Mesa Laboratories, Inc. Fundamental Analysis
Mesa Laboratories, Inc. (MLAB) shows weak financial fundamentals with a PE ratio of 87.36, profit margin of 2.69%, and ROE of 3.71%. The company generates $0.2B in annual revenue with strong year-over-year growth of 11.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MLAB's fundamental strength across five key dimensions:
Efficiency Score
WeakMLAB struggles to generate sufficient returns from assets.
Valuation Score
ModerateMLAB shows balanced valuation metrics.
Growth Score
ExcellentMLAB delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMLAB maintains a strong and stable balance sheet.
Profitability Score
WeakMLAB struggles to sustain strong margins.
Key Financial Metrics
Is MLAB Expensive or Cheap?
P/E Ratio
MLAB trades at 87.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MLAB's PEG of -0.12 indicates potential undervaluation.
Price to Book
The market values Mesa Laboratories, Inc. at 3.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.31 times EBITDA. This signals the market has high growth expectations.
How Well Does MLAB Make Money?
Net Profit Margin
For every $100 in sales, Mesa Laboratories, Inc. keeps $2.69 as profit after all expenses.
Operating Margin
Core operations generate 7.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.71 in profit for every $100 of shareholder equity.
ROA
Mesa Laboratories, Inc. generates $1.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mesa Laboratories, Inc. produces operating cash flow of $42.68M, showing steady but balanced cash generation.
Free Cash Flow
Mesa Laboratories, Inc. generates strong free cash flow of $42.68M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.73 in free cash annually.
FCF Yield
MLAB converts 7.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
87.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How MLAB Stacks Against Its Sector Peers
| Metric | MLAB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 87.36 | 36.36 | Worse (Expensive) |
| ROE | 3.71% | 980.00% | Weak |
| Net Margin | 2.69% | 5969454258.00% | Weak |
| Debt/Equity | 0.48 | 0.36 | Weak (High Leverage) |
| Current Ratio | 1.72 | 5.04 | Neutral |
| ROA | 1.57% | -298400.00% (disorted) | Weak |
MLAB outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mesa Laboratories, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.41%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-185.89%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
36.34%
Industry Style: Growth, Innovation, High Beta
High Growth