MERCURY SYSTEMS INC (MRCY) Fundamental Analysis & Valuation

NASDAQ:MRCY • US5893781089

Current stock price

84.05 USD
-0.86 (-1.01%)
At close:
84.5379 USD
+0.49 (+0.58%)
After Hours:

This MRCY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. MRCY Profitability Analysis

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.
MRCY Yearly Net Income VS EBIT VS OCF VS FCFMRCY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M

1.2 Ratios

  • MRCY has a Return On Assets of -1.22%. This is in the lower half of the industry: MRCY underperforms 65.00% of its industry peers.
  • MRCY's Return On Equity of -2.08% is on the low side compared to the rest of the industry. MRCY is outperformed by 61.25% of its industry peers.
Industry RankSector Rank
ROA -1.22%
ROE -2.08%
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
MRCY Yearly ROA, ROE, ROICMRCY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5

1.3 Margins

  • MRCY has a better Gross Margin (28.16%) than 61.25% of its industry peers.
  • In the last couple of years the Gross Margin of MRCY has declined.
  • The Profit Margin and Operating Margin are not available for MRCY so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 28.16%
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%
MRCY Yearly Profit, Operating, Gross MarginsMRCY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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6

2. MRCY Health Analysis

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 better debt/assets ratio than last year.
MRCY Yearly Shares OutstandingMRCY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
MRCY Yearly Total Debt VS Total AssetsMRCY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • MRCY has an Altman-Z score of 3.76. This indicates that MRCY is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of MRCY (3.76) is comparable to the rest of the industry.
  • The Debt to FCF ratio of MRCY is 5.95, which is a neutral value as it means it would take MRCY, 5.95 years of fcf income to pay off all of its debts.
  • MRCY has a Debt to FCF ratio of 5.95. This is in the better half of the industry: MRCY outperforms 67.50% 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.
  • MRCY has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: MRCY outperforms 56.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 5.95
Altman-Z 3.76
ROIC/WACCN/A
WACC10.14%
MRCY Yearly LT Debt VS Equity VS FCFMRCY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • MRCY has a Current Ratio of 2.96. This indicates that MRCY is financially healthy and has no problem in meeting its short term obligations.
  • MRCY's Current ratio of 2.96 is in line compared to the rest of the industry. MRCY outperforms 52.50% of its industry peers.
  • A Quick Ratio of 2.04 indicates that MRCY has no problem at all paying its short term obligations.
  • With a Quick ratio value of 2.04, MRCY perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.96
Quick Ratio 2.04
MRCY Yearly Current Assets VS Current LiabilitesMRCY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. MRCY Growth Analysis

3.1 Past

  • MRCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1087.50%, which is quite impressive.
  • The earnings per share for MRCY have been decreasing by -22.57% on average. This is quite bad
  • The Revenue has been growing slightly by 6.58% in the past year.
  • MRCY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.74% yearly.
EPS 1Y (TTM)1087.5%
EPS 3Y-33.54%
EPS 5Y-22.57%
EPS Q2Q%128.57%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y-2.64%
Revenue growth 5Y2.74%
Sales Q2Q%4.37%

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 38.08% on average per year.
  • The Revenue is expected to grow by 9.25% on average over the next years. This is quite good.
EPS Next Y54.24%
EPS Next 2Y54.55%
EPS Next 3Y47.94%
EPS Next 5Y38.08%
Revenue Next Year8%
Revenue Next 2Y8.78%
Revenue Next 3Y8.98%
Revenue Next 5Y9.25%

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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
MRCY Yearly Revenue VS EstimatesMRCY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B
MRCY Yearly EPS VS EstimatesMRCY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 2 3

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2

4. MRCY Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 88.47, which means the current valuation is very expensive for MRCY.
  • Based on the Price/Earnings ratio, MRCY is valued a bit more expensive than the industry average as 61.25% of the companies are valued more cheaply.
  • MRCY is valuated expensively when we compare the Price/Earnings ratio to 27.87, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 54.98, MRCY can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MRCY is on the same level as its industry peers.
  • MRCY is valuated rather expensively when we compare the Price/Forward Earnings ratio to 38.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 88.47
Fwd PE 54.98
MRCY Price Earnings VS Forward Price EarningsMRCY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MRCY is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRCY indicates a somewhat cheap valuation: MRCY is cheaper than 70.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 50.75
EV/EBITDA 69.66
MRCY Per share dataMRCY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • MRCY's earnings are expected to grow with 47.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.63
PEG (5Y)N/A
EPS Next 2Y54.55%
EPS Next 3Y47.94%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. MRCY Dividend Analysis

5.1 Amount

  • MRCY does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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MRCY Fundamentals: All Metrics, Ratios and Statistics

MERCURY SYSTEMS INC

NASDAQ:MRCY (4/17/2026, 8:00:02 PM)

After market: 84.5379 +0.49 (+0.58%)

84.05

-0.86 (-1.01%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners110.05%
Inst Owner Change0.02%
Ins Owners1.66%
Ins Owner Change0.21%
Market Cap5.04B
Revenue(TTM)942.54M
Net Income(TTM)-30.41M
Analysts80
Price Target99.23 (18.06%)
Short Float %7.54%
Short Ratio7.02
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2
Avg EPS beat(2)167.97%
Min EPS beat(2)143.42%
Max EPS beat(2)192.52%
EPS beat(4)3
Avg EPS beat(4)103.57%
Min EPS beat(4)-26.47%
Max EPS beat(4)192.52%
EPS beat(8)6
Avg EPS beat(8)367.22%
EPS beat(12)7
Avg EPS beat(12)160.12%
EPS beat(16)8
Avg EPS beat(16)117.72%
Revenue beat(2)2
Avg Revenue beat(2)7.4%
Min Revenue beat(2)6.52%
Max Revenue beat(2)8.28%
Revenue beat(4)4
Avg Revenue beat(4)6.34%
Min Revenue beat(4)1.44%
Max Revenue beat(4)9.11%
Revenue beat(8)7
Avg Revenue beat(8)7.05%
Revenue beat(12)8
Avg Revenue beat(12)1.46%
Revenue beat(16)9
Avg Revenue beat(16)0.55%
PT rev (1m)0%
PT rev (3m)13.12%
EPS NQ rev (1m)-17.5%
EPS NQ rev (3m)-67.17%
EPS NY rev (1m)0.58%
EPS NY rev (3m)-4.81%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-8.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE 88.47
Fwd PE 54.98
P/S 5.35
P/FCF 50.75
P/OCF 41.4
P/B 3.45
P/tB 15.35
EV/EBITDA 69.66
EPS(TTM)0.95
EY1.13%
EPS(NY)1.53
Fwd EY1.82%
FCF(TTM)1.66
FCFY1.97%
OCF(TTM)2.03
OCFY2.42%
SpS15.71
BVpS24.33
TBVpS5.48
PEG (NY)1.63
PEG (5Y)N/A
Graham Number22.8043 (-72.87%)
Profitability
Industry RankSector Rank
ROA -1.22%
ROE -2.08%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 28.16%
FCFM 10.54%
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-Score7
Asset Turnover0.38
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 5.95
Debt/EBITDA 7.7
Cap/Depr 29.13%
Cap/Sales 2.38%
Interest Coverage N/A
Cash Conversion 158.58%
Profit Quality N/A
Current Ratio 2.96
Quick Ratio 2.04
Altman-Z 3.76
F-Score7
WACC10.14%
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)1087.5%
EPS 3Y-33.54%
EPS 5Y-22.57%
EPS Q2Q%128.57%
EPS Next Y54.24%
EPS Next 2Y54.55%
EPS Next 3Y47.94%
EPS Next 5Y38.08%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y-2.64%
Revenue growth 5Y2.74%
Sales Q2Q%4.37%
Revenue Next Year8%
Revenue Next 2Y8.78%
Revenue Next 3Y8.98%
Revenue Next 5Y9.25%
EBIT growth 1Y99.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year421.18%
EBIT Next 3Y95.36%
EBIT Next 5YN/A
FCF growth 1Y634.91%
FCF growth 3YN/A
FCF growth 5Y10.61%
OCF growth 1Y674.78%
OCF growth 3YN/A
OCF growth 5Y3.81%

MERCURY SYSTEMS INC / MRCY Fundamental Analysis FAQ

What is the fundamental rating for MRCY stock?

ChartMill assigns a fundamental rating of 4 / 10 to MRCY.


What is the valuation status for MRCY stock?

ChartMill assigns a valuation rating of 2 / 10 to MERCURY SYSTEMS INC (MRCY). This can be considered as Overvalued.


How profitable is MERCURY SYSTEMS INC (MRCY) stock?

MERCURY SYSTEMS INC (MRCY) has a profitability rating of 2 / 10.


Can you provide the expected EPS growth for MRCY stock?

The Earnings per Share (EPS) of MERCURY SYSTEMS INC (MRCY) is expected to grow by 54.24% in the next year.