MRC GLOBAL INC (MRC) Stock Fundamental Analysis
NYSE:MRC - New York Stock Exchange, Inc. - US55345K1034 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MRC. MRC was compared to 49 industry peers in the Trading Companies & Distributors industry. MRC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MRC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MRC had positive earnings in the past year.
In the past year MRC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MRC reported negative net income in multiple years.
MRC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MRC's Return On Assets of -0.53% is on the low side compared to the rest of the industry. MRC is outperformed by 73.47% of its industry peers.
MRC has a Return On Equity of -1.71%. This is in the lower half of the industry: MRC underperforms 73.47% of its industry peers.
MRC has a Return On Invested Capital (7.44%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for MRC is in line with the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -1.71% | ||
| ROIC | 7.44% |
ROA(3y)3.02%
ROA(5y)-1.99%
ROE(3y)7.53%
ROE(5y)-5.06%
ROIC(3y)11.12%
ROIC(5y)8.3%
1.3 Margins
MRC's Profit Margin has improved in the last couple of years.
MRC's Operating Margin of 3.81% is on the low side compared to the rest of the industry. MRC is outperformed by 67.35% of its industry peers.
MRC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.53%, MRC is doing worse than 77.55% of the companies in the same industry.
In the last couple of years the Gross Margin of MRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.81% | ||
| PM (TTM) | N/A | ||
| GM | 20.53% |
OM growth 3Y12.04%
OM growth 5Y9.77%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y3.58%
GM growth 5Y2.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRC is creating some value.
The number of shares outstanding for MRC has been increased compared to 1 year ago.
The number of shares outstanding for MRC has been increased compared to 5 years ago.
Compared to 1 year ago, MRC has a worse debt to assets ratio.
2.2 Solvency
MRC has an Altman-Z score of 2.24. This is not the best score and indicates that MRC is in the grey zone with still only limited risk for bankruptcy at the moment.
MRC has a Altman-Z score of 2.24. This is in the lower half of the industry: MRC underperforms 63.27% of its industry peers.
The Debt to FCF ratio of MRC is 1.68, which is an excellent value as it means it would take MRC, only 1.68 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.68, MRC is doing good in the industry, outperforming 75.51% of the companies in the same industry.
MRC has a Debt/Equity ratio of 0.70. This is a neutral value indicating MRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, MRC is in line with its industry, outperforming 46.94% of the companies in the same industry.
Although MRC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.77
WACC9.7%
2.3 Liquidity
A Current Ratio of 1.68 indicates that MRC should not have too much problems paying its short term obligations.
MRC's Current ratio of 1.68 is in line compared to the rest of the industry. MRC outperforms 40.82% of its industry peers.
MRC has a Quick Ratio of 1.68. This is a bad value and indicates that MRC is not financially healthy enough and could expect problems in meeting its short term obligations.
MRC has a Quick ratio of 0.91. This is in the lower half of the industry: MRC underperforms 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for MRC have decreased strongly by -41.00% in the last year.
Measured over the past years, MRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.84% on average per year.
MRC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.48%.
Measured over the past years, MRC shows a decrease in Revenue. The Revenue has been decreasing by -3.84% on average per year.
EPS 1Y (TTM)-41%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-30%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-11.66%
3.2 Future
Based on estimates for the next years, MRC will show a very strong growth in Earnings Per Share. The EPS will grow by 24.37% on average per year.
Based on estimates for the next years, MRC will show a small growth in Revenue. The Revenue will grow by 1.55% on average per year.
EPS Next Y55.38%
EPS Next 2Y42.13%
EPS Next 3Y24.1%
EPS Next 5Y24.37%
Revenue Next Year-1.06%
Revenue Next 2Y2.79%
Revenue Next 3Y3.91%
Revenue Next 5Y1.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 22.68 indicates a rather expensive valuation of MRC.
The rest of the industry has a similar Price/Earnings ratio as MRC.
Compared to an average S&P500 Price/Earnings ratio of 27.21, MRC is valued at the same level.
A Price/Forward Earnings ratio of 10.19 indicates a reasonable valuation of MRC.
83.67% of the companies in the same industry are more expensive than MRC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.70. MRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
MRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MRC is cheaper than 69.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MRC is valued cheaply inside the industry as 97.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.21 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
MRC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MRC's earnings are expected to grow with 24.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)1.64
EPS Next 2Y42.13%
EPS Next 3Y24.1%
5. Dividend
5.1 Amount
No dividends for MRC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:MRC (7/2/2025, 1:48:51 PM)
13.38
+0.04 (+0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners99.24%
Inst Owner Change5.12%
Ins Owners2.09%
Ins Owner Change9.3%
Market Cap1.15B
Analysts85
Price Target15.81 (18.16%)
Short Float %3.39%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.27
Dividend Growth(5Y)-1.19%
DP-188.89%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-125.8%
Min EPS beat(2)-244.01%
Max EPS beat(2)-7.59%
EPS beat(4)2
Avg EPS beat(4)-54.73%
Min EPS beat(4)-244.01%
Max EPS beat(4)18.05%
EPS beat(8)4
Avg EPS beat(8)-15.75%
EPS beat(12)8
Avg EPS beat(12)-5.86%
EPS beat(16)12
Avg EPS beat(16)52.02%
Revenue beat(2)1
Avg Revenue beat(2)-4.02%
Min Revenue beat(2)-9.56%
Max Revenue beat(2)1.51%
Revenue beat(4)1
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-9.56%
Max Revenue beat(4)1.51%
Revenue beat(8)2
Avg Revenue beat(8)-2.89%
Revenue beat(12)5
Avg Revenue beat(12)-1.52%
Revenue beat(16)7
Avg Revenue beat(16)-1.06%
PT rev (1m)1.64%
PT rev (3m)-4.62%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.09%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 10.19 | ||
| P/S | 0.39 | ||
| P/FCF | 5.21 | ||
| P/OCF | 4.57 | ||
| P/B | 2.19 | ||
| P/tB | 9.44 | ||
| EV/EBITDA | 9.64 |
EPS(TTM)0.59
EY4.41%
EPS(NY)1.31
Fwd EY9.81%
FCF(TTM)2.57
FCFY19.19%
OCF(TTM)2.93
OCFY21.88%
SpS33.89
BVpS6.1
TBVpS1.42
PEG (NY)0.41
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -1.71% | ||
| ROCE | 9.99% | ||
| ROIC | 7.44% | ||
| ROICexc | 7.89% | ||
| ROICexgc | 12.82% | ||
| OM | 3.81% | ||
| PM (TTM) | N/A | ||
| GM | 20.53% | ||
| FCFM | 7.58% |
ROA(3y)3.02%
ROA(5y)-1.99%
ROE(3y)7.53%
ROE(5y)-5.06%
ROIC(3y)11.12%
ROIC(5y)8.3%
ROICexc(3y)11.97%
ROICexc(5y)8.91%
ROICexgc(3y)19.85%
ROICexgc(5y)14.75%
ROCE(3y)14.93%
ROCE(5y)11.15%
ROICexcg growth 3Y20.91%
ROICexcg growth 5Y16.17%
ROICexc growth 3Y21.43%
ROICexc growth 5Y17.6%
OM growth 3Y12.04%
OM growth 5Y9.77%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y3.58%
GM growth 5Y2.92%
F-Score5
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 77.5% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 5.55 | ||
| Cash Conversion | 166.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.24 |
F-Score5
WACC9.7%
ROIC/WACC0.77
Cap/Depr(3y)45.24%
Cap/Depr(5y)36.57%
Cap/Sales(3y)0.57%
Cap/Sales(5y)0.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-30%
EPS Next Y55.38%
EPS Next 2Y42.13%
EPS Next 3Y24.1%
EPS Next 5Y24.37%
Revenue 1Y (TTM)-12.48%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-11.66%
Revenue Next Year-1.06%
Revenue Next 2Y2.79%
Revenue Next 3Y3.91%
Revenue Next 5Y1.55%
EBIT growth 1Y-35.47%
EBIT growth 3Y16.67%
EBIT growth 5Y5.56%
EBIT Next Year38.85%
EBIT Next 3Y17.35%
EBIT Next 5Y12.98%
FCF growth 1Y551.02%
FCF growth 3Y75.35%
FCF growth 5Y2.06%
OCF growth 1Y781.08%
OCF growth 3Y70.18%
OCF growth 5Y2.66%