Investment Thesis
Mayville Engineering is in acute financial distress with negative operating income (-$7.7M), negative free cash flow (-$6.9M), and declining revenue (-6.0% YoY). With only $2.1M in cash while burning capital, the company faces near-term liquidity crisis and will require significant operational restructuring or external capital within 12 months to avoid insolvency.
Strengths
- Debt-free capital structure (0.00x debt/equity) eliminates debt service obligations
- Current ratio of 1.64x provides near-term liquidity cushion
- Stockholders' equity of $232.2M provides asset base for potential restructuring
Risks
- Unprofitable with -$8.2M net income and -5.3% operating margin
- Negative free cash flow of -$6.9M with only $2.1M cash reserves indicates 6-month runway
- Revenue declining 6% YoY in cyclical metal forgings/stampings sector
- Quick ratio of 0.91x signals working capital stress despite adequate current ratio
- Negative operating cash flow (-$2.8M) indicates core business cannot fund operations
- Negative interest coverage ratio (-2.3x) despite low debt suggests operational distress
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Quarterly revenue growth and order book strength
- Cash runway and financing needs in next 6 months
- Free cash flow conversion and capex rationalization
- Operating margin improvement and path to profitability
Financial Metrics
Revenue
144.8M
Net Income
-8.2M
EPS (Diluted)
$-0.40
Free Cash Flow
-6.9M
Total Assets
578.1M
Cash
2.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-5.3%
Net Margin
-5.6%
ROE
-3.5%
ROA
-1.4%
FCF Margin
-4.8%
Balance Sheet & Liquidity
Current Ratio
1.64x
Quick Ratio
0.91x
Debt/Equity
0.00x
Debt/Assets
59.8%
Interest Coverage
-2.29x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-07T09:47:33.614622 |
Data as of: 2026-03-31 |
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