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 65 industry peers in the Aerospace & Defense industry. MRCY scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MRCY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MRCY was profitable.
MRCY had a positive operating cash flow in the past year.
In multiple years MRCY reported negative net income over the last 5 years.
In multiple years MRCY reported negative operating cash flow during the last 5 years.
1.2 Ratios
MRCY has a worse Return On Assets (-2.69%) than 66.15% of its industry peers.
MRCY has a Return On Equity of -4.48%. This is in the lower half of the industry: MRCY underperforms 63.08% 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 better than 61.54% of its industry peers.
MRCY's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for MRCY so they could not be analyzed.
| 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.
The number of shares outstanding for MRCY has been increased compared to 1 year ago.
Compared to 5 years ago, MRCY has more shares outstanding
Compared to 1 year ago, MRCY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.66 indicates that MRCY is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.66, MRCY is in line with its industry, outperforming 43.08% of the companies in the same industry.
MRCY has a debt to FCF ratio of 4.04. This is a neutral value as MRCY would need 4.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.04, MRCY is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
MRCY has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
MRCY's Debt to Equity ratio of 0.41 is fine compared to the rest of the industry. MRCY outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | 2.66 |
ROIC/WACCN/A
WACC10.4%
2.3 Liquidity
A Current Ratio of 3.44 indicates that MRCY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.44, MRCY is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
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 has a Quick ratio of 2.25. This is in the better half of the industry: MRCY outperforms 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 158.02% over the past year.
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 64.35% on average over the next years. This is a very strong growth
Based on estimates for the next years, MRCY will show a small growth in Revenue. The Revenue will grow by 7.03% on average per year.
EPS Next Y166.63%
EPS Next 2Y87.99%
EPS Next 3Y64.35%
EPS Next 5YN/A
Revenue Next Year7.78%
Revenue Next 2Y7.09%
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
MRCY is valuated quite expensively with a Price/Earnings ratio of 108.43.
MRCY's Price/Earnings ratio is in line with the industry average.
MRCY is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 53.58, the valuation of MRCY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRCY is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, MRCY is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 108.43 | ||
| Fwd PE | 53.58 |
4.2 Price Multiples
61.54% of the companies in the same industry are cheaper than MRCY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MRCY is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.79 | ||
| EV/EBITDA | 70.76 |
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.
A more expensive valuation may be justified as MRCY's earnings are expected to grow with 64.35% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y87.99%
EPS Next 3Y64.35%
5. Dividend
5.1 Amount
No dividends for MRCY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.96
+0.34 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners109.29%
Inst Owner Change0%
Ins Owners1.86%
Ins Owner Change-1.23%
Market Cap3.04B
Analysts77.14
Price Target52.02 (2.08%)
Short Float %8.2%
Short Ratio7.62
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)4.79%
PT rev (3m)6.25%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)4.05%
EPS NY rev (1m)-3.57%
EPS NY rev (3m)-2.99%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 108.43 | ||
| Fwd PE | 53.58 | ||
| P/S | 3.43 | ||
| P/FCF | 20.79 | ||
| P/OCF | 17.65 | ||
| P/B | 2.1 | ||
| P/tB | 10.25 | ||
| EV/EBITDA | 70.76 |
EPS(TTM)0.47
EY0.92%
EPS(NY)0.95
Fwd EY1.87%
FCF(TTM)2.45
FCFY4.81%
OCF(TTM)2.89
OCFY5.67%
SpS14.85
BVpS24.29
TBVpS4.97
PEG (NY)0.65
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 | 2.66 |
F-Score6
WACC10.4%
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 Y166.63%
EPS Next 2Y87.99%
EPS Next 3Y64.35%
EPS Next 5YN/A
Revenue 1Y (TTM)5.66%
Revenue growth 3Y-3.31%
Revenue growth 5Y4.99%
Sales Q2Q%1.49%
Revenue Next Year7.78%
Revenue Next 2Y7.09%
Revenue Next 3Y7.03%
Revenue Next 5YN/A
EBIT growth 1Y70.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year163.84%
EBIT Next 3Y47.39%
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%