Mayville Engineering Company, Inc. (MEC) vs Tredegar Corporation (TG)

Mayville Engineering Company, Inc. and Tredegar Corporation are both Metal Fabrication companies. Mayville Engineering Company, Inc. is the larger, with a market value of $427.6M against $248.1M — 1.7× the size. Mayville Engineering Company, Inc. has negative trailing earnings, so its P/E is not meaningful; Tredegar Corporation trades at 7.3×. Tredegar Corporation grew revenue faster over the last twelve months: 21.4% against 11.8%. Tredegar Corporation has the higher net margin (4.26% vs −2.95%) and the higher return on invested capital (10.7% vs −1.78%). Across the 19 metrics below, Tredegar Corporation leads on 18 and Mayville Engineering Company, Inc. on 1.

Valuation

Metric MEC TG Metal Fabrication median
P/E n/m 7.34 17.15
P/S 0.67 0.31 1.14
P/B 1.20 1.07 1.71
Price to free cash flow n/m 10.85 22.10
EV/EBITDA 16.49 4.17 17.60
EV/Sales 0.89 0.32 1.96
Earnings yield (4.88%) 13.62% 2.28%
Free cash flow yield (1.15%) 9.22% 0.92%

Profitability

Metric MEC TG Metal Fabrication median
Gross margin 9.16% 14.59% 21.08%
Operating margin (2.18%) 4.64% 5.14%
Net margin (2.95%) 4.26% 4.70%
Free cash flow margin (0.77%) 2.90% 1.45%
Return on equity (6.05%) 15.77% 0.00%
Return on assets (3.39%) 8.49% 1.56%
Return on invested capital (1.78%) 10.72% 2.19%

Growth

Metric MEC TG Metal Fabrication median
Revenue growth (TTM) 11.77% 21.39% 9.93%
EPS growth (last fiscal year) (132.26%) 151.06% —
Revenue growth, 5-year CAGR 8.85% 1.03% 6.12%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MEC TG Metal Fabrication median
Debt to equity 0.39 0.00 0.30
Current ratio 1.70 1.73 2.08
Net debt to EBITDA 5.37 (0.13) 1.02

Dividend

Metric MEC TG Metal Fabrication median
Dividend yield — 5.52% 1.69%
Payout ratio 0.00 1.59 0.06

Size

Metric MEC TG Metal Fabrication median
Market cap 427.64m 248.11m 896.96m

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