MERCER INTERNATIONAL INC (MERC) Stock Fundamental Analysis
USA - NASDAQ:MERC - US5880561015 - Common Stock
2.88 USD
+0.07 (+2.49%)
MERC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. Both the profitability and financial health of MERC have multiple concerns. MERC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
MERC had negative earnings in the past year.
In the past year MERC had a positive cash flow from operations.
In multiple years MERC reported negative net income over the last 5 years.
Of the past 5 years MERC 4 years had a positive operating cash flow.
1.2 Ratios
MERC has a Return On Assets of -4.59%. This is in the lower half of the industry: MERC underperforms 66.67% 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 77.78% of its industry peers.
The Return On Invested Capital of MERC (0.63%) is comparable to the rest of the industry.
| 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 55.56% of its industry peers.
In the last couple of years the Operating Margin of MERC has declined.
MERC's Gross Margin of 6.75% is on the low side compared to the rest of the industry. MERC is outperformed by 88.89% 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.
Compared to 5 years ago, MERC has more shares outstanding
MERC has a worse debt/assets ratio than last year.
2.2 Solvency
MERC has an Altman-Z score of 1.29. This is a bad value and indicates that MERC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MERC (1.29) is comparable to the rest of the industry.
MERC has a Debt/Equity ratio of 3.42. This is a high value indicating a heavy dependency on external financing.
MERC has a worse Debt to Equity ratio (3.42) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.1
WACC6.42%
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.
Looking at the Current ratio, with a value of 3.10, MERC belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
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.
The Quick ratio of MERC (1.73) is better than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
MERC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.16%.
Looking at the last year, MERC shows a decrease in Revenue. The Revenue has decreased by -2.16% in the last year.
MERC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.70% yearly.
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
MERC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.89% yearly.
MERC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for MERC. In the last year negative earnings were reported.
Also next year MERC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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 | 8.55 |
4.3 Compensation for Growth
MERC's earnings are expected to grow with 72.54% in the coming years. This may justify a more expensive valuation.
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 9.77%, which is a nice return.
MERC's Dividend Yield is rather good when compared to the industry average which is at 4.14. MERC pays more dividend than 100.00% of the companies in the same industry.
MERC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.77% |
5.2 History
The dividend of MERC decreases each year by -11.04%.
MERC has been paying a dividend for at least 10 years, so it has 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
MERC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-18.36%
EPS Next 2Y-19.5%
EPS Next 3Y72.54%
NASDAQ:MERC (9/23/2025, 9:49:01 AM)
2.88
+0.07 (+2.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners50.08%
Inst Owner Change0.8%
Ins Owners1.31%
Ins Owner Change3.52%
Market Cap192.90M
Analysts48.89
Price Target3.57 (23.96%)
Short Float %8.62%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.77% |
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)-6.67%
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)-425.35%
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 | 0.1 | ||
| P/FCF | N/A | ||
| P/OCF | 3.88 | ||
| P/B | 0.43 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)-1.63
EYN/A
EPS(NY)-0.57
Fwd EYN/A
FCF(TTM)-0.64
FCFYN/A
OCF(TTM)0.74
OCFY25.76%
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 | 1.29 |
F-Score5
WACC6.42%
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%