2.66 USD
+0.07 (+2.7%)
2.7082 USD
+0.05 (+1.81%)
We assign a fundamental rating of 2 out of 10 to MERC. MERC was compared to 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
- 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 -7.53%. This is in the lower half of the industry: MERC underperforms 77.78% of its industry peers.
- Looking at the Return On Equity, with a value of -47.97%, MERC is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.53% | ||
| ROE | -47.97% | ||
| ROIC | 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
1.3 Margins
- In the last couple of years the Operating Margin of MERC has declined.
- The Gross Margin of MERC (2.88%) is worse than 88.89% of its industry peers.
- In the last couple of years the Gross Margin of MERC has remained more or less at the same level.
- The Profit Margin and Operating Margin are not available for MERC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 2.88% |
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for MERC has been increased compared to 1 year ago.
- MERC has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MERC has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.12, we must say that MERC is in the distress zone and has some risk of bankruptcy.
- MERC has a Altman-Z score of 1.12. This is in the lower half of the industry: MERC underperforms 77.78% of its industry peers.
- MERC has a Debt/Equity ratio of 4.30. This is a high value indicating a heavy dependency on external financing.
- MERC has a Debt to Equity ratio of 4.30. This is amonst the worse of the industry: MERC underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACCN/A
WACC6.34%
2.3 Liquidity
- A Current Ratio of 3.01 indicates that MERC has no problem at all paying its short term obligations.
- MERC's Current ratio of 3.01 is amongst the best of the industry. MERC outperforms 88.89% of its industry peers.
- A Quick Ratio of 1.68 indicates that MERC should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.68, MERC is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.01 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- The earnings per share for MERC have decreased strongly by -77.93% in the last year.
- Looking at the last year, MERC shows a decrease in Revenue. The Revenue has decreased by -5.85% 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)-5.85%
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 -7.31% on average per year.
- MERC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y-825.01%
EPS Next 2Y-74.93%
EPS Next 3Y51.89%
EPS Next 5Y-7.31%
Revenue Next Year-8.12%
Revenue Next 2Y1.68%
Revenue Next 3Y4.23%
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
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MERC indicates a slightly more expensive valuation: MERC is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.42 |
4.3 Compensation for Growth
- MERC's earnings are expected to grow with 51.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-74.93%
EPS Next 3Y51.89%
5. Dividend
5.1 Amount
- MERC has a Yearly Dividend Yield of 12.40%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.64, 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 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.4% |
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.
- MERC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-11.64%
EPS Next 2Y-74.93%
EPS Next 3Y51.89%
2.66
+0.07 (+2.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-12 2026-02-12/amc
Inst Owners44.03%
Inst Owner Change0.17%
Ins Owners1.13%
Ins Owner Change0.28%
Market Cap178.17M
Revenue(TTM)1.91B
Net Income(TTM)-172.48M
Analysts48.89
Price Target1.98 (-25.56%)
Short Float %13.12%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.4% |
Yearly Dividend0.3
Dividend Growth(5Y)-11.04%
DP-11.64%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-286.26%
Min EPS beat(2)-502.24%
Max EPS beat(2)-70.28%
EPS beat(4)1
Avg EPS beat(4)-45.09%
Min EPS beat(4)-502.24%
Max EPS beat(4)512.75%
EPS beat(8)2
Avg EPS beat(8)-57.62%
EPS beat(12)3
Avg EPS beat(12)-78.08%
EPS beat(16)7
Avg EPS beat(16)-54.33%
Revenue beat(2)0
Avg Revenue beat(2)-11.61%
Min Revenue beat(2)-13.5%
Max Revenue beat(2)-9.73%
Revenue beat(4)0
Avg Revenue beat(4)-7.28%
Min Revenue beat(4)-13.5%
Max Revenue beat(4)-2.16%
Revenue beat(8)3
Avg Revenue beat(8)-3.49%
Revenue beat(12)6
Avg Revenue beat(12)-0.22%
Revenue beat(16)9
Avg Revenue beat(16)0.92%
PT rev (1m)-6.06%
PT rev (3m)-44.64%
EPS NQ rev (1m)4.26%
EPS NQ rev (3m)-128.7%
EPS NY rev (1m)-1.61%
EPS NY rev (3m)-29.67%
Revenue NQ rev (1m)-2.89%
Revenue NQ rev (3m)-7.92%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)-2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.09 | ||
| P/FCF | N/A | ||
| P/OCF | 5.3 | ||
| P/B | 0.5 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 15.42 |
EPS(TTM)-2.58
EYN/A
EPS(NY)-1.22
Fwd EYN/A
FCF(TTM)-0.92
FCFYN/A
OCF(TTM)0.5
OCFY18.85%
SpS28.47
BVpS5.37
TBVpS4.57
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.53% | ||
| ROE | -47.97% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 2.88% | ||
| 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 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score4
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 14.55 | ||
| Cap/Depr | 57.24% | ||
| Cap/Sales | 4.99% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 31.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.01 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.12 |
F-Score4
WACC6.34%
ROIC/WACCN/A
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-825.01%
EPS Next 2Y-74.93%
EPS Next 3Y51.89%
EPS Next 5Y-7.31%
Revenue 1Y (TTM)-5.85%
Revenue growth 3Y4.25%
Revenue growth 5Y4.7%
Sales Q2Q%-8.77%
Revenue Next Year-8.12%
Revenue Next 2Y1.68%
Revenue Next 3Y4.23%
Revenue Next 5YN/A
EBIT growth 1Y-334.59%
EBIT growth 3Y-38.17%
EBIT growth 5Y-0.57%
EBIT Next Year-273.91%
EBIT Next 3Y182.43%
EBIT Next 5Y97.98%
FCF growth 1Y63.84%
FCF growth 3Y-34.97%
FCF growth 5Y-44.48%
OCF growth 1Y449.89%
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.
Can you provide the valuation status for MERCER INTERNATIONAL INC?
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 1 / 10.
Is the dividend of MERCER INTERNATIONAL INC sustainable?
The dividend rating of MERCER INTERNATIONAL INC (MERC) is 5 / 10 and the dividend payout ratio is -11.64%.