ENXTPA:MRN

Stock Analysis Report

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Executive Summary

Mersen SA manufactures and sells electrical power products and advanced materials France, North America, rest of Europe, the Asia-Pacific, and internationally. More Details


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.9%

MRN

-4.1%

FR Electrical

-1.3%

FR Market


1 Year Return

-6.8%

MRN

19.5%

FR Electrical

-7.5%

FR Market

Return vs Industry: MRN underperformed the French Electrical industry which returned 21.2% over the past year.

Return vs Market: MRN matched the French Market which returned -6.4% over the past year.


Shareholder returns

MRNIndustryMarket
7 Day-1.9%-4.1%-1.3%
30 Day4.1%4.9%2.9%
90 Day16.4%4.2%-1.4%
1 Year-6.8%-6.8%22.8%19.5%-5.5%-7.5%
3 Year-17.4%-21.6%44.7%33.5%5.9%-3.2%
5 Year51.0%35.6%101.6%76.3%30.8%11.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRN (€25.5) is trading above our estimate of fair value (€11.62)

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


Price To Earnings Ratio

PE vs Industry: MRN is good value based on its PE Ratio (12.9x) compared to the FR Electrical industry average (26.5x).

PE vs Market: MRN is good value based on its PE Ratio (12.9x) compared to the French market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MRN is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: MRN is good value based on its PB Ratio (1x) compared to the FR Electrical industry average (2.6x).


Next Steps

Future Growth

How is Mersen forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRN's forecast earnings growth (19.5% per year) is above the savings rate (0.6%).

Earnings vs Market: MRN's earnings (19.5% per year) are forecast to grow slower than the French market (23.6% per year).

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

Revenue vs Market: MRN's revenue (3.8% per year) is forecast to grow slower than the French market (6.7% per year).

High Growth Revenue: MRN's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRN's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Mersen performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRN has high quality earnings.

Growing Profit Margin: MRN's current net profit margins (4.6%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: MRN's earnings have grown significantly by 40.2% per year over the past 5 years.

Accelerating Growth: MRN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MRN had negative earnings growth (-33.5%) over the past year, making it difficult to compare to the Electrical industry average (-13.1%).


Return on Equity

High ROE: MRN's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is Mersen's financial position?


Financial Position Analysis

Short Term Liabilities: MRN's short term assets (€509.3M) exceed its short term liabilities (€195.9M).

Long Term Liabilities: MRN's short term assets (€509.3M) exceed its long term liabilities (€490.7M).


Debt to Equity History and Analysis

Debt Level: MRN's debt to equity ratio (59.1%) is considered high.

Reducing Debt: MRN's debt to equity ratio has increased from 55% to 59.1% over the past 5 years.

Debt Coverage: MRN's debt is well covered by operating cash flow (39%).

Interest Coverage: MRN's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

What is Mersen current dividend yield, its reliability and sustainability?

2.48%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MRN'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 MRN's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: MRN is not paying a notable dividend for the French market.


Future Payout to Shareholders

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


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

Luc Themelin (59 yo)

4.42yrs

Tenure

€1,076,335

Compensation

Mr. Luc Themelin has been the Chief Executive Officer at Mersen S.A. since May 11, 2016. Mr. Themelin served as Chairman of the Management Board at Mersen S.A. since August 24, 2011 until May 2016 and its ...


CEO Compensation Analysis

Compensation vs Market: Luc's total compensation ($USD1.28M) is above average for companies of similar size in the French market ($USD638.20K).

Compensation vs Earnings: Luc's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Luc Themelin
Chief Executive Officer4.42yrs€1.08mno data
Thomas Baumgartner
CFO and Group VP of Finance & Administration10.58yrs€359.05kno data
Christophe Bommier
Group VP of Technologyno data€341.42kno data
Véronique Boca
VP - Communication9.08yrsno datano data
Estelle Legrand
Group Vice President of Human Resources10.42yrsno datano data

9.8yrs

Average Tenure

57yo

Average Age

Experienced Management: MRN's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Denis Thiery
Independent Director1.42yrs€21.13k0.0039%
€ 20.4k
Olivier Legrain
Independent Chairman3.42yrs€105.66k0.0068%
€ 35.7k
Michel Crochon
Independent Director3.42yrs€34.55k0.0039%
€ 20.4k
Ulrike Steinhorst
Independent Director7.42yrs€29.73k0.0040%
€ 20.8k
Carolle Foissaud
Independent Director7.42yrs€26.21k0.0040%
€ 21.0k
Isabelle Azemard
Director6.42yrs€25.66k0.0039%
€ 20.4k
Magali Joëssel
Director7yrs€29.87kno data
Pierre Creusy
Director3yrsno data0.00097%
€ 5.1k

4.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MRN's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Mersen SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mersen SA
  • Ticker: MRN
  • Exchange: ENXTPA
  • Founded: 1892
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: €524.298m
  • Shares outstanding: 20.56m
  • Website: https://www.mersen.com

Number of Employees


Location

  • Mersen SA
  • Tour EQHO
  • 2 avenue Gambetta
  • Paris
  • Ile-de-France
  • 10077
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRNENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
CBEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0Q6QLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
MRNPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
CBLN.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Mersen SA manufactures and sells electrical power products and advanced materials France, North America, rest of Europe, the Asia-Pacific, and internationally. It operates through Advanced Materials and El ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:30
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.