MERCER INTERNATIONAL INC(NASDAQ:MERC) stock Fundamental Analysis

Fundamental Rating

Overall MERC gets a fundamental rating of 3 out of 10. We evaluated MERC against 9 industry peers in the Paper & Forest Products industry. MERC may be in some trouble as it scores bad on both profitability and health. MERC has a expensive valuation and it also scores bad on growth.

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1. Profitability

1.1 Basic Checks

In the past year MERC has reported negative net income.

In the past year MERC had a positive cash flow from operations.

In multiple years MERC reported negative net income over the last 5 years.

Of the past 5 years MERC 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -7.55%, MERC is doing worse than 77.78% of the companies in the same industry.

MERC has a Return On Equity of -36.59%. This is in the lower half of the industry: MERC underperforms 77.78% of its industry peers.

MERC has a Return On Invested Capital of 0.82%. This is comparable to the rest of the industry: MERC outperforms 44.44% of its industry peers.

		Industry Rank	Sector Rank
ROA	-7.55%
ROE	-36.59%
ROIC	0.82%

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 Operating Margin of 1.26%. This is comparable to the rest of the industry: MERC outperforms 55.56% of its industry peers.

MERC's Gross Margin of 5.89% is on the low side compared to the rest of the industry. MERC is outperformed by 88.89% of its industry peers.

In the last couple of years the Gross Margin of MERC has declined.

		Industry Rank	Sector Rank
OM	1.26%
PM (TTM)	N/A
GM	5.89%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MERC is destroying value.

MERC has more shares outstanding than it did 1 year ago.

MERC has more shares outstanding than it did 5 years ago.

The debt/assets ratio for MERC is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.47, we must say that MERC is in the distress zone and has some risk of bankruptcy.

MERC has a Altman-Z score (1.47) which is comparable to the rest of the industry.

MERC has a Debt/Equity ratio of 3.09. This is a high value indicating a heavy dependency on external financing.

With a Debt to Equity ratio value of 3.09, MERC is not doing good in the industry: 77.78% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	3.09
Debt/FCF	N/A
Altman-Z	1.47

ROIC/WACC0.13

WACC6.36%

2.3 Liquidity

MERC has a Current Ratio of 3.79. This indicates that MERC is financially healthy and has no problem in meeting its short term obligations.

With an excellent Current ratio value of 3.79, MERC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

MERC has a Quick Ratio of 2.39. This indicates that MERC is financially healthy and has no problem in meeting its short term obligations.

With an excellent Quick ratio value of 2.39, MERC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.79
Quick Ratio	2.39

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 28.57% over the past year.

MERC shows a decrease in Revenue. In the last year, the revenue decreased by -3.85%.

The Revenue has been growing slightly by 6.46% on average over the past years.

EPS 1Y (TTM)28.57%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%33.33%

Revenue 1Y (TTM)-3.85%

Revenue growth 3Y11.9%

Revenue growth 5Y6.46%

Sales Q2Q%6.64%

3.2 Future

MERC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.13% yearly.

The Revenue is expected to grow by 2.70% on average over the next years.

EPS Next Y68.17%

EPS Next 2Y39.22%

EPS Next 3Y26.77%

EPS Next 5Y15.13%

Revenue Next Year2%

Revenue Next 2Y1.43%

Revenue Next 3Y2.7%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for MERC. In the last year negative earnings were reported.

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

66.67% of the companies in the same industry are more expensive than MERC, based on the Enterprise Value to EBITDA ratio.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	9.49

4.3 Compensation for Growth

A more expensive valuation may be justified as MERC's earnings are expected to grow with 26.77% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y39.22%

EPS Next 3Y26.77%

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5. Dividend

5.1 Amount

MERC has a Yearly Dividend Yield of 4.62%, which is a nice 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 2.27.

		Industry Rank	Sector Rank
Dividend Yield	4.62%

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.

MERC has not decreased its dividend in the last 3 years.

Dividend Growth(5Y)-13.62%

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-10.57%

EPS Next 2Y39.22%

EPS Next 3Y26.77%

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MERCER INTERNATIONAL INC

NASDAQ:MERC (1/30/2025, 8:00:01 PM)

After market: 6.86 0 (0%)

6.86

+0.18 (+2.69%)

Chartmill FA Rating

GICS SectorMaterials

GICS IndustryGroupMaterials

GICS IndustryPaper & Forest Products

Earnings (Last)10-16 2024-10-16/amc

Earnings (Next)02-20 2025-02-20/amc

Inst Owners53.37%

Inst Owner Change0.18%

Ins Owners1.16%

Ins Owner Change0.54%

Market Cap458.73M

Analysts48.89

Price Target7.27 (5.98%)

Short Float %0.99%

Short Ratio1.15

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.62%

Yearly Dividend0.3

Dividend Growth(5Y)-13.62%

DP-10.57%

Div Incr Years1

Div Non Decr Years3

Ex-DateN/A

Surprises & Revisions

EPS beat(2)0

Avg EPS beat(2)-210.59%

Min EPS beat(2)-405.89%

Max EPS beat(2)-15.29%

EPS beat(4)1

Avg EPS beat(4)-70.15%

Min EPS beat(4)-405.89%

Max EPS beat(4)186.51%

EPS beat(8)2

Avg EPS beat(8)-94.58%

EPS beat(12)6

Avg EPS beat(12)-57.42%

EPS beat(16)8

Avg EPS beat(16)-107.08%

Revenue beat(2)2

Avg Revenue beat(2)1.85%

Min Revenue beat(2)1.47%

Max Revenue beat(2)2.23%

Revenue beat(4)3

Avg Revenue beat(4)0.31%

Min Revenue beat(4)-9.29%

Max Revenue beat(4)6.81%

Revenue beat(8)6

Avg Revenue beat(8)3.32%

Revenue beat(12)9

Avg Revenue beat(12)3.66%

Revenue beat(16)11

Avg Revenue beat(16)2.18%

PT rev (1m)0%

PT rev (3m)-9.52%

EPS NQ rev (1m)0%

EPS NQ rev (3m)121.43%

EPS NY rev (1m)0%

EPS NY rev (3m)-90.26%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-11.71%

Revenue NY rev (1m)0.24%

Revenue NY rev (3m)-2.2%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	0.23
P/FCF	N/A
P/OCF	44.36
P/B	0.89
P/tB	0.99
EV/EBITDA	9.49

EPS(TTM)-1.45

EYN/A

EPS(NY)-0.19

Fwd EYN/A

FCF(TTM)-1.19

FCFYN/A

OCF(TTM)0.15

OCFY2.25%

SpS30.29

BVpS7.73

TBVpS6.91

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-7.55%
ROE	-36.59%
ROCE	1.15%
ROIC	0.82%
ROICexc	0.92%
ROICexgc	0.95%
OM	1.26%
PM (TTM)	N/A
GM	5.89%
FCFM	N/A

ROA(3y)2.42%

ROA(5y)1.19%

ROE(3y)5.33%

ROE(5y)2.28%

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 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

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%

F-Score4

Asset Turnover0.81

Health

		Industry Rank	Sector Rank
Debt/Equity	3.09
Debt/FCF	N/A
Debt/EBITDA	8.35
Cap/Depr	54.07%
Cap/Sales	4.43%
Interest Coverage	0.29
Cash Conversion	5.41%
Profit Quality	N/A
Current Ratio	3.79
Quick Ratio	2.39
Altman-Z	1.47

F-Score4

WACC6.36%

ROIC/WACC0.13

Cap/Depr(3y)108.31%

Cap/Depr(5y)98.27%

Cap/Sales(3y)7.87%

Cap/Sales(5y)7.47%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)28.57%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%33.33%

EPS Next Y68.17%

EPS Next 2Y39.22%

EPS Next 3Y26.77%

EPS Next 5Y15.13%

Revenue 1Y (TTM)-3.85%

Revenue growth 3Y11.9%

Revenue growth 5Y6.46%

Sales Q2Q%6.64%

Revenue Next Year2%

Revenue Next 2Y1.43%

Revenue Next 3Y2.7%

Revenue Next 5YN/A

EBIT growth 1Y189.86%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year237.74%

EBIT Next 3Y57.65%

EBIT Next 5Y31.18%

FCF growth 1Y-144.47%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-96.96%

OCF growth 3YN/A

OCF growth 5YN/A

MERCER INTERNATIONAL INC (MERC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens