Mercer International, Inc. (MERC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Clearwater Paper Corp.

Sylvamo Corp.

IT Tech Packaging, Inc.

Glatfelter Corp.

Mercer International, Inc.

Why is Mercer International, Inc. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.81 times
PRE-TAX PROFIT(Q) At USD -90.43 MM has Fallen at -95.59%
ROCE(HY) Lowest at -200.02%
DEBT-EQUITY RATIO (HY) Highest at 2,114.25 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -80.27%, its profits have fallen by -454.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -80.27% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Mercer International, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mercer International, Inc.

-80.27%

-1.23

69.16%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.59%

EBIT Growth (5y)

-223.36%

EBIT to Interest (avg)

2.00

Debt to EBITDA (avg)

7.81

Net Debt to Equity (avg)

3.05

Sales to Capital Employed (avg)

0.99

Tax Ratio

6.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

67.39%

ROCE (avg)

9.69%

ROE (avg)

10.17%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.44

EV to EBIT

-8.19

EV to EBITDA

-67.75

EV to Capital Employed

1.02

EV to Sales

0.80

PEG Ratio

Dividend Yield

10.23%

ROCE (Latest)

-12.45%

ROE (Latest)

-414.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 5.37 times

-25What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -90.43 MM has Fallen at -95.59%

ROCE(HY)

Lowest at -200.02%

DEBT-EQUITY RATIO (HY)

Highest at 2,114.25 %

NET PROFIT(Q)

Lowest at USD -93.02 MM

RAW MATERIAL COST(Y)

Grown by 163.7% (YoY

CASH AND EQV(HY)

Lowest at USD 284.91 MM

DIVIDEND PER SHARE(HY)

Lowest at USD 5.97

NET SALES(Q)

Lowest at USD 449.5 MM

EPS(Q)

Lowest at USD -4.61

Here's what is working for Mercer International, Inc.

Inventory Turnover Ratio

Highest at 5.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Mercer International, Inc.

Pre-Tax Profit

At USD -90.43 MM has Fallen at -95.59%

over average net sales of the previous four periods of USD -46.24 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -93.02 MM has Fallen at -115.72%

over average net sales of the previous four periods of USD -43.12 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Profit

Lowest at USD -93.02 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 2,114.25 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at USD 449.5 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

EPS

Lowest at USD -4.61

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 284.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at USD 5.97

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Raw Material Cost

Grown by 163.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales