MERSEN (MRN.PA) Stock Fundamental Analysis
Europe - EPA:MRN - FR0000039620 - Common Stock
25.3 EUR
+0.05 (+0.2%)
Overall MRN gets a fundamental rating of 5 out of 10. We evaluated MRN against 63 industry peers in the Electrical Equipment industry. While MRN is still in line with the averages on profitability rating, there are concerns on its financial health. MRN is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years MRN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MRN (2.71%) is comparable to the rest of the industry.
MRN has a Return On Equity (6.26%) which is in line with its industry peers.
MRN has a better Return On Invested Capital (6.56%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRN is in line with the industry average of 9.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 6.26% | ||
| ROIC | 6.56% |
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
Looking at the Profit Margin, with a value of 4.03%, MRN is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
In the last couple of years the Profit Margin of MRN has declined.
MRN has a better Operating Margin (9.65%) than 77.78% of its industry peers.
In the last couple of years the Operating Margin of MRN has remained more or less at the same level.
MRN has a Gross Margin of 29.63%. This is in the lower half of the industry: MRN underperforms 61.90% of its industry peers.
MRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.65% | ||
| PM (TTM) | 4.03% | ||
| GM | 29.63% |
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.
The number of shares outstanding for MRN has been increased compared to 1 year ago.
Compared to 5 years ago, MRN has more shares outstanding
Compared to 1 year ago, MRN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.98 indicates that MRN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.98, MRN is in line with its industry, outperforming 53.97% of the companies in the same industry.
The Debt to FCF ratio of MRN is 32.06, which is on the high side as it means it would take MRN, 32.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRN (32.06) is comparable to the rest of the industry.
MRN has a Debt/Equity ratio of 0.57. This is a neutral value indicating MRN is somewhat dependend on debt financing.
The Debt to Equity ratio of MRN (0.57) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 32.06 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.92
WACC7.15%
2.3 Liquidity
A Current Ratio of 1.39 indicates that MRN should not have too much problems paying its short term obligations.
MRN has a Current ratio (1.39) which is comparable to the rest of the industry.
MRN has a Quick Ratio of 1.39. This is a bad value and indicates that MRN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.81, MRN perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
MRN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.71%.
The Earnings Per Share has been decreasing by -1.64% on average over the past years.
Looking at the last year, MRN shows a small growth in Revenue. The Revenue has grown by 0.23% in the last year.
The Revenue has been growing slightly by 5.53% on average over the past years.
EPS 1Y (TTM)-35.71%
EPS 3Y-1.43%
EPS 5Y-1.64%
EPS Q2Q%-24.55%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y10.46%
Revenue growth 5Y5.53%
Sales Q2Q%-2.18%
3.2 Future
MRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.45% yearly.
Based on estimates for the next years, MRN will show a quite strong growth in Revenue. The Revenue will grow by 10.90% on average per year.
EPS Next Y-8.7%
EPS Next 2Y3.78%
EPS Next 3Y8.25%
EPS Next 5Y22.45%
Revenue Next Year-1.43%
Revenue Next 2Y1.31%
Revenue Next 3Y2.99%
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.
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
MRN is valuated correctly with a Price/Earnings ratio of 12.78.
Compared to the rest of the industry, the Price/Earnings ratio of MRN indicates a rather cheap valuation: MRN is cheaper than 92.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, MRN is valued rather cheaply.
MRN is valuated reasonably with a Price/Forward Earnings ratio of 8.22.
Based on the Price/Forward Earnings ratio, MRN is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.87. MRN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 8.22 |
4.2 Price Multiples
MRN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MRN is cheaper than 92.06% of the companies in the same industry.
68.25% of the companies in the same industry are more expensive than MRN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.52 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.78%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.65%, MRN has a reasonable but not impressive dividend return.
MRN's Dividend Yield is rather good when compared to the industry average which is at 2.14. MRN pays more dividend than 93.65% of the companies 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 | 3.65% |
5.2 History
The dividend of MRN has a limited annual growth rate of 4.49%.
Dividend Growth(5Y)4.49%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
MRN pays out 62.30% of its income as dividend. This is not a sustainable payout ratio.
MRN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.3%
EPS Next 2Y3.78%
EPS Next 3Y8.25%
EPA:MRN (9/24/2025, 5:29:47 PM)
25.3
+0.05 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners56.02%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap617.83M
Analysts80
Price Target30.03 (18.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend1.27
Dividend Growth(5Y)4.49%
DP62.3%
Div Incr Years0
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)5.44%
PT rev (3m)8.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 8.22 | ||
| P/S | 0.5 | ||
| P/FCF | 32.52 | ||
| P/OCF | 2.83 | ||
| P/B | 0.78 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 5.25 |
EPS(TTM)1.98
EY7.83%
EPS(NY)3.08
Fwd EY12.16%
FCF(TTM)0.78
FCFY3.08%
OCF(TTM)8.93
OCFY35.3%
SpS50.37
BVpS32.44
TBVpS18.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 6.26% | ||
| ROCE | 8.78% | ||
| ROIC | 6.56% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 10.63% | ||
| OM | 9.65% | ||
| PM (TTM) | 4.03% | ||
| GM | 29.63% | ||
| FCFM | 1.54% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 32.06 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 252.03% | ||
| Cap/Sales | 16.19% | ||
| Interest Coverage | 5.68 | ||
| Cash Conversion | 110.32% | ||
| Profit Quality | 38.31% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.98 |
F-Score4
WACC7.15%
ROIC/WACC0.92
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)-35.71%
EPS 3Y-1.43%
EPS 5Y-1.64%
EPS Q2Q%-24.55%
EPS Next Y-8.7%
EPS Next 2Y3.78%
EPS Next 3Y8.25%
EPS Next 5Y22.45%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y10.46%
Revenue growth 5Y5.53%
Sales Q2Q%-2.18%
Revenue Next Year-1.43%
Revenue Next 2Y1.31%
Revenue Next 3Y2.99%
Revenue Next 5Y10.9%
EBIT growth 1Y-14.3%
EBIT growth 3Y12.26%
EBIT growth 5Y5.11%
EBIT Next Year75.23%
EBIT Next 3Y28.34%
EBIT Next 5Y29.42%
FCF growth 1Y196.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y56.46%
OCF growth 3Y18.43%
OCF growth 5Y9.52%