MTOR

Meritor Inc

Industrial/Transportation


Presented:10/14/2021
Price:$25.67
Cap:$1.80B
Current Price:$36.50
Cap:$2.59B

Presented

Date10/14/2021
Price$25.67
Market Cap$1.80B
Ent Value$2.64B
P/E Ratio13.61x
Book Value$8.60
Div Yield0%
Shares O/S70.14M
Ave Daily Vol514,322
Short Int4.35%

Current

Price$36.50
Market Cap$2.59B
Meritor, Inc. engages in the design, production and trade of integrated systems, modules and components to equipment manufacturers. It operates through the following segments: Commercial Truck and Trailer and Aftermarket and Industrial. The Commercial Truck and Trailer segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, for medium- and heavy-duty trucks and other applications. The Aftermarket and Industrial segment provides axles, brakes, drivelines, suspension parts and other replacement parts to commercial vehicle and industrial aftermarket customers in North America and Europe. The company was founded in 1909 and is headquartered in Troy, MI.

Publicly traded companies mentioned herein: Allison Transmission Holdings Inc (ALSN), Cummins Inc (CMI), Meritor Inc (MTOR), Volkswagen AG (VOW GR)

Highlights

The presenter is long shares of Meritor Inc (MTOR), a supplier of axles, brakes, and related products for commercial trucks that has a market cap and EV of $1.8B and $2.7B, respectively. He finds the setup attractive at the current $25 share price and expects its underappreciated earnings power to drive a doubling or tripling in the stock on the back of a cyclical tailwind from fleet builds, strong pricing power, share repurchases, an EV benefit, potentially culminating in a takeout at some point. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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