Mercury Systems, Inc. (MRCY) 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

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Why is Mercury Systems, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.85

Poor long term growth as Operating profit has grown by an annual rate -38.16% of over the last 5 years

Positive results in Dec 25

NET PROFIT(HY) Higher at USD -11.72 MM
ROCE(HY) Highest at -2.08%
DEBT-EQUITY RATIO (HY) Lowest at 21.06 %

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 69.24%, its profits have risen by 101.4% ; the PEG ratio of the company is 47.8

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 69.24% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mercury Systems, Inc. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mercury Systems, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Mercury Systems, Inc.

71.5%

2.84

53.32%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.29%

EBIT Growth (5y)

-38.16%

EBIT to Interest (avg)

15.85

Debt to EBITDA (avg)

3.17

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

0.43

Tax Ratio

25.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

2.44%

ROE (avg)

2.06%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

4844

Industry P/E

Price to Book Value

3.32

EV to EBIT

551.74

EV to EBITDA

59.07

EV to Capital Employed

2.97

EV to Sales

5.41

PEG Ratio

47.79

Dividend Yield

ROCE (Latest)

0.54%

ROE (Latest)

0.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

15What is working for the Company

NET PROFIT(HY)

Higher at USD -11.72 MM

ROCE(HY)

Highest at -2.08%

DEBT-EQUITY RATIO (HY)

Lowest at 21.06 %

RAW MATERIAL COST(Y)

Fallen by 1.83% (YoY

CASH AND EQV(HY)

Highest at USD 639.71 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.47 times

-6What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -10.93 MM has Fallen at -172.05%

NET PROFIT(Q)

At USD -8.57 MM has Fallen at -488.02%

Here's what is working for Mercury Systems, Inc.

Debt-Equity Ratio

Lowest at 21.06 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at USD 639.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.83% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Mercury Systems, Inc.

Pre-Tax Profit

At USD -10.93 MM has Fallen at -172.05%

over average net sales of the previous four periods of USD -4.02 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -8.57 MM has Fallen at -488.02%

over average net sales of the previous four periods of USD -1.46 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)