Meritor Inc. [MTOR] took an upward turn with a change of 5.53%, trading at the price of $19.07 during the trading session on Thursday. The price movement in correlation with percentage of the mentioned increase can allow a valuable insight to investors. During the last trading session 294765.0 shares changed hands being bought and sold, while Meritor Inc. shares have an average trading volume of 1.26M shares for that time period. MTOR monthly volatility recorded 6.90%, in the meanwhile having share price volatility for the week set at 6.44%. PS value for MTOR stocks is 0.36 with PB recorded at 3.38.
Meritor Inc. [NYSE:MTOR]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Meritor Inc. [MTOR], the latest average analyst recommendation we can see is from the quarter closing in lastQuarterMonth. On average, stock market experts give MTOR an Overweight rating. The average 12-month price forecast for this stock is $19.17, with the high estimate being $29.00, the low estimate being $15.00 and the median estimate amounting to $22.00. This is compared to its latest closing price of $18.07.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Meritor Inc. [MTOR] is sitting at 4.00. This is compared to 1 month ago, when its average rating was 3.67.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on 07/29/2020.
Fundamental Analysis of Meritor Inc. [MTOR]
Now let’s turn to look at profitability: with a current Operating Margin for Meritor Inc. [MTOR] sitting at 13.00% and its Gross Margin at 14.30%, this company’s Net Margin is now 10.30. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 28.56, and its Return on Invested Capital has reached 25.16. Its Return on Equity is 102.00%, and its Return on Assets is 14.00%. These metrics all suggest that Meritor Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Meritor Inc. [MTOR] has generated a Total Debt to Total Equity ratio of 244.94. Similarly, its Total Debt to Total Capital is 71.01, while its Total Debt to Total Assets stands at 33.50. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 234.29, and its Long-Term Debt to Total Capital is 67.92.
What about valuation? This company’s Enterprise Value to EBITDA is 4.98 and its Total Debt to EBITDA Value is 2.11. The Enterprise Value to Sales for this firm is now 0.56, and its Total Debt to Enterprise Value stands at 0.38. Meritor Inc. [MTOR] has a Price to Book Ratio of 3.91, a Price to Cash Flow Ratio of 6.24 and P/E Ratio of 3.69. These metrics all suggest that Meritor Inc. is more likely to generate a positive ROI.
Meritor Inc. [MTOR] has 78.75M shares outstanding, amounting to a total market cap of 1.42B. Its stock price has been found in the range of 10.91 to 27.18. At its current price, it has moved down by -29.84% from its 52-week high, and it has moved up 74.79% from its 52-week low.
This stock’s Beta value is currently 2.51, which indicates that it is 6.44% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 58.82. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Meritor Inc. [MTOR] a Reliable Buy?
Shares of Meritor Inc. [MTOR], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.
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Author: Kevin Freeman