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 has a decent growth rate and is not valued too expensively.

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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.
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's Return On Assets of -1.13% is on the low side compared to the rest of the industry. MRC is outperformed by 70.59% of its industry peers.
With a Return On Equity value of -3.73%, MRC is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
The Return On Invested Capital of MRC (5.27%) 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 9.64%.
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

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 66.67% of its industry peers.
In the last couple of years the Operating Margin of MRC has grown nicely.
Looking at the Gross Margin, with a value of 20.01%, MRC is doing worse than 74.51% of the companies in the same industry.
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

Operating and Profit Margin

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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.
MRC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MRC is higher compared to a year ago.

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 (2.16) which is comparable to the rest of the industry.
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.
MRC's Debt to FCF ratio of 4.21 is fine compared to the rest of the industry. MRC outperforms 66.67% of its industry peers.
MRC has a Debt/Equity ratio of 0.83. This is a neutral value indicating MRC is somewhat dependend on debt financing.
The Debt to Equity ratio of MRC (0.83) 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's Current ratio of 1.84 is in line compared to the rest of the industry. MRC outperforms 49.02% of its industry peers.
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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for MRC have decreased strongly by -54.17% in the last year.
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.
MRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.84% yearly.

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

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 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

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.

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4. Valuation

4.1 Price/Earnings Ratio

MRC is valuated quite expensively with a Price/Earnings ratio of 31.32.
The rest of the industry has a similar Price/Earnings ratio as MRC.
When comparing the Price/Earnings ratio of MRC to the average of the S&P500 Index (27.21), we can say MRC is valued inline with the index average.
A Price/Forward Earnings ratio of 11.47 indicates a reasonable valuation of MRC.
Based on the Price/Forward Earnings ratio, MRC is valued cheaper than 88.24% of the companies in the same industry.
MRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	31.32
Fwd PE	11.47

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRC is on the same level as its industry peers.
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.