
MEC Stock Forecast & Price Target
MEC Analyst Ratings
Bulls say
Mayville Engineering Co Inc has demonstrated a positive trajectory in its financial performance, notably with an adjusted EBITDA margin expansion of over 200 basis points, indicating improved operational efficiency. The company reported a 22% growth in adjusted EPS, driven by lower-than-expected SG&A expenses and a favorable tax rate, highlighting effective cost management. Additionally, strong organic sales growth of 6% surpassed expectations, supporting a forecasted 8.0% sales growth rate and reinforcing the company's potential for sustained long-term growth and enhanced free cash flow.
Bears say
The analysis indicates that Mayville Engineering Co Inc experienced stronger sales in 2022, with $86 million in revenue and an adjusted EBITDA of $16 million; however, 2023 saw declines due to a weak recreational vehicle market, suggesting that a drop in sales can significantly detriment the company’s gross profits and operating results. Furthermore, the reliance on customer forecasts for materials and components might lead to unrecouped pre-production costs, adversely affecting financial stability, especially as projected sales are expected to decline from $158.2 million in 3Q23 to $153.7 million. Additionally, challenges related to the timely procurement of essential components could further harm customer relationships and the company's financial condition, with an estimated net debt to EBITDA ratio of 1.5x expected by December 2024, reflecting ongoing financial pressures.
This aggregate rating is based on analysts' research of Mayville Engineering Company Inc and is not a guaranteed prediction by Public.com or investment advice.
MEC Analyst Forecast & Price Prediction
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