NasdaqGS:MRCY

Stock Analysis Report

Executive Summary

Mercury Systems, Inc. provides sensor and safety critical mission processing subsystems for various critical aerospace, commercial aviation, defence, and intelligence programs in the United States, Europe, and the Asia Pacific.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

-6.1%

MRCY

-0.4%

US Aerospace & Defense

0.07%

US Market


1 Year Return

53.3%

MRCY

8.9%

US Aerospace & Defense

8.9%

US Market

Return vs Industry: MRCY exceeded the US Aerospace & Defense industry which returned 8.9% over the past year.

Return vs Market: MRCY exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

MRCYIndustryMarket
7 Day-6.1%-0.4%0.07%
30 Day-14.7%-1.9%-0.3%
90 Day0.3%0.8%-1.6%
1 Year53.3%53.3%11.0%8.9%11.3%8.9%
3 Year195.3%195.3%57.1%48.3%46.3%36.8%
5 Year483.6%483.6%90.2%71.9%62.1%44.3%

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

Valuation

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

72.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRCY ($71.02) is trading above our estimate of fair value ($36.31)

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


Price To Earnings Ratio

PE vs Industry: MRCY is poor value based on its PE Ratio (72.6x) compared to the Aerospace & Defense industry average (22.1x).

PE vs Market: MRCY is poor value based on its PE Ratio (72.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MRCY is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: MRCY is overvalued based on its PB Ratio (3x) compared to the US Aerospace & Defense industry average (2.5x).


Next Steps

Future Growth

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

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRCY's forecast earnings growth (26.9% per year) is above the savings rate (2.7%).

Earnings vs Market: MRCY's earnings (26.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MRCY's revenue (12.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MRCY's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRCY's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Mercury Systems performed over the past 5 years?

37.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MRCY has become profitable over the past 5 years, growing earnings by 37.8% per year.

Accelerating Growth: MRCY's earnings growth over the past year (14.4%) is below its 5-year average (37.8% per year).

Earnings vs Industry: MRCY earnings growth over the past year (14.4%) exceeded the Aerospace & Defense industry 10.5%.


Return on Equity

High ROE: MRCY's Return on Equity (3.6%) is considered low.


Return on Assets

ROA vs Industry: MRCY's Return on Assets is below or equal to the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: MRCY has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Mercury Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MRCY's short term assets ($582.2M) exceeds its short term liabilities ($98.0M)

Long Term Liabilities: MRCY's short term assets (582.2M) exceeds its long term liabilities (34.2M)


Debt to Equity History and Analysis

Debt Level: MRCY is debt free.

Reducing Debt: MRCY had no debt 5 years ago.

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

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


Balance Sheet

Inventory Level: MRCY has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MRCY's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if MRCY'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 MRCY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Mark Aslett (51yo)

11.9yrs

Tenure

US$4,190,988

Compensation

Mr. Mark Aslett has been the President and Chief Executive Officer of Mercury Systems, Inc. (formerly, Mercury Computer Systems, Inc.) since November 19, 2007. Mr. Aslett joined Mercury in 2007. Mr. Aslett ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD4.19M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

3.2yrs

Average Tenure

54.5yo

Average Age

Experienced Management: MRCY's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

9.8yrs

Average Tenure

62yo

Average Age

Experienced Board: MRCY's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$125,93113 Sep 19
William O'Brien
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,563
Max PriceUS$80.57
SellUS$116,51712 Sep 19
Michael Daniels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$77.68
SellUS$445,46330 Aug 19
James Bass
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,250
Max PriceUS$84.85
SellUS$439,66327 Aug 19
James Bass
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,164
Max PriceUS$85.14
SellUS$886,13021 Aug 19
Christopher Cambria
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares10,000
Max PriceUS$88.61
SellUS$53,03420 Aug 19
Michelle McCarthy
EntityIndividual
Role
Chief Accounting Officer
VP, Chief Accounting Officer & Controller
Shares624
Max PriceUS$84.99
SellUS$58,04019 Aug 19
Michelle McCarthy
EntityIndividual
Role
Chief Accounting Officer
VP, Chief Accounting Officer & Controller
Shares838
Max PriceUS$69.26

Ownership Breakdown


Management Team

  • Chris Cambria (60yo)

    Executive VP

    • Tenure: 3.2yrs
    • Compensation: US$1.50m
  • Mark Aslett (51yo)

    President

    • Tenure: 11.9yrs
    • Compensation: US$4.19m
  • Didier Thibaud (58yo)

    Executive VP & COO

    • Tenure: 3.8yrs
    • Compensation: US$2.03m
  • Jamie Ryan (60yo)

    Chief Information Officer & VP

    • Tenure: 6.8yrs
  • Bob McGrail

    Director of Corporate & Investor Communications

    • Tenure: 5yrs
  • Mike Ruppert (45yo)

    Executive VP

    • Tenure: 1.7yrs
    • Compensation: US$1.66m
  • Emma Woodthorpe

    Senior VP & Chief Human Resources Officer

    • Tenure: 3.3yrs
  • Michelle McCarthy (38yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 1.7yrs
  • Stephanie Georges

    Senior VP & Chief Marketing Officer

    • Tenure: 0.08yrs
  • Jeffrey Eason

    Senior VP & Chief Information Officer

    • Tenure: 1.8yrs

Board Members

  • Jim Bass (62yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$186.01k
  • Mark Aslett (51yo)

    President

    • Tenure: 11.9yrs
    • Compensation: US$4.19m
  • Vincent Vitto (78yo)

    Independent Chairman of the Board

    • Tenure: 9.8yrs
    • Compensation: US$243.01k
  • William O'Brien (74yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$211.01k
  • Mike Daniels (74yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$209.01k
  • Barry Nearhos (61yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$261.74k
  • ML Krakauer (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$186.01k
  • Lisa Disbrow (56yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$198.01k

Company Information

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


Key Information

  • Name: Mercury Systems, Inc.
  • Ticker: MRCY
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$3.939b
  • Shares outstanding: 55.47m
  • 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. provides sensor and safety critical mission processing subsystems for various critical aerospace, commercial aviation, defence, and intelligence programs in the United States, Europe, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:37
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.