Mayville Engineering Valuation Analysis
| MEC Stock | USD 27.10 -0.10 -0.37% |
Above Model Estimate
Today
The intrinsic value estimate for Mayville Engineering is based on a 3 months horizon. Negative profit margins (-2.93%) signal ongoing profitability risk influencing market valuation. Extending the time horizon generally improves valuation stability.
Mayville Engineering's valuation depends on its margin structure, capital intensity, and cash-flow profile — each method captures a different dimension. Market multiples show how similar companies are currently priced relative to Mayville Engineering.
Main Profitability Drivers
Mayville Engineering reports a net profit margin of -1.41% alongside an operating margin of -0.67%. A 0.74-point margin gap suggests that below-the-line items meaningfully affect Mayville Engineering's net profitability. On $546.49 million of revenue, Mayville Engineering earned $58.7 million in gross profit and -$8.11 million on the bottom line. The company produces -3.20% on shareholders' equity and -1.37% on total assets, framing Mayville Engineering's capital efficiency picture. Several of Mayville Engineering's profitability indicators are moving in a better direction, even though current margin levels are still below zero. View Mayville Engineering's full profitability analysis for additional context.
Mayville Engineering Cash | $1.58 million |
Cash stood at $1.5 million as of December 31, 2025.
Revenue by Product
Mayville Engineering Co provides product-level revenue detail for 5 reported segments. Fabrication contributes the largest disclosed amount at 81.51 million, while Performance Structures follows at 44.54 million. These disclosed segment amounts highlight relative scale across reported product lines without implying a complete reconciliation to total company revenue.Mayville Engineering is a resource extraction business where revenue is driven by commodity prices, production scale, and global demand cycles, which directly shapes its valuation profile and margin structure. Classified as a growth-oriented stock in Machinery, its valuation multiples reflect expectations for forward earnings expansion. The sections below test current market pricing against capital structure, margins, and earnings trajectory.
Total Value Analysis
The market-value snapshot for Mayville Engineering Co reflects enterprise value of 798.39 million, market capitalization of 557.44 million, debt of 25.57 million, and cash and equivalents of 1.58 million as of latest reporting. The gap between enterprise value and market cap reflects the net effect of debt and cash — shifts in either can materially change the total-value picture.| Takeover Price | Market Cap | Debt Obligations | Cash & Equivalents |
798.39 million | 557.44 million | 25.57 million | 1.58 million |
Investor Information
About 30.0% of MEC outstanding shares are owned by corporate insiders. The book value of MEC was now reported as 11.85. MEC reported a loss per share of 0.8. Mayville Engineering had not issued any dividends in recent years. MEC completed a 0.500-for-1 stock split on 26th of March 2004. Mayville Engineering Co operates at significant scale, but margin compression and elevated leverage point to pressured financial positioning. The earnings picture reflects near-term margin compression relative to deployed assets.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Cash From Operating Activities | $45.6 million | $38.56 million |
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Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Mayville indicates not a very effective usage of assets in May.Macro event markers
Discounted Cash Flow Analysis
Using the current custom levered DCF inputs, Mayville Engineering is worth about 21.39 per share while the market is pricing it near 27.20. The market is pricing the shares around 21.4% over the model estimate. The setup uses a WACC of 10.80% and a long-term growth rate of 3.5%, with next-period free cash flow around 43.61 Million. Discounted forecast cash flows sum to about 104.11 Million before the terminal component, and present terminal value still represents roughly 77.5% of enterprise value.Model Value / Share
21.39
Equity value per share from the current custom levered DCF summary row.
Market Price
27.20
Current market price used by the same scenario.
Model Premium
21.4%
Market price sits above the model output.
WACC / LT Growth
10.80% / 3.5%
Forecast horizon: 2021 to 2030Terminal value share of EV: 77.5%
Mayville Market Price vs. Intrinsic Value
This chart compares observed market pricing with the model-derived equity value per share across forecast periods. It also illustrates the relative premium or discount, expressed as a percentage difference between market valuation and modeled intrinsic value.
Projected Revenue and Levered Free Cash Flow
Revenue and levered free cash flow projections are presented in billions, outlining the expected financial trajectory over the modeled horizon.
Key Model Assumptions
The inputs below reflect the core assumptions applied in the valuation model, including growth expectations, discount rates, and capital structure considerations.
| Input | Current Value |
|---|---|
| Weighted Average Cost of Capital | 10.80% |
| Long-Term Growth Rate | 3.5% |
| Cost of Equity | 9.88% |
| After-Tax Cost of Debt | 23.04% |
| Debt Weighting | 4.39% |
| Equity Weighting | 95.61% |
| Net Debt | 24.07 million |
| Enterprise Value | 461.91 million |
| Present Terminal Value | 357.79 million |
| Terminal Value Share of EV | 77.5% |
Forecast Detail and Valuation Progression
This table presents the underlying forecast data used in the valuation, including revenue, cash flow generation, discounting effects, and the resulting per-share value across each projected period.
| Year | Revenue | Revenue Growth | Free Cash Flow | PV of LFCF | Equity Value / Share |
|---|---|---|---|---|---|
| 2021 | 454.83 million | 0.00% | -24.85 million | 0 | 21.36 |
| 2022 | 539.39 million | 18.59% | -6.18 million | 0 | 21.30 |
| 2023 | 588.42 million | 9.09% | 23.77 million | 0 | 21.24 |
| 2024 | 581.6 million | -1.16% | 77.71 million | 0 | 21.39 |
| 2025 | 546.49 million | -6.04% | 26.91 million | 0 | 21.66 |
| 2026 | 527.32 million | -3.51% | 16.38 million | 14.78 million | 21.39 |
| 2027 | 516.58 million | -2.04% | 22.96 million | 18.7 million | 21.39 |
| 2028 | 510.47 million | -1.18% | 29.42 million | 21.63 million | 21.39 |
| 2029 | 506.97 million | -0.69% | 35.81 million | 23.76 million | 21.39 |
| 2030 | 504.94 million | -0.40% | 42.13 million | 25.23 million | 21.39 |
Profitability Analysis
Using the profitability measurements from Mayville Engineering's financial statements, Mayville Engineering Co is currently operating at a loss, with net income of -8.11 million. The net profit margin is -1.41% and operating margin is -0.67%, with return on equity at -3.2%. Despite reporting a net loss, most profitability indicators are improving year over year, suggesting the margin structure may be stabilizing.Net Loss | First Reported 2018-03-31 | Previous Quarter -4.36 million | Current Value -8.18 million | Quarterly Volatility 6.02 million |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 12.00% | 9.88% |
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The profitability picture for Mayville Engineering Co starts with how effectively revenue converts to earnings. Net margin at -1.41% is negative despite positive operating margins of -0.67%, suggesting non-operating charges are eroding bottom-line profitability. The ratios below show whether current profitability is durable, improving, or under pressure. Mayville Engineering reports return on equity of -3.2%, reflecting negative returns on shareholder capital.
Earnings per Share Projection vs Actual
The spread between high and low EPS estimates for Mayville Engineering captures the degree of analyst disagreement on near-term earnings. Mayville Engineering next EPS is estimated at 0.17 (range 0.17 to 0.17), with trailing EPS at -0.8. Projected earnings per share for Mayville Engineering Co anchor the market's pricing of near-term earnings power. Consensus estimates may not capture non-recurring items or stock-compensation effects, so testing against the current net margin profile (-1.41%), guidance revisions, and prior forecast error adds precision. Mayville Engineering reported estimated earnings of 0.17 in earnings per share on 30th of June 2026. Revisions to EPS estimates — direction and magnitude — often move valuation multiples before the actual report date.Macro event markers
Earnings Estimation Breakdown
5 analysts contribute to the current consensus. The last reported EPS was -0.15 as of 31st of March 2026.
Last Reported EPS
0.17
Lowest
0.17
Expected EPS
0.17
Highest
Analyst estimate range around the current expected EPS projection.
Earnings Projection Consensus
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 5 | 54.98% | -0.15 | 0.17 | -0.8 |
Ownership Allocation
Over half of Mayville Engineering's outstanding shares are owned by institutional investors. This level of institutional participation often indicates steady inclusion in actively managed funds and index-tracking vehicles, driven by Mayville Engineering's size, liquidity, and analyst coverage.Revenue and Profit Overview
MEC reported last year's revenue of $546.49 million. Reported Net Loss for the year was -$8.11 million with profit before taxes, overhead, and interest of $58.7 million.Reading the Current Signals
The earnings multiple of 86.23 is elevated relative to broader benchmarks, pointing to optimism about expansion or margin improvement over the coming periods. In this context, the valuation reflects operating economics rather than a generalized growth or value signal. With margins currently negative, Mayville Engineering is consuming more capital than it generates. For industrial and manufacturing companies built on its order-driven industrial model, this directly limits how much weight traditional valuation multiples can carry. Leverage is moderate at 0.51, broadly consistent with norms in Machinery and manageable under current conditions. Current pricing embeds an expectation of sustained above-average earnings growth. A shift in order flow, operational efficiency, and their translation into sustained earnings would alter the balance between what the market has priced in and what ultimately materializes.
Overall Interpretation
Across the key valuation dimensions, Mayville Engineering Co presents a business currently operating below profitability breakeven, where operating costs tied to the underlying business model outpace revenue within Machinery. Negative margins are the dominant signal - the business is consuming more capital than it generates, making traditional valuation multiples unreliable. For industrial and manufacturing companies, this is a direct consequence of the underlying cost structure and the sensitivity of profitability to volume and pricing. At current levels, Mayville Engineering's valuation reflects an earnings profile that has not yet stabilized. For the market to reprice this business more constructively, order flow, operational efficiency, and their translation into sustained earnings would need to demonstrate sustained improvement.
Each of the valuation dimensions above captures a different angle on Mayville Engineering Co, and their combined signal matters more than any single metric. With margins currently negative, the critical question is whether the path to profitability is supported by revenue trends and cost discipline.
Valuation Framework, Methodology & Assumptions
Mayville Engineering is a small-cap equity in Industrial Machinery & Supplies & Components, Metal Fabrication, Industrials categories. Intrinsic value assumptions are benchmarked against sector averages. On a relative-multiples basis, Mayville Engineering is priced at P/E of 86.23, P/B of 2.4, P/S of 1.0.
Reported values for Mayville Engineering Co are derived from periodic company reporting and market reference feeds and standardized for analysis. Sell-side coverage, where present, supplements the data shown. Valuation outputs are model-derived and depend on published assumptions and reference inputs.
The analysis above is generated by quantitative models and is provided for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an endorsement to buy or sell any security. All investing involves risk, including the possible loss of principal. Consult a qualified financial advisor before making investment decisions. See our Terms of Use for full details.
Financial data referenced in this analysis is derived from publicly available SEC filings, audited financial statements, and third-party market data providers. The intrinsic value estimate is generated by Macroaxis quantitative models that incorporate fundamental analysis, technical indicators, and risk metrics.
The methodology combines multiple analytical inputs:
- Fundamental analysis - financial statements, profitability ratios, debt structure, and cash flow metrics sourced from SEC filings and public financial reports
- Technical indicators - historical price patterns, momentum signals, and volatility measures
- Risk assessment - probability of bankruptcy models, market risk metrics, and downside scenario analysis
- Peer comparison - relative valuation against industry peers using standardized multiples
Model outputs are refreshed periodically as new financial data becomes available. Past model performance is not indicative of future results. The intrinsic value estimate reflects a point-in-time calculation and should be considered alongside other research and professional advice.
Data sourced from SEC filings (EDGAR), public financial statements, and market data providers.
Editorial review and methodology oversight provided by: Rifka Kats, Member of Macroaxis Editorial Board
Growth Indicators
Reviewing growth indicators for Mayville Engineering Co is especially important when the thesis depends on margin repair or cyclical recovery rather than already-established compounding. This kind of analysis helps distinguish a genuine operating recovery from a lower-quality bounce that may not hold through a full cycle.
| Common Stock Shares Outstanding | 20.47 million | |
| Quarterly Earnings Growth Y O Y | -99.40% | |
| Forward Price Earnings | 22.0751 |
Mayville Engineering Current Valuation Indicators
A net-worth review of Mayville Engineering Co links market cap to balance-sheet health, cash flow, and implied growth expectations. The key question is comparative: what does the market charge per dollar of revenue, profit, and assets, and is that justified? Reported values are derived from company filings, audited financial statements, and market data, and are standardized within Macroaxis quantitative models for consistency. Model outputs reflect a point-in-time estimate based on available data and assumptions and should be interpreted alongside changes in operating performance, market conditions, and forward expectations.
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