📊 MEC Key Takeaways
Is Mayville Engineering Company, Inc. (MEC) a Good Investment?
Mayville Engineering faces significant operational challenges with negative net income of $8.1M and declining revenue (-6.0% YoY) in a cyclical manufacturing sector. While positive operating cash flow of $38.6M and adequate liquidity (1.72x current ratio) provide near-term stability, the company's persistent unprofitability (-1.5% net margin, -3.4% ROE) and negative interest coverage (-1.1x) indicate structural profitability issues that require operational improvement. The deteriorating EPS trend (-132.3% YoY) and minimal cash reserves ($1.5M) relative to assets create vulnerability to further revenue contractions or capital needs.
Why Buy Mayville Engineering Company, Inc. Stock? MEC Key Strengths
- Positive operating cash flow of $38.6M demonstrates underlying business can generate cash despite accounting losses
- Adequate liquidity position with 1.72x current ratio and manageable debt structure (0.00x Debt/Equity ratio)
- Free cash flow of $26.9M (4.9% FCF margin) provides cushion for operations and capital allocation
MEC Stock Risks: Mayville Engineering Company, Inc. Investment Risks
- Revenue declining 6.0% YoY in cyclical metal forgings sector indicates loss of market share or industry headwinds
- Persistent unprofitability with negative operating margin (-0.7%), net margin (-1.5%), and negative ROE (-3.4%) suggests structural cost issues
- Critically low cash position ($1.5M) relative to $563.6M asset base creates refinancing risk and limits financial flexibility
- Negative interest coverage ratio (-1.1x) signals inability to cover debt service from operating earnings
- Deteriorating EPS (-132.3% YoY decline) indicates worsening shareholder value destruction
Key Metrics to Watch
- Revenue trend reversal - monitor next 2-3 quarters for stabilization or continued decline
- Operating margin improvement - path to profitability requires cost restructuring or price increases
- Cash position and operating cash flow sustainability - ensure OCF remains positive as financial buffer
- Debt levels and refinancing needs - track any new borrowing given thin equity cushion
- Gross margin and cost of goods sold trends - identify where operational leverage is being lost
Mayville Engineering Company, Inc. (MEC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.9% FCF margin may limit capital allocation flexibility.
MEC Profit Margin, ROE & Profitability Analysis
MEC vs Materials Sector: How Mayville Engineering Company, Inc. Compares
How Mayville Engineering Company, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Mayville Engineering Company, Inc. Stock Overvalued? MEC Valuation Analysis 2026
Based on fundamental analysis, Mayville Engineering Company, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Mayville Engineering Company, Inc. Balance Sheet: MEC Debt, Cash & Liquidity
MEC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Mayville Engineering Company, Inc.'s revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.38 reflects profitable operations.
MEC Revenue Growth, EPS Growth & YoY Performance
MEC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $135.4M | $20.0K | $-0.13 |
| Q2 2025 | $132.3M | $20.0K | $-0.05 |
| Q1 2025 | $135.6M | $20.0K | $0.00 |
| Q3 2024 | $135.4M | $1.4M | $0.07 |
| Q2 2024 | $139.0M | $1.6M | $0.08 |
| Q1 2024 | $142.6M | $2.6M | $0.12 |
| Q3 2023 | $136.3M | $1.4M | $0.07 |
| Q2 2023 | $138.3M | $1.6M | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Mayville Engineering Company, Inc. Dividends, Buybacks & Capital Allocation
MEC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Mayville Engineering Company, Inc. (CIK: 0001766368)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MEC
What is the AI rating for MEC?
Mayville Engineering Company, Inc. (MEC) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MEC's key strengths?
Claude: Positive operating cash flow of $38.6M demonstrates underlying business can generate cash despite accounting losses. Adequate liquidity position with 1.72x current ratio and manageable debt structure (0.00x Debt/Equity ratio).
What are the risks of investing in MEC?
Claude: Revenue declining 6.0% YoY in cyclical metal forgings sector indicates loss of market share or industry headwinds. Persistent unprofitability with negative operating margin (-0.7%), net margin (-1.5%), and negative ROE (-3.4%) suggests structural cost issues.
What is MEC's revenue and growth?
Mayville Engineering Company, Inc. reported revenue of $546.5M.
Does MEC pay dividends?
Mayville Engineering Company, Inc. does not currently pay dividends.
Where can I find MEC SEC filings?
Official SEC filings for Mayville Engineering Company, Inc. (CIK: 0001766368) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MEC's EPS?
Mayville Engineering Company, Inc. has a diluted EPS of $-0.40.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MEC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Mayville Engineering Company, Inc. has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MEC stock overvalued or undervalued?
Valuation metrics for MEC: ROE of -3.4% (sector avg: 14%), net margin of -1.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy MEC stock in 2026?
Our dual AI analysis gives Mayville Engineering Company, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MEC's free cash flow?
Mayville Engineering Company, Inc.'s operating cash flow is $38.6M, with capital expenditures of $11.6M. FCF margin is 4.9%.
How does MEC compare to other Materials stocks?
Vs Materials sector averages: Net margin -1.5% (avg: 10%), ROE -3.4% (avg: 14%), current ratio 1.72 (avg: 1.6).