MERCURY SYSTEMS INC (MRCY) Stock Fundamental Analysis
USA - NASDAQ:MRCY - US5893781089 - Common Stock
79.42 USD
+1.82 (+2.35%)
79.42 USD
0 (0%)
Overall MRCY gets a fundamental rating of 4 out of 10. We evaluated MRCY against 70 industry peers in the Aerospace & Defense industry. While MRCY seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, MRCY is valued expensive at the moment.
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.
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 65.71% of its industry peers.
MRCY has a Return On Equity of -2.57%. This is in the lower half of the industry: MRCY underperforms 62.86% 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 Gross Margin of 27.90%. This is in the better half of the industry: MRCY outperforms 61.43% 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 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.
Compared to 5 years ago, MRCY has more shares outstanding
The debt/assets ratio for MRCY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.75 indicates that MRCY is not in any danger for bankruptcy at the moment.
The Altman-Z score of MRCY (3.75) is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 4.97, MRCY is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that MRCY is not too dependend on debt financing.
MRCY's Debt to Equity ratio of 0.40 is in line compared to the rest of the industry. MRCY outperforms 58.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 3.75 |
ROIC/WACCN/A
WACC9.39%
2.3 Liquidity
A Current Ratio of 3.52 indicates that MRCY has no problem at all paying its short term obligations.
The Current ratio of MRCY (3.52) is better than 74.29% of its industry peers.
A Quick Ratio of 2.41 indicates that MRCY has no problem at all paying its short term obligations.
MRCY has a better Quick ratio (2.41) than 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
MRCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 192.75%, which is quite impressive.
MRCY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.57% yearly.
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)192.75%
EPS 3Y-33.54%
EPS 5Y-22.57%
EPS Q2Q%104.35%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y-2.64%
Revenue growth 5Y2.74%
Sales Q2Q%9.87%
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 46.15% 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 Y57.58%
EPS Next 2Y52.87%
EPS Next 3Y46.15%
EPS Next 5YN/A
Revenue Next Year7.58%
Revenue Next 2Y7.9%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MRCY is valuated quite expensively with a Price/Earnings ratio of 124.09.
The rest of the industry has a similar Price/Earnings ratio as MRCY.
MRCY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.91.
MRCY is valuated quite expensively with a Price/Forward Earnings ratio of 78.75.
MRCY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MRCY to the average of the S&P500 Index (22.92), we can say MRCY is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 124.09 | ||
| Fwd PE | 78.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRCY is valued a bit more expensive than the industry average as 61.43% 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 77.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.04 | ||
| EV/EBITDA | 68.98 |
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 46.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y52.87%
EPS Next 3Y46.15%
5. Dividend
5.1 Amount
MRCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.42
+1.82 (+2.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners111.28%
Inst Owner Change-0.04%
Ins Owners1.65%
Ins Owner Change0.08%
Market Cap4.77B
Revenue(TTM)912.02M
Net Income(TTM)-37904000
Analysts80
Price Target66.3 (-16.52%)
Short Float %7.58%
Short Ratio6.42
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)0%
PT rev (3m)27.45%
EPS NQ rev (1m)-6.16%
EPS NQ rev (3m)-25.31%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)6.03%
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 | 124.09 | ||
| Fwd PE | 78.75 | ||
| P/S | 5.23 | ||
| P/FCF | 40.04 | ||
| P/OCF | 34.33 | ||
| P/B | 3.24 | ||
| P/tB | 14.68 | ||
| EV/EBITDA | 68.98 |
EPS(TTM)0.64
EY0.81%
EPS(NY)1.01
Fwd EY1.27%
FCF(TTM)1.98
FCFY2.5%
OCF(TTM)2.31
OCFY2.91%
SpS15.2
BVpS24.55
TBVpS5.41
PEG (NY)2.16
PEG (5Y)N/A
Graham Number18.8
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 | 3.75 |
F-Score6
WACC9.39%
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)192.75%
EPS 3Y-33.54%
EPS 5Y-22.57%
EPS Q2Q%104.35%
EPS Next Y57.58%
EPS Next 2Y52.87%
EPS Next 3Y46.15%
EPS Next 5YN/A
Revenue 1Y (TTM)9.19%
Revenue growth 3Y-2.64%
Revenue growth 5Y2.74%
Sales Q2Q%9.87%
Revenue Next Year7.58%
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 2 / 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.