Mayville Engineering Company (MEC) AI Stock Analysis

• Market Cap: $342.57M
• Dividend Yield: N/A
• Average Volume (3M): 226.46K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.69
• Revenue Growth: -12.38%
• EPS Growth: -0.71%
• Country: US
• Employees: 2,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.10
• Shares Outstanding: 20,318,370
• 10 Day Avg. Volume: 262,068
• 30 Day Avg. Volume: 226,458
• 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: 1.55
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 10.08
• Enterprise Value/Ebitda: 8.23
• 1Y Price Target: $21.67
• Price Target Upside: 30.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): $543.66M

• Rating: 68 Neutral
• Price Target: $17.50 ▲(5.61% Upside)

MEC's overall score reflects stable financial health and positive technical momentum, but is tempered by valuation concerns and challenges in legacy markets. The Accu-Fab acquisition presents growth opportunities, yet increased debt and declining free cash flow remain risks.

Positive Factors

Accu-Fab Acquisition

The Accu-Fab acquisition expands MEC's market opportunities, particularly in data centers and critical power, enhancing revenue potential and market reach.

Data Center and Critical Power Market Growth

Growth in the data center and critical power markets offers substantial revenue synergies and higher margins, supporting long-term profitability.

Construction & Access Market Growth

The growth in the Construction & Access market, aided by Accu-Fab, indicates strong demand and supports diversification of revenue streams.

Negative Factors

Free Cash Flow Decline

Declining free cash flow limits MEC's ability to reinvest in growth initiatives and manage debt, posing challenges to financial flexibility.

Increased Net Debt

Rising net debt levels increase financial risk and interest expenses, potentially impacting MEC's long-term financial health and stability.

Legacy End Markets Softness

Weakness in legacy markets, such as commercial vehicles, highlights cyclical challenges and dependency on traditional sectors, affecting revenue stability.

Mayville Engineering Company Business Overview & Revenue Model

Company Description

Mayville Engineering Company (MEC) is a leading provider of contract manufacturing services, specializing in precision metal fabrication, machining, and assembly. Operating primarily in the industrial and commercial sectors, MEC serves a diverse range of industries, including automotive, military, and renewable energy. The company is known for its advanced manufacturing capabilities and commitment to quality, offering a wide array of products from complex assemblies to custom-engineered solutions.

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 stable financial health with a strong balance sheet, but faces challenges with declining free cash flow and lower profit margins. The company needs to improve cash generation and profitability.

Income Statement

The company shows a modest gross profit margin of 9.5% TTM, indicating some efficiency in production. However, the net profit margin is relatively low at 2.3% TTM, suggesting limited profitability. Revenue growth is positive at 1.7% TTM, but lower than previous years, indicating a slowdown. EBIT and EBITDA margins have decreased compared to the previous year, reflecting potential operational challenges.

Balance Sheet

The debt-to-equity ratio has improved significantly to 0.11 TTM, indicating reduced leverage and a stronger equity position. Return on equity is moderate at 7.2% TTM, showing decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow has declined by 23.6% TTM, raising concerns about cash generation. The operating cash flow to net income ratio is healthy at 0.81, indicating good cash conversion. However, the free cash flow to net income ratio is slightly lower at 0.83, suggesting some pressure on free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	533.52M	581.60M	588.42M	539.39M	454.83M	357.61M
Gross Profit	52.55M	71.10M	69.70M	61.07M	51.38M	31.50M
EBITDA	64.43M	82.14M	55.05M	55.09M	24.39M	25.59M
Net Income	12.22M	25.97M	7.84M	18.73M	-7.45M	-7.09M
Balance Sheet
Total Assets	585.58M	445.57M	496.66M	440.58M	379.47M	338.53M
Cash, Cash Equivalents and Short-Term Investments	1.22M	206.00K	672.00K	127.00K	118.00K	121.00K
Total Debt	250.15M	110.05M	181.16M	108.98M	67.61M	47.94M
Total Liabilities	340.81M	193.82M	266.68M	222.71M	181.20M	137.68M
Stockholders Equity	244.77M	251.75M	229.98M	217.87M	198.27M	200.86M
Cash Flow
Free Cash Flow	52.37M	77.71M	23.77M	-6.18M	-24.85M	28.73M
Operating Cash Flow	63.14M	89.81M	40.36M	52.43M	14.46M	36.52M
Investing Cash Flow	-150.54M	-11.71M	-104.13M	-50.67M	-33.96M	-5.77M
Financing Cash Flow	88.44M	-78.56M	64.31M	-1.75M	19.50M	-30.63M

Mayville Engineering Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 16.57 is above the 20-day moving average (MA) of 16.18, above the 50-day MA of 14.82, and above the 200-day MA of 14.78, indicating a bullish trend. The MACD of 0.67 indicates Positive momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 39.73 is Neutral, 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	76 Outperform	$559.19M	15.82	9.78%	―	7.61%	25.35%
MEC	68 Neutral	$342.57M	28.98	5.06%	―	-12.38%	-0.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GIFI	62 Neutral	$127.64M	13.50	11.00%	―	14.32%	―
TG	54 Neutral	$285.57M	24.76	1.26%	―	-3.42%	―
TPCS	44 Neutral	$45.48M	-23.34	-23.42%	―	3.78%	78.39%
AP	42 Neutral	$41.45M	-8.12	-8.37%	―	-3.95%	88.17%

Mayville Engineering Company Corporate Events

Mayville Engineering Reports Q3 2025 Results Amid Strategic Shifts

Mayville Engineering Company (MEC) is a U.S.-based, vertically-integrated manufacturing partner offering comprehensive solutions from design to production, serving diverse markets such as commercial vehicles, construction, powersports, and data centers.

Mayville Engineering Highlights Growth Amid Challenges in Earnings Call

During the recent earnings call, Mayville Engineering Company (MEC) expressed a mixed sentiment, highlighting both significant achievements and ongoing challenges. The company showcased its progress with the Accu-Fab acquisition and its promising growth prospects in the data center and critical power market. However, it also acknowledged the hurdles faced in its legacy markets, such as commercial vehicles and agriculture, which have led to a decline in manufacturing margins and increased debt leverage. Despite these obstacles, MEC remains optimistic about future growth and has reaffirmed its 2025 guidance.

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.