MRC GLOBAL INC (MRC) Stock Fundamental Analysis
USA - NYSE:MRC - US55345K1034 - Common Stock
14.62 USD
+0.11 (+0.76%)
14.62 USD
0 (0%)
MRC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 49 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.
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 71.43% of its industry peers.
With a Return On Equity value of -3.73%, MRC is not doing good in the industry: 69.39% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 5.27%, MRC perfoms like the industry average, outperforming 51.02% 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 10.06%.
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.
Looking at the Operating Margin, with a value of 2.91%, MRC is doing worse than 67.35% of the companies in the same industry.
In the last couple of years the Operating Margin of MRC has grown nicely.
MRC has a Gross Margin of 20.01%. This is in the lower half of the industry: MRC underperforms 75.51% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRC 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
The debt/assets ratio for MRC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.19 indicates that MRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.19, MRC perfoms like the industry average, outperforming 44.90% of the companies in the same 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's Debt to FCF ratio of 4.21 is fine compared to the rest of the industry. MRC outperforms 61.22% of its industry peers.
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 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.56
WACC9.49%
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 of 1.84. This is comparable to the rest of the industry: MRC outperforms 44.90% of 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.
MRC has a Quick ratio of 1.00. This is in the lower half of the industry: MRC underperforms 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for MRC have decreased strongly by -50.00% 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.
MRC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.48%.
The Revenue has been decreasing by -3.84% on average over the past years.
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.
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.
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
Based on the Price/Earnings ratio of 27.58, 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 27.32. MRC is around the same levels.
Based on the Price/Forward Earnings ratio of 12.16, the valuation of MRC can be described as correct.
MRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. MRC is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.89. MRC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.58 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MRC.
MRC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MRC is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.62 | ||
| EV/EBITDA | 12.96 |
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)0.48
PEG (5Y)1.99
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 |
14.62
+0.11 (+0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners105.46%
Inst Owner Change0.53%
Ins Owners2.15%
Ins Owner Change1.63%
Market Cap1.24B
Analysts82.86
Price Target15.98 (9.3%)
Short Float %2.31%
Short Ratio2.21
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)1.08%
EPS NQ rev (1m)-8.33%
EPS NQ rev (3m)3.13%
EPS NY rev (1m)-3.79%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.58 | ||
| Fwd PE | 12.16 | ||
| P/S | 0.43 | ||
| P/FCF | 11.62 | ||
| P/OCF | 8.58 | ||
| P/B | 2.32 | ||
| P/tB | 9.08 | ||
| EV/EBITDA | 12.96 |
EPS(TTM)0.53
EY3.63%
EPS(NY)1.2
Fwd EY8.22%
FCF(TTM)1.26
FCFY8.6%
OCF(TTM)1.7
OCFY11.66%
SpS33.89
BVpS6.3
TBVpS1.61
PEG (NY)0.48
PEG (5Y)1.99
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 | 2.19 |
F-Score3
WACC9.49%
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 Y57.72%
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 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%