MERSEN (MRN.PA) Stock Fundamental Analysis
EPA:MRN - FR0000039620 - Common Stock
24.35 EUR
+0.2 (+0.83%)
We assign a fundamental rating of 5 out of 10 to MRN. MRN was compared to 57 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 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.
Of the past 5 years MRN 4 years were profitable.
Each year in the past 5 years MRN had a positive operating cash flow.
1.2 Ratios
MRN has a Return On Assets of 2.71%. This is in the better half of the industry: MRN outperforms 63.16% of its industry peers.
Looking at the Return On Equity, with a value of 6.26%, MRN is in the better half of the industry, outperforming 61.40% of the companies in the same industry.
MRN has a better Return On Invested Capital (6.56%) than 70.18% of its industry peers.
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 9.09%.
| 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
With a decent Profit Margin value of 4.03%, MRN is doing good in the industry, outperforming 66.67% 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 80.70% of its industry peers.
MRN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 29.63%, MRN is doing worse than 64.91% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRN is creating some value.
MRN has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 1.96 indicates that MRN is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRN has a Altman-Z score of 1.96. This is comparable to the rest of the industry: MRN outperforms 59.65% of its industry peers.
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.
MRN's Debt to FCF ratio of 32.06 is in line compared to the rest of the industry. MRN outperforms 47.37% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that MRN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, MRN is in line with its industry, outperforming 43.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 32.06 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.99
WACC6.6%
2.3 Liquidity
A Current Ratio of 1.39 indicates that MRN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.39, MRN is in line with its industry, outperforming 47.37% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that MRN may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, MRN is not doing good in the industry: 61.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for MRN have decreased strongly by -35.71% in the last year.
The Earnings Per Share has been decreasing by -1.64% on average over the past years.
The Revenue has been growing slightly by 0.23% in the past 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
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.
The Revenue is expected to grow by 10.90% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 12.30, MRN is valued correctly.
91.23% 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 27.14. MRN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.91, the valuation of MRN can be described as very cheap.
91.23% of the companies in the same industry are more expensive than MRN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.80. MRN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
MRN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MRN is cheaper than 91.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.3 | ||
| EV/EBITDA | 5.12 |
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 2Y3.78%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.66%, MRN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.51, MRN pays a better dividend. On top of this MRN pays more dividend than 91.23% of the companies listed in the same industry.
MRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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
62.30% of the earnings are spent on dividend by MRN. This is not a sustainable payout ratio.
The dividend of MRN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.3%
EPS Next 2Y3.78%
EPS Next 3Y8.25%
EPA:MRN (8/28/2025, 1:58:20 PM)
24.35
+0.2 (+0.83%)
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 Cap594.63M
Analysts75.56
Price Target30.03 (23.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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)8.3%
PT rev (3m)8.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.48 | ||
| P/FCF | 31.3 | ||
| P/OCF | 2.73 | ||
| P/B | 0.75 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)1.98
EY8.13%
EPS(NY)3.08
Fwd EY12.63%
FCF(TTM)0.78
FCFY3.2%
OCF(TTM)8.93
OCFY36.68%
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 | 1.96 |
F-Score4
WACC6.6%
ROIC/WACC0.99
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%