MERCURY SYSTEMS INC (MRCY) Stock Fundamental Analysis
NASDAQ:MRCY - Nasdaq - US5893781089 - Common Stock - Currency: USD
Overall MRCY gets a fundamental rating of 4 out of 10. We evaluated MRCY against 64 industry peers in the Aerospace & Defense industry. The financial health of MRCY is average, but there are quite some concerns on its profitability. MRCY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MRCY was profitable.
In the past year MRCY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MRCY reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: MRCY reported negative operating cash flow in multiple years.
1.2 Ratios
MRCY has a Return On Assets of -2.69%. This is in the lower half of the industry: MRCY underperforms 68.75% of its industry peers.
MRCY has a Return On Equity of -4.48%. This is in the lower half of the industry: MRCY underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.69% | ||
| ROE | -4.48% | ||
| ROIC | N/A |
ROA(3y)-2.16%
ROA(5y)0.4%
ROE(3y)-3.47%
ROE(5y)-0.01%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of MRCY (27.37%) is comparable to the rest of the industry.
MRCY's Gross Margin has declined in the last couple of years.
MRCY does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 27.37% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-17.45%
GM growth 5Y-11.71%
2. Health
2.1 Basic Checks
MRCY does not have a ROIC to compare to the WACC, probably because it is not profitable.
MRCY has more shares outstanding than it did 1 year ago.
MRCY has more shares outstanding than it did 5 years ago.
MRCY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.52 indicates that MRCY is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRCY has a Altman-Z score (2.52) which is in line with its industry peers.
The Debt to FCF ratio of MRCY is 4.04, which is a neutral value as it means it would take MRCY, 4.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRCY (4.04) is better than 82.81% of its industry peers.
MRCY has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MRCY (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | 2.52 |
ROIC/WACCN/A
WACC10.13%
2.3 Liquidity
A Current Ratio of 3.44 indicates that MRCY has no problem at all paying its short term obligations.
MRCY has a Current ratio of 3.44. This is in the better half of the industry: MRCY outperforms 78.13% of its industry peers.
MRCY has a Quick Ratio of 2.25. This indicates that MRCY is financially healthy and has no problem in meeting its short term obligations.
MRCY's Quick ratio of 2.25 is fine compared to the rest of the industry. MRCY outperforms 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
MRCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 158.02%, which is quite impressive.
Looking at the last year, MRCY shows a small growth in Revenue. The Revenue has grown by 5.66% in the last year.
The Revenue has been growing slightly by 4.99% on average over the past years.
EPS 1Y (TTM)158.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%123.08%
Revenue 1Y (TTM)5.66%
Revenue growth 3Y-3.31%
Revenue growth 5Y4.99%
Sales Q2Q%1.49%
3.2 Future
The Earnings Per Share is expected to grow by 62.79% on average over the next years. This is a very strong growth
MRCY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.03% yearly.
EPS Next Y169.1%
EPS Next 2Y86.56%
EPS Next 3Y62.79%
EPS Next 5YN/A
Revenue Next Year7.85%
Revenue Next 2Y7%
Revenue Next 3Y7.03%
Revenue Next 5YN/A
3.3 Evolution
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 99.79 indicates a quite expensive valuation of MRCY.
Compared to the rest of the industry, the Price/Earnings ratio of MRCY is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MRCY to the average of the S&P500 Index (26.03), we can say MRCY is valued expensively.
A Price/Forward Earnings ratio of 51.09 indicates a quite expensive valuation of MRCY.
MRCY's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MRCY to the average of the S&P500 Index (21.94), we can say MRCY is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 99.79 | ||
| Fwd PE | 51.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRCY is valued a bit more expensive than 64.06% of the companies in the same industry.
95.31% of the companies in the same industry are more expensive than MRCY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.11 | ||
| EV/EBITDA | 65.99 |
4.3 Compensation for Growth
MRCY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MRCY's earnings are expected to grow with 62.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y86.56%
EPS Next 3Y62.79%
5. Dividend
5.1 Amount
MRCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.9
-1.15 (-2.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners108.6%
Inst Owner Change-0.61%
Ins Owners1.9%
Ins Owner Change-1.17%
Market Cap2.80B
Analysts73.33
Price Target49.64 (5.84%)
Short Float %6.68%
Short Ratio6.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)117.5%
Min EPS beat(2)-26.47%
Max EPS beat(2)261.48%
EPS beat(4)3
Avg EPS beat(4)1121.43%
Min EPS beat(4)-26.47%
Max EPS beat(4)4101.68%
EPS beat(8)3
Avg EPS beat(8)306.78%
EPS beat(12)5
Avg EPS beat(12)202.43%
EPS beat(16)7
Avg EPS beat(16)151.38%
Revenue beat(2)2
Avg Revenue beat(2)10.68%
Min Revenue beat(2)1.44%
Max Revenue beat(2)19.92%
Revenue beat(4)4
Avg Revenue beat(4)9.31%
Min Revenue beat(4)1.44%
Max Revenue beat(4)19.92%
Revenue beat(8)4
Avg Revenue beat(8)-1.03%
Revenue beat(12)6
Avg Revenue beat(12)-1.23%
Revenue beat(16)8
Avg Revenue beat(16)-0.93%
PT rev (1m)1.39%
PT rev (3m)39.49%
EPS NQ rev (1m)2.4%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)0.6%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 99.79 | ||
| Fwd PE | 51.09 | ||
| P/S | 3.15 | ||
| P/FCF | 19.11 | ||
| P/OCF | 16.22 | ||
| P/B | 1.93 | ||
| P/tB | 9.42 | ||
| EV/EBITDA | 65.99 |
EPS(TTM)0.47
EY1%
EPS(NY)0.92
Fwd EY1.96%
FCF(TTM)2.45
FCFY5.23%
OCF(TTM)2.89
OCFY6.16%
SpS14.87
BVpS24.31
TBVpS4.98
PEG (NY)0.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.69% | ||
| ROE | -4.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 27.37% | ||
| FCFM | 16.51% |
ROA(3y)-2.16%
ROA(5y)0.4%
ROE(3y)-3.47%
ROE(5y)-0.01%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-17.45%
GM growth 5Y-11.71%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.04 | ||
| Debt/EBITDA | 12.51 | ||
| Cap/Depr | 31.22% | ||
| Cap/Sales | 2.94% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 364.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z | 2.52 |
F-Score6
WACC10.13%
ROIC/WACCN/A
Cap/Depr(3y)36.16%
Cap/Depr(5y)52.86%
Cap/Sales(3y)3.63%
Cap/Sales(5y)4.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)158.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%123.08%
EPS Next Y169.1%
EPS Next 2Y86.56%
EPS Next 3Y62.79%
EPS Next 5YN/A
Revenue 1Y (TTM)5.66%
Revenue growth 3Y-3.31%
Revenue growth 5Y4.99%
Sales Q2Q%1.49%
Revenue Next Year7.85%
Revenue Next 2Y7%
Revenue Next 3Y7.03%
Revenue Next 5YN/A
EBIT growth 1Y70.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year163.59%
EBIT Next 3Y47.81%
EBIT Next 5YN/A
FCF growth 1Y259.92%
FCF growth 3Y-20.33%
FCF growth 5Y-18.1%
OCF growth 1Y423.1%
OCF growth 3Y-14.67%
OCF growth 5Y-9.14%