Corporate Webpages Meritor, Inc.
Meritor, Inc. (MTOR) has been around in one form or another
since 1920 when it operated in the Detroit, MI area helping Ford
build cars. It produces mainly axles and axle-related parts for
large trucks, busses, and other heavy equipment. It has a large
international presence, selling parts to original equipment
makers and also into the after-market repair areas in North
America (57% of business), and Europe, South America,
China,India, and other parts of Asia. The
development of electric vehicles has affected other products it
manufacturers significantly, including gearboxes, brakes, etc.,
and it has a stream of new innovative products related to that transition.
It has some highly-distinguished large OEM's in parts of the
world as steady customers.
As one might expect, this company could be suffering a bit under
U.S. administration trade policies erecting barriers. Also, transportation
costs for goods are going up and freight volumes in the trucking
industry are described recently as "sluggish." The company has
had to trim costs, lay off workers, and deal with a declining
market for heavy duty trucks from original equipment makers.
Meritor is thus expecting a year over year decline in earnings,
but this is less than analysts projected. We think the stock
has over-reacted, pushing its average to current p/e ratio into
an exceptional valuation condition rarely seen in American
stocks lately. Institutions have perceived this and are net acquirers.
While researchers and analysts are generally negative on the
stock, with Standard & Poor's neutral, there are glaring
exceptions as some see trading opportunities. The stock tends
to move in long cycles, currently on the way back up. While not
exactly a "channeling stock", it does appear to be heading into a
trading range between $20 and $22/share.
The company appears well-managed, has a good website, although
no CEO Letter to Shareholders. It does not pay a dividend,
unusual for a company this size, suggesting insufficient concern
for shareholders, but corporate governance seems reasonable.
News for this company consists of a steady stream of PR
announcements regarding new innovative product introductions.
The company has exposure to asbestos-related lawsuits that have
been going on for decades. It did some restructuring to manage this.
The company also sells products for military vehicles in the
defense industry. We think we will continue to see a consistent
demand for this company's unique products and consider the stock
fairly "safe" while still offering trading opportunites.
10-19--2015: Meritor, Inc. (MTOR): Serves Market for Suspension Parts, Axles for Heavy-Duty Trucks and other Commercial Vehicles
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
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Comparison with Peers
Bond Issue
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Financial Statements
Avg. P/E to Current P/E
Financial Ratios
Intrinsic Value (Disc. CashFlow)
Fair Value Estimator
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Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
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Management's Discussion
Channel Potential
MACD Histogram
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Wall Street Analyzer
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Recommendation
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Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is considered strong and
> 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Meritor, Inc. (MTOR) Exchange: NYSE
2135 West Maple Road
Troy, MI 48084 Sector: Consumer Cyclical
United States Industry:Auto Parts
Meritor, Inc. designs, develops, manufactures, markets, distributes,
sells, services, and supports integrated systems, modules, and
components to original equipment manufacturers (OEMs) and the
aftermarket for the commercial vehicle, transportation, and industrial
sectors. It operates through two segments, Commercial Truck; and
Aftermarket, Industrial and Trailer. The Commercial Truck segment
supplies drivetrain systems and components, including axles, drivelines,
and braking and suspension systems primarily for medium-and heavy-duty
trucks and other applications; and undercarriage products and systems
for trailer applications. The Aftermarket, Industrial and Trailer
segment supplies axles, brakes, drivelines, suspension parts, and other
replacement parts to commercial vehicle and industrial aftermarket
customers. It also supplies drivetrain systems and various components,
such as axles, drivelines, brakes, and suspension systems for military,
construction, bus and coach, fire and emergency, and other applications.
The company sells its products under the Meritor, Euclid, Trucktechnic,
and Mach brands primarily to OEMs and its parts marketing operations,
and dealers, as well as for other independent distributors and service
garages in the aftermarket industry in North America, South America,
Europe, and the Asia Pacific. The company was formerly known as
ArvinMeritor, Inc. and changed its name to Meritor, Inc. in March 2011.
Meritor, Inc. was founded in 1921 and is headquartered in Troy, Michigan.
Last Trade: 18.42 52-Week Range: 25.78 - 15.01
Employees: 9,300 Avg.Volume: 843,617 Shares
Corporate Governance:
Pllar scores are Audit: 1; Board: 1; Shareholder Rights: 7; Compensation: 2.
(A lower number means less governance risk.)
EPS: 3.19 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: Dec 7, 2008 Payout Ratio: 0.00
Key Statistics:
Trailing P/E: 5.89 Forward P/E (est.): 5.67
Target Price: 25.71
Qrtly Stock Price Growth (yoy): 2.22% Beta: 0.00
Qrtly S&P Index Growth (yoy): 3.30% Short Ratio: 11.24%
Qrtly Revenue Growth (yoy): 7.98% Shares Out: 82580000
Qrtly Earnings Growth (yoy): 34.40%
Book Value: 5.74 Debt/Equity: 148.82%
Price/Book Value: 3.27 Operating Profit Margin: 8.67%
Price/Sales: 0.35 Profit Margin: 6.31%
Market Cap: 1,550,000,000 Return on Equity: 70.85%
Enterprise Value: 2,210,000,000 Return on Assets: 9.01%
Operating Cash Flow: 254,000,000
Free Cash Flow: 134,750,000
Annual Income Statement: (All numbers in thousands)
Period Ending 9/30/2018 9/30/2017 9/30/2016
Total Revenue 4,178,000 3,347,000 3,199,000
Cost of Revenue 3,524,000 2,863,000 2,763,000
Gross Profit 654,000 484,000 436,000
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 317,000 264,000 213,000
Total Operating Expenses 331,000 271,000 216,000
Operating Income or Loss 323,000 213,000 220,000
Income from Continuing Operations:
Total Other Income/Expenses Net 22,000 287,000 19,000
Interest Expense 0 0 0
Income Before Taxes 278,000 381,000 155,000
Income Tax Expense 149,000 -402,000 0
Net Income from Continuing Op.s 129,000 329,000 557,000
Net Income Avail to Common Shares 117,000 324,000 551,000
Annual Cash Flow Statement: (All numbers in thousands)
Period Ending 9/30/2018 9/30/2017 9/30/2016
Net Income 129,000 329,000 557,000
Operating Activities:
Depreciation 84,000 75,000 67,000
Accounts Receivable -98,000 -160,000 89,000
Changes in Liabilities -20,000 -64,000 5,000
Inventories -112,000 -43,000 28,000
Changes in other Oper'g Acts 147,000 81,000 111,000
Total Cash Flow f Operations 251,000 176,000 204,000
Investing Activities:
Capital Exenditures -104,000 -95,000 -93,000
Investments -104,000 -95,000 -93,000
Other Cash Flows fr Investing 2,000 -34,000 -1,000
Total Cash Flows from Investing 111,000 -127,000 -86,000
Financing Activities:
Dividends Paid 0 0 0
Sale of Purchase of Stock -100,000 0 -81,000
Net Borrowings -224,000 -511,000 -55,000
Other Cash Flows fr Financing -5,000 -25,000 -1,000
Total Cash Flows from Financing -329,000 -122,000 -152,000
Change in Cash & Cash Equiv. 27,000 -72,000 -33,000
Annual Balance Sheets: (All Numbers in Thousands)
Period Ending 9/30/2018 9/30/2017 9/30/2016
Current Assets:
Cash & Cash Equivalents 115,000 88,000 160,000
Short Term Investments 0 0 0
Net Receivables 588,000 789,000 396,000
Inventory 477,000 378,000 316,000
Other Current Assets 46,000 43,000 32,000
Total Current Assets 1,226,000 1,325,000 859,000
Non-current Assets:
Long-Term Investments 596,000 596,000 738,000
Property, Plant & Equipt 1,382,000 1,357,000 1,269,000
Goodwill 421,000 414,000 390,000
Intangible Assets 44,000 27,000 29,000
Accumulated Amortization -899,000 -883,000 -830,000
Other Assets 596,000 596,000 738,000
Total Assets 2,726,000 2,782,000 2,471,000
Current Liabilities:
Accounts Payable 700,000 622,000 475,000
Taxes Payable 27,000 11,000 8,000
Other Current Liabilities 290,000 272,000 268,000
Total Current Liabilities 5,173,000 4,248,000 3,950,000
Long Term Debt 700,000 622,000 475,000
Deferred LT Liab. Charges 290,000 272,000 268,000
Total Liabilities 6,393,000 5,468,000 5,170,000
Stockholder Equity:
Common Stock 102,000 101,000 99,000
Retained Earnings 200,000 83,000 -241,000
Other Stockhohlder Equity -566,000 -545,000 -809,000
Total Stockholder Equity 288,000 288,000 288,000
Net Tangible Assets 2,726,000 2,782,000 2,471,000
Meritor, Inc. (MTOR) [Indices near +3.0, near zero,
or < zero bear special attention.]
P/E Ratio Tests:
P/E Ratio < 28? 3.0000 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 3.0000 Forward P/E Ratio < 28? 3.0000
Price/Sales Ratio < 2.3? 3.0000 Inventory/Sales < 5%? 0.4379
Sales < $1 Billion? 0.2393 Operating Margin < 7.5%? 0.8651
Balance Sheet Tests:
Debt/Equity < 0.40? 0.2688 Long-Term Debt Service: -3.0000
LTD Being Reduced? 3.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.1185 Working Capital >= 1.5? 3.0000
Leverage Ratio < 20%? 0.3359 Debt/Assets < 1? 3.0000
Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 1.0000
Share Equity Increase: 2.0000 Market Cap.< 1.5 Billion? 0.9677
Intangibles < 3% Assets? 0.1759
Income Tests:
Profit Margin < 7.5%? 0.8413 EPS Annual Growth > 10%? 0.2769
Dividend Yield > 2.0%? 0.0000 EPS 3-yr Growth > 15? 0.7064
Enterprise Value/Revenue 0.3711 EPS Growth Consistent? -2.0000
Enterprise Value/EBITDA: 3.0000 Collection < 45 days? 0.8760
EPS Qrtly Growth > 10%? 0.0029 Gross Pft / LTD > 1? 0.8959
Borrowing Int. Rate < 6%? 3.0000
Stock Performance Tests:
Volatility > 25%? 1.6711 % Held by Insiders < 5%? 1.9763
Beta > 1.25? 0.0000 % Held by Institut. < 50? 0.5288
50 Da MA > 200 Da MA? -0.4951 % Held by Institut. > 30? 3.0000
52-Wk Change vs. S&P 500: 0.2782 Short Ratio > 5? 2.2480
Price/Book Value < 3? 0.9349 Short % of Float > 20? 0.6690
Return on Assets > 17%? 0.5300 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.8850 Positive Free Cash Flow? 3.0000
Positive Oper. Cash Flow? 3.0000 Price to C.F.Ratio < 14?: 3.0000
Cash Flow / Assets > 10%? 2.5348
MTOR Meritor, Inc. Overall Zenith Index: 1.3711
Financial Statements |
MERITOR INC (MTOR) INCOME STATEMENT Fiscal year ends in September. USD in thousa 2014-09 2015-09 2016-09 2017-09 2018-09 TTM Revenue 3,766,000 3,505,000 3,199,000 3,347,000 4,178,000 4,440,000 Cost of revenue 3,279,000 3,043,000 2,763,000 2,863,000 3,524,000 3,765,000 Gross profit 487,000 462,000 436,000 484,000 654,000 675,000 Operating expenses Sales, General and administrative 235,000 299,000 240,000 235,000 285,000 283,000 Restructuring, merger and acquisition 10,000 16,000 16,000 6,000 6,000 -2,000 Other operating expenses 12,000 -17,000 -39,000 15,000 35,000 -4,000 Total operating expenses 257,000 298,000 217,000 256,000 326,000 277,000 Operating income 230,000 164,000 219,000 228,000 328,000 398,000 Other income (expense) 85,000 -97,000 -64,000 153,000 -50,000 -23,000 Income before taxes 315,000 67,000 155,000 381,000 278,000 375,000 Provision for income taxes 31,000 1,000 -424,000 52,000 149,000 87,000 Net income from continuing operations 284,000 66,000 579,000 329,000 129,000 288,000 Net income from discontinuing ops -30,000 -1,000 -4,000 -1,000 -3,000 0 Other -5,000 -1,000 -2,000 -4,000 -9,000 -8,000 Net income 249,000 64,000 573,000 324,000 117,000 280,000 Net income available to common shareholders 249,000 64,000 573,000 324,000 117,000 280,000 Earnings per share Basic 2.55 0.66 6.36 3.68 1.34 3.33 Diluted 2.51 0.64 6.23 3.59 1.28 3.21 Weighted average shares outstanding Basic 97,500 96,900 90,100 88,000 87,500 84,200 Diluted 99,200 100,100 92,000 90,200 91,200 87,750 ____________________________________________________________________________________________________________________________________________ MERITOR INC (MTOR) BALANCE SHEET Fiscal year ends in September. USD in thousa 2014-09 2015-09 2016-09 2017-09 2018-09 Assets Current assets Cash Total cash 247,000 193,000 160,000 88,000 115,000 Receivables 610,000 461,000 396,000 789,000 588,000 Inventories 379,000 338,000 316,000 378,000 477,000 Deferred income taxes 21,000 20,000 0 0 0 Prepaid expenses 20,000 17,000 23,000 29,000 30,000 Other current assets 15,000 13,000 10,000 14,000 16,000 Total current assets 1,292,000 1,042,000 905,000 1,298,000 1,226,000 Non-current assets Property, plant and equipment Gross property, plant and equipment 1,397,000 1,287,000 1,269,000 1,357,000 1,382,000 Accumulated Depreciation -973,000 -868,000 -830,000 -883,000 -899,000 Net property, plant and equipment 424,000 419,000 439,000 474,000 483,000 Equity and other investments 106,000 96,000 100,000 101,000 102,000 Goodwill 431,000 402,000 390,000 414,000 421,000 Intangible assets 25,000 28,000 29,000 27,000 44,000 Deferred income taxes 15,000 28,000 413,000 229,000 140,000 Prepaid pension benefit 104,000 110,000 123,000 135,000 152,000 Other long-term assets 105,000 70,000 95,000 104,000 158,000 Total non-current assets 1,210,000 1,153,000 1,589,000 1,484,000 1,500,000 Total assets 2,502,000 2,195,000 2,494,000 2,782,000 2,726,000 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt 7,000 15,000 14,000 288,000 94,000 Accounts payable 680,000 574,000 475,000 622,000 700,000 Taxes payable 58,000 32,000 29,000 45,000 52,000 Accrued liabilities 42,000 36,000 32,000 27,000 30,000 Other current liabilities 251,000 211,000 207,000 200,000 208,000 Total current liabilities 1,038,000 868,000 757,000 1,182,000 1,084,000 Non-current liabilities Long-term debt 965,000 1,036,000 982,000 750,000 730,000 Deferred taxes liabilities 103,000 99,000 12,000 12,000 16,000 Accrued liabilities 24,000 26,000 26,000 27,000 35,000 Pensions and other benefits 775,000 632,000 703,000 314,000 262,000 Minority interest 27,000 25,000 25,000 27,000 30,000 Other long-term liabilities 182,000 180,000 200,000 200,000 281,000 Total non-current liabilities 2,076,000 1,998,000 1,948,000 1,330,000 1,354,000 Total liabilities 3,114,000 2,866,000 2,705,000 2,512,000 2,438,000 Stockholders' equity Common stock 97,000 99,000 99,000 101,000 102,000 Additional paid-in capital 918,000 865,000 876,000 765,000 787,000 Retained earnings -878,000 -814,000 -241,000 83,000 200,000 Treasury stock 0 -55,000 -136,000 -136,000 -236,000 Accumulated other comprehensive income -749,000 -766,000 -809,000 -543,000 -565,000 Total stockholders' equity -612,000 -671,000 -211,000 270,000 288,000 Total liabilities and stockholders' equity 2,502,000 2,195,000 2,494,000 2,782,000 2,726,000 ____________________________________________________________________________________________________________________________________________ MERITOR INC (MTOR) Statement of CASH FLOW Fiscal year ends in September. USD in thousa 2014-09 2015-09 2016-09 2017-09 2018-09 TTM Cash Flows From Operating Activities Net income 284,000 66,000 579,000 329,000 129,000 288,000 Depreciation & amortization 67,000 65,000 67,000 75,000 84,000 84,000 Investment/asset impairment charges 0 17,000 0 4,000 3,000 2,000 Deferred income taxes -2,000 -24,000 -415,000 38,000 74,000 9,000 Stock based compensation 8,000 10,000 9,000 19,000 20,000 0 Change in working capital 39,000 -24,000 16,000 -66,000 -18,000 -40,000 Accounts receivable 34,000 54,000 89,000 -160,000 -98,000 0 Inventory -9,000 4,000 28,000 -43,000 -112,000 0 Accounts payable -5,000 -70,000 -89,000 133,000 97,000 0 Other working capital 19,000 -12,000 -12,000 4,000 95,000 -40,000 Other non-cash items -181,000 -13,000 -52,000 -223,000 -41,000 -89,000 Net cash provided by operating activities 215,000 97,000 204,000 176,000 251,000 254,000 Cash Flows From Investing Activities Investments in property, plant, and equipmen -77,000 -79,000 -93,000 -95,000 -104,000 -115,000 Property, plant, and equipment reductions 0 4,000 4,000 0 0 0 Acquisitions, net 0 -16,000 0 -34,000 213,000 -5,000 Other investing activities 7,000 4,000 3,000 2,000 2,000 17,000 Net cash used for investing activities -70,000 -87,000 -86,000 -127,000 111,000 -103,000 Cash Flows From Financing Activities Debt issued 237,000 225,000 0 414,000 0 0 Debt repayment -439,000 -199,000 -55,000 -511,000 -224,000 -24,000 Common stock repurchased 0 -55,000 -81,000 0 -100,000 -108,000 Other financing activities -10,000 -13,000 -16,000 -25,000 -5,000 -8,000 Net cash provided by (used for) financing -212,000 -42,000 -152,000 -122,000 -329,000 -140,000 Effect of exchange rate changes -4,000 -22,000 1,000 1,000 -6,000 0 Net change in cash -71,000 -54,000 -33,000 -72,000 27,000 11,000 Cash at beginning of period 318,000 247,000 193,000 160,000 88,000 100,000 Cash at end of period 247,000 193,000 160,000 88,000 115,000 111,000 Free Cash Flow Operating cash flow 215,000 97,000 204,000 176,000 251,000 254,000 Capital expenditure -77,000 -79,000 -93,000 -95,000 -104,000 -115,000 Free cash flow 138,000 18,000 111,000 81,000 147,000 139,000 ____________________________________________________________________________________________________________________________________________
Average to Current P/E Ratios |
(MTOR) Meritor Inc.
2014 2015 2016 2017 2018
Annual Earnings: 2.51 0.64 6.23 3.59 1.28
Average Price During Year: 12.35 12.86 9.06 18.71 21.26
P/E Ratio: 4.92 20.10 1.45 5.21 16.61
Average 5-Year P/E Ratio = 9.66
Current Price = 18.42
Previous 5 Quarter Earnings: 0.71 0.36 1.03 0.84 1.00
Current Annualized (Last Four Quarters) Earnings = 2.87
________
Average PE / Current PE = 1.51
--------
...a number above 1.00 is good
1.00 or below is bad
Financial Ratios |
. . . . . . . . . . . . Lowest to Highest, Compared to Industry
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Fair Value Estimator |
Fair Value Estimate:
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Ownership:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Standard & Poor's |
Management's Discussion of Results of Operations Excerpts |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for MERITOR INC.:
Symbol? MTOR
Total Months Available: 25
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
21.94 15.01 25.78 19.76 25.00 15.96
RANGE = 25.78 TO 15.01 Close = 17.52
CHANNEL = 21.94 TO 19.76 Degree = 2
Volatility = 12.44% Index = 2
MACD Histogram Divergence |
The theory is that connecting the two most recent peaks or valleys of the MACD histogram will signal the direction of the next major move.
Intraday Chart |
2 Days:
Val Idea |
7 out of 10 favorable, (positive opinion.)
Stock Consultant |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
2 out of 3 of the ultimate systems favor an upmove.
System Below:
Short term outlook: Positive: Bright Green, Negative: Bright Red
Long term outlook: Postive: Dark Green, Negative: Dark Red.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | - 1 |
| Industry | - 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings | - 1 |
| Cash Flow | + 1 |
| Average to Current P/E | + 1 |
| Ratios | + 1 |
| Intrinsic Value DCF | - 1 |
| Fair Value Estimator | + 1 |
| Projected Earnings | - 1 |
| Research Reports | - 1 |
| Analysts | - 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | - 1 |
| Standard & Poor's | - 1 |
| MACD Histogram Divergence | + 1 |
| Val Idea | + 1 |
| Stock Consultant | - 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | + 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 3 |
Place 1,525 shares of Meritor, Inc.(MTOR) on the Active List.
