Mercury NZ Limited
Mercury NZ Limited Fundamental Analysis
Mercury NZ Limited (MGHTF) shows weak financial fundamentals with a PE ratio of 109.34, profit margin of 2.58%, and ROE of 1.81%. The company generates $3.4B in annual revenue with weak year-over-year growth of 2.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MGHTF's fundamental strength across five key dimensions:
Efficiency Score
WeakMGHTF struggles to generate sufficient returns from assets.
Valuation Score
ModerateMGHTF shows balanced valuation metrics.
Growth Score
WeakMGHTF faces weak or negative growth trends.
Financial Health Score
ModerateMGHTF shows balanced financial health with some risks.
Profitability Score
ModerateMGHTF maintains healthy but balanced margins.
Key Financial Metrics
Is MGHTF Expensive or Cheap?
P/E Ratio
MGHTF trades at 109.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MGHTF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Mercury NZ Limited at 2.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.19 times EBITDA. This signals the market has high growth expectations.
How Well Does MGHTF Make Money?
Net Profit Margin
For every $100 in sales, Mercury NZ Limited keeps $2.58 as profit after all expenses.
Operating Margin
Core operations generate 8.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.81 in profit for every $100 of shareholder equity.
ROA
Mercury NZ Limited generates $0.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mercury NZ Limited produces operating cash flow of $620.23M, showing steady but balanced cash generation.
Free Cash Flow
Mercury NZ Limited produces free cash flow of $110.39M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.08 in free cash annually.
FCF Yield
MGHTF converts 1.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
109.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.003
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How MGHTF Stacks Against Its Sector Peers
| Metric | MGHTF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 109.34 | 19.71 | Worse (Expensive) |
| ROE | 1.81% | 899.00% | Weak |
| Net Margin | 2.58% | 8904.00% | Weak |
| Debt/Equity | 0.51 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 0.79 | 1.52 | Weak Liquidity |
| ROA | 0.89% | -6254.00% (disorted) | Weak |
MGHTF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mercury NZ Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
95.14%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-99.53%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
31.24%
Industry Style: Defensive, Dividend, Income
High Growth