Mayville Engineering Company, Inc.
$32.51
+0.62%Mayville Engineering Company, Inc., together with its subsidiaries, operates as a contract manufacturer that serves the heavy and medium duty commercial vehicle, construction and access equipment, powersports, agriculture, military, and other end markets in the United States. The company provides a range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. It also supplies engineered components to original equipment manufacturers. The company was founded in 1945 and is headquartered in Mayville, Wisconsin.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -81.3).
Valuation inputs: P/E -81.3, earnings yield N/A, momentum +0.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -3.4%, ROIC +0.2%).
Profitability stack: net margin -1.5%, ROE -3.4%, ROIC +0.2%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +57.3%, momentum +0.6%, net margin -1.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Mayville Engineering Company, Inc. Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Declining earnings warrant investigation into business challenges and competitive position.
Price-EPS Relationship
Price is rising despite declining earnings—caution advised as valuation may be stretched.
Stock Price Change
Over the 1Y period, stock price has increased by 108.0%.
P/E Ratio (TTM)
Relatively low P/E may indicate undervaluation or lower growth expectations.
Key Insight
Despite declining earnings (-191.8%), the stock price has risen (+108.0%). This disconnect suggests investors may be optimistic about future turnaround, but earnings recovery is critical to sustain the valuation.
Mayville Engineering Company, Inc. Fair Value Envelope
Mayville Engineering Company, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Non-operating losses: Core business is profitable but other expenses (interest, taxes, one-time items) are driving net losses. Review capital structure and non-operating items.
Mayville Engineering Company, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Mayville Engineering Company, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Mayville Engineering Company, Inc. Street Expectations Map
Wall Street analysts project that MEC stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 31.00, with estimates ranging from a low of 30.00 to a high of 32.00.
The consensus 1-year price target stands at 31.00, with estimates ranging from a low of 30.00 to a high of 32.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.
Mayville Engineering Company, Inc. Insider Positioning
During the last 12 months, insiders have purchased $150K and sold $1.85M worth of MEC shares, resulting in $1.70M of net selling activity.
3 Months
0
0.00
52.3K
1.42M
-1.4M
-$1.42M
3-6 Months
0
0.00
11.7K
221.39K
-221K
-$221K
6-9 Months
1.1K
18.09K
12.5K
208.62K
-191K
-$191K
9-12 Months
9.4K
131.94K
0
0.00
+132K
+$132K
Top Buyers
Reddy Jagadeesh A
Director, Officer: President & Ceo
$105K
Lehr Rachele Marie
Officer: Chief Financial Officer
$20K
Nichols Craig D
Officer: Svp, Operations & Supply Chain
$18K
Leuba Sean P
Officer: Svp, Corp. Development & Gc
$7K
Top Sellers
Reddy Jagadeesh A
Director, Officer: President & Ceo
$804K
Raber Ryan F
Officer: Evp - Strategy, Sales & Mktg
$729K
Leuba Sean P
Officer: Gc & Secretary
$126K
Fisher Steven L
Director
$95K
Nichols Craig D
Officer: Svp, Operations & Supply Chain
$93K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $1.70M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 4 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
mec Dividend History
Learning Layer
Related Guides
Build conviction on MEC by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.