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. While MRCY seems to be doing ok healthwise, there are quite some concerns on its profitability. MRCY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MRCY was profitable.
MRCY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MRCY reported negative net income in multiple years.
In multiple years MRCY reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.77%, MRCY is doing worse than 69.23% of the companies in the same industry.
MRCY has a Return On Equity of -6.19%. This is in the lower half of the industry: MRCY underperforms 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.77% | ||
| ROE | -6.19% | ||
| 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
The Gross Margin of MRCY (25.61%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MRCY has declined.
The Profit Margin and Operating Margin are not available for MRCY so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 25.61% |
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.
The number of shares outstanding for MRCY has been increased compared to 1 year ago.
MRCY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRCY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.42 indicates that MRCY is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.42, MRCY is doing worse than 60.00% of the companies in the same industry.
The Debt to FCF ratio of MRCY is 6.12, which is on the high side as it means it would take MRCY, 6.12 years of fcf income to pay off all of its debts.
MRCY's Debt to FCF ratio of 6.12 is fine compared to the rest of the industry. MRCY outperforms 66.15% of its industry peers.
MRCY has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
MRCY's Debt to Equity ratio of 0.41 is fine compared to the rest of the industry. MRCY outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.12 | ||
| Altman-Z | 2.42 |
ROIC/WACCN/A
WACC9.34%
2.3 Liquidity
A Current Ratio of 3.62 indicates that MRCY has no problem at all paying its short term obligations.
MRCY's Current ratio of 3.62 is amongst the best of the industry. MRCY outperforms 81.54% of its industry peers.
MRCY has a Quick Ratio of 2.36. This indicates that MRCY is financially healthy and has no problem in meeting its short term obligations.
MRCY has a better Quick ratio (2.36) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.62 | ||
| Quick Ratio | 2.36 |
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.
MRCY shows a decrease in Revenue. In the last year, the revenue decreased by -1.20%.
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)-1.2%
Revenue growth 3Y-3.31%
Revenue growth 5Y4.99%
Sales Q2Q%13%
3.2 Future
MRCY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 66.00% yearly.
The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y168.69%
EPS Next 2Y90.55%
EPS Next 3Y66%
EPS Next 5YN/A
Revenue Next Year7.94%
Revenue Next 2Y7.12%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings ratio is 292.27, which means the current valuation is very expensive for MRCY.
Based on the Price/Earnings ratio, MRCY is valued a bit more expensive than 63.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. MRCY is valued rather expensively when compared to this.
MRCY is valuated quite expensively with a Price/Forward Earnings ratio of 43.36.
MRCY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. MRCY is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 292.27 | ||
| Fwd PE | 43.36 |
4.2 Price Multiples
66.15% of the companies in the same industry are cheaper than MRCY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MRCY is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.06 | ||
| EV/EBITDA | 115.76 |
4.3 Compensation for Growth
The 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 66.00% in the coming years.
PEG (NY)1.73
PEG (5Y)N/A
EPS Next 2Y90.55%
EPS Next 3Y66%
5. Dividend
5.1 Amount
MRCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
43.84
+0.04 (+0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners108.6%
Inst Owner Change1.81%
Ins Owners1.9%
Ins Owner Change0.08%
Market Cap2.62B
Analysts73.33
Price Target47.77 (8.96%)
Short Float %6.62%
Short Ratio7.34
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)205.25%
Min EPS beat(2)149.02%
Max EPS beat(2)261.48%
EPS beat(4)3
Avg EPS beat(4)875.98%
Min EPS beat(4)-1008.27%
Max EPS beat(4)4101.68%
EPS beat(8)4
Avg EPS beat(8)310.95%
EPS beat(12)5
Avg EPS beat(12)204.14%
EPS beat(16)8
Avg EPS beat(16)153.06%
Revenue beat(2)2
Avg Revenue beat(2)15.09%
Min Revenue beat(2)10.26%
Max Revenue beat(2)19.92%
Revenue beat(4)3
Avg Revenue beat(4)7.77%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)19.92%
Revenue beat(8)4
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)-1.38%
Revenue beat(16)7
Avg Revenue beat(16)-1.05%
PT rev (1m)34.24%
PT rev (3m)39.57%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)2.94%
EPS NY rev (3m)2.94%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)3.84%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 292.27 | ||
| Fwd PE | 43.36 | ||
| P/S | 2.96 | ||
| P/FCF | 27.06 | ||
| P/OCF | 20.97 | ||
| P/B | 1.79 | ||
| P/tB | 8.84 | ||
| EV/EBITDA | 115.76 |
EPS(TTM)0.15
EY0.34%
EPS(NY)1.01
Fwd EY2.31%
FCF(TTM)1.62
FCFY3.7%
OCF(TTM)2.09
OCFY4.77%
SpS14.82
BVpS24.47
TBVpS4.96
PEG (NY)1.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.77% | ||
| ROE | -6.19% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 25.61% | ||
| FCFM | 10.93% |
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-Score4
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.12 | ||
| Debt/EBITDA | 23.09 | ||
| Cap/Depr | 32.92% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 487.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.62 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 2.42 |
F-Score4
WACC9.34%
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 Y168.69%
EPS Next 2Y90.55%
EPS Next 3Y66%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.2%
Revenue growth 3Y-3.31%
Revenue growth 5Y4.99%
Sales Q2Q%13%
Revenue Next Year7.94%
Revenue Next 2Y7.12%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y27.14%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year165.61%
EBIT Next 3Y44%
EBIT Next 5YN/A
FCF growth 1Y208.51%
FCF growth 3Y-20.33%
FCF growth 5Y-18.1%
OCF growth 1Y329.76%
OCF growth 3Y-14.67%
OCF growth 5Y-9.14%