MERCER INTERNATIONAL INC (MERC) Stock Fundamental Analysis
USA - NASDAQ:MERC - US5880561015 - Common Stock
2.42 USD
-0.11 (-4.35%)
2.39 USD
-0.03 (-1.24%)
Taking everything into account, MERC scores 3 out of 10 in our fundamental rating. MERC was compared to 10 industry peers in the Paper & Forest Products industry. Both the profitability and financial health of MERC have multiple concerns. MERC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year MERC has reported negative net income.
MERC had a positive operating cash flow in the past year.
In multiple years MERC reported negative net income over the last 5 years.
MERC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MERC's Return On Assets of -4.59% is on the low side compared to the rest of the industry. MERC is outperformed by 60.00% of its industry peers.
MERC's Return On Equity of -24.47% is on the low side compared to the rest of the industry. MERC is outperformed by 70.00% of its industry peers.
MERC has a Return On Invested Capital of 0.63%. This is comparable to the rest of the industry: MERC outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.59% | ||
| ROE | -24.47% | ||
| ROIC | 0.63% |
ROA(3y)-1.26%
ROA(5y)0.54%
ROE(3y)-9.49%
ROE(5y)-1.34%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MERC's Operating Margin of 0.85% is in line compared to the rest of the industry. MERC outperforms 60.00% of its industry peers.
MERC's Operating Margin has declined in the last couple of years.
MERC has a worse Gross Margin (6.75%) than 70.00% of its industry peers.
MERC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.85% | ||
| PM (TTM) | N/A | ||
| GM | 6.75% |
OM growth 3Y-40.69%
OM growth 5Y-5.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-25.62%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
MERC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MERC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MERC has been increased compared to 5 years ago.
The debt/assets ratio for MERC is higher compared to a year ago.
2.2 Solvency
MERC has an Altman-Z score of 1.28. This is a bad value and indicates that MERC is not financially healthy and even has some risk of bankruptcy.
MERC has a Altman-Z score (1.28) which is in line with its industry peers.
MERC has a Debt/Equity ratio of 3.42. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.42, MERC is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.1
WACC6.29%
2.3 Liquidity
MERC has a Current Ratio of 3.10. This indicates that MERC is financially healthy and has no problem in meeting its short term obligations.
MERC's Current ratio of 3.10 is amongst the best of the industry. MERC outperforms 90.00% of its industry peers.
MERC has a Quick Ratio of 1.73. This is a normal value and indicates that MERC is financially healthy and should not expect problems in meeting its short term obligations.
MERC's Quick ratio of 1.73 is amongst the best of the industry. MERC outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The earnings per share for MERC have decreased by -3.16% in the last year.
Looking at the last year, MERC shows a decrease in Revenue. The Revenue has decreased by -2.16% in the last year.
Measured over the past years, MERC shows a small growth in Revenue. The Revenue has been growing by 4.70% on average per year.
EPS 1Y (TTM)-3.16%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-163.27%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y4.25%
Revenue growth 5Y4.7%
Sales Q2Q%-9.18%
3.2 Future
The Earnings Per Share is expected to grow by 22.89% on average over the next years. This is a very strong growth
Based on estimates for the next years, MERC will show a small growth in Revenue. The Revenue will grow by 5.19% on average per year.
EPS Next Y-613.36%
EPS Next 2Y-19.5%
EPS Next 3Y72.54%
EPS Next 5Y22.89%
Revenue Next Year-5.78%
Revenue Next 2Y3.34%
Revenue Next 3Y5.19%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for MERC. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for MERC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MERC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MERC's earnings are expected to grow with 72.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.5%
EPS Next 3Y72.54%
5. Dividend
5.1 Amount
MERC has a Yearly Dividend Yield of 10.91%, which is a nice return.
The stock price of MERC dropped by -29.03% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.75, MERC pays a better dividend. On top of this MERC pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, MERC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.91% |
5.2 History
The dividend of MERC decreases each year by -11.04%.
MERC has paid a dividend for at least 10 years, which is a reliable track record.
MERC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.04%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
The earnings of MERC are negative and hence is the payout ratio. MERC will probably not be able to sustain this dividend level.
DP-18.36%
EPS Next 2Y-19.5%
EPS Next 3Y72.54%
2.42
-0.11 (-4.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners50.08%
Inst Owner Change0.18%
Ins Owners1.31%
Ins Owner Change3.52%
Market Cap162.09M
Analysts48.89
Price Target3.57 (47.52%)
Short Float %8.26%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.91% |
Yearly Dividend0.3
Dividend Growth(5Y)-11.04%
DP-18.36%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-311.41%
Min EPS beat(2)-502.24%
Max EPS beat(2)-120.58%
EPS beat(4)1
Avg EPS beat(4)-128.99%
Min EPS beat(4)-502.24%
Max EPS beat(4)512.75%
EPS beat(8)3
Avg EPS beat(8)-42.6%
EPS beat(12)4
Avg EPS beat(12)-71.2%
EPS beat(16)8
Avg EPS beat(16)-48.51%
Revenue beat(2)0
Avg Revenue beat(2)-7.83%
Min Revenue beat(2)-13.5%
Max Revenue beat(2)-2.16%
Revenue beat(4)1
Avg Revenue beat(4)-4.29%
Min Revenue beat(4)-13.5%
Max Revenue beat(4)2.23%
Revenue beat(8)4
Avg Revenue beat(8)-2.16%
Revenue beat(12)7
Avg Revenue beat(12)1.16%
Revenue beat(16)10
Avg Revenue beat(16)1.64%
PT rev (1m)0%
PT rev (3m)-26.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-587.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-234.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | 3.26 | ||
| P/B | 0.36 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)-1.63
EYN/A
EPS(NY)-0.57
Fwd EYN/A
FCF(TTM)-0.64
FCFYN/A
OCF(TTM)0.74
OCFY30.66%
SpS29.13
BVpS6.67
TBVpS5.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.59% | ||
| ROE | -24.47% | ||
| ROCE | 0.8% | ||
| ROIC | 0.63% | ||
| ROICexc | 0.68% | ||
| ROICexgc | 0.7% | ||
| OM | 0.85% | ||
| PM (TTM) | N/A | ||
| GM | 6.75% | ||
| FCFM | N/A |
ROA(3y)-1.26%
ROA(5y)0.54%
ROE(3y)-9.49%
ROE(5y)-1.34%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-39.32%
ROICexcg growth 5Y-5.08%
ROICexc growth 3Y-39.31%
ROICexc growth 5Y-4.89%
OM growth 3Y-40.69%
OM growth 5Y-5.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-25.62%
GM growth 5Y-0.06%
F-Score5
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.26 | ||
| Cap/Depr | 54.89% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 0.15 | ||
| Cash Conversion | 26.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 1.28 |
F-Score5
WACC6.29%
ROIC/WACC0.1
Cap/Depr(3y)84.22%
Cap/Depr(5y)87.15%
Cap/Sales(3y)6.27%
Cap/Sales(5y)6.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.16%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-163.27%
EPS Next Y-613.36%
EPS Next 2Y-19.5%
EPS Next 3Y72.54%
EPS Next 5Y22.89%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y4.25%
Revenue growth 5Y4.7%
Sales Q2Q%-9.18%
Revenue Next Year-5.78%
Revenue Next 2Y3.34%
Revenue Next 3Y5.19%
Revenue Next 5YN/A
EBIT growth 1Y405.12%
EBIT growth 3Y-38.17%
EBIT growth 5Y-0.57%
EBIT Next Year332.07%
EBIT Next 3Y202.37%
EBIT Next 5Y114.48%
FCF growth 1Y38.49%
FCF growth 3Y-34.97%
FCF growth 5Y-44.48%
OCF growth 1Y-51.42%
OCF growth 3Y-20.89%
OCF growth 5Y-18.07%