MRC Global Inc (MRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MRC - US55345K1034 - Common Stock
13.78 USD
-0.06 (-0.43%)
13.78 USD
0 (0%)
Taking everything into account, MRC scores 4 out of 10 in our fundamental rating. MRC was compared to 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.
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.
Of the past 5 years MRC 4 years had a positive operating cash flow.
1.2 Ratios
MRC has a worse Return On Assets (-1.13%) than 70.59% of its industry peers.
Looking at the Return On Equity, with a value of -3.73%, MRC is doing worse than 70.59% of the companies in the same industry.
MRC has a Return On Invested Capital (5.27%) which is comparable to the rest of the industry.
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 9.63%.
The 3 year average ROIC (11.12%) for MRC is well above the current ROIC(5.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -3.73% | ||
| ROIC | 5.27% |
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
MRC's Profit Margin has improved in the last couple of years.
MRC has a worse Operating Margin (2.91%) than 66.67% of its industry peers.
MRC's Operating Margin has improved in the last couple of years.
MRC has a worse Gross Margin (20.01%) than 74.51% of its industry peers.
In the last couple of years the Gross Margin of MRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.91% | ||
| PM (TTM) | N/A | ||
| GM | 20.01% |
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.
MRC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MRC has more shares outstanding
Compared to 1 year ago, MRC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.16 indicates that MRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRC has a Altman-Z score of 2.16. This is comparable to the rest of the industry: MRC outperforms 43.14% of its industry peers.
The Debt to FCF ratio of MRC is 4.21, which is a neutral value as it means it would take MRC, 4.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.21, MRC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that MRC is somewhat dependend on debt financing.
MRC has a Debt to Equity ratio (0.83) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.59
WACC9%
2.3 Liquidity
A Current Ratio of 1.84 indicates that MRC should not have too much problems paying its short term obligations.
The Current ratio of MRC (1.84) is comparable to the rest of the industry.
A Quick Ratio of 1.00 indicates that MRC should not have too much problems paying its short term obligations.
The Quick ratio of MRC (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| 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 -54.17%.
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 has decreased by -7.81% in the past year.
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)-54.17%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-14.93%
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.
Based on estimates for the next years, MRC will show a small growth in Revenue. The Revenue will grow by 3.22% on average per year.
EPS Next Y57.72%
EPS Next 2Y35.98%
EPS Next 3Y25.1%
EPS Next 5Y24.37%
Revenue Next Year-0.25%
Revenue Next 2Y2.55%
Revenue Next 3Y0.64%
Revenue Next 5Y3.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.32 indicates a quite expensive valuation of MRC.
MRC's Price/Earnings ratio is in line with the industry average.
MRC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.47 indicates a reasonable valuation of MRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRC indicates a rather cheap valuation: MRC is cheaper than 88.24% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. MRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.32 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MRC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRC indicates a rather cheap valuation: MRC is cheaper than 86.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.96 | ||
| EV/EBITDA | 12.39 |
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 25.10% in the coming years.
PEG (NY)0.54
PEG (5Y)2.26
EPS Next 2Y35.98%
EPS Next 3Y25.1%
5. Dividend
5.1 Amount
MRC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.78
-0.06 (-0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners105.46%
Inst Owner Change-3.64%
Ins Owners2.15%
Ins Owner Change-74.12%
Market Cap1.17B
Revenue(TTM)3.01B
Net Income(TTM)-20.00M
Analysts80
Price Target15.98 (15.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.27
Dividend Growth(5Y)-1.19%
DP-55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.13%
Min EPS beat(2)1.72%
Max EPS beat(2)20.53%
EPS beat(4)3
Avg EPS beat(4)-51.78%
Min EPS beat(4)-244.01%
Max EPS beat(4)20.53%
EPS beat(8)6
Avg EPS beat(8)-7.52%
EPS beat(12)9
Avg EPS beat(12)-3.89%
EPS beat(16)13
Avg EPS beat(16)46.91%
Revenue beat(2)2
Avg Revenue beat(2)1.11%
Min Revenue beat(2)0.7%
Max Revenue beat(2)1.51%
Revenue beat(4)2
Avg Revenue beat(4)-2%
Min Revenue beat(4)-9.56%
Max Revenue beat(4)1.51%
Revenue beat(8)3
Avg Revenue beat(8)-2.09%
Revenue beat(12)5
Avg Revenue beat(12)-1.71%
Revenue beat(16)7
Avg Revenue beat(16)-1.2%
PT rev (1m)0%
PT rev (3m)-0.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)0%
EPS NY rev (3m)6.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.32 | ||
| Fwd PE | 11.47 | ||
| P/S | 0.41 | ||
| P/FCF | 10.96 | ||
| P/OCF | 8.09 | ||
| P/B | 2.19 | ||
| P/tB | 8.56 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)0.44
EY3.19%
EPS(NY)1.2
Fwd EY8.72%
FCF(TTM)1.26
FCFY9.13%
OCF(TTM)1.7
OCFY12.37%
SpS33.89
BVpS6.3
TBVpS1.61
PEG (NY)0.54
PEG (5Y)2.26
Graham Number7.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -3.73% | ||
| ROCE | 7.08% | ||
| ROIC | 5.27% | ||
| ROICexc | 5.63% | ||
| ROICexgc | 8.77% | ||
| OM | 2.91% | ||
| PM (TTM) | N/A | ||
| GM | 20.01% | ||
| FCFM | 3.71% |
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%
ROICexgc growth 3Y20.91%
ROICexgc 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-Score3
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 4.21 | ||
| Debt/EBITDA | 3.56 | ||
| Cap/Depr | 92.68% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 116% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.16 |
F-Score3
WACC9%
ROIC/WACC0.59
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)-54.17%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-40.91%
EPS Next Y57.72%
EPS Next 2Y35.98%
EPS Next 3Y25.1%
EPS Next 5Y24.37%
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-14.93%
Revenue Next Year-0.25%
Revenue Next 2Y2.55%
Revenue Next 3Y0.64%
Revenue Next 5Y3.22%
EBIT growth 1Y-51.45%
EBIT growth 3Y16.67%
EBIT growth 5Y5.56%
EBIT Next Year41.39%
EBIT Next 3Y13.64%
EBIT Next 5Y13.27%
FCF growth 1Y386.36%
FCF growth 3Y75.35%
FCF growth 5Y2.06%
OCF growth 1Y339.39%
OCF growth 3Y70.18%
OCF growth 5Y2.66%
MRC Global Inc / MRC FAQ
What is the ChartMill fundamental rating of MRC Global Inc (MRC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to MRC.
Can you provide the valuation status for MRC Global Inc?
ChartMill assigns a valuation rating of 6 / 10 to MRC Global Inc (MRC). This can be considered as Fairly Valued.
Can you provide the profitability details for MRC Global Inc?
MRC Global Inc (MRC) has a profitability rating of 4 / 10.
How financially healthy is MRC Global Inc?
The financial health rating of MRC Global Inc (MRC) is 4 / 10.
Can you provide the expected EPS growth for MRC stock?
The Earnings per Share (EPS) of MRC Global Inc (MRC) is expected to grow by 57.72% in the next year.