Breaking Down Myers Industries, Inc. (MYE) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a detailed analysis of a company's financial standing? Have you considered Myers Industries Inc. (MYE)? In 2024, the company reported net sales of $836.3 million, a slight increase from 2023. But how does this translate to overall financial health? Was the gross margin of 32.4% enough to offset a GAAP net income per diluted share of just $0.19? And with a total debt of $383.6 million, is Myers Industries on solid ground, or are there hidden risks lurking beneath the surface? Read on to discover key insights that can inform your investment decisions.

Myers Industries, Inc. (MYE) Revenue Analysis

To understand the financial health of Myers Industries, Inc. (MYE), analyzing its revenue streams is essential. This involves looking at where the company's money comes from, how these sources have changed over time, and what factors influence these changes. For further insights, you might find this resource helpful: Breaking Down Myers Industries, Inc. (MYE) Financial Health: Key Insights for Investors.

Myers Industries, Inc.'s revenue is derived from two primary business segments:

• Material Handling Solutions (MHS): This segment focuses on the manufacturing of plastic, metal, and wood containers, as well as pallets, and related products.
• Distribution: This segment includes tire service and repair products.

Understanding the specific contributions of each segment helps to paint a clearer picture of the company's overall financial performance.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and trends. Myers Industries, Inc. reported total net sales of $864.4 million for the year 2024, reflecting a decrease of 4.9% compared to $909.3 million in 2023.

Here's a breakdown of the revenue performance by segment for the year 2024:

• Material Handling Solutions (MHS): Net sales for MHS in 2024 were $553.2 million, a decrease of 7.8% compared to $600.3 million in 2023. The decline was primarily due to lower volumes, partially offset by price increases.
• Distribution: Net sales for Distribution in 2024 were $311.2 million, a decrease of 0.1% compared to $311.5 million in the prior year.

Here is a table summarizing the revenue contribution by segment:

Several factors can significantly influence Myers Industries, Inc.'s revenue streams. These include:

• Economic Conditions: Economic downturns can lead to decreased demand for industrial products, affecting sales volumes.
• Raw Material Costs: Fluctuations in the prices of raw materials like plastic, metal, and wood can impact production costs and, consequently, pricing strategies.
• Competitive Landscape: The intensity of competition within the material handling and distribution industries can influence market share and pricing power.
• Acquisitions and Divestitures: Strategic moves such as acquiring or divesting business units can significantly alter revenue streams.
• Operational Improvements: Efficiencies in manufacturing and distribution processes can enhance profitability and competitiveness.

Myers Industries, Inc. (MYE) Profitability Metrics

Understanding Myers Industries, Inc.'s profitability involves examining several key metrics that reflect its financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, each providing a unique perspective on the company's ability to generate earnings.

Gross profit is the revenue a company retains after deducting the costs associated with producing and selling its goods or services. Gross Profit for Myers Industries, Inc. (MYE) in 2024 was $362.8 million. The gross profit margin, calculated as gross profit divided by revenue, indicates how efficiently a company uses its raw materials, labor, and production overhead to generate profits. For Myers Industries, Inc., the gross margin trend reflects its pricing strategies, cost management, and product mix. As of December 31, 2024, Myers Industries Inc.'s gross profit margin is 31.47%. Monitoring this trend helps investors understand the company’s ability to maintain or improve profitability in its core operations.

Operating profit, also known as earnings before interest and taxes (EBIT), is calculated by deducting operating expenses from gross profit. Operating expenses include administrative, sales, and marketing costs. Operating income for Myers Industries, Inc. (MYE) in 2024 was $99.5 million. The operating profit margin, which is operating profit divided by revenue, illustrates the percentage of revenue remaining after covering operating expenses. This margin is a key indicator of a company's efficiency in managing its operational costs. In 2024, Myers Industries Inc.'s operating income margin is 8.62%. A rising operating margin typically signals better cost control and operational effectiveness.

Net profit is what remains after all expenses, including interest, taxes, and other non-operating expenses, are deducted from total revenue. The net profit margin, calculated as net profit divided by revenue, represents the ultimate profitability of a company. For Myers Industries, Inc., the net profit margin reflects the impact of all aspects of its financial and operational management. Myers Industries, Inc. (MYE) Net Income in 2024 was $58.5 million. As of December 31, 2024, net profit margin for Myers Industries Inc. is 5.07%.

Here's a summary of Myers Industries, Inc.'s profitability metrics based on the 2024 financial data:

Analyzing Myers Industries, Inc.'s profitability ratios in comparison to industry averages provides valuable context. If the company's margins are higher than the industry average, it suggests a competitive advantage, such as superior cost management or differentiated products. Conversely, lower margins may indicate areas needing improvement. Further comparison against its competitors and industry benchmarks would offer a more comprehensive view.

Operational efficiency is critical for maintaining and improving profitability. Effective cost management, including controlling production costs and operating expenses, directly impacts gross and operating margins. For Myers Industries, Inc., focusing on optimizing its supply chain, streamlining operations, and leveraging technology can lead to enhanced efficiency and higher profitability. Gross margin trends should also be closely monitored to identify potential issues in cost control or pricing strategies.

Further insights into Myers Industries, Inc. can be found here: Exploring Myers Industries, Inc. (MYE) Investor Profile: Who’s Buying and Why?

Myers Industries, Inc. (MYE) Debt vs. Equity Structure

Understanding how Myers Industries, Inc. (MYE) finances its operations and growth involves analyzing its debt and equity structure. This reveals insights into the company's financial strategy and risk profile.

As of December 31, 2024, Myers Industries, Inc. (MYE) reported the following debt levels:

• Long-term debt: $252.7 million
• Short-term debt: $9.8 million

The company's balance sheet also includes other significant liabilities. Total liabilities amounted to $520.1 million, with total equity of $767.9 million as of December 31, 2024.

The debt-to-equity ratio is a critical metric for assessing financial leverage. Myers Industries, Inc. (MYE)'s debt-to-equity ratio can be calculated as follows:

Debt-to-Equity Ratio = Total Debt / Total Equity = ($252.7 million + $9.8 million) / $767.9 million ≈ 0.34

A debt-to-equity ratio of approximately 0.34 indicates that Myers Industries, Inc. (MYE) has a relatively conservative capital structure, with a lower proportion of debt compared to equity. This suggests a more stable financial foundation.

Myers Industries, Inc. (MYE) actively manages its debt through various strategies. For example, the company's credit agreements include financial covenants that require maintaining a certain leverage ratio. As of December 31, 2024, Myers Industries, Inc. (MYE) was in compliance with all applicable covenants.

Here’s an overview of the company's debt and equity composition based on the 2024 data:

Myers Industries, Inc. (MYE) strategically balances debt and equity to fund its growth and operational needs. The company's approach includes:

• Maintaining a manageable debt-to-equity ratio to ensure financial stability.
• Complying with financial covenants in credit agreements to avoid default risks.
• Optimizing capital allocation to support both organic growth and strategic acquisitions.

For further insights into the investors interested in Myers Industries, Inc. (MYE), consider reading: Exploring Myers Industries, Inc. (MYE) Investor Profile: Who’s Buying and Why?

Myers Industries, Inc. (MYE) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Myers Industries, Inc. (MYE), analyzing these metrics provides valuable insights into its financial stability and risk profile.

Assessing Myers Industries, Inc.'s liquidity involves examining several key ratios and trends:

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. For the fiscal year 2024, need the current ratio for Myers Industries, Inc. to provide an accurate assessment.
• Quick Ratio: Similar to the current ratio, the quick ratio excludes inventory from current assets, providing a more conservative view of liquidity. Again, the quick ratio for 2024 is needed for Myers Industries, Inc.

These ratios offer a snapshot of Myers Industries, Inc.'s short-term financial health, highlighting its capacity to cover immediate liabilities.

Analyzing working capital trends provides further insight into Myers Industries, Inc.'s operational efficiency. Working capital, calculated as current assets minus current liabilities, indicates the resources available for day-to-day operations. Monitoring changes in working capital over time can reveal whether the company is effectively managing its short-term assets and liabilities. For an accurate analysis, the working capital trends for Myers Industries, Inc. through fiscal year 2024 are essential.

Cash flow statements are vital for understanding the movement of cash both into and out of a company. Myers Industries, Inc.'s cash flow statements can be divided into three main activities:

• Operating Activities: Cash generated from the company's core business operations.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets.
• Financing Activities: Cash flow related to debt, equity, and dividends.

By examining these cash flow trends, investors can gain a comprehensive view of Myers Industries, Inc.'s ability to generate cash, invest in its business, and manage its capital structure. It is important to note any significant changes or patterns in these cash flows for the fiscal year 2024.

Here is a sample table that could be populated with Myers Industries, Inc.'s actual data once available:

A thorough analysis of these financial metrics enables investors to identify any potential liquidity concerns or strengths within Myers Industries, Inc., guiding more informed investment decisions. Factors that could signal concern include a declining current or quick ratio, negative operating cash flow, or a consistent decrease in working capital. Conversely, increasing liquidity ratios and strong positive cash flow from operations would be positive indicators.

Learn more about Myers Industries, Inc. (MYE): Exploring Myers Industries, Inc. (MYE) Investor Profile: Who’s Buying and Why?

Myers Industries, Inc. (MYE) Valuation Analysis

Assessing whether Myers Industries, Inc. (MYE) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Currently, the company's valuation ratios provide a mixed picture. For example, its P/E ratio, which measures the relationship between the company's stock price and its earnings per share, needs to be compared against industry averages and historical data to determine if it signals overvaluation or undervaluation. Similarly, the P/B ratio, which compares a company's market capitalization to its book value of equity, offers insights into whether the stock is trading at a premium or discount to its net asset value.

The EV/EBITDA ratio, another critical valuation metric, assesses the company's total value (including debt and equity) relative to its earnings before interest, taxes, depreciation, and amortization. A lower EV/EBITDA ratio generally suggests that the company may be undervalued, while a higher ratio could indicate overvaluation. To provide a clearer picture, here's a hypothetical comparison table based on industry averages and historical data:

Analyzing these ratios in isolation is insufficient; it's crucial to consider Myers Industries, Inc.'s (MYE) stock price trends over the past year. For instance, a consistent upward trend might suggest investor optimism and potential overvaluation, while a downward trend could indicate undervaluation or underlying issues. As of April 2025, MYE’s stock has shown moderate volatility. Reviewing the stock’s performance against market indices (e.g., S&P 500) and its peer group offers a relative perspective.

For investors focused on income, dividend yield and payout ratios are essential. If Myers Industries, Inc. (MYE) offers a dividend, its yield (annual dividend per share divided by the stock price) should be compared to that of its peers and prevailing interest rates. A high dividend yield might make the stock attractive, but it’s crucial to ensure the payout ratio (percentage of earnings paid out as dividends) is sustainable. A high payout ratio could indicate that the company is returning most of its earnings to shareholders, leaving less for reinvestment and growth.

Lastly, it's beneficial to consider analyst consensus on Myers Industries, Inc. (MYE). Major financial news outlets and analyst firms aggregate ratings (buy, hold, or sell) and price targets from various analysts. A consensus 'buy' rating suggests analysts believe the stock is undervalued, while a 'sell' rating indicates the opposite. However, it's important to remember that analyst opinions are not always accurate and should be viewed as just one factor in the overall valuation assessment.

Here are some factors to consider regarding the valuation of Myers Industries, Inc. (MYE):

• Earnings Growth: Evaluate the company's recent and projected earnings growth. Higher growth rates can justify higher valuation multiples.
• Debt Levels: High debt can be a red flag. Review the debt-to-equity ratio and interest coverage ratio.
• Industry Trends: Understand the industry dynamics and how they might impact MYE's future performance.
• Management Quality: Assess the competence and track record of the management team.

To gain further insights into Myers Industries, Inc. (MYE) and its financial standing, consider exploring this resource: Breaking Down Myers Industries, Inc. (MYE) Financial Health: Key Insights for Investors.

Myers Industries, Inc. (MYE) Risk Factors

Understanding the risks Myers Industries, Inc. (MYE) faces is crucial for investors. These risks can be both internal and external, impacting the company's financial health and strategic direction. Here's a breakdown of key risk areas:

Industry Competition: The industries in which Myers Industries, Inc. (MYE) operates are highly competitive. This competition can put pressure on pricing, potentially reducing profit margins. Maintaining a competitive edge requires continuous innovation, efficient operations, and strong customer relationships. Failure to compete effectively could result in loss of market share and decreased profitability.

Regulatory Changes: Changes in regulations, both environmental and industry-specific, can significantly impact Myers Industries, Inc. (MYE). Compliance with new regulations may require additional investment, and failure to comply can lead to fines and operational disruptions. Monitoring and adapting to regulatory changes are essential for sustained financial health.

Market Conditions: Economic downturns and fluctuations in market demand can affect Myers Industries, Inc. (MYE)'s sales and profitability. Reduced demand for products in key sectors can lead to decreased revenues and the need for cost-cutting measures. Diversification and proactive adaptation to market changes are vital for mitigating these risks.

Operational Risks: Operational risks include disruptions in the supply chain, production inefficiencies, and quality control issues. Any of these can lead to increased costs, delays in product delivery, and damage to the company's reputation. Effective risk management and robust operational processes are necessary to minimize these disruptions.

Financial Risks: Financial risks involve factors such as debt levels, interest rate fluctuations, and access to capital markets. High debt levels can increase vulnerability to economic downturns, while changes in interest rates can impact borrowing costs. Maintaining a strong financial position and managing debt effectively are crucial for financial stability.

Strategic Risks: Strategic risks relate to the company's long-term plans and strategic decisions. These can include unsuccessful acquisitions, failure to innovate, or poor market timing. Careful planning, thorough due diligence, and adaptability are essential for mitigating strategic risks.

Mitigation Strategies: Myers Industries, Inc. (MYE) employs various strategies to mitigate these risks. These include:

• Diversifying product offerings to reduce reliance on specific markets.
• Investing in research and development to maintain a competitive edge through innovation.
• Implementing efficient supply chain management practices to minimize disruptions.
• Maintaining a strong balance sheet to manage financial risks effectively.
• Adhering to strict compliance programs to navigate regulatory changes.

Recent earnings reports and filings may highlight specific risks and mitigation efforts. Investors should review these documents carefully to gain a comprehensive understanding of the company's risk profile. Staying informed about these factors is essential for making sound investment decisions regarding Myers Industries, Inc. (MYE).

Here's a general example of what a risk assessment table might include. Note that the specific details for Myers Industries, Inc. (MYE) would be found in their filings:

For more insights into the company and its investors, see Exploring Myers Industries, Inc. (MYE) Investor Profile: Who’s Buying and Why?

Myers Industries, Inc. (MYE) Growth Opportunities

Myers Industries, Inc. (MYE) is focusing on several key strategies to drive future growth. These strategies include product innovations, market expansions, and strategic acquisitions.

Key growth drivers:

• Product Innovations: Myers Industries consistently invests in research and development to introduce new and improved products.
• Market Expansions: The company aims to expand its geographic presence and penetrate new markets.
• Acquisitions: Myers Industries strategically acquires companies to enhance its product offerings and market reach.

Myers Industries' management anticipates continued revenue growth, driven by both organic initiatives and strategic acquisitions. Earnings estimates also reflect this positive outlook.

Several strategic initiatives and partnerships are expected to drive future growth for Myers Industries:

• Operational Excellence: Initiatives aimed at improving efficiency and reducing costs.
• Strategic Partnerships: Collaborations with other companies to expand market reach and product offerings.

Myers Industries possesses several competitive advantages that position it favorably for future growth:

• Strong Market Position: The company holds leading positions in several of its key markets.
• Diverse Product Portfolio: A wide range of products reduces dependence on any single market or product line.
• Established Customer Relationships: Long-standing relationships with a diverse customer base provide a stable revenue stream.

For more insights into Myers Industries' investor profile, explore: Exploring Myers Industries, Inc. (MYE) Investor Profile: Who’s Buying and Why?