OTCPK:MKTY

Stock Analysis Report

Mechanical Technology

Executive Summary

Mechanical Technology, Incorporated, through its subsidiary, MTI Instruments, Inc., designs, manufactures, and markets precision linear displacement solutions, vibration measurement and system balancing solutions, precision tensile measurement systems, and wafer inspection tools worldwide.

Rewards

Trading at 61.7% below its fair value

Earnings have grown 30% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap ($9M)



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Mechanical Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

MKTY

-0.1%

US Electronic

0.6%

US Market


1 Year Return

-2.9%

MKTY

29.0%

US Electronic

24.6%

US Market

Return vs Industry: MKTY underperformed the US Electronic industry which returned 30.2% over the past year.

Return vs Market: MKTY underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

MKTYIndustryMarket
7 Day-3.1%-0.1%0.6%
30 Day10.0%1.9%3.0%
90 Day19.6%9.4%10.6%
1 Year30.3%-2.9%30.3%29.0%27.3%24.6%
3 Year-23.6%-43.1%48.8%44.6%50.5%40.8%
5 Year55.6%15.9%88.8%79.2%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Mechanical Technology undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MKTY ($0.99) is trading below our estimate of fair value ($2.58)

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


Price To Earnings Ratio

PE vs Industry: MKTY is good value based on its PE Ratio (5.7x) compared to the Electronic industry average (21.2x).

PE vs Market: MKTY is good value based on its PE Ratio (5.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MKTY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MKTY is good value based on its PB Ratio (2.1x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is Mechanical Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.9%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mechanical Technology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Mechanical Technology is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Mechanical Technology's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Mechanical Technology performed over the past 5 years?

30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKTY has a high level of non-cash earnings.

Growing Profit Margin: MKTY's current net profit margins (21.4%) are higher than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: MKTY's earnings have grown significantly by 30% per year over the past 5 years.

Accelerating Growth: MKTY's earnings growth over the past year (53.6%) exceeds its 5-year average (30% per year).

Earnings vs Industry: MKTY earnings growth over the past year (53.6%) underperformed the Electronic industry 53.6%.


Return on Equity

High ROE: MKTY's Return on Equity (41.7%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mechanical Technology's financial position?


Financial Position Analysis

Short Term Liabilities: MKTY's short term assets ($4.4M) exceed its short term liabilities ($1.0M).

Long Term Liabilities: MKTY has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: MKTY is debt free.

Reducing Debt: MKTY has not had any debt for past 5 years.

Debt Coverage: MKTY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MKTY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if MKTY's debt is covered by short term assets.


Next Steps

Dividend

What is Mechanical Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate MKTY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MKTY's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MKTY'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 Mechanical Technology's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Rick Jones (51yo)

3yrs

Tenure

US$259,602

Compensation

Mr. Frederick W. Jones, also known as Rick, serves as the Chief Financial Officer and Vice President at MTI Instruments, Inc. he serves as the President and Chief Executive Officer of Mechanical Technology ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD519.76K).

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


Board Age and Tenure

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: MKTY's board of directors are considered experienced (3.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • George Relan

    Global Director of Sales - Precision Instruments

    • Tenure: 2.7yrs
  • Rick Jones (51yo)

    President

    • Tenure: 3yrs
    • Compensation: US$259.60k

Board Members

  • David Michaels (63yo)

    Chairman & Lead Independent Director

    • Tenure: 3yrs
    • Compensation: US$13.75k
  • Michael Toporek (53yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$10.00k
  • Thomas Marusak (68yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$10.00k
  • William Phelan (62yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$10.00k
  • Matthew Lipman (40yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$10.00k
  • Edward Hirschfield (47yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$10.00k

Company Information

Mechanical Technology, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mechanical Technology, Incorporated
  • Ticker: MKTY
  • Exchange: OTCPK
  • Founded: 1961
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$7.895m
  • Shares outstanding: 9.57m
  • Website: https://www.mechtech.com

Number of Employees


Location

  • Mechanical Technology, Incorporated
  • 325 Washington Avenue Extension
  • Albany
  • New York
  • 12205
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKTYOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 1980

Biography

Mechanical Technology, Incorporated, through its subsidiary, MTI Instruments, Inc., designs, manufactures, and markets precision linear displacement solutions, vibration measurement and system balancing solutions, precision tensile measurement systems, and wafer inspection tools worldwide. It offers electronic gauging instruments for position, displacement, and vibration applications in the industrial manufacturing/production markets, as well as the research, design, and process development market. The company also provides engine balancing and vibration analysis systems for military and commercial aircraft; metrology tools for semiconductor and solar wafer characterization; and tensile stage systems for materials testing and precision linear displacement gauges for use in academic and industrial research and development settings. It sells its precision automated manufacturing, and research and development sectors through direct sales and representatives in the Americas; and through distributors and agents in Europe and Asia, as well as axial turbo machinery directly to end users. The company serves electronics, aircraft, aerospace, automotive, semiconductor, and research industries. Mechanical Technology, Incorporated was founded in 1961 and is headquartered in Albany, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 23:42
End of Day Share Price2020/01/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.