Mayville Engineering Company (MEC) Profit Increase Sparks Discussion on Temporary Gains vs. Long-Term Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 06 2025
0mins
Source: Yahoo Finance
Financial Performance: Mayville Engineering Company (MEC) reported a net profit margin increase to 3.4% from 1.7% last year, with a 67.3% rise in profits over the past year, aided by a one-time gain of $21 million. However, analysts predict a decline in profit margins to 2.1% over the next three years due to potential margin pressures.
Growth Projections: MEC's earnings are expected to grow at 47.1% annually, significantly outpacing the US market's 16%, while revenue growth is forecasted at a more modest 5.1% compared to the broader market's 10.5%. The company’s recent acquisition of Accu-Fab is anticipated to generate substantial revenue synergies.
Market Valuation: MEC is currently trading at a price-to-earnings ratio of 18.3x, below industry averages, which suggests a potential undervaluation. Despite a 36% upside to analyst price targets, market skepticism remains due to anticipated margin compression and revenue volatility.
Strategic Outlook: Analysts emphasize the importance of MEC's strategic expansion into high-growth sectors to enhance margin resilience and reduce reliance on cyclical markets. The consensus narrative highlights the balance between operational improvements and the risks posed by customer concentration and integration costs.
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Analyst Views on MEC
Wall Street analysts forecast MEC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MEC is 21.00 USD with a low forecast of 19.00 USD and a high forecast of 24.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 19.650
Low
19.00
Averages
21.00
High
24.00
Current: 19.650
Low
19.00
Averages
21.00
High
24.00
About MEC
Mayville Engineering Company, Inc. is a vertically integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, aluminum extrusion, coating, assembly and aftermarket components. Its customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agriculture, military and other end markets. Its capabilities include metal fabrication, metal stamping, aluminum extrusion and fabrication, tube bending and forming, robotic part forming, robotic welding, resistance welding, five-axis tube and fiber laser cutting and custom coatings, including high heat and chemical agent-resistant coating painting, are used in a variety of applications. It serves its customers through 25 strategically located United States facilities, across seven states with over 3.2 million square feet of manufacturing capacity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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