Mayville Engineering Company (MEC) AI Stock Analysis

• Market Cap: $275.71M
• Dividend Yield: N/A
• Average Volume (3M): 116.57K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.68
• 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: 150,915
• 30 Day Avg. Volume: 116,572
• 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: 1.56
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 7.80
• Enterprise Value/Ebitda: 6.28
• 1Y Price Target: $18.13
• Price Target Upside: 32.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: $15.50 ▲(13.55% Upside)

The overall stock score reflects a stable financial position with strong equity and manageable debt levels, but challenges in profitability and revenue growth. Technical indicators suggest bearish momentum, and valuation is moderate. The earnings call highlights strategic achievements and challenges, with a focus on cost reduction and operational efficiency.

Positive Factors

Acquisition of Accu-Fab

The Accu-Fab acquisition diversifies MEC's revenue streams and customer base, enhancing its market position in critical sectors like power and data centers.

New Business Wins

Securing significant new business in data center and power generation segments indicates strong market demand and supports long-term revenue growth.

Strong Free Cash Flow

High free cash flow conversion reflects effective cash management, providing MEC with the flexibility to invest in growth opportunities and reduce debt.

Negative Factors

Decline in Net Sales

A significant drop in net sales indicates challenges in maintaining demand, which could impact future revenue stability and profitability.

Commercial Vehicle Market Challenges

Weakness in the commercial vehicle market poses risks to MEC's revenue from this segment, necessitating strategic adjustments to mitigate impact.

Increased SG&A Expenses

Rising SG&A expenses, partly due to acquisition-related costs, could pressure margins if not managed effectively, affecting profitability.

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: Negative
• Last Price: 13.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEC, the sentiment is Negative. The current price of 13.65 is below the 20-day moving average (MA) of 14.27, below the 50-day MA of 14.77, and below the 200-day MA of 14.91, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 40.36 is Neutral, neither overbought nor oversold. The STOCH value of 12.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MEC.

Mayville Engineering Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IIIN	75 Outperform	$747.08M	24.16	5.50%	2.91%	9.44%	53.83%
NWPX	72 Outperform	$506.15M	15.79	8.80%	―	5.83%	33.50%
GIFI	66 Neutral	$117.86M	12.47	10.64%	―	14.32%	―
MEC	65 Neutral	$275.71M	16.03	7.37%	―	-16.95%	66.04%
TPCS	49 Neutral	$50.46M	-25.89	-22.95%	―	3.78%	78.39%
AP	39 Underperform	$49.17M	-9.64	-8.06%	―	-3.95%	88.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mayville Engineering Company Corporate Events

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.

Mayville Engineering Acquires Accu-Fab for $140.5 Million

On July 1, 2025, Mayville Engineering Company, Inc. acquired Accu-Fab, LLC for $140.5 million, financed through its existing credit agreement. This acquisition enhances Mayville’s capabilities in providing technology-driven metal fabrication solutions and strengthens its position in the critical power infrastructure, data center, and renewable energy markets.

Mayville Engineering Expands Credit Facility by $100 Million

On June 26, 2025, Mayville Engineering Company, Inc. amended its credit agreement to increase its revolving credit facility from $250 million to $350 million, utilizing a $100 million accordion feature. This financial move is intended to support the company’s ongoing business needs, with the terms of the credit agreement remaining largely unchanged.