MERCER INTERNATIONAL INC (MERC)
US5880561015 - Common Stock
Taking everything into account, MERC scores 2 out of 10 in our fundamental rating. MERC was compared to 9 industry peers in the Paper & Forest Products industry. Both the profitability and financial health of MERC have multiple concerns. MERC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MERC has reported negative net income.
MERC had a negative 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 worse Return On Assets (-7.95%) than 77.78% of its industry peers.
With a Return On Equity value of -40.50%, MERC is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
MERC's Return On Invested Capital of 0.11% is on the low side compared to the rest of the industry. MERC is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.95% | ||
| ROE | -40.5% | ||
| ROIC | 0.11% |
ROA(3y)2.42%
ROA(5y)1.19%
ROE(3y)5.33%
ROE(5y)2.28%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MERC has a worse Operating Margin (0.16%) than 66.67% of its industry peers.
The Gross Margin of MERC (4.91%) is worse than 88.89% of its industry peers.
In the last couple of years the Gross Margin of MERC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.16% | ||
| PM (TTM) | N/A | ||
| GM | 4.91% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-50.42%
GM growth 5Y-43.15%
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.
MERC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MERC has been increased compared to 5 years ago.
Compared to 1 year ago, MERC has a worse debt to assets ratio.
2.2 Solvency
MERC has an Altman-Z score of 1.44. This is a bad value and indicates that MERC is not financially healthy and even has some risk of bankruptcy.
MERC has a Altman-Z score of 1.44. This is comparable to the rest of the industry: MERC outperforms 44.44% of its industry peers.
MERC has a Debt/Equity ratio of 3.22. This is a high value indicating a heavy dependency on external financing.
MERC has a Debt to Equity ratio of 3.22. This is in the lower half of the industry: MERC underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.02
WACC6.18%
2.3 Liquidity
MERC has a Current Ratio of 3.46. This indicates that MERC is financially healthy and has no problem in meeting its short term obligations.
MERC has a better Current ratio (3.46) than 100.00% of its industry peers.
MERC has a Quick Ratio of 2.17. This indicates that MERC is financially healthy and has no problem in meeting its short term obligations.
MERC's Quick ratio of 2.17 is amongst the best of the industry. MERC outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
The earnings per share for MERC have decreased strongly by -184.37% in the last year.
MERC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.59%.
The Revenue has been growing slightly by 6.46% on average over the past years.
EPS 1Y (TTM)-184.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)-12.59%
Revenue growth 3Y11.9%
Revenue growth 5Y6.46%
Sales Q2Q%6.64%
3.2 Future
Based on estimates for the next years, MERC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.29% on average per year.
MERC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y83.27%
EPS Next 2Y40.9%
EPS Next 3Y30.52%
EPS Next 5Y16.29%
Revenue Next Year4.29%
Revenue Next 2Y2.95%
Revenue Next 3Y4.93%
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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for MERC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MERC is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MERC's earnings are expected to grow with 30.52% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.9%
EPS Next 3Y30.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.70%, MERC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.20, MERC pays a better dividend. On top of this MERC pays more dividend than 100.00% of the companies listed in the same industry.
MERC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
5.2 History
The dividend of MERC decreases each year by -13.62%.
MERC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MERC decreased in the last 3 years.
Dividend Growth(5Y)-13.62%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of MERC are negative and hence is the payout ratio. MERC will probably not be able to sustain this dividend level.
DP-10.11%
EPS Next 2Y40.9%
EPS Next 3Y30.52%
MERCER INTERNATIONAL INC
NASDAQ:MERC (10/30/2024, 8:19:53 PM)
After market: 6.45 0 (0%)6.45
-0.14 (-2.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap431.31M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.95% | ||
| ROE | -40.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.16% | ||
| PM (TTM) | N/A | ||
| GM | 4.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-184.37%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y83.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.59%
Revenue growth 3Y11.9%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y