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 56 industry peers in the Electrical Equipment industry. MRN has a medium profitability rating, but doesn't score so well on its financial health evaluation. MRN has a correct valuation and a medium growth rate. 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
With a decent Return On Assets value of 3.28%, MRN is doing good in the industry, outperforming 66.07% of the companies in the same industry.
The Return On Equity of MRN (6.94%) is better than 60.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.12%, MRN is in the better half of the industry, outperforming 69.64% of the companies in the same industry.
MRN had an Average Return On Invested Capital over the past 3 years of 7.82%. This is in line with the industry average of 7.58%.
| 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
With a decent Profit Margin value of 4.74%, MRN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
MRN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 10.53%, MRN belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
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 31.02%. This is comparable to the rest of the industry: MRN outperforms 44.64% of its industry peers.
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
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
MRN has more shares outstanding than it did 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 1.98. 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 (1.98) than 62.50% of its industry peers.
MRN has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MRN (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.98 |
ROIC/WACC1
WACC7.12%
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.
MRN's Current ratio of 1.38 is in line compared to the rest of the industry. MRN outperforms 44.64% of its industry peers.
A Quick Ratio of 0.66 indicates that MRN may have some problems paying its short term obligations.
With a Quick ratio value of 0.66, MRN is not doing good in the industry: 80.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
MRN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.08%.
The Earnings Per Share has been decreasing by -1.64% on average over the past years.
MRN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.70%.
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
The Earnings Per Share is expected to grow by 22.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.90% on average over the next years. This is quite good.
EPS Next Y-8.95%
EPS Next 2Y4.53%
EPS Next 3Y8.58%
EPS Next 5Y22.45%
Revenue Next Year-0.8%
Revenue Next 2Y2.09%
Revenue Next 3Y3.61%
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
The Price/Earnings ratio is 8.80, which indicates a very decent valuation of MRN.
92.86% of the companies in the same industry are more expensive than MRN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. MRN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.02, the valuation of MRN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRN indicates a rather cheap valuation: MRN is cheaper than 89.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, MRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 8.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRN is valued cheaper than 91.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.51 |
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)N/A
EPS Next 2Y4.53%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
MRN has a Yearly Dividend Yield of 4.46%, which is a nice return.
Compared to an average industry Dividend Yield of 2.26, MRN pays a better dividend. On top of this MRN pays more dividend than 96.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, MRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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
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 (6/13/2025, 7:00:00 PM)
20.85
-0.5 (-2.34%)
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 Cap509.16M
Analysts76
Price Target27.73 (33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
Yearly Dividend1.27
Dividend Growth(5Y)4.49%
DP52.37%
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)-3.49%
PT rev (3m)-8.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-9.71%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 8.02 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 2.62 | ||
| P/B | 0.6 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 4.51 |
EPS(TTM)2.37
EY11.37%
EPS(NY)2.6
Fwd EY12.47%
FCF(TTM)-0.93
FCFYN/A
OCF(TTM)7.94
OCFY38.1%
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 | 1.98 |
F-Score4
WACC7.12%
ROIC/WACC1
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 Year-0.8%
Revenue Next 2Y2.09%
Revenue Next 3Y3.61%
Revenue Next 5Y10.9%
EBIT growth 1Y-4.59%
EBIT growth 3Y12.26%
EBIT growth 5Y5.11%
EBIT Next Year75.23%
EBIT Next 3Y28.34%
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%