MRC GLOBAL INC (MRC) Stock Fundamental Analysis
NYSE:MRC - New York Stock Exchange, Inc. - US55345K1034 - Common Stock - Currency: USD
Overall MRC gets a fundamental rating of 4 out of 10. We evaluated MRC against 47 industry peers in the Trading Companies & Distributors industry. While MRC seems to be doing ok healthwise, there are quite some concerns on its 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.
MRC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MRC has a worse Return On Assets (-0.53%) than 74.47% of its industry peers.
MRC has a Return On Equity of -1.71%. This is in the lower half of the industry: MRC underperforms 74.47% of its industry peers.
MRC's Return On Invested Capital of 7.44% is in line compared to the rest of the industry. MRC outperforms 57.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MRC is in line with the industry average of 9.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -1.71% | ||
| ROIC | 7.44% |
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 has a worse Operating Margin (3.81%) than 68.09% of its industry peers.
In the last couple of years the Operating Margin of MRC has grown nicely.
The Gross Margin of MRC (20.53%) is worse than 78.72% of its industry peers.
In the last couple of years the Gross Margin of MRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.81% | ||
| PM (TTM) | N/A | ||
| GM | 20.53% |
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.
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
An Altman-Z score of 2.22 indicates that MRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRC has a worse Altman-Z score (2.22) than 61.70% of its industry peers.
The Debt to FCF ratio of MRC is 1.68, which is an excellent value as it means it would take MRC, only 1.68 years of fcf income to pay off all of its debts.
MRC's Debt to FCF ratio of 1.68 is fine compared to the rest of the industry. MRC outperforms 76.60% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that MRC is somewhat dependend on debt financing.
The Debt to Equity ratio of MRC (0.70) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for MRC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.78
WACC9.59%
2.3 Liquidity
MRC has a Current Ratio of 1.68. 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 1.68 is in line compared to the rest of the industry. MRC outperforms 40.43% of its industry peers.
MRC has a Quick Ratio of 1.68. This is a bad value and indicates that MRC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.91, MRC is not doing good in the industry: 68.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
MRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.00%.
The Earnings Per Share has been growing by 13.84% on average over the past years. This is quite good.
MRC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.48%.
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)-41%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-30%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-11.66%
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.
The Revenue is expected to grow by 1.55% on average over the next years.
EPS Next Y55.38%
EPS Next 2Y50.1%
EPS Next 3Y24.1%
EPS Next 5Y24.37%
Revenue Next Year-1.06%
Revenue Next 2Y2.79%
Revenue Next 3Y3.91%
Revenue Next 5Y1.55%
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
MRC is valuated rather expensively with a Price/Earnings ratio of 21.81.
The rest of the industry has a similar Price/Earnings ratio as MRC.
The average S&P500 Price/Earnings ratio is at 26.35. MRC is around the same levels.
The Price/Forward Earnings ratio is 8.79, which indicates a very decent valuation of MRC.
MRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. MRC is cheaper than 85.11% of the companies in the same industry.
MRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
63.83% of the companies in the same industry are more expensive than MRC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MRC is valued cheaper than 97.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.01 | ||
| EV/EBITDA | 9.29 |
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.
MRC's earnings are expected to grow with 24.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)1.58
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 |
12.87
+0.15 (+1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners99.24%
Inst Owner Change5.12%
Ins Owners2.09%
Ins Owner Change9.49%
Market Cap1.11B
Analysts85
Price Target15.81 (22.84%)
Short Float %3.04%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.27
Dividend Growth(5Y)-1.19%
DP-188.89%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-125.8%
Min EPS beat(2)-244.01%
Max EPS beat(2)-7.59%
EPS beat(4)2
Avg EPS beat(4)-54.73%
Min EPS beat(4)-244.01%
Max EPS beat(4)18.05%
EPS beat(8)4
Avg EPS beat(8)-15.75%
EPS beat(12)8
Avg EPS beat(12)-5.86%
EPS beat(16)12
Avg EPS beat(16)52.02%
Revenue beat(2)1
Avg Revenue beat(2)-4.02%
Min Revenue beat(2)-9.56%
Max Revenue beat(2)1.51%
Revenue beat(4)1
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-9.56%
Max Revenue beat(4)1.51%
Revenue beat(8)2
Avg Revenue beat(8)-2.89%
Revenue beat(12)5
Avg Revenue beat(12)-1.52%
Revenue beat(16)7
Avg Revenue beat(16)-1.06%
PT rev (1m)1.64%
PT rev (3m)-10.14%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)-23.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.98%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 8.79 | ||
| P/S | 0.38 | ||
| P/FCF | 5.01 | ||
| P/OCF | 4.4 | ||
| P/B | 2.11 | ||
| P/tB | 9.08 | ||
| EV/EBITDA | 9.29 |
EPS(TTM)0.59
EY4.58%
EPS(NY)1.46
Fwd EY11.38%
FCF(TTM)2.57
FCFY19.95%
OCF(TTM)2.93
OCFY22.75%
SpS33.89
BVpS6.1
TBVpS1.42
PEG (NY)0.39
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -1.71% | ||
| ROCE | 9.99% | ||
| ROIC | 7.44% | ||
| ROICexc | 7.89% | ||
| ROICexgc | 12.82% | ||
| OM | 3.81% | ||
| PM (TTM) | N/A | ||
| GM | 20.53% | ||
| FCFM | 7.58% |
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-Score5
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 77.5% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 5.55 | ||
| Cash Conversion | 166.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.22 |
F-Score5
WACC9.59%
ROIC/WACC0.78
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%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-30%
EPS Next Y55.38%
EPS Next 2Y50.1%
EPS Next 3Y24.1%
EPS Next 5Y24.37%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-11.66%
Revenue Next Year-1.06%
Revenue Next 2Y2.79%
Revenue Next 3Y3.91%
Revenue Next 5Y1.55%
EBIT growth 1Y-35.47%
EBIT growth 3Y16.67%
EBIT growth 5Y5.56%
EBIT Next Year38.85%
EBIT Next 3Y17.35%
EBIT Next 5Y12.98%
FCF growth 1Y551.02%
FCF growth 3Y75.35%
FCF growth 5Y2.06%
OCF growth 1Y781.08%
OCF growth 3Y70.18%
OCF growth 5Y2.66%