Mayville Engineering Co (Mayville Engineering Co) Gross Margin % : 12.26% (As of Dec. 2023)

View and export this data going back to 2019. Start your Free Trial

What is Mayville Engineering Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Mayville Engineering Co's Gross Profit for the three months ended in Dec. 2023 was $18.2 Mil. Mayville Engineering Co's Revenue for the three months ended in Dec. 2023 was $148.6 Mil. Therefore, Mayville Engineering Co's Gross Margin % for the quarter that ended in Dec. 2023 was 12.26%.

Warning Sign:

Mayville Engineering Co Inc gross margin has been in long-term decline. The average rate of decline per year is -1.9%.

The historical rank and industry rank for Mayville Engineering Co's Gross Margin % or its related term are showing as below:

MEC' s Gross Margin % Range Over the Past 10 Years
Min: 8.81 Med: 11.3 Max: 14.27
Current: 11.85

During the past 7 years, the highest Gross Margin % of Mayville Engineering Co was 14.27%. The lowest was 8.81%. And the median was 11.30%.

MEC's Gross Margin % is ranked worse than
87.57% of 2937 companies
in the Industrial Products industry
Industry Median: 26.42 vs MEC: 11.85

Mayville Engineering Co had a gross margin of 12.26% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Mayville Engineering Co was -1.90% per year.

Mayville Engineering Co Gross Margin % Historical Data

The historical data trend for Mayville Engineering Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Mayville Engineering Co Gross Margin % Chart

Mayville Engineering Co Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

11.30

8.81

11.30

11.32

11.85

Mayville Engineering Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															10.10	11.48	11.58	12.02	12.26

Competitive Comparison of Mayville Engineering Co's Gross Margin %

For the Metal Fabrication subindustry, Mayville Engineering Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Mayville Engineering Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Mayville Engineering Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Mayville Engineering Co's Gross Margin % falls into.

Mayville Engineering Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Mayville Engineering Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	69.7	/	588.425
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(588.425 - 518.722)	/	588.425
	=	11.85 %

Mayville Engineering Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	18.2	/	148.582
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(148.582 - 130.371)	/	148.582
	=	12.26 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Mayville Engineering Co (NYSE:MEC) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Mayville Engineering Co had a gross margin of 12.26% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Mayville Engineering Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Mayville Engineering Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Mayville Engineering Co (Mayville Engineering Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Mayville Engineering Co Inc (NYSE:MEC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

2YN:Germany

Address

715 South Street, Mayville, WI, USA, 53050

Website

https://www.mecinc.com

Mayville Engineering Co Inc is involved in a manufacturing partner that provides a broad range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. Its customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction, powersports, agriculture, military, and other end markets. Its services comprise stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services.

Executives

Steven L Fisher	director	100 N.E. ADAMS STREET, PEORIA IL 61629
Jagadeesh A Reddy	director, officer: President & CEO	715 SOUTH STREET, MAYVILLE WI 53050
Allen J Carlson	director	1500 WEST UNIVERSITY PARKWAY, SARASOTA FL 34243
Robert L Mccormick	director	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Timothy L Christen	director, other: Chair of the Board	715 SOUTH STREET, MAYVILLE WI 53050
Jennifer J. Kent	director	QUAD/GRAPHICS, INC., N61 W23044 HARRY'S WAY, SUSSEX WI 53089-3995
Jay O. Rothman	director	C/O QUAD/GRAPHICS, INC., N61 W23044 HARRY'S WAY, SUSSEX WI 53089
Patrick D Michels	director	715 SOUTH STREET, MAYVILLE WI 53050
Rachele Marie Lehr	officer: Chief Human Resources Officer	12301 W WIRTH ST, WAUWATOSA WI 53222
Sean P Leuba	officer: SVP, Corp. Development & GC	715 SOUTH STREET, MAYVILLE WI 53050
Todd M Butz	officer: Chief Financial Officer	715 SOUTH STREET, MAYVILLE WI 53050
Robert D Kamphuis	director, officer: Chairman, Pres. & CEO	715 SOUTH STREET, MAYVILLE WI 53050
Craig E Johnson	director	715 SOUTH STREET, MAYVILLE WI 53050
Eric J Welak	officer: EVP - Fabrication	715 SOUTH STREET, MAYVILLE WI 53050
St. Peter John A	director	715 SOUTH STREET, MAYVILLE WI 53050