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Mayville Engineering Company Inc

Mayville Engineering Company Inc

MEC
$30.92USD↓-4.86%-1.58 today

MARKET CAP

788.3M

P/E (TTM)

—

FWD P/E

53.1x

DAY RANGE

$29 – $32

52W RANGE

$12
$39

AI Summary

Stalk
StalkMedium

MEC remains in a Stage 2 advancing trend with clear higher highs and lows, reinforced by the active Parabola pattern signaling strong acceleration and aggressive demand. Medium- and long-term biases stay bullish under the uptrend structure, but price is currently extended above the rising EMAs and showing extreme overbought readings. Execution should be deferred and waited for a pullback into the rising EMA zone to align timing. The primary risk is a swift distribution phase from overextension that could break the EMA support and delay further upside.

  • ↑Data center and critical power posted 71% organic growth YoY, with $50–60M in project awards by 2026.
  • ↑Analysts hold a Moderate Buy consensus and raised average price target to ~$33.70.
  • ↓Commercial vehicle sales fell 24% YoY, pushing manufacturing margins down from 11.3% to 7.6%.
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The case for & against

Bull & Bear analysis

Bullish

Mayville Engineering Company, Inc. (NYSE:MEC) is a significant player in the precision metal fabrication sector, serving markets such as data centers, critical power, commercial vehicles, and agricultural equipment. Given its strategic focus on expanding its footprint in high-growth segments, particularly data centers and critical power, MEC is poised for long-term growth despite facing cyclical downturns in more traditional sectors like commercial vehicles. The company's recent acquisition of AccuFab is expected to enhance its capabilities and market reach, positioning MEC favorably to capture emerging demand trends.

Bull says

  • ↑Data center and critical power posted 71% organic growth YoY, with $50–60M in project awards by 2026.
  • ↑Analysts hold a Moderate Buy consensus and raised average price target to ~$33.70.
  • ↑AccuFab integration expected to contribute $20–30M revenue annually by 2026.
  • ↑Management aims to reduce net leverage to below 3× by end-2026 from current 4.4×.
  • ↑Higher-margin data center projects should drive free cash flow recovery.
  • ↑Strong earnings yield, positive momentum, and high quality factors support valuation.

Bear says

  • ↓Commercial vehicle sales fell 24% YoY, pushing manufacturing margins down from 11.3% to 7.6%.
  • ↓Net debt surged from $80M to $219M; net leverage at 4.4× risks covenant pressure.
  • ↓Soft legacy markets show no clear signs of commercial vehicle recovery.
  • ↓Free cash flow was a $6.9M outflow versus prior-year $5.4M inflow.
  • ↓Elevated short interest and investor skepticism could amplify share volatility.
  • ↓Negative profitability factors and smaller scale raise financial resilience concerns.

Investment themes with MEC

High Dividend Yield↑ +0.15%

Companies paying above-average dividends

AISP · SMR · NWL

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-09-2026neutral

Transcript signals

Bull points

  • Our first quarter results exceeded our expectations, driven by strong top-line momentum in our data center and critical power and market.
  • We expect that momentum to continue building through the second quarter, which reinforces our confidence in the sequential improvement reflected in our financial guidance.
  • Our qualified opportunity pipeline exceeds $125 million, and the value of projects scheduled to launch in 2026 is approximately $50 million to $60 million.

Bear points

  • we have not yet seen clear indications of a broad-based or material recovery in legacy customer demand.
  • demand continued to soften in the first quarter. Net sales declined approximately 24% year-over-year as North American Class 8 production reached a low point in the current cycle.
  • current OEM production levels remained largely consistent over the past six months and do not yet indicate a meaningful cyclical recovery.
Read full transcript analysis ›