MERCER INTERNATIONAL INC (MERC)
US5880561015 - Common Stock
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 may be in some trouble as it scores bad on both profitability and health. MERC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MERC has reported negative net income.
In the past year MERC has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: MERC reported negative net income in multiple years.
MERC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -9.09%, MERC is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
With a Return On Equity value of -38.10%, MERC is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.09% | ||
| ROE | -38.1% | ||
| ROIC | N/A |
ROA(3y)2.42%
ROA(5y)1.19%
ROE(3y)5.33%
ROE(5y)2.28%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of MERC (1.34%) is worse than 77.78% of its industry peers.
In the last couple of years the Gross Margin of MERC has declined.
MERC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 1.34% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-50.42%
GM growth 5Y-43.15%
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.
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 1.36. This is a bad value and indicates that MERC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.36, MERC is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
MERC has a Debt/Equity ratio of 2.53. This is a high value indicating a heavy dependency on external financing.
MERC has a worse Debt to Equity ratio (2.53) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACCN/A
WACC6.32%
2.3 Liquidity
MERC has a Current Ratio of 3.82. This indicates that MERC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.82, MERC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 2.37 indicates that MERC has no problem at all paying its short term obligations.
MERC has a Quick ratio of 2.37. This is amongst the best in the industry. MERC outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
The earnings per share for MERC have decreased strongly by -184.37% in the last year.
MERC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.58%.
MERC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
EPS 1Y (TTM)-184.37%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-366.67%
Revenue 1Y (TTM)-12.58%
Revenue growth 3Y11.9%
Revenue growth 5Y6.46%
Revenue growth Q2Q-19.31%
3.2 Future
MERC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.37% yearly.
Based on estimates for the next years, MERC will show a small growth in Revenue. The Revenue will grow by 6.78% on average per year.
EPS Next Y70.75%
EPS Next 2Y43.22%
EPS Next 3Y12.05%
EPS Next 5Y11.37%
Revenue Next Year4.68%
Revenue Next 2Y6.78%
Revenue Next 3YN/A
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
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
Based on the Enterprise Value to EBITDA ratio, MERC is valued a bit more expensive than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.48 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MERC's earnings are expected to grow with 12.05% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y43.22%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.05%, MERC has a reasonable but not impressive dividend return.
MERC's Dividend Yield is rather good when compared to the industry average which is at 1.96. MERC pays more dividend than 100.00% of the companies in the same industry.
MERC's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
The dividend of MERC decreases each year by -13.62%.
MERC has paid a dividend for at least 10 years, which is a reliable track record.
MERC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.62%
Div Incr Years0
Div Non Decr Years2
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-8.24%
EPS Next 2Y43.22%
EPS Next 3Y12.05%
MERCER INTERNATIONAL INC
NASDAQ:MERC (4/19/2024, 1:02:56 PM)
9.55
-0.02 (-0.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap635.27M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.09% | ||
| ROE | -38.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 1.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-184.37%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y70.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.58%
Revenue growth 3Y11.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y