MRC GLOBAL INC (MRC) Stock Fundamental Analysis
NYSE:MRC - New York Stock Exchange, Inc. - US55345K1034 - Common Stock - Currency: USD
Taking everything into account, MRC scores 4 out of 10 in our fundamental rating. MRC was compared to 48 industry peers in the Trading Companies & Distributors industry. While MRC seems to be doing ok healthwise, there are quite some concerns on its profitability. MRC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MRC had positive earnings in the past year.
In the past year MRC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MRC reported negative net income in multiple years.
MRC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MRC has a Return On Assets of -0.53%. This is in the lower half of the industry: MRC underperforms 72.92% of its industry peers.
MRC has a Return On Equity of -1.71%. This is in the lower half of the industry: MRC underperforms 72.92% of its industry peers.
MRC has a Return On Invested Capital of 7.44%. This is comparable to the rest of the industry: MRC outperforms 58.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MRC is in line with the industry average of 9.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -1.71% | ||
| ROIC | 7.44% |
ROA(3y)3.02%
ROA(5y)-1.99%
ROE(3y)7.53%
ROE(5y)-5.06%
ROIC(3y)11.12%
ROIC(5y)8.3%
1.3 Margins
In the last couple of years the Profit Margin of MRC has grown nicely.
MRC has a Operating Margin of 3.81%. This is in the lower half of the industry: MRC underperforms 68.75% of its industry peers.
In the last couple of years the Operating Margin of MRC has grown nicely.
With a Gross Margin value of 20.53%, MRC is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.81% | ||
| PM (TTM) | N/A | ||
| GM | 20.53% |
OM growth 3Y12.04%
OM growth 5Y9.77%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y3.58%
GM growth 5Y2.92%
2. Health
2.1 Basic Checks
MRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MRC has been increased compared to 1 year ago.
Compared to 5 years ago, MRC has more shares outstanding
MRC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.27 indicates that MRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRC's Altman-Z score of 2.27 is on the low side compared to the rest of the industry. MRC is outperformed by 62.50% of its industry peers.
MRC has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of all of its debts.
MRC has a Debt to FCF ratio of 1.68. This is in the better half of the industry: MRC outperforms 77.08% of its industry peers.
MRC has a Debt/Equity ratio of 0.70. This is a neutral value indicating MRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, MRC is in line with its industry, outperforming 45.83% of the companies in the same industry.
Although MRC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.75
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.68 indicates that MRC should not have too much problems paying its short term obligations.
MRC has a Current ratio of 1.68. This is in the lower half of the industry: MRC underperforms 60.42% of its industry peers.
MRC has a Quick Ratio of 1.68. This is a bad value and indicates that MRC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.91, MRC is doing worse than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
MRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.00%.
Measured over the past years, MRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.84% on average per year.
The Revenue for MRC has decreased by -12.48% in the past year. This is quite bad
Measured over the past years, MRC shows a decrease in Revenue. The Revenue has been decreasing by -3.84% on average per year.
EPS 1Y (TTM)-41%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-30%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-11.66%
3.2 Future
Based on estimates for the next years, MRC will show a very strong growth in Earnings Per Share. The EPS will grow by 24.37% on average per year.
The Revenue is expected to grow by 1.55% on average over the next years.
EPS Next Y47.62%
EPS Next 2Y32.21%
EPS Next 3Y25.1%
EPS Next 5Y24.37%
Revenue Next Year-1%
Revenue Next 2Y1.86%
Revenue Next 3Y0.64%
Revenue Next 5Y1.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.76, the valuation of MRC can be described as rather expensive.
MRC's Price/Earnings is on the same level as the industry average.
MRC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
With a Price/Forward Earnings ratio of 12.34, MRC is valued correctly.
Based on the Price/Forward Earnings ratio, MRC is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.44. MRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.76 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MRC is valued cheaper than 97.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.4 | ||
| EV/EBITDA | 9.96 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MRC's earnings are expected to grow with 25.10% in the coming years.
PEG (NY)0.5
PEG (5Y)1.72
EPS Next 2Y32.21%
EPS Next 3Y25.1%
5. Dividend
5.1 Amount
No dividends for MRC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:MRC (7/21/2025, 3:40:12 PM)
14.02
-0.03 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners99.24%
Inst Owner Change-0.04%
Ins Owners2.09%
Ins Owner Change9.28%
Market Cap1.19B
Analysts82.86
Price Target16.32 (16.41%)
Short Float %2.64%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.27
Dividend Growth(5Y)-1.19%
DP-188.89%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-111.74%
Min EPS beat(2)-244.01%
Max EPS beat(2)20.53%
EPS beat(4)3
Avg EPS beat(4)-47.7%
Min EPS beat(4)-244.01%
Max EPS beat(4)20.53%
EPS beat(8)5
Avg EPS beat(8)-12.23%
EPS beat(12)9
Avg EPS beat(12)-3.52%
EPS beat(16)13
Avg EPS beat(16)53.78%
Revenue beat(2)1
Avg Revenue beat(2)-4.02%
Min Revenue beat(2)-9.56%
Max Revenue beat(2)1.51%
Revenue beat(4)1
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-9.56%
Max Revenue beat(4)1.51%
Revenue beat(8)2
Avg Revenue beat(8)-2.89%
Revenue beat(12)5
Avg Revenue beat(12)-1.52%
Revenue beat(16)7
Avg Revenue beat(16)-1.06%
PT rev (1m)3.23%
PT rev (3m)-1.54%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-16.07%
EPS NY rev (1m)-5%
EPS NY rev (3m)-5%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.76 | ||
| Fwd PE | 12.34 | ||
| P/S | 0.41 | ||
| P/FCF | 5.4 | ||
| P/OCF | 4.73 | ||
| P/B | 2.27 | ||
| P/tB | 9.78 | ||
| EV/EBITDA | 9.96 |
EPS(TTM)0.59
EY4.21%
EPS(NY)1.14
Fwd EY8.1%
FCF(TTM)2.6
FCFY18.53%
OCF(TTM)2.96
OCFY21.13%
SpS34.29
BVpS6.17
TBVpS1.43
PEG (NY)0.5
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -1.71% | ||
| ROCE | 9.99% | ||
| ROIC | 7.44% | ||
| ROICexc | 7.89% | ||
| ROICexgc | 12.82% | ||
| OM | 3.81% | ||
| PM (TTM) | N/A | ||
| GM | 20.53% | ||
| FCFM | 7.58% |
ROA(3y)3.02%
ROA(5y)-1.99%
ROE(3y)7.53%
ROE(5y)-5.06%
ROIC(3y)11.12%
ROIC(5y)8.3%
ROICexc(3y)11.97%
ROICexc(5y)8.91%
ROICexgc(3y)19.85%
ROICexgc(5y)14.75%
ROCE(3y)14.93%
ROCE(5y)11.15%
ROICexcg growth 3Y20.91%
ROICexcg growth 5Y16.17%
ROICexc growth 3Y21.43%
ROICexc growth 5Y17.6%
OM growth 3Y12.04%
OM growth 5Y9.77%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y3.58%
GM growth 5Y2.92%
F-Score5
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 77.5% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 5.55 | ||
| Cash Conversion | 166.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.27 |
F-Score5
WACC9.87%
ROIC/WACC0.75
Cap/Depr(3y)45.24%
Cap/Depr(5y)36.57%
Cap/Sales(3y)0.57%
Cap/Sales(5y)0.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-30%
EPS Next Y47.62%
EPS Next 2Y32.21%
EPS Next 3Y25.1%
EPS Next 5Y24.37%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-11.66%
Revenue Next Year-1%
Revenue Next 2Y1.86%
Revenue Next 3Y0.64%
Revenue Next 5Y1.55%
EBIT growth 1Y-35.47%
EBIT growth 3Y16.67%
EBIT growth 5Y5.56%
EBIT Next Year38.85%
EBIT Next 3Y17.35%
EBIT Next 5Y12.98%
FCF growth 1Y551.02%
FCF growth 3Y75.35%
FCF growth 5Y2.06%
OCF growth 1Y781.08%
OCF growth 3Y70.18%
OCF growth 5Y2.66%