Mesa Laboratories Inc /Co/ (NASDAQ: MLAB)

Sector: Technology Industry: Scientific & Technical Instruments CIK: 0000724004
Market Cap 519.81 Mn
P/B 2.78
P/E 139.21
P/S 2.10
ROIC (Qtr) 3.85
Div Yield % 0.69
Rev 1y % (Qtr) 3.64
Total Debt (Qtr) 166.13 Mn
Debt/Equity (Qtr) 0.89

About

Mesa Laboratories, Inc., a Colorado-based corporation, operates under the ticker symbol MLAB in the life sciences tools and critical quality control solutions industry. The company is a global leader in the design and manufacture of products and services for regulated applications in the pharmaceutical, healthcare, and medical device industries. Mesa Laboratories operates in four segments: Sterilization and Disinfection Control, Clinical Genomics, Biopharmaceutical Development, and Calibration Solutions. The Sterilization and Disinfection Control...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 28.98M provide 5.62x coverage of short-term debt 5.16M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 155.90M provide exceptional 10.71x coverage of deferred revenue 14.56M, showing strong service capability backing.
  • Robust free cash flow of 37.94M exceeds capital expenditure of 3.59M by 10.57x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 155.90M provides 3.04x coverage of working capital 51.24M, indicating strong operational backing.
  • Operating cash flow of 41.53M fully covers other non-current liabilities 18.23M by 2.28x, showing strong long-term stability.

Bear case

  • Operating cash flow of 41.53M barely covers its investment activities of (3.84M), with a coverage ratio of -10.82, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 41.53M provides thin coverage of dividend payments of (3.51M) with a -11.84 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (3.84M) provide weak support for R&D spending of 20.16M, which is -0.19x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 41.53M shows concerning coverage of stock compensation expenses of 14.21M, with a 2.92 ratio indicating potential earnings quality issues.
  • Operating earnings of 24.68M show weak coverage of depreciation charges of 25.02M, with a 0.99 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Scientific & Technical Instruments
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KEYS Keysight Technologies, Inc. 39.82 Bn 46.85 7.41 2.78 Bn
2 GRMN Garmin Ltd 38.76 Bn 32.74 7.98 0.16 Bn
3 COHR Coherent Corp. 38.06 Bn 197.98 6.05 3.55 Bn
4 TDY Teledyne Technologies Inc 30.31 Bn 37.07 5.05 2.53 Bn
5 FTV Fortive Corp 20.78 Bn 24.34 3.39 3.31 Bn
6 TRMB Trimble Inc. 15.98 Bn 44.70 4.44 1.39 Bn
7 MKSI Mks Inc 12.07 Bn 152.81 18.35 4.55 Bn
8 CGNX Cognex Corp 6.65 Bn 158.10 25.88 0.08 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.55 1.93
EV to Cash from Ops. EV/CFO 16.23 29.36
EV to Debt EV to Debt 4.06 25.24
EV to EBIT EV/EBIT 27.32 27.58
EV to EBITDA EV/EBITDA 15.96 21.48
EV to Free Cash Flow [EV/FCF] EV/FCF 17.77 22.65
EV to Market Cap EV to Market Cap 1.30 -7.15
EV to Revenue EV/Rev 2.72 6.94
Price to Book Value [P/B] P/B 2.78 7.17
Price to Earnings [P/E] P/E 139.21 48.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.06 -16.33
Dividend Payout Ratio % Div Payout % (Qtr) 95.50 2.77
Dividend per Basic Share Div per Share (Qtr) 0.64 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 9.33 6.82
Interest Coverage Int. cover (Qtr) 2.33 -13.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 10.85 -21.31
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.40 102.46
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 102.73 25.34
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 118.13 18.20
EBIT Growth (1y) % EBIT 1y % (Qtr) 109.52 20.16
EBT Growth (1y) % EBT 1y % (Qtr) 105.21 59.27
EPS Growth (1y) % EPS 1y % (Qtr) 101.45 74.17
FCF Growth (1y) % FCF 1y % (Qtr) -11.76 -26.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.67 34.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.57 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.08 0.05
Cash Ratio Cash Ratio (Qtr) 0.53 3.01
Current Ratio Curr Ratio (Qtr) 1.94 4.82
Debt to Equity Ratio Debt/Equity (Qtr) 0.89 0.66
Interest Cover Ratio Int Coverage (Qtr) 2.33 -13.58
Times Interest Earned Times Interest Earned (Qtr) 2.33 -13.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 20.10 -296.06
EBIT Margin % EBIT Margin % (Qtr) 9.97 -315.98
EBT Margin % EBT Margin % (Qtr) 5.68 -351.25
Gross Margin % Gross Margin % (Qtr) 62.40 40.12
Net Profit Margin % Net Margin % (Qtr) 1.50 -353.98