MRCY:NGS-Mercury Systems Inc (USD)

EQUITY | Aerospace & Defense | Nasdaq Global Select

Last Closing

USD 29.5

Change

+0.64 (+2.22)%

Market Cap

USD 1.27B

Volume

0.34M

Analyst Target

USD 92.50
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

Mercury Systems Inc is a commercial provider of secure processing subsystems designed and made in the USA for critical defense and intelligence programs. The Company delivers affordable solutions, service and support to defense prime contractors.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

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Relative Returns (From:    To: 2024-03-28 )

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KTOS Kratos Defense & Security Solu..

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RKLB Rocket Lab USA Inc.

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VSEC VSE Corporation

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EH Ehang Holdings Ltd

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SWBI Smith & Wesson Brands Inc

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ETFs Containing MRCY

XKFF 0.00 % 0.00 %

N/A

N/A

Market Performance

  Market Performance vs. Industry/Classification (Aerospace & Defense) Market Performance vs. Exchange (Nasdaq Global Select)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -19.33% 29% F 20% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -19.33% 29% F 20% F
Trailing 12 Months  
Capital Gain -42.95% 32% F 21% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -42.95% 32% F 21% F
Trailing 5 Years  
Capital Gain -53.96% 13% F 24% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -53.96% 13% F 23% F
Average Annual (5 Year Horizon)  
Capital Gain -14.25% 41% F 23% F
Dividend Return -14.25% 41% F 23% F
Total Return N/A N/A N/A N/A N/A
Risk Return Profile  
Volatility (Standard Deviation) 17.27% 95% A 79% B-
Risk Adjusted Return -82.51% 22% F 11% F
Market Capitalization 1.27B 77% C+ 78% C+

Key Financial Ratios

  Ratio vs. Industry/Classification (Aerospace & Defense) Ratio vs. Market (Nasdaq Global Select)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 50.60 8% 2%
Price/Book Ratio 1.13 93% 66%
Price / Cash Flow Ratio -76.90 93% 95%
Price/Free Cash Flow Ratio -189.14 100% 99%
Management Effectiveness  
Return on Equity -5.60% 60% 53%
Return on Invested Capital -0.07% 63% 61%
Return on Assets -2.14% 62% 46%
Debt to Equity Ratio 32.65% 24% 50%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector