Overall MRC gets a fundamental rating of 4 out of 10. We evaluated MRC against 50 industry peers in the Trading Companies & Distributors industry. Both the profitability and the financial health of MRC get a neutral evaluation. Nothing too spectacular is happening here. MRC is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In multiple years MRC reported negative net income over the last 5 years.
MRC had a positive operating cash flow in 4 of the past 5 years.

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 of 5.27%. This is comparable to the rest of the industry: MRC outperforms 49.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRC is in line with the industry average of 9.64%.
The last Return On Invested Capital (5.27%) for MRC is well below the 3 year average (11.12%), which needs to be investigated, but indicates that MRC had better years and this may not be a problem.

		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.
The Operating Margin of MRC (2.91%) is worse than 66.67% of its industry peers.
In the last couple of years the Operating Margin of MRC has grown nicely.
MRC has a worse Gross Margin (20.01%) than 74.51% of its industry peers.
MRC's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRC is creating some value.
MRC has more shares outstanding than it did 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

MRC has an Altman-Z score of 2.16. 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.
MRC has a Altman-Z score (2.16) which is comparable to the rest of the industry.
MRC has a debt to FCF ratio of 4.21. This is a neutral value as MRC would need 4.21 years to pay back of all of its debts.
MRC has a better Debt to FCF ratio (4.21) than 66.67% of its industry peers.
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 comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.83
Debt/FCF	4.21
Altman-Z	2.16

ROIC/WACC0.59

WACC9%

2.3 Liquidity

MRC has a Current Ratio of 1.84. This is a normal value and indicates that MRC is financially healthy and should not expect problems in meeting its short term obligations.
MRC has a Current ratio (1.84) which is in line with its industry peers.
MRC has a Quick Ratio of 1.00. 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 Quick ratio value of 1.00, MRC perfoms like the industry average, outperforming 41.18% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.84
Quick Ratio	1

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WACC

Debt/Equity

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Altman-Z score

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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%.
MRC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.84% yearly.
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

The Earnings Per Share is expected to grow by 24.37% on average over the next years. This is a very strong growth
MRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.22% yearly.

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 31.32, the valuation of MRC can be described as expensive.
MRC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.21. MRC is around the same levels.
With a Price/Forward Earnings ratio of 11.47, the valuation of MRC can be described as very reasonable.
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.
When comparing the Price/Forward Earnings ratio of MRC to the average of the S&P500 Index (24.26), we can say MRC is valued rather cheaply.

		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

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MRC's earnings are expected to grow with 25.10% in the coming years. This may justify a more expensive valuation.