MEC stock touches 52-week low at $12.48 amid market challenges

Published 04/04/2025, 15:00
MEC stock touches 52-week low at $12.48 amid market challenges

Mayville Engineering Co Inc (MEC) stock has hit a 52-week low, trading at $12.48, as the company faces headwinds in a challenging market environment. According to InvestingPro analysis, the company maintains a GOOD financial health score and trades at an attractive P/E ratio of 10.25, suggesting potential value opportunity. This latest price level reflects a significant retreat from better-performing periods, with the stock down 36.16% over the past six months. Investors are closely monitoring MEC’s performance, considering the broader economic factors at play that have contributed to the stock’s downward trend and assessing the company’s potential for recovery and growth in the coming quarters. InvestingPro analysis indicates the stock is currently undervalued, with 12 additional ProTips available to subscribers, including detailed insights on valuation metrics and growth potential.

In other recent news, Mayville Engineering Company (NYSE:MEC) reported its financial results for the fourth quarter of 2024, showing a slight beat in earnings per share (EPS) expectations. The company posted an EPS of -$0.07, surpassing the forecast of -$0.08. However, revenue fell short of expectations, coming in at $121.3 million compared to the forecasted $124.27 million, marking an 18.4% year-over-year decline. Despite the revenue miss, the company continues to focus on cost reductions and efficiency improvements.

Mayville Engineering’s full-year net sales also saw a decrease of 1.2% from 2023, totaling $581.6 million. The manufacturing margin for the fourth quarter dropped significantly to $10.8 million from $18.2 million in the previous year. Free cash flow in the fourth quarter increased to $35.6 million, up from $19.9 million last year, partly due to a legal settlement.

Looking forward, Mayville Engineering projects net sales for 2025 to be between $560 million and $590 million, with adjusted EBITDA expected to range from $60 million to $66 million. The company anticipates a demand recovery in the latter half of 2025, driven by strategic initiatives and ongoing market share gains. Analyst discussions highlighted the company’s proactive approach to navigating market challenges and exploring growth opportunities, including mergers and acquisitions with potential targets generating revenues between $50 million and $150 million.

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