Mayville Engineering Company (MEC) AI Stock Analysis

• Market Cap: $331.67M
• Dividend Yield: N/A
• Average Volume (3M): 124.42K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.84
• Revenue Growth: -8.42%
• EPS Growth: 164.82%
• Country: US
• Employees: 2,200
• Sector: Industrials
• Sector Strength: 89
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.04
• Shares Outstanding: 20,461,031
• 10 Day Avg. Volume: 118,977
• 30 Day Avg. Volume: 124,422
• PEG Ratio: -0.04
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -41.76
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 5.61
• Enterprise Value/Ebitda: 1.28
• 1Y Price Target: $19.25
• Price Target Upside: 17.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $18.00 ▲(9.49%Upside)

MEC's solid financial performance and recent strategic acquisition provide strong foundations for future growth. The stock is technically well-positioned, and its valuation is reasonable. However, challenges such as declining sales in key markets and macroeconomic uncertainties moderate the overall outlook.

Positive Factors

Business Expansion

MEC is actively pursuing new markets where fabricated parts are required, and the design, tooling and end-user requirements are not a stretch for capacity.

Financial Performance

The company's strong margin performance and cash generation are notable highlights.

Mergers and Acquisitions

The acquisition of Accu-Fab is expected to be immediately accretive to adjusted EPS.

Negative Factors

Commercial Vehicle Outlook

There is a significant reduction in the commercial vehicle outlook, now expected to decline by 23%.

Market Challenges

Fourth-quarter revenue was below the consensus estimate, reflecting challenges in the current market.

Revenue Decline

Revenue for the first quarter showed a year-over-year decline of 15.9%.

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 its comprehensive suite of manufacturing services, which includes metal fabrication, tube forming, and coating services. The company earns money by fabricating components and products for original equipment manufacturers (OEMs) across multiple industries. Key revenue streams include long-term contracts with clients in sectors like agriculture, military, and construction. MEC's ability to provide end-to-end manufacturing solutions, from initial design to final production, allows it to add significant value to its clients, thereby ensuring a steady flow of income. Additionally, strategic partnerships and investments in advanced manufacturing technologies further bolster its revenue potential.

Mayville Engineering Company Financial Statement Overview

Summary

MEC shows solid financial health with strong cash flow management and stable profitability margins. Despite a slight revenue decline, operational improvements have bolstered margins. The balance sheet reflects low leverage and a strong equity position, though there is room to enhance return on equity.

Income Statement

Mayville Engineering Company (MEC) demonstrates solid profitability with a gross profit margin of 11.8% and a net profit margin of 4.1% for TTM (Trailing-Twelve-Months). While revenue experienced a slight decline of 4.4% from the previous year, the company has improved its EBIT and EBITDA margins to 6.9% and 13.7% respectively, indicating enhanced operational efficiency.

Balance Sheet

MEC maintains a stable balance sheet with a debt-to-equity ratio of 0.1, reflecting low leverage. The equity ratio stands at 55.8%, indicating a healthy proportion of equity financing. However, return on equity (ROE) at 9.1% suggests moderate profitability relative to shareholder investments.

Cash Flow

The company exhibits strong cash flow management with a free cash flow growth rate of 216.6% for TTM. The operating cash flow to net income ratio is robust at 3.8, highlighting efficient conversion of earnings into cash. The free cash flow to net income ratio of 3.3 further underscores solid cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	555.91M	581.60M	588.42M	539.39M	454.83M	357.61M
Gross Profit	65.49M	71.10M	69.70M	61.07M	51.38M	31.50M
EBITDA	76.32M	82.14M	55.05M	25.77M	24.39M	25.59M
Net Income	22.75M	25.97M	7.84M	18.73M	-7.45M	-7.09M
Balance Sheet
Total Assets	447.70M	445.57M	496.66M	440.58M	379.47M	338.53M
Cash, Cash Equivalents and Short-Term Investments	183.00K	206.00K	672.00K	127.00K	118.00K	121.00K
Total Debt	24.22M	110.05M	182.08M	108.98M	68.82M	47.94M
Total Liabilities	197.75M	193.82M	266.68M	222.71M	181.20M	137.68M
Stockholders Equity	249.96M	251.75M	229.98M	217.87M	198.27M	200.86M
Cash Flow
Free Cash Flow	75.23M	77.71M	23.77M	-6.18M	-24.85M	28.73M
Operating Cash Flow	87.52M	89.81M	40.36M	52.43M	14.46M	36.52M
Investing Cash Flow	-12.00M	-11.71M	-104.13M	-50.67M	-33.96M	-5.77M
Financing Cash Flow	-75.64M	-78.56M	64.31M	-1.75M	19.50M	-30.63M

Mayville Engineering Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 16.44 is above the 20-day moving average (MA) of 15.82, above the 50-day MA of 15.16, and above the 200-day MA of 16.10, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 50.45 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
MEC	73 Outperform	$331.67M	15.23	9.40%	―	-8.42%	164.82%
GIFI	72 Outperform	$113.56M	9.57	13.54%	―	18.83%	―
IIIN	72 Outperform	$748.71M	33.44	6.61%	0.31%	-0.33%	-7.06%
NWPX	72 Outperform	$414.19M	12.90	9.13%	―	8.06%	38.46%
AP	67 Neutral	$58.68M	14.09	7.11%	―	-3.60%	―
Sector *	58 Neutral	HK$13.95B	4.43	-3.01%	7.31%	3.67%	-54.16%
TPCS	43 Neutral	$35.69M	―	-76.24%	―	8.71%	-164.66%

Mayville Engineering Company Corporate Events

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.

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.

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.

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.

Mayville Engineering Announces Acquisition of Accu-Fab

On May 23, 2025, Mayville Engineering Company announced a Purchase Agreement to acquire Accu-Fab, LLC for $140.5 million, subject to customary adjustments. The acquisition, expected to close in the third quarter of 2025, aims to enhance Mayville’s market position by integrating Accu-Fab’s expertise in metal fabrication and value-added services, thereby strengthening its supply chain capabilities for major OEMs in critical sectors.

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.