ScoreWhy is Mercury Systems, Inc. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.85
2
Poor long term growth as Operating profit has grown by an annual rate -163.90% of over the last 5 years
3
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at USD 136.6 MM
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- RAW MATERIAL COST(Y) Fallen by -9.96% (YoY)
4
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 68.66%, its profits have risen by 62.2%
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Market Beating Performance
- The stock has generated a return of 68.66% in the last 1 year, much higher than market (S&P 500) returns of 12.33%
Real-Time Research ReportHow 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.
82.29%
2.55
48.99%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.74%
EBIT Growth (5y)
-163.90%
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
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
2.44%
ROE (avg)
2.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.19
EV to EBIT
-96.71
EV to EBITDA
73.95
EV to Capital Employed
1.97
EV to Sales
3.94
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-2.04%
ROE (Latest)
-2.77%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend30What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 136.6 MM
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -9.96% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 23.55 %
DEBTORS TURNOVER RATIO(HY)
Highest at 2.27 times
NET SALES(Q)
Highest at USD 273.11 MM
OPERATING PROFIT(Q)
Highest at USD 44.84 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.42 %
PRE-TAX PROFIT(Q)
Highest at USD 24.2 MM
NET PROFIT(Q)
Highest at USD 21.05 MM
EPS(Q)
Highest at USD 0.27
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Mercury Systems, Inc.
Pre-Tax Profit
At USD 24.2 MM has Grown at 253.7%
over average net sales of the previous four periods of USD -15.74 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 21.05 MM has Grown at 309.57%
over average net sales of the previous four periods of USD -10.04 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 136.6 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 273.11 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 273.11 MM has Grown at 23.09%
over average net sales of the previous four periods of USD 221.87 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 44.84 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 16.42 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 24.2 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 21.05 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.27
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 23.55 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 2.27 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -9.96% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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