MERCURY SYSTEMS INC (MRCY) Stock Fundamental Analysis
USA - NASDAQ:MRCY - US5893781089 - Common Stock
78.19 USD
+2.48 (+3.28%)
78.19 USD
0 (0%)
Overall MRCY gets a fundamental rating of 4 out of 10. We evaluated MRCY against 71 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MRCY had positive earnings in the past year.
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 (-1.56%) than 66.20% of its industry peers.
MRCY has a Return On Equity of -2.57%. This is in the lower half of the industry: MRCY underperforms 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.56% | ||
| ROE | -2.57% | ||
| ROIC | N/A |
ROA(3y)-2.84%
ROA(5y)-0.97%
ROE(3y)-4.57%
ROE(5y)-1.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MRCY has a better Gross Margin (27.90%) than 60.56% 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 | 27.9% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.29%
GM growth 5Y-9.03%
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.
The number of shares outstanding for MRCY has been increased compared to 5 years ago.
Compared to 1 year ago, MRCY has an improved debt to assets ratio.
2.2 Solvency
MRCY has an Altman-Z score of 3.77. This indicates that MRCY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MRCY (3.77) is comparable to the rest of the industry.
MRCY has a debt to FCF ratio of 4.97. This is a neutral value as MRCY would need 4.97 years to pay back of all of its debts.
MRCY has a better Debt to FCF ratio (4.97) than 70.42% of its industry peers.
MRCY has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.40, MRCY perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 3.77 |
ROIC/WACCN/A
WACC9.49%
2.3 Liquidity
MRCY has a Current Ratio of 3.52. This indicates that MRCY is financially healthy and has no problem in meeting its short term obligations.
MRCY has a better Current ratio (3.52) than 74.65% of its industry peers.
A Quick Ratio of 2.41 indicates that MRCY has no problem at all paying its short term obligations.
MRCY's Quick ratio of 2.41 is fine compared to the rest of the industry. MRCY outperforms 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 309.76% over the past year.
MRCY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.57% yearly.
Looking at the last year, MRCY shows a quite strong growth in Revenue. The Revenue has grown by 9.19% in the last year.
Measured over the past years, MRCY shows a small growth in Revenue. The Revenue has been growing by 2.74% on average per year.
EPS 1Y (TTM)309.76%
EPS 3Y-33.54%
EPS 5Y-22.57%
EPS Q2Q%550%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y-2.64%
Revenue growth 5Y2.74%
Sales Q2Q%10.16%
3.2 Future
Based on estimates for the next years, MRCY will show a very strong growth in Earnings Per Share. The EPS will grow by 44.77% on average per year.
MRCY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.30% yearly.
EPS Next Y53.8%
EPS Next 2Y51.56%
EPS Next 3Y44.77%
EPS Next 5YN/A
Revenue Next Year7.58%
Revenue Next 2Y7.9%
Revenue Next 3Y7.3%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 90.92, which means the current valuation is very expensive for MRCY.
MRCY's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.13. MRCY is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 53.19, MRCY can be considered very expensive at the moment.
MRCY's Price/Forward Earnings is on the same level as the industry average.
MRCY is valuated expensively when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.92 | ||
| Fwd PE | 53.19 |
4.2 Price Multiples
MRCY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MRCY is more expensive than 61.97% of the companies in the same industry.
73.24% 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 | 39.42 | ||
| EV/EBITDA | 69.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as MRCY's earnings are expected to grow with 44.77% in the coming years.
PEG (NY)1.69
PEG (5Y)N/A
EPS Next 2Y51.56%
EPS Next 3Y44.77%
5. Dividend
5.1 Amount
MRCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.19
+2.48 (+3.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners111.28%
Inst Owner Change0.63%
Ins Owners1.65%
Ins Owner Change0.57%
Market Cap4.69B
Revenue(TTM)912.02M
Net Income(TTM)-37904000
Analysts80
Price Target84.66 (8.27%)
Short Float %7.98%
Short Ratio7.16
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)39.16%
Min EPS beat(2)-26.47%
Max EPS beat(2)104.79%
EPS beat(4)3
Avg EPS beat(4)122.21%
Min EPS beat(4)-26.47%
Max EPS beat(4)261.48%
EPS beat(8)4
Avg EPS beat(8)207.54%
EPS beat(12)6
Avg EPS beat(12)131.13%
EPS beat(16)7
Avg EPS beat(16)96.27%
Revenue beat(2)2
Avg Revenue beat(2)5.27%
Min Revenue beat(2)1.44%
Max Revenue beat(2)9.11%
Revenue beat(4)4
Avg Revenue beat(4)10.18%
Min Revenue beat(4)1.44%
Max Revenue beat(4)19.92%
Revenue beat(8)5
Avg Revenue beat(8)1.64%
Revenue beat(12)7
Avg Revenue beat(12)0.17%
Revenue beat(16)8
Avg Revenue beat(16)-0.42%
PT rev (1m)27.69%
PT rev (3m)61.69%
EPS NQ rev (1m)-6.16%
EPS NQ rev (3m)-25.31%
EPS NY rev (1m)-2.4%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-3.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.92 | ||
| Fwd PE | 53.19 | ||
| P/S | 5.15 | ||
| P/FCF | 39.42 | ||
| P/OCF | 33.8 | ||
| P/B | 3.18 | ||
| P/tB | 14.45 | ||
| EV/EBITDA | 69.48 |
EPS(TTM)0.86
EY1.1%
EPS(NY)1.47
Fwd EY1.88%
FCF(TTM)1.98
FCFY2.54%
OCF(TTM)2.31
OCFY2.96%
SpS15.2
BVpS24.55
TBVpS5.41
PEG (NY)1.69
PEG (5Y)N/A
Graham Number21.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.56% | ||
| ROE | -2.57% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 27.9% | ||
| FCFM | 13.05% |
ROA(3y)-2.84%
ROA(5y)-0.97%
ROE(3y)-4.57%
ROE(5y)-1.76%
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
ROICexgc growth 3YN/A
ROICexgc 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-11.29%
GM growth 5Y-9.03%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 8.26 | ||
| Cap/Depr | 24.14% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 193.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.41 | ||
| Altman-Z | 3.77 |
F-Score6
WACC9.49%
ROIC/WACCN/A
Cap/Depr(3y)34.32%
Cap/Depr(5y)40.12%
Cap/Sales(3y)3.42%
Cap/Sales(5y)3.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)309.76%
EPS 3Y-33.54%
EPS 5Y-22.57%
EPS Q2Q%550%
EPS Next Y53.8%
EPS Next 2Y51.56%
EPS Next 3Y44.77%
EPS Next 5YN/A
Revenue 1Y (TTM)9.19%
Revenue growth 3Y-2.64%
Revenue growth 5Y2.74%
Sales Q2Q%10.16%
Revenue Next Year7.58%
Revenue Next 2Y7.9%
Revenue Next 3Y7.3%
Revenue Next 5YN/A
EBIT growth 1Y91.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year430.06%
EBIT Next 3Y90.99%
EBIT Next 5YN/A
FCF growth 1Y356.28%
FCF growth 3YN/A
FCF growth 5Y10.61%
OCF growth 1Y129.95%
OCF growth 3YN/A
OCF growth 5Y3.81%
MERCURY SYSTEMS INC / MRCY FAQ
What is the fundamental rating for MRCY stock?
ChartMill assigns a fundamental rating of 4 / 10 to MRCY.
Can you provide the valuation status for MERCURY SYSTEMS INC?
ChartMill assigns a valuation rating of 3 / 10 to MERCURY SYSTEMS INC (MRCY). This can be considered as Overvalued.
What is the profitability of MRCY stock?
MERCURY SYSTEMS INC (MRCY) has a profitability rating of 2 / 10.
How financially healthy is MERCURY SYSTEMS INC?
The financial health rating of MERCURY SYSTEMS INC (MRCY) is 6 / 10.