Mercury Systems, Inc. Fundamental Analysis
Mercury Systems, Inc. (MRCY) shows weak financial fundamentals with a PE ratio of -124.54, profit margin of -1.46%, and ROE of -0.96%. The company generates $1.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MRCY's fundamental strength across five key dimensions:
Efficiency Score
WeakMRCY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMRCY trades at attractive valuation levels.
Growth Score
ModerateMRCY shows steady but slowing expansion.
Financial Health Score
ExcellentMRCY maintains a strong and stable balance sheet.
Profitability Score
WeakMRCY struggles to sustain strong margins.
Key Financial Metrics
Is MRCY Expensive or Cheap?
P/E Ratio
MRCY trades at -124.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MRCY's PEG of -5.94 indicates potential undervaluation.
Price to Book
The market values Mercury Systems, Inc. at 4.25 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 68.13 times EBITDA. This signals the market has high growth expectations.
How Well Does MRCY Make Money?
Net Profit Margin
For every $100 in sales, Mercury Systems, Inc. keeps $-1.46 as profit after all expenses.
Operating Margin
Core operations generate 1.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.96 in profit for every $100 of shareholder equity.
ROA
Mercury Systems, Inc. generates $-0.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mercury Systems, Inc. generates limited operating cash flow of $96.21M, signaling weaker underlying cash strength.
Free Cash Flow
Mercury Systems, Inc. produces free cash flow of $71.12M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.18 in free cash annually.
FCF Yield
MRCY converts 1.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-124.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How MRCY Stacks Against Its Sector Peers
| Metric | MRCY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -124.54 | 30.72 | Better (Cheaper) |
| ROE | -0.96% | 1100.00% | Weak |
| Net Margin | -1.46% | -20665.00% (disorted) | Weak |
| Debt/Equity | 0.44 | 0.48 | Neutral |
| Current Ratio | 3.19 | 21.37 | Strong Liquidity |
| ROA | -0.57% | -1299414.00% (disorted) | Weak |
MRCY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mercury Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure