MERCER INTERNATIONAL INC (MERC) Stock Fundamental Analysis
NASDAQ:MERC - Nasdaq - US5880561015 - Common Stock - Currency: USD
MERC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. MERC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MERC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MERC has reported negative net income.
MERC had a positive operating cash flow in the past year.
In multiple years MERC reported negative net income over the last 5 years.
MERC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MERC has a Return On Assets (-3.76%) which is comparable to the rest of the industry.
MERC's Return On Equity of -19.81% is on the low side compared to the rest of the industry. MERC is outperformed by 66.67% of its industry peers.
With a decent Return On Invested Capital value of 4.16%, MERC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.76% | ||
| ROE | -19.81% | ||
| ROIC | 4.16% |
ROA(3y)-1.26%
ROA(5y)0.54%
ROE(3y)-9.49%
ROE(5y)-1.34%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of MERC (5.17%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of MERC has declined.
Looking at the Gross Margin, with a value of 9.71%, MERC is in line with its industry, outperforming 44.44% of the companies in the same industry.
MERC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.17% | ||
| PM (TTM) | N/A | ||
| GM | 9.71% |
OM growth 3Y-40.69%
OM growth 5Y-5.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-25.62%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
MERC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MERC has more shares outstanding
Compared to 5 years ago, MERC has more shares outstanding
Compared to 1 year ago, MERC has a worse debt to assets ratio.
2.2 Solvency
MERC has an Altman-Z score of 1.72. This is a bad value and indicates that MERC is not financially healthy and even has some risk of bankruptcy.
MERC's Altman-Z score of 1.72 is in line compared to the rest of the industry. MERC outperforms 55.56% of its industry peers.
MERC has a debt to FCF ratio of 252.02. This is a negative value and a sign of low solvency as MERC would need 252.02 years to pay back of all of its debts.
The Debt to FCF ratio of MERC (252.02) is comparable to the rest of the industry.
MERC has a Debt/Equity ratio of 3.43. This is a high value indicating a heavy dependency on external financing.
MERC has a worse Debt to Equity ratio (3.43) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 252.02 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.55
WACC7.49%
2.3 Liquidity
A Current Ratio of 3.55 indicates that MERC has no problem at all paying its short term obligations.
MERC's Current ratio of 3.55 is amongst the best of the industry. MERC outperforms 100.00% of its industry peers.
A Quick Ratio of 2.14 indicates that MERC has no problem at all paying its short term obligations.
MERC has a Quick ratio of 2.14. This is amongst the best in the industry. MERC outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
MERC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.22%, which is quite impressive.
MERC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.48%.
The Revenue has been growing slightly by 4.70% on average over the past years.
EPS 1Y (TTM)87.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%131.25%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y4.25%
Revenue growth 5Y4.7%
Sales Q2Q%3.81%
3.2 Future
The Earnings Per Share is expected to grow by 30.70% on average over the next years. This is a very strong growth
MERC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.06% yearly.
EPS Next Y48.15%
EPS Next 2Y52.06%
EPS Next 3Y109.47%
EPS Next 5Y30.7%
Revenue Next Year0.86%
Revenue Next 2Y3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MERC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year MERC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
MERC's Enterprise Value to EBITDA is on the same level as the industry average.
MERC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.21 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MERC's earnings are expected to grow with 109.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y52.06%
EPS Next 3Y109.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.68%, MERC has a reasonable but not impressive dividend return.
MERC's Dividend Yield is rather good when compared to the industry average which is at 2.04. MERC pays more dividend than 100.00% of the companies in the same industry.
MERC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
The dividend of MERC decreases each year by -11.04%.
MERC has been paying a dividend for at least 10 years, so it has a reliable track record.
MERC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.04%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
MERC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-23.56%
EPS Next 2Y52.06%
EPS Next 3Y109.47%
NASDAQ:MERC (3/4/2025, 12:54:03 PM)
7.5
-0.27 (-3.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners50.5%
Inst Owner Change4.81%
Ins Owners1.15%
Ins Owner Change0.54%
Market Cap501.52M
Analysts48.89
Price Target7.14 (-4.8%)
Short Float %1.37%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend0.3
Dividend Growth(5Y)-11.04%
DP-23.56%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)53.43%
Min EPS beat(2)-405.89%
Max EPS beat(2)512.75%
EPS beat(4)2
Avg EPS beat(4)69.52%
Min EPS beat(4)-405.89%
Max EPS beat(4)512.75%
EPS beat(8)3
Avg EPS beat(8)-25.64%
EPS beat(12)6
Avg EPS beat(12)-16.82%
EPS beat(16)9
Avg EPS beat(16)-10.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-3.75%
Max Revenue beat(2)2.23%
Revenue beat(4)3
Avg Revenue beat(4)1.69%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)6.81%
Revenue beat(8)5
Avg Revenue beat(8)1.62%
Revenue beat(12)9
Avg Revenue beat(12)3.38%
Revenue beat(16)10
Avg Revenue beat(16)1.79%
PT rev (1m)0%
PT rev (3m)-1.75%
EPS NQ rev (1m)62.5%
EPS NQ rev (3m)62.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.02%
Revenue NQ rev (1m)-4.18%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.25 | ||
| P/FCF | 85.21 | ||
| P/OCF | 5.56 | ||
| P/B | 1.17 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)-0.4
EYN/A
EPS(NY)-0.21
Fwd EYN/A
FCF(TTM)0.09
FCFY1.17%
OCF(TTM)1.35
OCFY17.99%
SpS30.56
BVpS6.43
TBVpS5.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.76% | ||
| ROE | -19.81% | ||
| ROCE | 5.26% | ||
| ROIC | 4.16% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 4.71% | ||
| OM | 5.17% | ||
| PM (TTM) | N/A | ||
| GM | 9.71% | ||
| FCFM | 0.29% |
ROA(3y)-1.26%
ROA(5y)0.54%
ROE(3y)-9.49%
ROE(5y)-1.34%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-39.32%
ROICexcg growth 5Y-5.08%
ROICexc growth 3Y-39.31%
ROICexc growth 5Y-4.89%
OM growth 3Y-40.69%
OM growth 5Y-5.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-25.62%
GM growth 5Y-0.06%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 252.02 | ||
| Debt/EBITDA | 5.33 | ||
| Cap/Depr | 49.37% | ||
| Cap/Sales | 4.13% | ||
| Interest Coverage | 1 | ||
| Cash Conversion | 32.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.14 | ||
| Altman-Z | 1.72 |
F-Score5
WACC7.49%
ROIC/WACC0.55
Cap/Depr(3y)84.22%
Cap/Depr(5y)87.15%
Cap/Sales(3y)6.27%
Cap/Sales(5y)6.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)87.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%131.25%
EPS Next Y48.15%
EPS Next 2Y52.06%
EPS Next 3Y109.47%
EPS Next 5Y30.7%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y4.25%
Revenue growth 5Y4.7%
Sales Q2Q%3.81%
Revenue Next Year0.86%
Revenue Next 2Y3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y209.56%
EBIT growth 3Y-38.17%
EBIT growth 5Y-0.57%
EBIT Next Year1831.51%
EBIT Next 3Y241.58%
EBIT Next 5Y119.44%
FCF growth 1Y102.87%
FCF growth 3Y-34.97%
FCF growth 5Y-44.48%
OCF growth 1Y230.72%
OCF growth 3Y-20.89%
OCF growth 5Y-18.07%