MERSEN (MRN.PA) Stock Fundamental Analysis
EPA:MRN - Euronext Paris - Matif - FR0000039620 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to MRN. MRN was compared to 59 industry peers in the Electrical Equipment industry. MRN has an excellent profitability rating, but there are concerns on its financial health. MRN is valued correctly, but it does not seem to be growing. MRN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MRN was profitable.
MRN had a positive operating cash flow in the past year.
Of the past 5 years MRN 4 years were profitable.
In the past 5 years MRN always reported a positive cash flow from operatings.
1.2 Ratios
MRN's Return On Assets of 4.44% is fine compared to the rest of the industry. MRN outperforms 76.27% of its industry peers.
MRN has a better Return On Equity (9.42%) than 66.10% of its industry peers.
With a decent Return On Invested Capital value of 7.79%, MRN is doing good in the industry, outperforming 71.19% of the companies in the same industry.
MRN had an Average Return On Invested Capital over the past 3 years of 7.81%. This is in line with the industry average of 8.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 9.42% | ||
| ROIC | 7.79% |
ROA(3y)4.74%
ROA(5y)3.6%
ROE(3y)9.87%
ROE(5y)7.54%
ROIC(3y)7.81%
ROIC(5y)7.33%
1.3 Margins
With an excellent Profit Margin value of 6.24%, MRN belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
In the last couple of years the Profit Margin of MRN has remained more or less at the same level.
The Operating Margin of MRN (11.29%) is better than 88.14% of its industry peers.
MRN's Operating Margin has improved in the last couple of years.
MRN has a Gross Margin of 32.09%. This is comparable to the rest of the industry: MRN outperforms 50.85% of its industry peers.
In the last couple of years the Gross Margin of MRN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.29% | ||
| PM (TTM) | 6.24% | ||
| GM | 32.09% |
OM growth 3Y11.88%
OM growth 5Y1.69%
PM growth 3YN/A
PM growth 5Y0.94%
GM growth 3Y2.34%
GM growth 5Y-0.39%
2. Health
2.1 Basic Checks
MRN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MRN has more shares outstanding
Compared to 5 years ago, MRN has more shares outstanding
The debt/assets ratio for MRN has been reduced compared to a year ago.
2.2 Solvency
MRN has an Altman-Z score of 2.13. This is not the best score and indicates that MRN is in the grey zone with still only limited risk for bankruptcy at the moment.
MRN has a better Altman-Z score (2.13) than 69.49% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that MRN is somewhat dependend on debt financing.
MRN's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. MRN outperforms 52.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.13 |
ROIC/WACC1.14
WACC6.82%
2.3 Liquidity
A Current Ratio of 1.82 indicates that MRN should not have too much problems paying its short term obligations.
MRN has a Current ratio of 1.82. This is comparable to the rest of the industry: MRN outperforms 59.32% of its industry peers.
A Quick Ratio of 0.96 indicates that MRN may have some problems paying its short term obligations.
MRN's Quick ratio of 0.96 is in line compared to the rest of the industry. MRN outperforms 50.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
MRN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.29%.
Measured over the past 5 years, MRN shows a small growth in Earnings Per Share. The EPS has been growing by 6.03% on average per year.
The Revenue has been growing slightly by 2.41% in the past year.
MRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.63% yearly.
EPS 1Y (TTM)-9.29%
EPS 3YN/A
EPS 5Y6.03%
EPS Q2Q%-18.27%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y12.64%
Revenue growth 5Y6.63%
Sales Q2Q%2.68%
3.2 Future
Based on estimates for the next years, MRN will show a small growth in Earnings Per Share. The EPS will grow by 4.90% on average per year.
Based on estimates for the next years, MRN will show a small growth in Revenue. The Revenue will grow by 4.17% on average per year.
EPS Next Y-20.2%
EPS Next 2Y-8.12%
EPS Next 3Y-0.9%
EPS Next 5Y4.9%
Revenue Next Year3.12%
Revenue Next 2Y2.55%
Revenue Next 3Y3.28%
Revenue Next 5Y4.17%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.34, the valuation of MRN can be described as very cheap.
Based on the Price/Earnings ratio, MRN is valued cheaply inside the industry as 93.22% of the companies are valued more expensively.
MRN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.90.
The Price/Forward Earnings ratio is 6.78, which indicates a rather cheap valuation of MRN.
Based on the Price/Forward Earnings ratio, MRN is valued cheaper than 89.83% of the companies in the same industry.
MRN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.34 | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRN is valued cheaper than 91.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.59 |
4.3 Compensation for Growth
MRN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-8.12%
EPS Next 3Y-0.9%
5. Dividend
5.1 Amount
MRN has a Yearly Dividend Yield of 6.35%, which is a nice return.
Compared to an average industry Dividend Yield of 3.02, MRN pays a better dividend. On top of this MRN pays more dividend than 94.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, MRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
5.2 History
On average, the dividend of MRN grows each year by 16.80%, which is quite nice.
Dividend Growth(5Y)16.8%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
MRN pays out 43.08% of its income as dividend. This is a bit on the high side, but may be sustainable.
MRN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.08%
EPS Next 2Y-8.12%
EPS Next 3Y-0.9%
EPA:MRN (3/14/2025, 7:00:00 PM)
19.54
-0.14 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners58.61%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap477.17M
Analysts76
Price Target30.28 (54.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
Yearly Dividend1.59
Dividend Growth(5Y)16.8%
DP43.08%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.66%
PT rev (3m)-17.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.35%
EPS NY rev (3m)-4.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.34 | ||
| Fwd PE | 6.78 | ||
| P/S | 0.39 | ||
| P/FCF | N/A | ||
| P/OCF | 2.45 | ||
| P/B | 0.59 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 3.59 |
EPS(TTM)3.08
EY15.76%
EPS(NY)2.88
Fwd EY14.74%
FCF(TTM)-0.61
FCFYN/A
OCF(TTM)7.97
OCFY40.8%
SpS50.25
BVpS33.31
TBVpS20.38
PEG (NY)N/A
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 9.42% | ||
| ROCE | 10.3% | ||
| ROIC | 7.79% | ||
| ROICexc | 8.6% | ||
| ROICexgc | 11.56% | ||
| OM | 11.29% | ||
| PM (TTM) | 6.24% | ||
| GM | 32.09% | ||
| FCFM | N/A |
ROA(3y)4.74%
ROA(5y)3.6%
ROE(3y)9.87%
ROE(5y)7.54%
ROIC(3y)7.81%
ROIC(5y)7.33%
ROICexc(3y)8.41%
ROICexc(5y)7.97%
ROICexgc(3y)11.85%
ROICexgc(5y)11.56%
ROCE(3y)10.56%
ROCE(5y)9.95%
ROICexcg growth 3Y7.75%
ROICexcg growth 5Y-6.67%
ROICexc growth 3Y12.44%
ROICexc growth 5Y-1.6%
OM growth 3Y11.88%
OM growth 5Y1.69%
PM growth 3YN/A
PM growth 5Y0.94%
GM growth 3Y2.34%
GM growth 5Y-0.39%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.01 | ||
| Cap/Depr | 302.89% | ||
| Cap/Sales | 17.08% | ||
| Interest Coverage | 10.65 | ||
| Cash Conversion | 93.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.13 |
F-Score5
WACC6.82%
ROIC/WACC1.14
Cap/Depr(3y)197.19%
Cap/Depr(5y)169.66%
Cap/Sales(3y)11.6%
Cap/Sales(5y)9.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.29%
EPS 3YN/A
EPS 5Y6.03%
EPS Q2Q%-18.27%
EPS Next Y-20.2%
EPS Next 2Y-8.12%
EPS Next 3Y-0.9%
EPS Next 5Y4.9%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y12.64%
Revenue growth 5Y6.63%
Sales Q2Q%2.68%
Revenue Next Year3.12%
Revenue Next 2Y2.55%
Revenue Next 3Y3.28%
Revenue Next 5Y4.17%
EBIT growth 1Y2.14%
EBIT growth 3Y26.02%
EBIT growth 5Y8.43%
EBIT Next Year50.16%
EBIT Next 3Y23.75%
EBIT Next 5Y15.37%
FCF growth 1Y23.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y157.2%
OCF growth 3Y10.55%
OCF growth 5Y14.45%