Mayville Engineering Company, Inc. (MEC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Mayville Engineering Company, Inc. (MEC) Industrial Operations Profile

Mayville Engineering Company, Inc. (MEC) is a US-based contract manufacturer specializing in metal fabrication for heavy and medium-duty commercial vehicles, construction, agriculture, and military sectors. With a history dating back to 1945, MEC offers comprehensive services from prototyping to aftermarket components, positioning itself as a key supplier to original equipment manufacturers.

What Is the Investment Thesis for MEC?

Mayville Engineering Company, Inc. (MEC) presents a notable research candidate based on its established position as a contract manufacturer serving diverse end markets. While the company currently has a negative profit margin of -2.9%, potential growth catalysts include expanding its services within existing markets and penetrating new sectors. The company's beta of 1.13 suggests a slightly higher volatility compared to the market. Key value drivers include its ability to provide end-to-end solutions, from prototyping to aftermarket components, and its long-standing relationships with original equipment manufacturers (OEMs). Investors should monitor the company's ability to improve its profit margins and capitalize on growth opportunities in its target markets. The company's financial performance and strategic initiatives will be crucial in determining its long-term value.

Based on FMP financials and quantitative analysis

MEC Key Highlights

Mayville Engineering Company serves heavy and medium duty commercial vehicle, construction and access equipment, powersports, agriculture, military, and other end markets.

• The company provides a range of services including prototyping and tooling, production fabrication, coating, assembly, and aftermarket components.
• Mayville Engineering Company was founded in 1945 and is headquartered in Mayville, Wisconsin.
• The company has a market capitalization of $467M.
• Mayville Engineering Company employs approximately 2,200 people.

Who Are MEC's Competitors?

MEC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are MEC's Key Strengths?

Diverse end-market exposure

• End-to-end manufacturing capabilities
• Long-standing relationships with OEMs
• Established reputation for quality and reliability

What Are MEC's Weaknesses?

Negative profit margin

• Reliance on macroeconomic conditions
• Limited geographic diversification
• Potential for supply chain disruptions

What Could Drive MEC Stock Higher?

Investments in automation and advanced manufacturing technologies to improve efficiency and reduce costs.

• Expansion into new geographic markets to diversify revenue streams and reduce reliance on domestic markets.
• Development of new products and services tailored to emerging market needs, such as electric vehicles and renewable energy.
• Potential strategic acquisitions to expand capabilities and enter new markets.
• Strengthening relationships with existing customers to increase order volumes and secure long-term contracts.

What Are the Key Risks for MEC?

Negative return on equity (-6.8%) — the business is not currently generating profit on shareholder capital.

• Fluctuations in raw material prices, such as steel and aluminum, could negatively impact profit margins.
• Economic downturns in key markets, such as commercial vehicles and construction equipment, could reduce demand for MEC's products and services.
• Intense competition from other contract manufacturers could put pressure on pricing and market share.
• Supply chain disruptions could delay production and increase costs.
• Dependence on key customers could create vulnerability if those customers reduce their orders or switch to alternative suppliers.

What Are the Growth Opportunities for MEC?

• Growth opportunity 1: Expanding into new geographic markets represents a significant growth opportunity for MEC. By extending its reach beyond the United States, the company can tap into new customer bases and diversify its revenue streams. This expansion could involve establishing new production facilities or forming strategic alliances with local partners. The global metal fabrication market is estimated to reach $218.74 billion by 2028, presenting a substantial opportunity for MEC to increase its market share through strategic geographic expansion. Timeline: 3-5 years.
• Growth opportunity 2: Investing in advanced manufacturing technologies, such as automation and robotics, can enhance MEC's efficiency and competitiveness. By automating repetitive tasks and optimizing production processes, the company can reduce costs, improve quality, and increase output. The market for industrial automation is projected to reach $395 billion by 2027, indicating a strong demand for these technologies. MEC's adoption of advanced manufacturing technologies will enable it to better serve its customers and maintain a competitive edge. Timeline: 2-3 years.
• Growth opportunity 3: Developing new products and services tailored to emerging market needs can drive revenue growth for MEC. This could involve creating specialized components for electric vehicles, renewable energy systems, or other high-growth sectors. By anticipating future market trends and investing in research and development, MEC can position itself as a leader in innovative metal fabrication solutions. The electric vehicle market, for example, is expected to grow at a CAGR of 21.7% from 2021 to 2028, creating significant opportunities for MEC to supply specialized components. Timeline: 3-5 years.
• Growth opportunity 4: Strengthening relationships with existing customers can lead to increased order volumes and long-term contracts. By providing exceptional customer service, delivering high-quality products, and offering competitive pricing, MEC can solidify its position as a trusted supplier. Building strong relationships with key accounts can also provide valuable insights into future market trends and customer needs. This customer retention strategy can lead to a stable revenue stream and sustainable growth. Timeline: Ongoing.
• Growth opportunity 5: Pursuing strategic acquisitions can enable MEC to expand its capabilities, enter new markets, and gain access to valuable technologies. By acquiring complementary businesses, the company can broaden its product portfolio and enhance its competitive position. Careful due diligence and integration planning are essential to ensure the success of any acquisition. The mergers and acquisitions market in the metal fabrication industry is active, presenting opportunities for MEC to grow through strategic acquisitions. Timeline: Opportunistic.

What Are MEC's Competitive Advantages?

• Long-standing relationships with OEMs
• Diverse end-market exposure
• End-to-end manufacturing capabilities
• Established reputation for quality and reliability

What Does MEC Do?

Mayville Engineering Company, Inc. (MEC) was founded in 1945 and has evolved into a leading contract manufacturer in the United States. Headquartered in Mayville, Wisconsin, the company provides a wide array of services, including prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. MEC serves a diverse range of end markets, including heavy and medium-duty commercial vehicles, construction and access equipment, powersports, agriculture, and the military. The company's ability to provide end-to-end solutions, from initial design to final production and aftermarket support, differentiates it from competitors. MEC's geographic focus is primarily within the United States, allowing it to maintain close relationships with its original equipment manufacturer (OEM) customers. The company's long history and established reputation have enabled it to secure long-term contracts and maintain a strong presence in its key markets. MEC's commitment to quality and innovation has allowed it to adapt to changing customer needs and industry trends, ensuring its continued success in the competitive manufacturing landscape.

What Products and Services Does MEC Offer?

• Contract manufacturing for various industries
• Prototyping and tooling services
• Production fabrication
• Coating services
• Assembly services
• Aftermarket components supply
• Engineered components for OEMs

How Does MEC Make Money?

• Contract-based manufacturing agreements
• Revenue from fabrication, coating, and assembly services
• Sales of aftermarket components
• Supply of engineered components to original equipment manufacturers

What Industry Does MEC Operate In?

Mayville Engineering Company operates within the metal fabrication industry, a sector influenced by macroeconomic trends, technological advancements, and regulatory changes. The industry is characterized by intense competition, with companies vying for contracts from original equipment manufacturers (OEMs) across various sectors. Market trends include increasing demand for lightweight materials, advanced manufacturing processes, and customized solutions. MEC's ability to adapt to these trends and offer value-added services positions it favorably within the competitive landscape. The company's focus on diverse end markets mitigates risk associated with downturns in specific sectors. Overall, the metal fabrication industry is expected to experience moderate growth, driven by infrastructure development, automotive production, and industrial expansion.

Who Are MEC's Key Customers?

• Heavy and medium-duty commercial vehicle manufacturers
• Construction and access equipment manufacturers
• Powersports equipment manufacturers
• Agricultural equipment manufacturers
• Military equipment manufacturers

How Mayville Engineering Company, Inc. Is Valued

Mayville Engineering Company, Inc. carries a market capitalization of $467M, placing it in the small-cap category. Relative to its peer group, MEC's quantitative score of 33/100 is below the peer average of 45/100.

Company Profile

Mayville Engineering Company, Inc. operates in the Manufacturing - Metal Fabrication industry within the Industrials sector. It is headquartered in Milwaukee, US. The company is led by CEO Jagadeesh A. Reddy. MEC has traded publicly since 2019.

Return on equity for Mayville Engineering Company, Inc. stands at -6.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.8%, showing how much profit it generates from its asset base. Its free cash flow yield is 2.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.64 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -2.2%, the inverse of the P/E and a quick read on earnings relative to price.

Mayville Engineering Company, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.23 places it in the grey zone, a middle ground that warrants monitoring.

Wall Street analysts project Mayville Engineering Company, Inc. revenue of about $628.1M for fiscal 2026, with EPS near $0.28. The estimate reflects 3 contributing analysts.

MEC Financials

MEC Latest News

MEC Analyst Consensus

MEC MoonshotScore

Mayville Engineering Company, Inc. Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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