Mayville Engineering Company (MEC) AI Stock Analysis

• Market Cap: $264.33M
• Dividend Yield: N/A
• Average Volume (3M): 128.15K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.70
• Revenue Growth: -16.95%
• EPS Growth: 66.04%
• Country: US
• Employees: 2,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.10
• Shares Outstanding: 20,317,825
• 10 Day Avg. Volume: 128,512
• 30 Day Avg. Volume: 128,147
• PEG Ratio: 0.05
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 4.17
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 7.80
• Enterprise Value/Ebitda: 6.28
• 1Y Price Target: $20.00
• Price Target Upside: 21.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: $17.00 ▲(3.34% Upside)

Mayville Engineering Company has a stable financial foundation with strong equity and manageable debt, but faces challenges in profitability and revenue growth. The technical indicators suggest a positive short-term trend, though caution is warranted due to potential overbought conditions. Strategic acquisitions and new business wins are positive, but market challenges and the withdrawal of 2026 financial targets add uncertainty.

Positive Factors

Strategic Acquisition

The Accu-Fab acquisition expands MEC's market reach by 60%, enhancing its serviceable addressable market to $8 billion, which strengthens its competitive position and potential for revenue growth.

New Business Wins

Securing significant new business awards in data center and power generation segments indicates strong market demand and enhances MEC's growth prospects in key industries.

Strong Free Cash Flow

High free cash flow conversion demonstrates MEC's ability to efficiently convert earnings into cash, supporting reinvestment and debt reduction strategies, which are crucial for long-term financial health.

Negative Factors

Decline in Net Sales

A significant decline in net sales reflects challenges in maintaining revenue growth, potentially affecting MEC's profitability and market position if not addressed.

Commercial Vehicle Market Challenges

Weakness in the commercial vehicle market could lead to reduced demand for MEC's products, impacting revenue and necessitating strategic adjustments to mitigate market risks.

Increased SG&A Expenses

Rising SG&A expenses, driven by acquisition and transition costs, could pressure margins and profitability, requiring effective cost management to sustain financial performance.

Mayville Engineering Company Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

MEC generates revenue through multiple streams, primarily by providing contract manufacturing services to various industries. This includes the fabrication of metal components and assemblies, which are sold to clients on a project basis. The company also engages in long-term contracts with clients for ongoing manufacturing needs, ensuring a steady flow of income. Additionally, MEC benefits from partnerships with key players in sectors such as defense and transportation, allowing it to secure significant contracts that contribute to its revenue. The company's ability to scale operations and invest in advanced manufacturing technologies further enhances its competitive edge, driving profitability.

Mayville Engineering Company Financial Statement Overview

Summary

MEC shows a stable financial position with strong equity and manageable debt levels. However, profitability and revenue growth have faced challenges, with a decrease in net profit margin and revenue contraction. Operational efficiency remains robust, and cash flow metrics indicate solid cash conversion, though recent declines in free cash flow growth warrant attention.

Income Statement

The income statement shows a mixed performance. The TTM gross profit margin is 11.78%, slightly below the previous year's 12.22%, indicating some pressure on cost management. The net profit margin has decreased to 4.09% from 4.46%, reflecting a decline in profitability. Revenue has contracted by 5.63% in the TTM, following a slight decline in the previous year, suggesting challenges in maintaining sales growth. However, the EBIT and EBITDA margins remain relatively stable, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.097 in the TTM, significantly improved from 0.437 in the previous year, indicating reduced leverage and financial risk. The return on equity is 9.30%, slightly down from 10.31%, but still showing effective use of equity to generate profits. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth by 8.84% in the TTM, indicating potential cash generation issues. However, the operating cash flow to net income ratio is strong at 1.20, suggesting good cash conversion from earnings. The free cash flow to net income ratio is 0.86, indicating a healthy level of free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	524.61M	581.60M	588.42M	539.39M	454.83M	357.61M
Gross Profit	55.10M	71.10M	69.70M	61.07M	51.38M	31.50M
EBITDA	68.45M	82.14M	55.05M	25.77M	24.39M	25.59M
Net Income	17.87M	25.97M	7.84M	18.73M	-7.45M	-7.09M
Balance Sheet
Total Assets	433.75M	445.57M	496.66M	440.58M	379.47M	338.53M
Cash, Cash Equivalents and Short-Term Investments	206.00K	206.00K	672.00K	127.00K	118.00K	121.00K
Total Debt	25.27M	112.62M	182.08M	108.98M	68.82M	47.94M
Total Liabilities	186.90M	193.82M	266.68M	222.71M	181.20M	137.68M
Stockholders Equity	246.84M	251.75M	229.98M	217.87M	198.27M	200.86M
Cash Flow
Free Cash Flow	68.58M	77.71M	23.77M	-6.18M	-24.85M	28.73M
Operating Cash Flow	79.21M	89.81M	40.36M	52.43M	14.46M	36.52M
Investing Cash Flow	-10.35M	-11.71M	-104.13M	-50.67M	-33.96M	-5.77M
Financing Cash Flow	-68.97M	-78.56M	64.31M	-1.75M	19.50M	-30.63M

Mayville Engineering Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEC, the sentiment is Positive. The current price of 16.45 is above the 20-day moving average (MA) of 13.72, above the 50-day MA of 14.11, and above the 200-day MA of 14.69, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 72.05 is Negative, neither overbought nor oversold. The STOCH value of 92.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MEC.

Mayville Engineering Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWPX	72 Outperform	$514.46M	16.34	9.14%	―	5.83%	33.50%
GIFI	66 Neutral	$117.70M	13.13	11.00%	―	14.32%	―
MEC	64 Neutral	$264.33M	18.57	7.37%	―	-16.95%	66.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TPCS	49 Neutral	$47.86M	―	-23.42%	―	3.78%	78.39%
TG	46 Neutral	$249.83M	642.11	-4.96%	―	-3.07%	―
AP	41 Neutral	$43.28M	-9.00	-8.37%	―	-3.95%	88.17%

Mayville Engineering Company Corporate Events

Mayville Engineering’s Earnings Call: Strategic Wins Amid Challenges

In the latest earnings call, Mayville Engineering Company (MEC) conveyed a sentiment of cautious optimism. The company highlighted successful strategic initiatives, such as the acquisition of Accu-Fab and strong new business wins, which are poised to drive future growth. However, challenges like a decline in net sales and increased leverage due to acquisitions present a mixed outlook.

Mayville Engineering Reports Q2 2025 Financial Results

Mayville Engineering Company (MEC) is a U.S.-based, vertically-integrated manufacturing partner offering a comprehensive range of solutions from design to production, serving diverse markets such as commercial vehicles, construction, powersports, agriculture, and military. In its second quarter of 2025, MEC reported net sales of $132.3 million, with a GAAP net loss of $1.1 million, while achieving a non-GAAP adjusted net income of $2.1 million. The company generated an adjusted EBITDA of $13.7 million, reflecting a margin of 10.3%, and free cash flow of $12.5 million, despite facing a challenging demand environment across most end markets. Key financial metrics showed a decrease in net sales by 19.1% year-over-year, primarily due to reduced demand and inventory de-stocking in key markets such as commercial vehicles and powersports. However, the military and other markets saw increased sales due to higher aftermarket demand and new customer projects. MEC’s strategic initiatives included the acquisition of Accu-Fab, aimed at diversifying its market presence and enhancing operational leverage. Looking forward, MEC’s management remains focused on integrating Accu-Fab, optimizing operations, and pursuing growth opportunities, though they acknowledge ongoing market uncertainties and have adjusted their full-year guidance accordingly.

Mayville Engineering Expands Board with New Director

On July 24, 2025, Mayville Engineering Company announced the election of Tania L. Wingfield to its Board of Directors, expanding the board to seven members. Wingfield, who is also appointed to the Compensation Committee, brings over 30 years of experience in manufacturing and strategic leadership, which is expected to enhance MEC’s execution of its MBX strategy and long-term value creation.

The most recent analyst rating on (MEC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Mayville Engineering Company stock, see the MEC Stock Forecast page.