MRC GLOBAL INC (MRC) Stock Fundamental Analysis
NYSE:MRC - US55345K1034 - Common Stock
14.67 USD
-0.22 (-1.48%)
14.67 USD
0 (0%)
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. While MRC is still in line with the averages on profitability rating, there are concerns on its financial health. MRC has a correct valuation and a medium 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.
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's Return On Assets of -1.13% is on the low side compared to the rest of the industry. MRC is outperformed by 72.00% of its industry peers.
MRC's Return On Equity of -3.73% is on the low side compared to the rest of the industry. MRC is outperformed by 70.00% of its industry peers.
With a Return On Invested Capital value of 5.27%, MRC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRC is in line with the industry average of 9.98%.
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
In the last couple of years the Profit Margin of MRC has grown nicely.
MRC's Operating Margin of 2.91% is on the low side compared to the rest of the industry. MRC is outperformed by 68.00% of its industry peers.
MRC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.01%, MRC is not doing good in the industry: 76.00% 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 | 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
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 2.20 indicates that MRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRC has a Altman-Z score (2.20) which is in line with its industry peers.
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.
With a Debt to FCF ratio value of 4.21, MRC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that MRC is somewhat dependend on debt financing.
MRC's Debt to Equity ratio of 0.83 is in line compared to the rest of the industry. MRC outperforms 44.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.56
WACC9.46%
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.
The Current ratio of MRC (1.84) is comparable to the rest of the industry.
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.
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 | 1.84 | ||
| 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 -50.00%.
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 -12.48% 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)-50%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-19.35%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-4.09%
3.2 Future
MRC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.37% yearly.
The Revenue is expected to grow by 3.22% on average over the next years.
EPS Next Y63.93%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.68 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.
Based on the Price/Forward Earnings ratio of 12.21, the valuation of MRC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRC indicates a rather cheap valuation: MRC is cheaper than 84.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.48. MRC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.68 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
MRC's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MRC is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.65 | ||
| EV/EBITDA | 12.98 |
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.
PEG (NY)0.43
PEG (5Y)2
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 |
14.67
-0.22 (-1.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners99.84%
Inst Owner Change0.5%
Ins Owners2.15%
Ins Owner Change6.85%
Market Cap1.25B
Analysts82.86
Price Target15.98 (8.93%)
Short Float %2.06%
Short Ratio1.52
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)-2.08%
PT rev (3m)2.73%
EPS NQ rev (1m)5.88%
EPS NQ rev (3m)18.03%
EPS NY rev (1m)11.05%
EPS NY rev (3m)5.5%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)3.11%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.68 | ||
| Fwd PE | 12.21 | ||
| P/S | 0.43 | ||
| P/FCF | 11.65 | ||
| P/OCF | 8.6 | ||
| P/B | 2.33 | ||
| P/tB | 9.1 | ||
| EV/EBITDA | 12.98 |
EPS(TTM)0.53
EY3.61%
EPS(NY)1.2
Fwd EY8.19%
FCF(TTM)1.26
FCFY8.58%
OCF(TTM)1.71
OCFY11.63%
SpS33.92
BVpS6.31
TBVpS1.61
PEG (NY)0.43
PEG (5Y)2
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%
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-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 | 2.2 |
F-Score3
WACC9.46%
ROIC/WACC0.56
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)-50%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-19.35%
EPS Next Y63.93%
EPS Next 2Y35.98%
EPS Next 3Y25.1%
EPS Next 5Y24.37%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-4.09%
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 Year38.81%
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%