WSE:MRC

Stock Analysis Report

Executive Summary

Mercator Medical S.A., together with its subsidiaries, produces medical gloves and distributes medical disposables in Europe and Russia.

Rewards

Earnings are forecast to grow 112.88% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Does not have a meaningful market cap (PLN106M)



Snowflake Analysis

Mediocre balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MRC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.7%

MRC

11.1%

PL Medical Equipment

-3.6%

PL Market


1 Year Return

-24.3%

MRC

24.0%

PL Medical Equipment

-9.0%

PL Market

Return vs Industry: MRC underperformed the Polish Medical Equipment industry which returned 6.1% over the past year.

Return vs Market: MRC underperformed the Polish Market which returned -4.3% over the past year.


Shareholder returns

MRCIndustryMarket
7 Day25.7%11.1%-3.6%
30 Day3.9%38.6%-1.3%
90 Day47.5%30.3%-2.3%
1 Year-24.3%-24.3%24.0%24.0%-6.2%-9.0%
3 Year-52.3%-52.6%-81.0%-81.2%-0.9%-8.0%
5 Year-24.7%-26.2%-74.6%-76.6%2.7%-10.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MRC (PLN9.98) is trading above our estimate of fair value (PLN1.92)

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


Price To Earnings Ratio

PE vs Industry: MRC is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: MRC is unprofitable, so we can't compare its PE Ratio to the Polish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MRC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MRC is good value based on its PB Ratio (0.8x) compared to the PL Medical Equipment industry average (1x).


Next Steps

Future Growth

How is Mercator Medical forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

112.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: MRC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MRC's is expected to become profitable in the next 3 years.

Revenue vs Market: MRC's revenue (0.2% per year) is forecast to grow slower than the Polish market (5.1% per year).

High Growth Revenue: MRC's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRC's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Mercator Medical performed over the past 5 years?

-22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRC is currently unprofitable.

Growing Profit Margin: MRC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MRC is unprofitable, and losses have increased over the past 5 years at a rate of -22.6% per year.

Accelerating Growth: Unable to compare MRC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MRC is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (4.4%).


Return on Equity

High ROE: MRC has a negative Return on Equity (-1.18%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mercator Medical's financial position?


Financial Position Analysis

Short Term Liabilities: MRC's short term assets (PLN177.8M) exceed its short term liabilities (PLN148.3M).

Long Term Liabilities: MRC's short term assets (PLN177.8M) exceed its long term liabilities (PLN96.9M).


Debt to Equity History and Analysis

Debt Level: MRC's debt to equity ratio (109.5%) is considered high.

Reducing Debt: MRC's debt to equity ratio has increased from 44.4% to 109.5% over the past 5 years.

Debt Coverage: MRC's debt is well covered by operating cash flow (28.4%).

Interest Coverage: MRC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: MRC has a high level of physical assets or inventory.

Debt Coverage by Assets: MRC's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Mercator Medical's current dividend yield, its reliability and sustainability?

1.13%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.9%industryaverage1.3%forecastin3Years1.1%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: MRC is not paying a notable dividend for the Polish market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Mercator Medical's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Wieslaw Zyznowski (55yo)

10yrs

Tenure

zł480,000

Compensation

Dr. Wieslaw Zyznowski has been the Chairman of Management Board at Mercator Medical Spólka Akcyjna since 2010. In the 90s Dr. Zyznowski co-founded the Mercator. From 1991 to 2001 he served as (apart from a ...


CEO Compensation Analysis

Compensation vs Market: Wieslaw's total compensation ($USD0.00) is below average for companies of similar size in the Polish market ($USD171.75K).

Compensation vs Earnings: Wieslaw's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.7yrs

Average Tenure

44yo

Average Age

Experienced Management: MRC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

6.4yrs

Average Tenure

50yo

Average Age

Experienced Board: MRC's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

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.


Management Team

  • Witold Kruszewski (44yo)

    Vice-President of the Management Board & Financial Director

    • Tenure: 1yrs
    • Compensation: zł360.00k
  • Wieslaw Zyznowski (55yo)

    Chairman of Management Board

    • Tenure: 10yrs
    • Compensation: zł480.00k
  • Monika Zyznowska (33yo)

    Member of Management Board

    • Tenure: 2.4yrs
  • Dariusz Krezymon

    Member of the Management Board

    • Tenure: 0.2yrs

Board Members

  • Jaroslaw Karasinski (52yo)

    Member of Supervisory Board

    • Tenure: 5.6yrs
  • Urszula Zyznowska (48yo)

    Chairwoman of Supervisory Board

    • Tenure: 10yrs
  • Piotr Solorz (48yo)

    Vice Chairman of Supervisory Board

    • Marian Slowiaczek (69yo)

      Member of Supervisory Board

      • Tenure: 6.4yrs
    • Gabriela Stolarczyk-Zadecka (50yo)

      Member of the Supervisory Board

      Company Information

      Mercator Medical S.A.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Mercator Medical S.A.
      • Ticker: MRC
      • Exchange: WSE
      • Founded: 1989
      • Industry: Health Care Supplies
      • Sector: Healthcare
      • Market Cap: zł107.797m
      • Shares outstanding: 10.59m
      • Website: https://mercatormedical.eu

      Location

      • Mercator Medical S.A.
      • Ul. H. Modrzejewskiej 30
      • Kraków
      • 31-327
      • Poland

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      MRCWSE (Warsaw Stock Exchange)YesBearer SharesPLPLNJan 2014
      0QJMLSE (London Stock Exchange)YesBearer SharesGBPLNJan 2014

      Biography

      Mercator Medical S.A., together with its subsidiaries, produces medical gloves and distributes medical disposables in Europe and Russia. The company offers surgical gloves for conducting invasive surgeries that require sterile conditions; sterile examination and protective gloves for medical, outpatient, and diagnostic examinations, as well as therapeutic activities and working with septic materials; household gloves for use in gardening, housework, and cosmetic procedures; and protective and heavy-duty gloves. It also provides dressing products, such as gauze, non-woven fabric, non-woven cotton, sterile adhesive, and plaster dressing products, as well as medical adhesive tapes, elastic tubular bandages, absorption pads, and dialysis kits; and medical protective clothing, including caps, masks, medical coats and gowns, shoe covers, oversleeves, coveralls, scrub suits, and patients shirts. In addition, the company offers surgical drapes comprising sheets; non-woven drapes; surgical packs; and additional sterile items, which supplement the drape packs for the surgical site. Further, it provides professional services to food processing industry and gastronomy, pharmacies, cosmetology, and cleaning companies, as well as to uniformed services. The company markets its products under the ambulance, comfort, dermagel, ideal, nitrylex, opero, safeLINE, santex, and vinylex brands. It primarily serves hospitals, clinics, outpatient departments, doctor’s offices, and dental and veterinary clinics through direct sales, as well as through partners, tenders, and wholesale and retail sales. Mercator Medical S.A. was founded in 1989 and is headquartered in Kraków, Poland. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/27 22:23
      End of Day Share Price2020/01/27 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.