road simulators and component test systems, vehicle performance test systems,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:37
End of Day Share Price2019/10/22 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


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.