DB:MCY

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Executive Summary

Mercury Systems, Inc., a technology company, manufactures and sells components, modules, and subsystems in the United States, Europe, and the Asia Pacific. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Mercury Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.2%

MCY

-8.7%

DE Aerospace & Defense

-7.3%

DE Market


1 Year Return

-8.9%

MCY

-42.4%

DE Aerospace & Defense

-7.7%

DE Market

Return vs Industry: MCY exceeded the German Aerospace & Defense industry which returned -36.6% over the past year.

Return vs Market: MCY underperformed the German Market which returned -6.6% over the past year.


Shareholder returns

MCYIndustryMarket
7 Day-8.2%-8.7%-7.3%
30 Day-10.7%-2.3%-7.7%
90 Day-8.5%-4.0%-4.5%
1 Year-8.9%-8.9%-42.0%-42.4%-4.8%-7.7%
3 Year34.2%34.2%-23.4%-27.1%-9.2%-17.2%
5 Year260.5%260.5%5.7%-3.5%11.4%-4.5%

Price Volatility Vs. Market

How volatile is Mercury Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mercury Systems undervalued compared to its fair value and its price relative to the market?

45.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCY (€60.14) is trading above our estimate of fair value (€42.4)

Significantly Below Fair Value: MCY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MCY is poor value based on its PE Ratio (45.2x) compared to the XE Aerospace & Defense industry average (19x).

PE vs Market: MCY is poor value based on its PE Ratio (45.2x) compared to the German market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: MCY is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: MCY is overvalued based on its PB Ratio (2.8x) compared to the XE Aerospace & Defense industry average (1.6x).


Next Steps

Future Growth

How is Mercury Systems forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCY's forecast earnings growth (11% per year) is above the savings rate (0.2%).

Earnings vs Market: MCY's earnings (11% per year) are forecast to grow slower than the German market (25.7% per year).

High Growth Earnings: MCY's earnings are forecast to grow, but not significantly.

Revenue vs Market: MCY's revenue (8.9% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: MCY's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MCY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Mercury Systems performed over the past 5 years?

31.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCY has high quality earnings.

Growing Profit Margin: MCY's current net profit margins (10.8%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: MCY's earnings have grown significantly by 31.3% per year over the past 5 years.

Accelerating Growth: MCY's earnings growth over the past year (81.2%) exceeds its 5-year average (31.3% per year).

Earnings vs Industry: MCY earnings growth over the past year (81.2%) exceeded the Aerospace & Defense industry -7.9%.


Return on Equity

High ROE: MCY's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is Mercury Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MCY's short term assets ($634.8M) exceed its short term liabilities ($125.9M).

Long Term Liabilities: MCY's short term assets ($634.8M) exceed its long term liabilities ($100.0M).


Debt to Equity History and Analysis

Debt Level: MCY is debt free.

Reducing Debt: MCY had no debt 5 years ago.

Debt Coverage: MCY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MCY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Mercury Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MCY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MCY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MCY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MCY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCY's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Mark Aslett (52 yo)

12.92yrs

Tenure

US$5,544,318

Compensation

Mr. Mark Aslett has been the President and Chief Executive Officer of Mercury Systems, Inc. (formerly, Mercury Computer Systems, Inc.) since joining on November 19, 2007. Mr. Aslett served as the Chief Exe ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD5.54M) is above average for companies of similar size in the German market ($USD2.89M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Aslett
President12.92yrsUS$5.54m0.50%
$ 17.2m
Michael Ruppert
Executive VP2.58yrsUS$2.12m0.22%
$ 7.4m
Didier Thibaud
Executive VP & COO4.75yrsUS$2.20m0.44%
$ 15.0m
Christopher Cambria
Executive VP4.17yrsUS$1.50m0.13%
$ 4.6m
William Conley
Chief Technology Officerno datano datano data
Michelle McCarthy
VP, Chief Accounting Officer & Controller2.58yrsno data0.020%
$ 674.8k
Jeffrey Eason
Senior VP & Chief Information Officer2.75yrsno datano data
Robert McGrail
Director of Corporate & Investor Communications6yrsno datano data
Stephanie Georges
Senior VP & Chief Marketing Officer1.08yrsno datano data
Emma Woodthorpe
Senior VP & Chief Human Resources Officer4.25yrsno datano data

4.2yrs

Average Tenure

52yo

Average Age

Experienced Management: MCY's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Aslett
President12.92yrsUS$5.54m0.50%
$ 17.2m
James Bass
Independent Director10.75yrsUS$202.02k0.11%
$ 3.8m
Vincent Vitto
Independent Chairman of the Board10.75yrsUS$259.02k0.15%
$ 5.1m
William O'Brien
Independent Director11.92yrsUS$227.02k0.10%
$ 3.5m
Michael Daniels
Independent Director10.75yrsUS$234.02k0.14%
$ 4.6m
Orlando Carvalho
Independent Director0.75yrUS$264.91k0.0056%
$ 190.8k
Barry Nearhos
Independent Director1.92yrsUS$202.02k0.012%
$ 399.0k
Mary Krakauer
Independent Director3.25yrsUS$202.02k0.018%
$ 604.5k
Lisa Disbrow
Independent Director3.25yrsUS$214.02k0.018%
$ 604.5k

10.8yrs

Average Tenure

63yo

Average Age

Experienced Board: MCY's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MCY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mercury Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mercury Systems, Inc.
  • Ticker: MCY
  • Exchange: DB
  • Founded: 1981
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$3.978b
  • Listing Market Cap: US$3.413b
  • Shares outstanding: 56.00m
  • Website: https://www.mrcy.com

Number of Employees


Location

  • Mercury Systems, Inc.
  • 50 Minuteman Road
  • Andover
  • Massachusetts
  • 1810
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRCYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1998
MCYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1998

Biography

Mercury Systems, Inc., a technology company, manufactures and sells components, modules, and subsystems in the United States, Europe, and the Asia Pacific. The company’s products and solutions are deployed ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 20:53
End of Day Share Price2020/10/29 00:00
Earnings2020/07/03
Annual Earnings2020/07/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.