Mayville Engineering Company, Inc. (MEC) Company Bio
Mayville Engineering Co., Inc. engages in the production of metal components. It offers a broad range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. Its customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction, powersports, agriculture, military, and other end markets. The company was founded by Leo Bachhuber and Ted Bachhuber in 1945 and is headquartered in Mayville, WI.
MEC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MEC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Mayville Engineering Company Inc ranked in the 0th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 100%. In terms of the factors that were most noteworthy in this DCF analysis for MEC, they are:
The compound growth rate in the free cash flow of Mayville Engineering Company Inc over the past 0.83 years is -0.66%; that's better than only 0.27% of cash flow producing equities in the Industrials sector, where it is classified.
Mayville Engineering Company Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.31. This coverage rate is greater than that of just 16.38% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MEC, try CFX, RRD, SEII, SHIP, and SRCL.