MERCER INTERNATIONAL INC (MERC) Stock Fundamental Analysis
USA - NASDAQ:MERC - US5880561015 - Common Stock
1.65 USD
-0.12 (-6.78%)
1.65 USD
0 (0%)
MERC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. MERC has a bad profitability rating. Also its financial health evaluation is rather negative. MERC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MERC has reported negative net income.
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.
MERC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MERC (-4.59%) is worse than 66.67% of its industry peers.
The Return On Equity of MERC (-24.47%) is worse than 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.
MERC's Operating Margin has declined in the last couple of years.
The Gross Margin of MERC (6.75%) is worse than 77.78% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MERC is destroying value.
The number of shares outstanding for MERC has been increased compared to 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 1.26. 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 (1.26) 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.
MERC has a Debt to Equity ratio of 3.42. This is amonst the worse of the industry: MERC underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC0.11
WACC6%
2.3 Liquidity
A Current Ratio of 3.10 indicates that MERC has no problem at all paying its short term obligations.
MERC's Current ratio of 3.10 is amongst the best of the industry. MERC outperforms 88.89% 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 has a Quick ratio of 1.73. This is amongst the best in the industry. MERC outperforms 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 strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.93%.
Looking at the last year, MERC shows a small growth in Revenue. The Revenue has grown by 2.48% in the last year.
The Revenue has been growing slightly by 4.70% on average over the past years.
EPS 1Y (TTM)-77.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-365.38%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y4.25%
Revenue growth 5Y4.7%
Sales Q2Q%-8.77%
3.2 Future
Based on estimates for the next years, MERC will show a decrease in Earnings Per Share. The EPS will decrease by -7.82% on average per year.
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-642.69%
EPS Next 2Y-30.47%
EPS Next 3Y72.54%
EPS Next 5Y-7.82%
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
MERC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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 | 8.13 |
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-30.47%
EPS Next 3Y72.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 18.18%, MERC is a good candidate for dividend investing.
In the last 3 months the price of MERC has falen by -45.00%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.82, MERC pays a better dividend. On top of this MERC pays more dividend than 100.00% of the companies listed in the same industry.
MERC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.18% |
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
The earnings of MERC are negative and hence is the payout ratio. MERC will probably not be able to sustain this dividend level.
MERC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-18.36%
EPS Next 2Y-30.47%
EPS Next 3Y72.54%
1.65
-0.12 (-6.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners50.08%
Inst Owner Change-9.11%
Ins Owners1.31%
Ins Owner Change3.12%
Market Cap110.52M
Revenue(TTM)2.04B
Net Income(TTM)-109.26M
Analysts48.89
Price Target3.32 (101.21%)
Short Float %7.64%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.18% |
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)-7.14%
PT rev (3m)-13.33%
EPS NQ rev (1m)-26.67%
EPS NQ rev (3m)-770.84%
EPS NY rev (1m)-4.11%
EPS NY rev (3m)-247.76%
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 | 0.06 | ||
| P/FCF | N/A | ||
| P/OCF | 2.22 | ||
| P/B | 0.25 | ||
| P/tB | 0.28 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)-2.58
EYN/A
EPS(NY)-0.68
Fwd EYN/A
FCF(TTM)-0.64
FCFYN/A
OCF(TTM)0.74
OCFY44.97%
SpS29.13
BVpS6.67
TBVpS5.89
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
ROICexgc growth 3Y-39.32%
ROICexgc 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 | 1.26 |
F-Score5
WACC6%
ROIC/WACC0.11
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)-77.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-365.38%
EPS Next Y-642.69%
EPS Next 2Y-30.47%
EPS Next 3Y72.54%
EPS Next 5Y-7.82%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y4.25%
Revenue growth 5Y4.7%
Sales Q2Q%-8.77%
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 5Y103.57%
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%
MERCER INTERNATIONAL INC / MERC FAQ
What is the fundamental rating for MERC stock?
ChartMill assigns a fundamental rating of 2 / 10 to MERC.
What is the valuation status of MERCER INTERNATIONAL INC (MERC) stock?
ChartMill assigns a valuation rating of 1 / 10 to MERCER INTERNATIONAL INC (MERC). This can be considered as Overvalued.
How profitable is MERCER INTERNATIONAL INC (MERC) stock?
MERCER INTERNATIONAL INC (MERC) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for MERC stock?
The Earnings per Share (EPS) of MERCER INTERNATIONAL INC (MERC) is expected to decline by -642.69% in the next year.
Can you provide the dividend sustainability for MERC stock?
The dividend rating of MERCER INTERNATIONAL INC (MERC) is 5 / 10 and the dividend payout ratio is -18.36%.