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 53 industry peers in the Electrical Equipment industry. There are concerns on the financial health of MRN while its profitability can be described as average. MRN has a correct valuation and a medium growth rate. MRN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MRN had positive earnings in the past year.
In the past year MRN had a positive cash flow from operations.
MRN had positive earnings in 4 of the past 5 years.
MRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MRN (3.28%) is better than 64.15% of its industry peers.
The Return On Equity of MRN (6.94%) is better than 62.26% of its industry peers.
MRN's Return On Invested Capital of 7.12% is fine compared to the rest of the industry. MRN outperforms 67.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MRN is in line with the industry average of 8.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 6.94% | ||
| ROIC | 7.12% |
ROA(3y)4.43%
ROA(5y)3.3%
ROE(3y)9.18%
ROE(5y)6.84%
ROIC(3y)7.82%
ROIC(5y)7.1%
1.3 Margins
The Profit Margin of MRN (4.74%) is better than 71.70% of its industry peers.
In the last couple of years the Profit Margin of MRN has declined.
MRN has a better Operating Margin (10.53%) than 84.91% of its industry peers.
In the last couple of years the Operating Margin of MRN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 31.02%, MRN is in line with its industry, outperforming 45.28% of the companies in the same industry.
MRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.53% | ||
| PM (TTM) | 4.74% | ||
| GM | 31.02% |
OM growth 3Y1.63%
OM growth 5Y-0.4%
PM growth 3Y-6.98%
PM growth 5Y-4.68%
GM growth 3Y-0.41%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MRN is still creating some value.
MRN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MRN has been increased compared to 5 years ago.
Compared to 1 year ago, MRN has a worse debt to assets ratio.
2.2 Solvency
MRN has an Altman-Z score of 1.97. 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 (1.97) than 62.26% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that MRN is not too dependend on debt financing.
MRN's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. MRN outperforms 50.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC1.01
WACC7.02%
2.3 Liquidity
MRN has a Current Ratio of 1.38. This is a normal value and indicates that MRN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.38, MRN perfoms like the industry average, outperforming 49.06% of the companies in the same industry.
A Quick Ratio of 0.66 indicates that MRN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.66, MRN is doing worse than 77.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for MRN have decreased strongly by -31.08% in the last year.
Measured over the past years, MRN shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.64% on average per year.
The Revenue has been growing slightly by 2.70% in the past year.
Measured over the past years, MRN shows a small growth in Revenue. The Revenue has been growing by 5.53% on average per year.
EPS 1Y (TTM)-31.08%
EPS 3Y-1.43%
EPS 5Y-1.64%
EPS Q2Q%-47.14%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y10.46%
Revenue growth 5Y5.53%
Sales Q2Q%2.72%
3.2 Future
Based on estimates for the next years, MRN will show a very strong growth in Earnings Per Share. The EPS will grow by 22.45% on average per year.
MRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.90% yearly.
EPS Next Y-8.95%
EPS Next 2Y4.53%
EPS Next 3Y8.58%
EPS Next 5Y22.45%
Revenue Next Year1.04%
Revenue Next 2Y2.87%
Revenue Next 3Y3.88%
Revenue Next 5Y10.9%
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
MRN is valuated reasonably with a Price/Earnings ratio of 8.71.
Compared to the rest of the industry, the Price/Earnings ratio of MRN indicates a rather cheap valuation: MRN is cheaper than 90.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MRN to the average of the S&P500 Index (24.21), we can say MRN is valued rather cheaply.
MRN is valuated cheaply with a Price/Forward Earnings ratio of 7.94.
88.68% of the companies in the same industry are more expensive than MRN, based on the Price/Forward Earnings ratio.
MRN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
MRN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MRN is cheaper than 86.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.42 |
4.3 Compensation for Growth
The decent profitability rating of MRN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.53%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
MRN has a Yearly Dividend Yield of 4.78%, which is a nice return.
MRN's Dividend Yield is rather good when compared to the industry average which is at 2.77. MRN pays more dividend than 96.23% of the companies in the same industry.
MRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
5.2 History
The dividend of MRN has a limited annual growth rate of 4.49%.
Dividend Growth(5Y)4.49%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
52.37% of the earnings are spent on dividend by MRN. This is a bit on the high side, but may be sustainable.
MRN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.37%
EPS Next 2Y4.53%
EPS Next 3Y8.58%
EPA:MRN (5/9/2025, 7:00:00 PM)
20.65
+0.1 (+0.49%)
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 Cap504.27M
Analysts76
Price Target28.73 (39.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
Yearly Dividend1.27
Dividend Growth(5Y)4.49%
DP52.37%
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)-4.57%
PT rev (3m)-6.68%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-10.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 7.94 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 2.6 | ||
| P/B | 0.59 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 4.42 |
EPS(TTM)2.37
EY11.48%
EPS(NY)2.6
Fwd EY12.59%
FCF(TTM)-0.93
FCFYN/A
OCF(TTM)7.94
OCFY38.47%
SpS50.93
BVpS34.82
TBVpS19.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 6.94% | ||
| ROCE | 9.53% | ||
| ROIC | 7.12% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 10.39% | ||
| OM | 10.53% | ||
| PM (TTM) | 4.74% | ||
| GM | 31.02% | ||
| FCFM | N/A |
ROA(3y)4.43%
ROA(5y)3.3%
ROE(3y)9.18%
ROE(5y)6.84%
ROIC(3y)7.82%
ROIC(5y)7.1%
ROICexc(3y)8.35%
ROICexc(5y)7.71%
ROICexgc(3y)11.56%
ROICexgc(5y)11.01%
ROCE(3y)10.7%
ROCE(5y)9.74%
ROICexcg growth 3Y-0.83%
ROICexcg growth 5Y-3.01%
ROICexc growth 3Y1.22%
ROICexc growth 5Y-1.49%
OM growth 3Y1.63%
OM growth 5Y-0.4%
PM growth 3Y-6.98%
PM growth 5Y-4.68%
GM growth 3Y-0.41%
GM growth 5Y-0.36%
F-Score4
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 290.74% | ||
| Cap/Sales | 17.42% | ||
| Interest Coverage | 7.89 | ||
| Cash Conversion | 94.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 1.97 |
F-Score4
WACC7.02%
ROIC/WACC1.01
Cap/Depr(3y)237.61%
Cap/Depr(5y)200.5%
Cap/Sales(3y)14.05%
Cap/Sales(5y)11.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.08%
EPS 3Y-1.43%
EPS 5Y-1.64%
EPS Q2Q%-47.14%
EPS Next Y-8.95%
EPS Next 2Y4.53%
EPS Next 3Y8.58%
EPS Next 5Y22.45%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y10.46%
Revenue growth 5Y5.53%
Sales Q2Q%2.72%
Revenue Next Year1.04%
Revenue Next 2Y2.87%
Revenue Next 3Y3.88%
Revenue Next 5Y10.9%
EBIT growth 1Y-4.59%
EBIT growth 3Y12.26%
EBIT growth 5Y5.11%
EBIT Next Year77.92%
EBIT Next 3Y29.73%
EBIT Next 5Y29.42%
FCF growth 1Y-182.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.2%
OCF growth 3Y18.43%
OCF growth 5Y9.52%