MRC GLOBAL INC (MRC) Stock Fundamental Analysis
NYSE:MRC - New York Stock Exchange, Inc. - US55345K1034 - Common Stock - Currency: USD
MRC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. MRC has only an average score on both its financial health and profitability. MRC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MRC was profitable.
MRC had a positive operating cash flow in the past year.
In multiple years MRC reported negative net income over the last 5 years.
Of the past 5 years MRC 4 years had a positive operating cash flow.
1.2 Ratios
MRC has a worse Return On Assets (1.60%) than 66.00% of its industry peers.
MRC's Return On Equity of 5.04% is on the low side compared to the rest of the industry. MRC is outperformed by 64.00% of its industry peers.
MRC has a Return On Invested Capital of 8.81%. This is in the better half of the industry: MRC outperforms 70.00% of its industry peers.
MRC had an Average Return On Invested Capital over the past 3 years of 11.12%. This is in line with the industry average of 9.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 5.04% | ||
| ROIC | 8.81% |
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
With a Profit Margin value of 0.86%, MRC is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
MRC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.38%, MRC is doing worse than 68.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MRC has grown nicely.
MRC's Gross Margin of 20.59% is on the low side compared to the rest of the industry. MRC is outperformed by 80.00% of its industry peers.
MRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 0.86% | ||
| GM | 20.59% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MRC is still creating some value.
Compared to 1 year ago, MRC has more shares outstanding
The number of shares outstanding for MRC has been increased compared to 5 years ago.
MRC has a worse debt/assets ratio than last year.
2.2 Solvency
MRC has an Altman-Z score of 2.43. This is not the best score and indicates that MRC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MRC (2.43) is worse than 60.00% of its industry peers.
MRC has a debt to FCF ratio of 1.56. This is a very positive value and a sign of high solvency as it would only need 1.56 years to pay back of all of its debts.
The Debt to FCF ratio of MRC (1.56) is better than 80.00% of its industry peers.
MRC has a Debt/Equity ratio of 0.74. This is a neutral value indicating MRC is somewhat dependend on debt financing.
MRC has a Debt to Equity ratio (0.74) which is in line with its industry peers.
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 | 0.74 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.96
WACC9.19%
2.3 Liquidity
MRC has a Current Ratio of 1.81. This is a normal value and indicates that MRC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.81, MRC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
MRC has a Quick Ratio of 1.81. This is a bad value and indicates that MRC is not financially healthy enough and could expect problems in meeting its short term obligations.
MRC's Quick ratio of 1.00 is on the low side compared to the rest of the industry. MRC is outperformed by 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
MRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.96%.
MRC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.84% yearly.
Looking at the last year, MRC shows a very negative growth in Revenue. The Revenue has decreased by -11.75% in the last year.
MRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.84% yearly.
EPS 1Y (TTM)-41.96%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-134.78%
Revenue 1Y (TTM)-11.75%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-13.54%
3.2 Future
MRC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.32% yearly.
Based on estimates for the next years, MRC will show a small growth in Revenue. The Revenue will grow by 2.84% on average per year.
EPS Next Y55.38%
EPS Next 2Y50.1%
EPS Next 3Y24.1%
EPS Next 5Y29.32%
Revenue Next Year-0.28%
Revenue Next 2Y3.39%
Revenue Next 3Y3.91%
Revenue Next 5Y2.84%
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
The Price/Earnings ratio is 18.60, which indicates a rather expensive current valuation of MRC.
MRC's Price/Earnings ratio is in line with the industry average.
MRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
A Price/Forward Earnings ratio of 11.97 indicates a reasonable valuation of MRC.
MRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MRC is cheaper than 78.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MRC to the average of the S&P500 Index (20.81), we can say MRC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
MRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MRC is cheaper than 78.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRC indicates a rather cheap valuation: MRC is cheaper than 98.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.2 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
MRC's 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 24.10% in the coming years.
PEG (NY)0.34
PEG (5Y)1.34
EPS Next 2Y50.1%
EPS Next 3Y24.1%
5. Dividend
5.1 Amount
MRC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.09
+0.4 (+3.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.47%
Inst Owner Change-2.66%
Ins Owners1.61%
Ins Owner Change7.83%
Market Cap1.04B
Analysts85
Price Target15.56 (28.7%)
Short Float %1.82%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.27
Dividend Growth(5Y)-1.19%
DP88.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-114.69%
Min EPS beat(2)-244.01%
Max EPS beat(2)14.64%
EPS beat(4)3
Avg EPS beat(4)-41.61%
Min EPS beat(4)-244.01%
Max EPS beat(4)44.89%
EPS beat(8)5
Avg EPS beat(8)-14.66%
EPS beat(12)9
Avg EPS beat(12)-3.92%
EPS beat(16)13
Avg EPS beat(16)53.42%
Revenue beat(2)0
Avg Revenue beat(2)-5.1%
Min Revenue beat(2)-9.56%
Max Revenue beat(2)-0.64%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-9.56%
Max Revenue beat(4)4.9%
Revenue beat(8)2
Avg Revenue beat(8)-2.78%
Revenue beat(12)5
Avg Revenue beat(12)-1.41%
Revenue beat(16)7
Avg Revenue beat(16)-0.74%
PT rev (1m)-6.15%
PT rev (3m)-11.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.78%
EPS NY rev (1m)-9.09%
EPS NY rev (3m)-6.98%
Revenue NQ rev (1m)2.17%
Revenue NQ rev (3m)-9.09%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 11.97 | ||
| P/S | 0.35 | ||
| P/FCF | 4.2 | ||
| P/OCF | 3.78 | ||
| P/B | 2.02 | ||
| P/tB | 9.56 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)0.65
EY5.38%
EPS(NY)1.01
Fwd EY8.35%
FCF(TTM)2.88
FCFY23.8%
OCF(TTM)3.2
OCFY26.48%
SpS34.93
BVpS5.99
TBVpS1.26
PEG (NY)0.34
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 5.04% | ||
| ROCE | 11.83% | ||
| ROIC | 8.81% | ||
| ROICexc | 9.34% | ||
| ROICexgc | 15.22% | ||
| OM | 4.38% | ||
| PM (TTM) | 0.86% | ||
| GM | 20.59% | ||
| FCFM | 8.24% |
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-Score7
Asset Turnover1.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 70% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 7.33 | ||
| Cash Conversion | 160.47% | ||
| Profit Quality | 953.85% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.43 |
F-Score7
WACC9.19%
ROIC/WACC0.96
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)-41.96%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-134.78%
EPS Next Y55.38%
EPS Next 2Y50.1%
EPS Next 3Y24.1%
EPS Next 5Y29.32%
Revenue 1Y (TTM)-11.75%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-13.54%
Revenue Next Year-0.28%
Revenue Next 2Y3.39%
Revenue Next 3Y3.91%
Revenue Next 5Y2.84%
EBIT growth 1Y-30.16%
EBIT growth 3Y16.67%
EBIT growth 5Y5.56%
EBIT Next Year37.7%
EBIT Next 3Y17.35%
EBIT Next 5Y15.33%
FCF growth 1Y49.4%
FCF growth 3Y75.35%
FCF growth 5Y2.06%
OCF growth 1Y52.49%
OCF growth 3Y70.18%
OCF growth 5Y2.66%