NEW YORK - Amid a landscape where investors often grapple with the volatility of tech stocks, Mayville Engineering Company (NYSE:MEC) stands out with its significant share appreciation potential and solid profitability. The company's earnings per share (EPS) have seen a remarkable jump from $0.14 to $0.39 over the last year, marking a growth rate of 190%. This surge is in step with an impressive 8.5% increase in revenue, bringing the total to $568 million and signaling strong growth prospects for the firm.
The substantial EPS growth accompanies stable EBIT margin performance, reinforcing the positive long-term earnings projections for Mayville Engineering. Investors looking to understand the company's future EPS trajectory are turning to interactive charts that forecast its continued development.
Adding to the company's narrative of success is the confidence displayed by insiders. Independent Director Steven Fisher recently purchased shares worth $62,000 at an average price of $12.45 each. Such transactions suggest that insiders like Fisher believe the stock is undervalued. With insiders collectively holding investments of $15 million, representing 5.6% of MEC, there is a clear alignment between their interests and those of other shareholders. This collective stake by insiders further endorses the strategic direction and growth potential of Mayville Engineering Company.
Investors often face the dilemma of choosing between narrative-driven yet unprofitable companies and those with proven financial stability. The performance of Mayville Engineering illustrates the benefits of investing in a company that not only shows promising profitability but also enjoys strong insider confidence.
InvestingPro Insights
According to real-time data from InvestingPro, Mayville Engineering Company (MEC) has a market capitalization of $262.99 million, and it's trading at a P/E ratio of 32.7. The company's revenue for the last twelve months as of Q3 2023 stood at $568.37 million, marking an 8.5% growth. The company's gross profit for the same period was $70.46 million, which translates to a gross profit margin of 12.4%.
Two key InvestingPro Tips can further enrich our understanding of MEC's performance. Firstly, MEC has been profitable over the last twelve months, reinforcing the article's point about the company's solid profitability. Secondly, the company is trading at a low P/E ratio relative to near-term earnings growth, which suggests that the company's shares might be undervalued, in line with the article's mention of insider belief in the stock's undervaluation.
For those interested in gaining more detailed insights, InvestingPro offers a wealth of additional tips and data points. Currently, there are 8 more InvestingPro Tips related to MEC. For a limited time, InvestingPro subscription is on a special Black Friday sale with a discount of up to 55%. This is a perfect opportunity to leverage InvestingPro's resources to make informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.