MRC GLOBAL INC (MRC) Stock Fundamental Analysis
NYSE:MRC - New York Stock Exchange, Inc. - US55345K1034 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MRC. MRC was compared to 50 industry peers in the Trading Companies & Distributors industry. MRC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MRC is not valued too expensively and it also shows a decent 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 has a worse Return On Assets (-0.53%) than 72.00% of its industry peers.
MRC has a worse Return On Equity (-1.71%) than 72.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.44%, MRC is in line with its industry, outperforming 54.00% of the companies in the same 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 9.94%.
| 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
MRC's Profit Margin has improved in the last couple of years.
MRC's Operating Margin of 3.81% is on the low side compared to the rest of the industry. MRC is outperformed by 68.00% of its industry peers.
In the last couple of years the Operating Margin of MRC has grown nicely.
With a Gross Margin value of 20.53%, MRC is not doing good in the industry: 78.00% of the companies in the same industry are doing better.
MRC's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for MRC has been increased compared to 1 year ago.
MRC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRC has a worse debt to assets ratio.
2.2 Solvency
MRC has an Altman-Z score of 2.27. 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 of 2.27. This is in the lower half of the industry: MRC underperforms 64.00% of its industry peers.
MRC has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of all of its debts.
MRC has a Debt to FCF ratio of 1.68. This is in the better half of the industry: MRC outperforms 76.00% of its industry peers.
MRC has a Debt/Equity ratio of 0.70. This is a neutral value indicating MRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, MRC is in line with its industry, outperforming 46.00% of the companies in the same 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 | 2.27 |
ROIC/WACC0.77
WACC9.65%
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 has a worse Current ratio (1.68) than 60.00% 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.
MRC's Quick ratio of 0.91 is on the low side compared to the rest of the industry. MRC is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for MRC have decreased strongly by -50.00% in the last year.
The Earnings Per Share has been growing by 13.84% on average over the past years. This is quite good.
Looking at the last year, MRC shows a decrease in Revenue. The Revenue has decreased by -7.81% 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)-7.81%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-4.09%
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.
Based on estimates for the next years, MRC will show a small growth in Revenue. The Revenue will grow by 1.55% on average per year.
EPS Next Y47.62%
EPS Next 2Y32.21%
EPS Next 3Y25.1%
EPS Next 5Y24.37%
Revenue Next Year-1%
Revenue Next 2Y1.86%
Revenue Next 3Y0.64%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.40 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 26.93, which is the current average of the S&P500 Index.
MRC is valuated correctly with a Price/Forward Earnings ratio of 12.31.
Based on the Price/Forward Earnings ratio, MRC is valued cheaper than 86.00% of the companies in the same industry.
MRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.4 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRC is valued a bit cheaper than 74.00% of the companies in the same industry.
MRC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MRC is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.39 | ||
| EV/EBITDA | 9.98 |
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)0.55
PEG (5Y)1.91
EPS Next 2Y32.21%
EPS Next 3Y25.1%
5. Dividend
5.1 Amount
MRC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.99
-0.1 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners99.84%
Inst Owner Change-0.25%
Ins Owners2.15%
Ins Owner Change6.85%
Market Cap1.19B
Analysts82.86
Price Target16.07 (14.87%)
Short Float %1.94%
Short Ratio1.53
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)1
Avg EPS beat(2)-111.74%
Min EPS beat(2)-244.01%
Max EPS beat(2)20.53%
EPS beat(4)3
Avg EPS beat(4)-47.7%
Min EPS beat(4)-244.01%
Max EPS beat(4)20.53%
EPS beat(8)5
Avg EPS beat(8)-12.23%
EPS beat(12)9
Avg EPS beat(12)-3.52%
EPS beat(16)13
Avg EPS beat(16)53.78%
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)1.61%
PT rev (3m)3.28%
EPS NQ rev (1m)3.54%
EPS NQ rev (3m)-13.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.4 | ||
| Fwd PE | 12.31 | ||
| P/S | 0.41 | ||
| P/FCF | 5.39 | ||
| P/OCF | 4.72 | ||
| P/B | 2.27 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)0.53
EY3.79%
EPS(NY)1.14
Fwd EY8.12%
FCF(TTM)2.6
FCFY18.57%
OCF(TTM)2.96
OCFY21.17%
SpS34.29
BVpS6.17
TBVpS1.43
PEG (NY)0.55
PEG (5Y)1.91
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 | 2.27 |
F-Score5
WACC9.65%
ROIC/WACC0.77
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 Y47.62%
EPS Next 2Y32.21%
EPS Next 3Y25.1%
EPS Next 5Y24.37%
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-4.09%
Revenue Next Year-1%
Revenue Next 2Y1.86%
Revenue Next 3Y0.64%
Revenue Next 5Y1.55%
EBIT growth 1Y-35.47%
EBIT growth 3Y16.67%
EBIT growth 5Y5.56%
EBIT Next Year38.81%
EBIT Next 3Y13.64%
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%