MERCURY SYSTEMS INC (MRCY) Stock Fundamental Analysis
NASDAQ:MRCY - Nasdaq - US5893781089 - Common Stock - Currency: USD
MRCY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. MRCY scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MRCY is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MRCY had positive earnings in the past year.
In the past year MRCY had a positive cash flow from operations.
In multiple years MRCY reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: MRCY reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of -5.00%, MRCY is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
MRCY's Return On Equity of -8.11% is on the low side compared to the rest of the industry. MRCY is outperformed by 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5% | ||
| ROE | -8.11% | ||
| ROIC | N/A |
ROA(3y)-2.16%
ROA(5y)0.4%
ROE(3y)-3.47%
ROE(5y)-0.01%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 22.96%, MRCY is in line with its industry, outperforming 46.88% of the companies in the same industry.
MRCY's Gross Margin has declined in the last couple of years.
MRCY does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 22.96% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-17.45%
GM growth 5Y-11.71%
2. Health
2.1 Basic Checks
MRCY does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MRCY has more shares outstanding
The number of shares outstanding for MRCY has been increased compared to 5 years ago.
The debt/assets ratio for MRCY is higher compared to a year ago.
2.2 Solvency
MRCY has an Altman-Z score of 2.36. This is not the best score and indicates that MRCY is in the grey zone with still only limited risk for bankruptcy at the moment.
MRCY's Altman-Z score of 2.36 is on the low side compared to the rest of the industry. MRCY is outperformed by 60.94% of its industry peers.
The Debt to FCF ratio of MRCY is 11.31, which is on the high side as it means it would take MRCY, 11.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.31, MRCY is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
MRCY has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
MRCY has a Debt to Equity ratio of 0.41. This is in the better half of the industry: MRCY outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 11.31 | ||
| Altman-Z | 2.36 |
ROIC/WACCN/A
WACC10.32%
2.3 Liquidity
A Current Ratio of 4.10 indicates that MRCY has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.10, MRCY belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
A Quick Ratio of 2.59 indicates that MRCY has no problem at all paying its short term obligations.
The Quick ratio of MRCY (2.59) is better than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 2.59 |
3. Growth
3.1 Past
MRCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 200.00%, which is quite impressive.
The Revenue for MRCY has decreased by -14.23% in the past year. This is quite bad
MRCY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.99% yearly.
EPS 1Y (TTM)200%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%116.67%
Revenue 1Y (TTM)-14.23%
Revenue growth 3Y-3.31%
Revenue growth 5Y4.99%
Sales Q2Q%13%
3.2 Future
The Earnings Per Share is expected to grow by 63.58% on average over the next years. This is a very strong growth
MRCY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.78% yearly.
EPS Next Y166.72%
EPS Next 2Y87.77%
EPS Next 3Y63.58%
EPS Next 5YN/A
Revenue Next Year3.94%
Revenue Next 2Y5.11%
Revenue Next 3Y5.78%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 280.60 indicates a quite expensive valuation of MRCY.
Based on the Price/Earnings ratio, MRCY is valued a bit more expensive than 62.50% of the companies in the same industry.
MRCY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 44.49, the valuation of MRCY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRCY is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MRCY to the average of the S&P500 Index (92.74), we can say MRCY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 280.6 | ||
| Fwd PE | 44.49 |
4.2 Price Multiples
68.75% of the companies in the same industry are more expensive than MRCY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.99 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MRCY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as MRCY's earnings are expected to grow with 63.58% in the coming years.
PEG (NY)1.68
PEG (5Y)N/A
EPS Next 2Y87.77%
EPS Next 3Y63.58%
5. Dividend
5.1 Amount
MRCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MERCURY SYSTEMS INC
NASDAQ:MRCY (2/4/2025, 8:00:01 PM)
Premarket: 50.3 +8.21 (+19.51%)42.09
+0.1 (+0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners110.2%
Inst Owner Change1.35%
Ins Owners2.03%
Ins Owner Change4.51%
Market Cap2.51B
Analysts54.29
Price Target35.59 (-15.44%)
Short Float %7.48%
Short Ratio9.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2125.35%
Min EPS beat(2)149.02%
Max EPS beat(2)4101.68%
EPS beat(4)2
Avg EPS beat(4)633.1%
Min EPS beat(4)-1008.27%
Max EPS beat(4)4101.68%
EPS beat(8)3
Avg EPS beat(8)275.34%
EPS beat(12)4
Avg EPS beat(12)181.68%
EPS beat(16)8
Avg EPS beat(16)136.96%
Revenue beat(2)2
Avg Revenue beat(2)7.95%
Min Revenue beat(2)5.64%
Max Revenue beat(2)10.26%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-9.72%
Max Revenue beat(4)10.26%
Revenue beat(8)3
Avg Revenue beat(8)-3.86%
Revenue beat(12)4
Avg Revenue beat(12)-3.31%
Revenue beat(16)6
Avg Revenue beat(16)-2.39%
PT rev (1m)3.97%
PT rev (3m)14.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-263.46%
EPS NY rev (1m)0%
EPS NY rev (3m)55.98%
Revenue NQ rev (1m)-0.94%
Revenue NQ rev (3m)-12.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 280.6 | ||
| Fwd PE | 44.49 | ||
| P/S | 2.92 | ||
| P/FCF | 47.99 | ||
| P/OCF | 29.59 | ||
| P/B | 1.72 | ||
| P/tB | 8.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.15
EY0.36%
EPS(NY)0.95
Fwd EY2.25%
FCF(TTM)0.88
FCFY2.08%
OCF(TTM)1.42
OCFY3.38%
SpS14.4
BVpS24.48
TBVpS4.74
PEG (NY)1.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5% | ||
| ROE | -8.11% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 22.96% | ||
| FCFM | 6.09% |
ROA(3y)-2.16%
ROA(5y)0.4%
ROE(3y)-3.47%
ROE(5y)-0.01%
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-17.45%
GM growth 5Y-11.71%
F-Score2
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 11.31 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 37.58% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.1 | ||
| Quick Ratio | 2.59 | ||
| Altman-Z | 2.36 |
F-Score2
WACC10.32%
ROIC/WACCN/A
Cap/Depr(3y)36.16%
Cap/Depr(5y)52.86%
Cap/Sales(3y)3.63%
Cap/Sales(5y)4.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)200%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%116.67%
EPS Next Y166.72%
EPS Next 2Y87.77%
EPS Next 3Y63.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.23%
Revenue growth 3Y-3.31%
Revenue growth 5Y4.99%
Sales Q2Q%13%
Revenue Next Year3.94%
Revenue Next 2Y5.11%
Revenue Next 3Y5.78%
Revenue Next 5YN/A
EBIT growth 1Y-209.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year165.61%
EBIT Next 3Y44%
EBIT Next 5YN/A
FCF growth 1Y146.48%
FCF growth 3Y-20.33%
FCF growth 5Y-18.1%
OCF growth 1Y202.32%
OCF growth 3Y-14.67%
OCF growth 5Y-9.14%