(MEC) Mayville Engineering - Overview
Sector: Industrials | Industry: Metal Fabrication | Exchange: NYSE (USA) | Market Cap: 491m USD | Total Return: 67.7% in 12m
Avg Turnover: 7.42M
Qual. Beats: -1
Rev. Trend: -44.1%
Qual. Beats: 0
Warnings
High Debt/EBITDA (7.4) with thin interest coverage (-0.7)
Interest Coverage Ratio -0.7 is critical
Altman Z'' 0.91 < 1.0 - financial distress zone
Tailwinds
Leader
Mayville Engineering Company (MEC) is a vertical-tier manufacturer providing design, prototyping, fabrication, and assembly services for original equipment manufacturers (OEMs) in the United States. Founded in 1945, the company operates across diverse end markets, including commercial vehicles, agriculture, construction, and data center infrastructure.
As a contract manufacturer in the industrial machinery sector, MEC relies on long-term relationships with large-scale OEMs, often integrating directly into their supply chains to provide complex metal components. The companys business model is capital-intensive, requiring significant investment in advanced manufacturing technologies like robotic welding and automated coating systems to maintain competitive margins.
Investors can evaluate the company’s valuation metrics and historical performance trends by reviewing the data available on ValueRay.
- Commercial vehicle production cycles dictate core heavy-duty manufacturing revenue volume
- Input cost volatility for steel and aluminum directly impacts operating margins
- Expansion into data center infrastructure diversifies revenue beyond traditional cyclical markets
- Capital expenditure trends in agriculture and construction drive equipment component demand
- Execution of strategic consolidation and automation initiatives influences long-term profitability targets
| Net Income: -16.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -14.28 > 1.0 |
| NWC/Revenue: 10.35% < 20% (prev 8.83%; Δ 1.53% < -1%) |
| CFO/TA 0.05 > 3% & CFO 27.5m > Net Income -16.3m |
| Net Debt (249.2m) to EBITDA (33.6m): 7.42 < 3 |
| Current Ratio: 1.64 > 1.5 & < 3 |
| Outstanding Shares: last quarter (20.4m) vs 12m ago -1.47% < -2% |
| Gross Margin: 8.33% > 18% (prev 0.12%; Δ 821.6% > 0.5%) |
| Asset Turnover: 108.3% > 50% (prev 124.2%; Δ -15.83% > 0%) |
| Interest Coverage Ratio: -0.74 > 6 (EBITDA TTM 33.6m / Interest Expense TTM 12.3m) |
| A: 0.10 (Total Current Assets 147.3m - Total Current Liabilities 89.7m) / Total Assets 578.1m |
| B: 0.08 (Retained Earnings 43.8m / Total Assets 578.1m) |
| C: -0.02 (EBIT TTM -9.15m / Avg Total Assets 512.9m) |
| D: 0.13 (Book Value of Equity 43.8m / Total Liabilities 345.9m) |
| Altman-Z'' = 0.91 = BB |
| DSRI: 1.18 (Receivables 68.1m/57.9m, Revenue 555.7m/555.9m) |
| GMI: 1.41 (GM 8.33% / 11.78%) |
| AQI: 1.31 (AQ_t 0.43 / AQ_t-1 0.33) |
| SGI: 1.00 (Revenue 555.7m / 555.9m) |
| TATA: -0.08 (NI -16.3m - CFO 27.5m) / TA 578.1m) |
| Beneish M = -2.40 (Cap -4..+1) = BBB |
As of May 24, 2026, the stock is trading at USD 23.13 with a total of 405,973 shares traded.
Over the past week, the price has changed by +0.63%,
over one month by +18.93%,
over three months by +16.64% and
over the past year by +67.65%.
Mayville Engineering has received a consensus analysts rating of 4.33. Therefore, it is recommended to buy MEC.
- StrongBuy: 2
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 32.9 | 42.2% |
P/S = 0.8833
P/B = 2.114
Revenue TTM = 555.7m USD
EBIT TTM = -9.15m USD
EBITDA TTM = 33.6m USD
Long Term Debt = 212.4m USD (from longTermDebt, last quarter)
Short Term Debt = 8.28m USD (from shortTermDebt, two quarters ago)
Debt = 251.3m USD (corrected: LT Debt 212.4m + ST Debt 8.28m) + Leases 30.6m
Net Debt = 249.2m USD (calculated: Debt 251.3m - CCE 2.07m)
Enterprise Value = 740.1m USD (490.8m + Debt 251.3m - CCE 2.07m)
Interest Coverage Ratio = -0.74 (Ebit TTM -9.15m / Interest Expense TTM 12.3m)
EV/FCF = 50.68x (Enterprise Value 740.1m / FCF TTM 14.6m)
FCF Yield = 1.97% (FCF TTM 14.6m / Enterprise Value 740.1m)
FCF Margin = 2.63% (FCF TTM 14.6m / Revenue TTM 555.7m)
Net Margin = -2.93% (Net Income TTM -16.3m / Revenue TTM 555.7m)
Gross Margin = 8.33% ((Revenue TTM 555.7m - Cost of Revenue TTM 509.4m) / Revenue TTM)
Gross Margin QoQ = 5.41% (prev 6.64%)
Tobins Q-Ratio = 1.28 (Enterprise Value 740.1m / Total Assets 578.1m)
Interest Expense / Debt = 4.90% (Interest Expense 12.3m / Debt 251.3m)
Taxrate = 21.0% (US default 21%)
NOPAT = -7.23m (EBIT -9.15m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.64 (Total Current Assets 147.3m / Total Current Liabilities 89.7m)
Debt / Equity = 1.08 (Debt 251.3m / totalStockholderEquity, last quarter 232.2m)
Debt / EBITDA = 7.42 (Net Debt 249.2m / EBITDA 33.6m)
Debt / FCF = 17.07 (Net Debt 249.2m / FCF TTM 14.6m)
Total Stockholder Equity = 241.1m (last 4 quarters mean from totalStockholderEquity)
RoA = -3.18% (Net Income -16.3m / Total Assets 578.1m)
RoE = -6.76% (Net Income TTM -16.3m / Total Stockholder Equity 241.1m)
RoCE = -2.02% (EBIT -9.15m / Capital Employed (Equity 241.1m + L.T.Debt 212.4m))
RoIC = -1.48% (negative operating profit) (NOPAT -7.23m / Invested Capital 488.3m)
WACC = 8.20% (E(490.8m)/V(742.1m) * Re(10.41%) + D(251.3m)/V(742.1m) * Rd(4.90%) * (1-Tc(0.21)))
Discount Rate = 10.41% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -33.33 | Cagr: -0.49%
[DCF] Terminal Value 73.10% ; FCFF base≈38.9m ; Y1≈34.1m ; Y5≈27.5m
[DCF] Fair Price = 9.40 (EV 441.9m - Net Debt 249.2m = Equity 192.6m / Shares 20.5m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -3.42 | # QB: -1
Revenue Correlation: -44.12 | Revenue CAGR: -2.78% | SUE: 0.65 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.07 | Chg30d=N/A | Revisions=N/A | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.20 | Chg30d=+1.07% | Revisions=+33% | Analysts=3
EPS current Year (2026-12-31): EPS=0.18 | Chg30d=-11.75% | Revisions=+33% | GrowthEPS=-43.0% | GrowthRev=+10.3%
EPS next Year (2027-12-31): EPS=1.31 | Chg30d=+2.51% | Revisions=+33% | GrowthEPS=+640.3% | GrowthRev=+11.9%
[Analyst] Revisions Ratio: +33%