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MTS Systems

Nasdaq:MTSC
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MTSC
Nasdaq
$987M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

MTS Systems Corporation supplies test systems and sensors in the Americas, Europe, and Asia. The last earnings update was 74 days ago. More info.


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MTSC Share Price and Events
7 Day Returns
-2.2%
NasdaqGS:MTSC
-1.3%
US Electronic
-0.3%
US Market
1 Year Returns
1.4%
NasdaqGS:MTSC
0.4%
US Electronic
3.9%
US Market
MTSC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MTS Systems (MTSC) -2.2% -1.7% -1.3% 1.4% 18.8% -16.4%
US Electronic -1.3% 0.2% -6.4% 0.4% 53% 53.3%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • MTSC matched the Electronic industry (0.4%) over the past year.
  • MTSC underperformed the Market in United States of America which returned 3.9% over the past year.
Price Volatility
MTSC
Industry
5yr Volatility vs Market
Related Companies

Value

 Is MTS Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MTS Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MTS Systems.

NasdaqGS:MTSC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MTSC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.132 (1 + (1- 21%) (47.04%))
1.37
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.37
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.37 * 5.96%)
10.9%

Discounted Cash Flow Calculation for NasdaqGS:MTSC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MTS Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:MTSC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.9%)
2020 64.59 Analyst x2 58.25
2021 70.34 Est @ 8.89% 57.19
2022 75.29 Est @ 7.04% 55.21
2023 79.62 Est @ 5.75% 52.64
2024 83.47 Est @ 4.84% 49.77
2025 86.99 Est @ 4.21% 46.77
2026 90.26 Est @ 3.77% 43.76
2027 93.38 Est @ 3.45% 40.83
2028 96.40 Est @ 3.24% 38.01
2029 99.38 Est @ 3.09% 35.33
Present value of next 10 years cash flows $477.75
NasdaqGS:MTSC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $99.38 × (1 + 2.73%) ÷ (10.9% – 2.73%)
$1,250.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,250.21 ÷ (1 + 10.9%)10
$444.46
NasdaqGS:MTSC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $477.75 + $444.46
$922.21
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $922.21 / 17.95
$51.36
NasdaqGS:MTSC Discount to Share Price
Calculation Result
Value per share (USD) From above. $51.36
Current discount Discount to share price of $54.99
= -1 x ($54.99 - $51.36) / $51.36
-7.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of MTS Systems is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MTS Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MTS Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MTSC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $2.31
NasdaqGS:MTSC Share Price ** NasdaqGS (2019-07-19) in USD $54.99
United States of America Electronic Industry PE Ratio Median Figure of 91 Publicly-Listed Electronic Companies 17.37x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MTS Systems.

NasdaqGS:MTSC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MTSC Share Price ÷ EPS (both in USD)

= 54.99 ÷ 2.31

23.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MTS Systems is overvalued based on earnings compared to the US Electronic industry average.
  • MTS Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does MTS Systems's expected growth come at a high price?
Raw Data
NasdaqGS:MTSC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
24.4%per year
United States of America Electronic Industry PEG Ratio Median Figure of 59 Publicly-Listed Electronic Companies 1.24x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:MTSC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.79x ÷ 24.4%

0.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MTS Systems is good value based on expected growth next year.
Price based on value of assets
What value do investors place on MTS Systems's assets?
Raw Data
NasdaqGS:MTSC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $27.10
NasdaqGS:MTSC Share Price * NasdaqGS (2019-07-19) in USD $54.99
United States of America Electronic Industry PB Ratio Median Figure of 139 Publicly-Listed Electronic Companies 2.16x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
NasdaqGS:MTSC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MTSC Share Price ÷ Book Value per Share (both in USD)

= 54.99 ÷ 27.10

2.03x

* Primary Listing of MTS Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MTS Systems is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess MTS Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. MTS Systems has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MTS Systems expected to grow at an attractive rate?
  • MTS Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • MTS Systems's earnings growth is expected to exceed the United States of America market average.
  • MTS Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MTSC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MTSC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 24.4%
NasdaqGS:MTSC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 6.8%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MTSC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MTSC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-09-30 921 87 63 2
2019-09-30 865 79 50 2
NasdaqGS:MTSC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 829 57 44
2018-12-29 787 65 39
2018-09-29 778 63 61
2018-06-30 782 71 56
2018-03-31 781 68 58
2017-12-30 783 52 57
2017-09-30 788 72 25
2017-07-01 801 75 25
2017-04-01 765 68 22
2016-12-31 709 86 17
2016-10-01 650 68 27
2016-07-02 579 74 31
2016-04-02 555 106 35

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MTS Systems's earnings are expected to grow significantly at over 20% yearly.
  • MTS Systems's revenue is expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MTSC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from MTS Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MTSC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-09-30 3.26 3.41 3.10 2.00
2019-09-30 2.56 2.56 2.56 2.00
NasdaqGS:MTSC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 2.31
2018-12-29 2.02
2018-09-29 3.20
2018-06-30 2.93
2018-03-31 3.02
2017-12-30 2.96
2017-09-30 1.32
2017-07-01 1.32
2017-04-01 1.19
2016-12-31 1.02
2016-10-01 1.72
2016-07-02 2.07
2016-04-02 2.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if MTS Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess MTS Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MTS Systems has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has MTS Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MTS Systems's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MTS Systems's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • MTS Systems's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MTS Systems's 1-year earnings growth is negative, it can't be compared to the US Electronic industry average.
Earnings and Revenue History
MTS Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MTS Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MTSC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 828.77 44.40 212.95 31.64
2018-12-29 787.05 38.68 205.06 32.59
2018-09-29 778.03 61.33 204.99 34.26
2018-06-30 781.64 56.14 207.06 34.79
2018-03-31 780.74 57.77 206.18 34.52
2017-12-30 782.84 56.53 213.19 35.16
2017-09-30 787.96 25.08 211.51 35.00
2017-07-01 801.32 25.09 204.19 34.39
2017-04-01 765.25 21.63 190.36 32.23
2016-12-31 708.93 17.43 168.50 28.72
2016-10-01 650.15 27.49 151.34 25.33
2016-07-02 578.78 31.11 137.51 23.87
2016-04-02 554.99 34.74 133.14 23.50
2016-01-02 561.85 43.45 132.57 23.44
2015-10-03 563.93 45.46 134.41 23.71
2015-06-27 563.56 47.22 134.95 22.16
2015-03-28 575.11 50.58 136.08 22.60
2014-12-27 568.50 46.65 139.19 23.71
2014-09-27 564.33 42.01 136.71 23.84
2014-06-28 576.02 52.48 135.31 24.72
2014-03-29 565.61 49.89 134.18 24.67
2013-12-28 565.18 53.17 130.66 23.46
2013-09-28 569.44 57.81 129.17 22.81
2013-06-29 552.49 51.64 126.22 22.62
2013-03-30 559.13 49.70 127.50 21.51
2012-12-29 551.23 49.80 127.33 21.99
2012-09-29 542.26 51.56 126.04 21.89

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MTS Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MTS Systems used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • MTS Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MTS Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MTS Systems has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is MTS Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MTS Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MTS Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MTS Systems's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of MTS Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MTS Systems Company Filings, last reported 3 months ago.

NasdaqGS:MTSC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 485.05 462.71 77.81
2018-12-29 473.34 464.20 75.33
2018-09-29 477.93 386.38 79.22
2018-06-30 472.55 389.13 73.76
2018-03-31 472.23 407.47 91.30
2017-12-30 461.58 439.65 99.10
2017-09-30 428.78 455.17 112.23
2017-07-01 419.44 457.53 105.11
2017-04-01 404.04 460.02 101.74
2016-12-31 398.22 462.46 100.22
2016-10-01 405.26 464.85 84.78
2016-07-02 406.11 26.43 172.71
2016-04-02 252.20 21.39 63.35
2016-01-02 254.00 40.94 59.29
2015-10-03 258.14 21.18 51.77
2015-06-27 253.95 36.20 53.30
2015-03-28 247.47 70.87 61.26
2014-12-27 254.16 65.00 55.35
2014-09-27 258.13 60.00 60.40
2014-06-28 252.88 65.00 56.61
2014-03-29 248.08 45.00 43.72
2013-12-28 254.20 35.00 53.49
2013-09-28 256.54 35.00 48.33
2013-06-29 253.89 10.00 53.57
2013-03-30 246.86 5.00 46.61
2012-12-29 238.76 0.07 47.92
2012-09-29 226.72 0.23 79.85
  • MTS Systems's level of debt (95.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (18.3% vs 95.7% today).
  • Debt is not well covered by operating cash flow (12.2%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess MTS Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MTS Systems has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.18%
Current annual income from MTS Systems dividends.
If you bought $2,000 of MTS Systems shares you are expected to receive $44 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MTS Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • MTS Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MTSC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MTSC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-09-30
2019-09-30
NasdaqGS:MTSC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-05 1.200 2.130
2019-02-11 1.200 2.193
2018-11-13 1.200 2.608
2018-08-03 1.200 2.301
2018-06-06 1.200 2.228
2018-02-12 1.200 2.324
2017-11-14 1.200 2.249
2017-07-31 1.200 2.361
2017-06-07 1.200 2.269
2017-02-06 1.200 2.305
2016-11-15 1.200 2.129
2016-07-28 1.200 2.544
2016-05-24 1.200 2.641
2016-02-09 1.200 2.195
2015-11-17 1.200 2.076
2015-07-21 1.200 1.940
2015-06-02 1.200 1.753
2015-02-10 1.200 1.680
2014-11-18 1.200 1.696
2014-07-22 1.200 1.763
2014-05-20 1.200 1.791
2014-02-11 1.200 1.749
2013-11-19 1.200 1.739
2013-08-01 1.200 1.905
2013-05-21 1.200 1.999
2013-02-05 1.200 2.137
2012-12-12 1.200 2.267
2012-08-21 1.200 2.357
2012-05-23 1.000 2.443
2012-02-09 1.000 2.094
2011-11-22 1.000 2.371
2011-08-25 1.000 2.904
2011-05-27 0.800 2.030
2011-02-22 0.800 1.845
2010-11-30 0.800 2.046
2010-08-12 0.600 1.938
2010-05-27 0.600 2.050
2010-02-12 0.600 2.060
2009-12-02 0.600 2.177
2009-09-02 0.600 2.144
2009-05-21 0.600 2.651
2009-02-05 0.600 2.690
2008-11-26 0.600 2.327
2008-08-26 0.600 1.774

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of MTS Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess MTS Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MTS Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MTS Systems has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Graves
COMPENSATION $2,863,436
AGE 58
TENURE AS CEO 7.2 years
CEO Bio

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 President and Chief Executive Officer of C&D Technologies, Inc. from July 5, 2005 to May 2012. Dr. Graves previously served in various executive positions at Kemet Electronics Corporation from 2001 to 2005, including Chief Executive Officer; various leadership positions with General Electric Company's Power Systems Division and Corporate Research & Development Center from 1995 to 2001 and prior to 1995, various positions of increasing responsibility at Rockwell International Corporation and Howmet Corporation, now a part of Alcoa Corporation. Dr. Graves has been a Director of Hexcel Corporation since 2007 and FARO Technologies, Inc. since December 2017. He served as a Director of C&D Technologies, Inc. from December 23, 2010 to May 2012 and Teleflex Incorporated from 2007 to 2017. He holds BS in Metallurgical Engineering from Purdue University, MS and Ph.D. in Metallurgical Engineering from University of Wisconsin.

CEO Compensation
  • Jeff's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jeff's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the MTS Systems management team in years:

2.3
Average Tenure
53
Average Age
  • The tenure for the MTS Systems management team is about average.
Management Team

Jeff Graves

TITLE
President
COMPENSATION
$3M
AGE
58
TENURE
7.2 yrs

Brian Ross

TITLE
Executive VP & CFO
COMPENSATION
$788K
AGE
43
TENURE
2.2 yrs

David Hore

TITLE
Executive Vice President
COMPENSATION
$968K
AGE
53

Bill Becker

TITLE
President of MTS Test & Simulation Sales
COMPENSATION
$535K
AGE
65

Steve Harrison

TITLE
Executive Vice President
COMPENSATION
$607K
AGE
53

Mark Losee

TITLE
Chief Information Officer & Senior VP
AGE
62
TENURE
6.8 yrs

Andy Cebulla

TITLE
Director of Investor Relations & Treasurer

Phyllis Nordstrom

TITLE
Chief Risk & Compliance Officer and Senior VP
TENURE
2.3 yrs

Todd Klemmensen

TITLE
Senior VP
AGE
46
TENURE
0.9 yrs

David Saylor

TITLE
President of MTS Test China
TENURE
1.9 yrs
Board of Directors Tenure

Average tenure and age of the MTS Systems board of directors in years:

6.1
Average Tenure
63
Average Age
  • The tenure for the MTS Systems board of directors is about average.
Board of Directors

Dave Anderson

TITLE
Chairman of the Board
COMPENSATION
$294K
AGE
72
TENURE
7.9 yrs

Jeff Graves

TITLE
President
COMPENSATION
$3M
AGE
58
TENURE
7.2 yrs

Gail Steinel

TITLE
Independent Director
COMPENSATION
$198K
AGE
62
TENURE
9.8 yrs

Dave Johnson

TITLE
Independent Director
COMPENSATION
$208K
AGE
63
TENURE
6.1 yrs

Mike Schrock

TITLE
Independent Director
COMPENSATION
$193K
AGE
66
TENURE
5.3 yrs

Kenneth Yu

TITLE
Independent Director
COMPENSATION
$178K
AGE
70
TENURE
6.1 yrs

Randy Martinez

TITLE
Independent Director
COMPENSATION
$191K
AGE
64
TENURE
5.3 yrs

Nancy Altobello

TITLE
Director
AGE
61
TENURE
0.3 yrs

Linda Zukauckas

TITLE
Director
AGE
57
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by MTS Systems individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
04. Jun 19 Buy Jeffrey Graves Individual 31. May 19 31. May 19 1,000 $54.46 $54,348
21. May 19 Buy Jeffrey Graves Individual 17. May 19 17. May 19 1,000 $56.31 $56,306
11. Dec 18 Buy Jeffrey Graves Individual 11. Dec 18 11. Dec 18 2,000 $46.80 $93,600
08. Dec 18 Buy Michael Schrock Individual 04. Dec 18 04. Dec 18 600 $49.80 $29,880
04. Dec 18 Buy Michael Schrock Individual 30. Nov 18 03. Dec 18 9,400 $51.32 $471,063
03. Dec 18 Buy Steven Harrison Individual 29. Nov 18 29. Nov 18 521 $47.39 $24,691
29. Nov 18 Buy Jeffrey Graves Individual 28. Nov 18 28. Nov 18 2,000 $45.98 $91,960
X
Management checks
We assess MTS Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MTS Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should We Be Cautious About MTS Systems Corporation's (NASDAQ:MTSC) ROE Of 9.2%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for MTS Systems: 9.2% = US$44m ÷ US$485m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining MTS Systems's Debt And Its 9.2% Return On Equity While MTS Systems does have some debt, with debt to equity of just 0.96, we wouldn't say debt is excessive. … Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.

Simply Wall St -

Are Insiders Buying MTS Systems Corporation (NASDAQ:MTSC) Stock?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for MTS Systems The Last 12 Months Of Insider Transactions At MTS Systems Over the last year, we can see that the biggest insider purchase was by Independent Director Michael Schrock for US$471k worth of shares, at about US$51.32 per share. … While MTS Systems insiders bought shares last year, they didn't sell. … Insiders likely see value in MTS Systems shares, given these transactions (along with notable insider ownership of the company).

Simply Wall St -

Is MTS Systems Corporation (NASDAQ:MTSC) Overpaying Its CEO?

View our latest analysis for MTS Systems How Does Jeff Graves's Compensation Compare With Similar Sized Companies? … At the time of writing our data says that MTS Systems Corporation has a market cap of US$1.1b, and is paying total annual CEO compensation of US$2.9m. … I think that the total shareholder return of 42%, over three years, would leave most MTS Systems Corporation shareholders smiling.

Simply Wall St -

Estimating The Fair Value Of MTS Systems Corporation (NASDAQ:MTSC)

In this article we are going to estimate the intrinsic value of MTS Systems Corporation (NASDAQ:MTSC) by taking the expected future cash flows and discounting them to today's value. … Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $52.55 $64.59 $70.34 $75.29 $79.62 $83.47 $86.99 $90.26 $93.38 $96.40 Growth Rate Estimate Source Analyst x2 Analyst x2 Est @ 8.89% Est @ 7.04% Est @ 5.75% Est @ 4.84% Est @ 4.21% Est @ 3.77% Est @ 3.45% Est @ 3.24% Present Value ($, Millions) Discounted @ 10.64% $47.49 $52.76 $51.93 $50.24 $48.01 $45.50 $42.85 $40.19 $37.57 $35.06 Present Value of 10-year Cash Flow (PVCF)= $451.59m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period.

Simply Wall St -

Did MTS Systems's (NASDAQ:MTSC) Share Price Deserve to Gain 30%?

During the three years of share price growth, MTS Systems actually saw its earnings per share (EPS) drop 0.4% per year. … Companies are not always focussed on EPS growth in the short term, and looking at how the share price has reacted, we don't think EPS is the most important metric for MTS Systems at the moment. … It is important to consider the total shareholder return, as well as the share price return, for any given stock.

Simply Wall St -

How Financially Strong Is MTS Systems Corporation (NASDAQ:MTSC)?

Does MTSC Produce Much Cash Relative To Its Debt? … With this increase in debt, MTSC currently has US$78m remaining in cash and short-term investments to keep the business going. … Moreover, MTSC has generated US$57m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 12%, signalling that MTSC’s operating cash is less than its debt.

Simply Wall St -

Three Things You Should Check Before Buying MTS Systems Corporation (NASDAQ:MTSC) For Its Dividend

Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … Click the interactive chart for our full dividend analysis NasdaqGS:MTSC Historical Dividend Yield, May 10th 2019 Payout ratios Dividends are usually paid out of company earnings. … MTS Systems's is paying out more than half its income as dividends, but at least the dividend is covered both by reported earnings and cashflow.

Simply Wall St -

Is MTS Systems Corporation (NASDAQ:MTSC) A Volatile Stock?

Volatility is considered to be a measure of risk in modern finance theory. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Should We Worry About MTS Systems Corporation's (NASDAQ:MTSC) P/E Ratio?

We'll show how you can use MTS Systems Corporation's (NASDAQ:MTSC) P/E ratio to inform your assessment of the investment opportunity. … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should MTS Systems Corporation (NASDAQ:MTSC) Focus On Improving This Fundamental Metric?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.082 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

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, 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 and space vehicles; 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 various 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 for vibration, pressure, and force measurement. 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. MTS Systems Corporation was founded in 1966 and is headquartered in Eden Prairie, Minnesota.

Details
Name: MTS Systems Corporation
MTSC
Exchange: NasdaqGS
Founded: 1966
$987,316,690
17,954,477
Website: http://www.mts.com
Address: MTS Systems Corporation
14000 Technology Drive,
Eden Prairie,
Minnesota, 55344,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MTSC Common Stock Nasdaq Global Select US USD 02. Jan 1969
DB MT7 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
Number of employees
Current staff
Staff numbers
3,400
MTS Systems employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 23:42
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/09/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.