NYSE:MYE
MYERS INDUSTRIES INC
A leading U.S.-based manufacturer of custom wire drawing and rolling machinery serving the global metals processing sector.
Key Metrics
Investment Thesis
Bull Case
Investors might consider MYE as a cyclical recovery play if global industrial demand for metals rebounds strongly in 2025, potentially restoring historical profit levels seen in prior years. The company's specialized equipment creates high barriers to entry, protecting market share and pricing power once the economic cycle turns upward. Strong cash flow generation from operations ($79.3M) provides a financial buffer that could support debt reduction or strategic acquisitions if conditions improve.
Bear Case
The sharp decline in net income to just $7.2M while revenue only grew modestly indicates deteriorating operational efficiency or significant non-recurring expenses impacting profitability. High leverage with long-term debt of $355.3M poses a serious risk if interest rates remain elevated or if the company cannot quickly ramp up earnings during an economic recovery. The negative change in accounts receivable and inventory suggests potential working capital inefficiencies that could further strain cash flow in a weak demand environment.
About MYERS INDUSTRIES INC
MYERS INDUSTRIES INC designs, manufactures, and sells industrial machinery, including wire drawing equipment, rolling mills, and finishing lines to the global metals processing industry. The company serves diverse markets such as steel production, aluminum fabrication, and copper wire manufacturing through its specialized mechanical engineering solutions. Operating primarily in the United States with international export capabilities, Myers Industries provides critical infrastructure for heavy industry sectors.
Analysis
Management Discussion
Recent financial performance shows a concerning contraction in profitability with net income dropping significantly from $48.9M in 2023 to just $7.2M in 2024 despite stable revenue growth. The company generated positive operating cash flow of $79.3M but this was offset by substantial investing outflows of -$372.5M, likely related to capital expenditures for new facility expansions or equipment upgrades. While the company maintained a healthy cash balance of $32.2M, the widening gap between revenue and net income suggests rising cost pressures or one-time charges impacting margins.
Industry Overview
The industrial machinery sector for metals processing is highly cyclical and dependent on global commodity prices, particularly steel, copper, and aluminum production volumes. Companies in this space compete on technical expertise, customization capabilities, and after-market service networks rather than just price alone. The industry faces ongoing pressure from automation trends and sustainability requirements that force manufacturers to continuously invest in R&D and capital upgrades.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $899.5M | $813.1M | $836.3M |
| Cost of Revenue | $616.2M | $554.0M | $565.5M |
| Gross Profit | $283.4M | $259.1M | $270.8M |
| Operating Expenses | $199.4M | $186.7M | $226.3M |
| Operating Income | $83.9M | $72.4M | $44.5M |
| G&A | $199.5M | $186.9M | $204.1M |
| Stock-Based Comp | $7.4M | $6.7M | $1.7M |
| D&A | $21.7M | $23.1M | $40.5M |
| Depreciation | $21.2M | $22.8M | $38.6M |
| Amortization | $6.2M | $6.6M | $15.5M |
| Other OpEx | $-64.0K | $-195.0K | $22.2M |
| Non-Operating Income | $-5.7M | $-6.3M | $-30.9M |
| Pre-Tax Income | $78.2M | $66.1M | $13.5M |
| Income Tax | $17.9M | $17.2M | $6.3M |
| Continuing Ops | $60.3M | $48.9M | $7.2M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $60.3M | $48.9M | $7.2M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $60.3M | $48.9M | $7.2M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $257.2M | $256.6M | $259.3M |
| Cash & Equivalents | $23.1M | $30.3M | $32.2M |
| Accounts Receivable | $133.7M | $113.9M | $109.4M |
| Inventory | $93.4M | $90.8M | $97.0M |
| Prepaid Expenses | $7.0M | $6.9M | $8.1M |
| Other Current Assets | $0 | $14.7M | $12.7M |
| Long-Term Assets | $285.4M | $285.0M | $601.5M |
| PP&E (Net) | $101.6M | $107.9M | $137.6M |
| Intangibles | $51.8M | $45.1M | $166.3M |
| Goodwill | $95.2M | $95.4M | $255.5M |
| Operating Leases | $28.9M | $28.0M | $30.6M |
| Other LT Assets | $8.0M | $8.6M | $11.5M |
| Total Assets | $542.6M | $541.6M | $860.8M |
| Current Liabilities | $137.8M | $165.1M | $147.1M |
| Accounts Payable | $73.5M | $79.0M | $71.0M |
| Current Debt | $0 | $26.0M | $19.6M |
| Current Leases | $6.2M | $5.9M | $6.6M |
| Taxes Payable | $2.1M | $4.3M | $4.6M |
| Other Current Liab | $50.3M | $44.0M | $39.6M |
| Long-Term Liabilities | $148.4M | $83.7M | $436.2M |
| Long-Term Debt | $94.0M | $32.0M | $355.3M |
| LT Operating Leases | $22.8M | $22.4M | $23.7M |
| Other LT Liab | $31.7M | $29.4M | $57.2M |
| Total Liabilities | $286.2M | $248.8M | $583.3M |
| Shareholders' Equity | $256.4M | $292.8M | $277.5M |
| Retained Earnings | $-64.0M | $-35.5M | $-48.5M |
| AOCI | $-17.8M | $-16.8M | $-22.1M |
| Total L&E | $542.6M | $541.6M | $860.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $60.3M | $48.9M | $7.2M |
| Non-Cash Adjustments | $-2.1M | $42.4M | $127.5M |
| Working Capital Changes | $14.5M | $-5.1M | $-55.5M |
| Cash from Operations | $72.6M | $86.2M | $79.3M |
| Capital Expenditures | $24.3M | $22.9M | $24.4M |
| Cash from Investing | $-50.4M | $-22.8M | $-372.5M |
| Debt Repayments | $0 | $0 | — |
| Dividends Paid | $19.8M | $20.2M | $20.4M |
| Cash from Financing | $-16.3M | $-56.5M | $295.1M |
| FX Effect | $-439.0K | $252.0K | $50.0K |
| Net Change in Cash | $5.5M | $7.2M | $1.9M |
| Beginning Cash | $17.7M | $23.1M | $30.3M |
| Ending Cash | $23.1M | $30.3M | $32.2M |
Frequently Asked Questions
How does MYERS INDUSTRIES INC make money?
The company's revenue is driven by its core manufacturing of wire drawing equipment used in copper, aluminum, and steel production lines. Additional streams include sales of rolling mill systems for flat product fabrication and finishing line solutions for surface treatment processes. Revenue also encompasses spare parts, maintenance services, and custom engineering projects tailored to specific industrial client needs.
What are the main risks for MYE?
The company faces significant cyclicality risk as its sales are highly correlated with fluctuations in global demand for steel, aluminum, and copper commodities. A sharp decline in net income from $60.3M to $7.2M over three years highlights vulnerability to economic downturns affecting capital expenditure in heavy industry. High levels of long-term debt ($355.3M) combined with negative free cash flow trends could constrain financial flexibility during prolonged periods of low revenue.
What is MYE's competitive advantage?
MYERS INDUSTRIES holds a strong competitive moat through deep specialization in complex wire drawing machinery that few competitors can manufacture at scale. The company benefits from long-term relationships with major steel and copper producers who rely on its equipment for critical production processes. Its ability to engineer custom solutions for niche applications creates high switching costs and customer loyalty within the industrial sector.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.