MERCURY SYSTEMS INC (MRCY) Stock Fundamental Analysis
NASDAQ:MRCY - US5893781089 - Common Stock
67.55 USD
-0.95 (-1.39%)
67.55 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MRCY. MRCY was compared to 69 industry peers in the Aerospace & Defense industry. The financial health of MRCY is average, but there are quite some concerns on its profitability. 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.
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's Return On Assets of -1.56% is on the low side compared to the rest of the industry. MRCY is outperformed by 63.77% of its industry peers.
With a Return On Equity value of -2.57%, MRCY is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
| 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
With a decent Gross Margin value of 27.90%, MRCY is doing good in the industry, outperforming 60.87% of the companies in the same industry.
In the last couple of years the Gross Margin of MRCY has declined.
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 | 27.9% |
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.
Compared to 1 year ago, MRCY has more shares outstanding
MRCY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MRCY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.36 indicates that MRCY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.36, MRCY is in line with its industry, outperforming 50.72% of the companies in the same industry.
The Debt to FCF ratio of MRCY is 4.97, which is a neutral value as it means it would take MRCY, 4.97 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.97, MRCY is doing good in the industry, outperforming 72.46% of the companies in the same industry.
MRCY has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, MRCY is in line with its industry, outperforming 59.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 3.36 |
ROIC/WACCN/A
WACC9.89%
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.
Looking at the Current ratio, with a value of 3.52, MRCY is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
A Quick Ratio of 2.41 indicates that MRCY has no problem at all paying its short term obligations.
MRCY has a Quick ratio of 2.41. This is in the better half of the industry: MRCY outperforms 73.91% 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 203.23% over the past year.
Measured over the past years, MRCY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.57% on average per year.
MRCY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.19%.
The Revenue has been growing slightly by 2.74% on average over the past years.
EPS 1Y (TTM)203.23%
EPS 3Y-33.54%
EPS 5Y-22.57%
EPS Q2Q%56.67%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y-2.64%
Revenue growth 5Y2.74%
Sales Q2Q%9.87%
3.2 Future
MRCY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.12% yearly.
The Revenue is expected to grow by 7.30% on average over the next years.
EPS Next Y57.78%
EPS Next 2Y53.36%
EPS Next 3Y46.12%
EPS Next 5YN/A
Revenue Next Year7.61%
Revenue Next 2Y7.95%
Revenue Next 3Y7.3%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 105.55 indicates a quite expensive valuation of MRCY.
MRCY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MRCY to the average of the S&P500 Index (27.08), we can say MRCY is valued expensively.
A Price/Forward Earnings ratio of 66.89 indicates a quite expensive valuation of MRCY.
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 22.72, MRCY is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.55 | ||
| Fwd PE | 66.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRCY is on the same level as its industry peers.
78.26% 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 | 34 | ||
| EV/EBITDA | 60.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MRCY's earnings are expected to grow with 46.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.83
PEG (5Y)N/A
EPS Next 2Y53.36%
EPS Next 3Y46.12%
5. Dividend
5.1 Amount
MRCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
67.55
-0.95 (-1.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners109.36%
Inst Owner Change3.82%
Ins Owners1.86%
Ins Owner Change0.1%
Market Cap4.05B
Analysts77.14
Price Target66.3 (-1.85%)
Short Float %8.53%
Short Ratio6.34
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)330.09%
EPS beat(12)6
Avg EPS beat(12)212.83%
EPS beat(16)7
Avg EPS beat(16)157.54%
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)26.62%
PT rev (3m)33.56%
EPS NQ rev (1m)-13.06%
EPS NQ rev (3m)-2.47%
EPS NY rev (1m)6.17%
EPS NY rev (3m)10%
Revenue NQ rev (1m)-2.53%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.55 | ||
| Fwd PE | 66.89 | ||
| P/S | 4.44 | ||
| P/FCF | 34 | ||
| P/OCF | 29.15 | ||
| P/B | 2.75 | ||
| P/tB | 12.46 | ||
| EV/EBITDA | 60.46 |
EPS(TTM)0.64
EY0.95%
EPS(NY)1.01
Fwd EY1.49%
FCF(TTM)1.99
FCFY2.94%
OCF(TTM)2.32
OCFY3.43%
SpS15.22
BVpS24.59
TBVpS5.42
PEG (NY)1.83
PEG (5Y)N/A
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
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-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 | 3.36 |
F-Score6
WACC9.89%
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)203.23%
EPS 3Y-33.54%
EPS 5Y-22.57%
EPS Q2Q%56.67%
EPS Next Y57.78%
EPS Next 2Y53.36%
EPS Next 3Y46.12%
EPS Next 5YN/A
Revenue 1Y (TTM)9.19%
Revenue growth 3Y-2.64%
Revenue growth 5Y2.74%
Sales Q2Q%9.87%
Revenue Next Year7.61%
Revenue Next 2Y7.95%
Revenue Next 3Y7.3%
Revenue Next 5YN/A
EBIT growth 1Y91.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year438.76%
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%