MERCER INTERNATIONAL INC (MERC) Stock Fundamental Analysis
NASDAQ:MERC - US5880561015 - Common Stock
3.24 USD
-0.01 (-0.31%)
3.19 USD
-0.05 (-1.54%)
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 does not seem to be growing, but still is valued expensively.
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.
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 66.67% of its industry peers.
MERC has a worse Return On Equity (-24.47%) than 77.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.63%, MERC is in line with its industry, outperforming 55.56% of the companies in the same 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.
MERC has a worse Gross Margin (6.75%) than 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.
MERC has more shares outstanding than it did 5 years ago.
MERC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that MERC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MERC (1.30) 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's Debt to Equity ratio of 3.42 is on the low side compared to the rest of the industry. MERC is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.1
WACC6.56%
2.3 Liquidity
A Current Ratio of 3.10 indicates that MERC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.10, MERC belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
A Quick Ratio of 1.73 indicates that MERC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.73, MERC belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| 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.
The Revenue has decreased by -2.16% in the past 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
Based on estimates for the next years, MERC will show a very strong growth in Earnings Per Share. The EPS will grow by 22.89% 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-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
MERC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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 | 8.7 |
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
With a Yearly Dividend Yield of 9.29%, MERC is a good candidate for dividend investing.
MERC's Dividend Yield is rather good when compared to the industry average which is at 3.59. MERC pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, MERC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.29% |
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.
DP-18.36%
EPS Next 2Y-19.5%
EPS Next 3Y72.54%
3.24
-0.01 (-0.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners49.77%
Inst Owner Change0.8%
Ins Owners1.29%
Ins Owner Change3.52%
Market Cap217.02M
Analysts48.89
Price Target3.57 (10.19%)
Short Float %5.58%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.29% |
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)-26.32%
PT rev (3m)-26.32%
EPS NQ rev (1m)-587.5%
EPS NQ rev (3m)-492.86%
EPS NY rev (1m)-234.03%
EPS NY rev (3m)-425.35%
Revenue NQ rev (1m)-4.05%
Revenue NQ rev (3m)-5.06%
Revenue NY rev (1m)-5.73%
Revenue NY rev (3m)-5.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.11 | ||
| P/FCF | N/A | ||
| P/OCF | 4.37 | ||
| P/B | 0.49 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 8.7 |
EPS(TTM)-1.63
EYN/A
EPS(NY)-0.57
Fwd EYN/A
FCF(TTM)-0.64
FCFYN/A
OCF(TTM)0.74
OCFY22.9%
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 | 1.3 |
F-Score5
WACC6.56%
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 Year998.18%
EBIT Next 3Y206.67%
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%