Mayville Engineering Co Stock Beneish M Score

MEC Stock  USD 13.76  0.23  1.64%   
This module uses fundamental data of Mayville Engineering to approximate the value of its Beneish M Score. Mayville Engineering M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Mayville Engineering Piotroski F Score and Mayville Engineering Altman Z Score analysis.
  
At present, Mayville Engineering's Debt To Equity is projected to slightly decrease based on the last few years of reporting. The current year's Debt To Assets is expected to grow to 0.30, whereas Short and Long Term Debt Total is forecasted to decline to about 116.5 M. At present, Mayville Engineering's PTB Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Free Cash Flow Yield is expected to grow to 0.08, whereas Days Sales Outstanding is forecasted to decline to 31.44.
At this time, it appears that Mayville Engineering is an unlikely manipulator. The earnings manipulation may begin if Mayville Engineering's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Mayville Engineering executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Mayville Engineering's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.73
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.09

Focus
Asset Quality

1.14

Focus
Expense Coverage

1.06

Focus
Gross Margin Strengs

1.14

Focus
Accruals Factor

1.06

Focus
Depreciation Resistance

0.79

Focus
Net Sales Growth

0.84

Focus
Financial Leverage Condition

0.94

Focus

Mayville Engineering Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Mayville Engineering's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables52.1 M57.4 M
Moderately Down
Slightly volatile
Total Revenue491.5 M588.4 M
Fairly Down
Slightly volatile
Total Assets417.3 M521.7 M
Significantly Down
Slightly volatile
Total Current Assets120.2 M134.6 M
Moderately Down
Slightly volatile
Non Current Assets Total297.1 M387 M
Way Down
Slightly volatile
Property Plant Equipment139.4 M209.1 M
Way Down
Slightly volatile
Depreciation And Amortization31.1 M35.1 M
Fairly Down
Slightly volatile
Selling General Administrative37 M41.8 M
Fairly Down
Slightly volatile
Total Current Liabilities75 M71.7 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total146.8 M220 M
Way Down
Slightly volatile
Net Debt115.8 M181.4 M
Way Down
Slightly volatile
Short Term Debt3.3 M5.5 M
Way Down
Slightly volatile
Long Term Debt101.2 M147.5 M
Way Down
Slightly volatile
Total Cash From Operating Activities38.5 M40.4 M
Sufficiently Down
Slightly volatile
Gross Profit Margin0.120.1053
Fairly Up
Very volatile

Mayville Engineering Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Mayville Engineering's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Mayville Engineering in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Mayville Engineering's degree of accounting gimmicks and manipulations.

About Mayville Engineering Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

480.69 Million

At present, Mayville Engineering's Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

Mayville Engineering Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Mayville Engineering. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables40.2M42.1M55.4M58.0M57.4M52.1M
Total Revenue519.7M357.6M454.8M539.4M588.4M491.5M
Total Assets369.4M338.5M379.5M440.6M521.7M417.3M
Total Current Assets90.5M89.2M132.6M141.3M134.6M120.2M
Net Debt75.9M47.8M68.7M108.9M181.4M115.8M
Short Term Debt598K626K315K4.9M5.5M3.3M
Long Term Debt72.6M45.3M67.6M72.2M147.5M101.2M
Operating Income(8.0M)(6.5M)8.8M25.8M21.6M11.5M
Investments(28.1M)(5.8M)(34.0M)(50.7M)(117.3M)(111.4M)

About Mayville Engineering Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Mayville Engineering Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Mayville Engineering using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Mayville Engineering Co based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Mayville Engineering in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Mayville Engineering's short interest history, or implied volatility extrapolated from Mayville Engineering options trading.

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When determining whether Mayville Engineering offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Mayville Engineering's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Mayville Engineering Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mayville Engineering Co Stock:
Check out Mayville Engineering Piotroski F Score and Mayville Engineering Altman Z Score analysis.
Note that the Mayville Engineering information on this page should be used as a complementary analysis to other Mayville Engineering's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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Is Mayville Engineering's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mayville Engineering. If investors know Mayville will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mayville Engineering listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.06)
Earnings Share
0.38
Revenue Per Share
28.823
Quarterly Revenue Growth
0.156
Return On Assets
0.0269
The market value of Mayville Engineering is measured differently than its book value, which is the value of Mayville that is recorded on the company's balance sheet. Investors also form their own opinion of Mayville Engineering's value that differs from its market value or its book value, called intrinsic value, which is Mayville Engineering's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mayville Engineering's market value can be influenced by many factors that don't directly affect Mayville Engineering's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mayville Engineering's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mayville Engineering is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mayville Engineering's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.