MRC GLOBAL INC (MRC) Stock Fundamental Analysis
NYSE:MRC - New York Stock Exchange, Inc. - US55345K1034 - Common Stock - Currency: USD
MRC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. MRC has only an average score on both its financial health and profitability. MRC is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Of the past 5 years MRC 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.60%, MRC is doing worse than 64.58% of the companies in the same industry.
MRC's Return On Equity of 5.04% is on the low side compared to the rest of the industry. MRC is outperformed by 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.81%, MRC is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MRC is in line with the industry average of 9.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 5.04% | ||
| ROIC | 8.81% |
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
With a Profit Margin value of 0.86%, MRC is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
MRC's Profit Margin has improved in the last couple of years.
MRC's Operating Margin of 4.38% is on the low side compared to the rest of the industry. MRC is outperformed by 68.75% of its industry peers.
In the last couple of years the Operating Margin of MRC has grown nicely.
MRC's Gross Margin of 20.59% is on the low side compared to the rest of the industry. MRC is outperformed by 77.08% of its industry peers.
In the last couple of years the Gross Margin of MRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 0.86% | ||
| GM | 20.59% |
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
MRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MRC has been increased compared to 1 year ago.
MRC has more shares outstanding than it did 5 years ago.
MRC has a worse debt/assets ratio than last year.
2.2 Solvency
MRC has an Altman-Z score of 2.37. 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 2.37. This is comparable to the rest of the industry: MRC outperforms 41.67% of its industry peers.
The Debt to FCF ratio of MRC is 1.56, which is an excellent value as it means it would take MRC, only 1.56 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.56, MRC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that MRC is somewhat dependend on debt financing.
MRC's Debt to Equity ratio of 0.74 is in line compared to the rest of the industry. MRC outperforms 47.92% of its industry peers.
Even though the debt/equity ratio score it not favorable for MRC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.95
WACC9.32%
2.3 Liquidity
MRC has a Current Ratio of 1.81. This is a normal value and indicates that MRC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.81, MRC perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that MRC may have some problems paying its short term obligations.
MRC has a Quick ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for MRC have decreased strongly by -41.96% in the last year.
The Earnings Per Share has been growing by 13.84% on average over the past years. This is quite good.
The Revenue for MRC has decreased by -11.75% in the past year. This is quite bad
MRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.84% yearly.
EPS 1Y (TTM)-41.96%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-134.78%
Revenue 1Y (TTM)-11.75%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-13.54%
3.2 Future
The Earnings Per Share is expected to grow by 29.32% on average over the next years. This is a very strong growth
MRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.84% yearly.
EPS Next Y55.38%
EPS Next 2Y50.1%
EPS Next 3Y24.1%
EPS Next 5Y29.32%
Revenue Next Year-1.5%
Revenue Next 2Y2.73%
Revenue Next 3Y3.91%
Revenue Next 5Y2.84%
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
The Price/Earnings ratio is 16.43, which indicates a correct valuation of MRC.
Compared to the rest of the industry, the Price/Earnings ratio of MRC indicates a somewhat cheap valuation: MRC is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.63. MRC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.57 indicates a reasonable valuation of MRC.
MRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. MRC is cheaper than 85.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MRC to the average of the S&P500 Index (20.85), we can say MRC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
MRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MRC is cheaper than 75.00% of the companies in the same industry.
MRC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MRC is cheaper than 97.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.71 | ||
| EV/EBITDA | 7.31 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MRC's earnings are expected to grow with 24.10% in the coming years.
PEG (NY)0.3
PEG (5Y)1.19
EPS Next 2Y50.1%
EPS Next 3Y24.1%
5. Dividend
5.1 Amount
MRC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.68
-0.17 (-1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.47%
Inst Owner Change-0.17%
Ins Owners1.61%
Ins Owner Change7.83%
Market Cap919.33M
Analysts85
Price Target16.58 (55.24%)
Short Float %1.56%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.27
Dividend Growth(5Y)-1.19%
DP88.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-114.69%
Min EPS beat(2)-244.01%
Max EPS beat(2)14.64%
EPS beat(4)3
Avg EPS beat(4)-41.61%
Min EPS beat(4)-244.01%
Max EPS beat(4)44.89%
EPS beat(8)5
Avg EPS beat(8)-14.66%
EPS beat(12)9
Avg EPS beat(12)-3.92%
EPS beat(16)13
Avg EPS beat(16)53.42%
Revenue beat(2)0
Avg Revenue beat(2)-5.1%
Min Revenue beat(2)-9.56%
Max Revenue beat(2)-0.64%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-9.56%
Max Revenue beat(4)4.9%
Revenue beat(8)2
Avg Revenue beat(8)-2.78%
Revenue beat(12)5
Avg Revenue beat(12)-1.41%
Revenue beat(16)7
Avg Revenue beat(16)-0.74%
PT rev (1m)0%
PT rev (3m)-5.8%
EPS NQ rev (1m)-34.78%
EPS NQ rev (3m)-42.31%
EPS NY rev (1m)-6.98%
EPS NY rev (3m)-6.98%
Revenue NQ rev (1m)-9.09%
Revenue NQ rev (3m)-8.32%
Revenue NY rev (1m)-2.63%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 10.57 | ||
| P/S | 0.31 | ||
| P/FCF | 3.71 | ||
| P/OCF | 3.33 | ||
| P/B | 1.78 | ||
| P/tB | 8.43 | ||
| EV/EBITDA | 7.31 |
EPS(TTM)0.65
EY6.09%
EPS(NY)1.01
Fwd EY9.46%
FCF(TTM)2.88
FCFY26.98%
OCF(TTM)3.21
OCFY30.02%
SpS34.98
BVpS5.99
TBVpS1.27
PEG (NY)0.3
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 5.04% | ||
| ROCE | 11.83% | ||
| ROIC | 8.81% | ||
| ROICexc | 9.34% | ||
| ROICexgc | 15.22% | ||
| OM | 4.38% | ||
| PM (TTM) | 0.86% | ||
| GM | 20.59% | ||
| FCFM | 8.24% |
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-Score7
Asset Turnover1.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 70% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 7.33 | ||
| Cash Conversion | 160.47% | ||
| Profit Quality | 953.85% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.37 |
F-Score7
WACC9.32%
ROIC/WACC0.95
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)-41.96%
EPS 3Y37.51%
EPS 5Y13.84%
EPS Q2Q%-134.78%
EPS Next Y55.38%
EPS Next 2Y50.1%
EPS Next 3Y24.1%
EPS Next 5Y29.32%
Revenue 1Y (TTM)-11.75%
Revenue growth 3Y4.14%
Revenue growth 5Y-3.84%
Sales Q2Q%-13.54%
Revenue Next Year-1.5%
Revenue Next 2Y2.73%
Revenue Next 3Y3.91%
Revenue Next 5Y2.84%
EBIT growth 1Y-30.16%
EBIT growth 3Y16.67%
EBIT growth 5Y5.56%
EBIT Next Year37.7%
EBIT Next 3Y17.35%
EBIT Next 5Y15.33%
FCF growth 1Y49.4%
FCF growth 3Y75.35%
FCF growth 5Y2.06%
OCF growth 1Y52.49%
OCF growth 3Y70.18%
OCF growth 5Y2.66%