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 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: MRCY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

16.7%

MRCY

13.6%

US Aerospace & Defense

7.2%

US Market


1 Year Return

16.1%

MRCY

-10.0%

US Aerospace & Defense

-10.4%

US Market

Return vs Industry: MRCY exceeded the US Aerospace & Defense industry which returned -10% over the past year.

Return vs Market: MRCY exceeded the US Market which returned -10.4% over the past year.


Shareholder returns

MRCYIndustryMarket
7 Day16.7%13.6%7.2%
30 Day1.0%-16.8%-12.6%
90 Day7.4%-23.5%-19.4%
1 Year16.1%16.1%-8.4%-10.0%-8.5%-10.4%
3 Year96.4%96.4%10.3%4.5%15.8%8.3%
5 Year383.0%383.0%40.8%27.6%35.8%21.0%

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?

61.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRCY ($74.23) is trading above our estimate of fair value ($63.58)

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 (61.8x) compared to the Aerospace & Defense industry average (15.2x).

PE vs Market: MRCY is poor value based on its PE Ratio (61.8x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: MRCY is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: MRCY is overvalued based on its PB Ratio (3.1x) compared to the US Aerospace & Defense industry average (1.8x).


Next Steps

Future Growth

How is Mercury Systems forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRCY's forecast earnings growth (16.6% per year) is above the savings rate (1.7%).

Earnings vs Market: MRCY's earnings (16.6% per year) are forecast to grow faster than the US market (12.2% per year).

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

Revenue vs Market: MRCY's revenue (8.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MRCY's revenue (8.6% 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 MRCY'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?

32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRCY has high quality earnings.

Growing Profit Margin: MRCY's current net profit margins (8.6%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: MRCY's earnings have grown significantly by 32.3% per year over the past 5 years.

Accelerating Growth: MRCY's earnings growth over the past year (84.5%) exceeds its 5-year average (32.3% per year).

Earnings vs Industry: MRCY earnings growth over the past year (84.5%) exceeded the Aerospace & Defense industry 3.8%.


Return on Equity

High ROE: MRCY's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is Mercury Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MRCY's short term assets ($545.1M) exceed its short term liabilities ($107.9M).

Long Term Liabilities: MRCY's short term assets ($545.1M) exceed its long term liabilities ($87.7M).


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

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.


Stability and Growth of Payments

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

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

3.6yrs

Average management tenure


CEO

Mark Aslett (51yo)

12.25s

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 ($USD4.19M) is about average for companies of similar size in the US market ($USD5.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Aslett
President12.25yrsUS$4.19m0.51% $21.1m
Michael Ruppert
Executive VP2yrsUS$1.66m0.22% $9.1m
Didier Thibaud
Executive VP & COO4.17yrsUS$2.03m0.41% $17.0m
Christopher Cambria
Executive VP3.58yrsUS$1.50m0.12% $5.0m
William Conley
Chief Technology Officerno datano datano data
Michelle McCarthy
VP, Chief Accounting Officer & Controller2yrsno data0.018% $759.7k
Jeffrey Eason
Senior VP & Chief Information Officer2.17yrsno datano data
Robert McGrail
Director of Corporate & Investor Communications5.42yrsno datano data
Stephanie Georges
Senior VP & Chief Marketing Officer0.42yrno datano data
Emma Woodthorpe
Senior VP & Chief Human Resources Officer3.67yrsno datano data

3.6yrs

Average Tenure

51yo

Average Age

Experienced Management: MRCY's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Aslett
President12.25yrsUS$4.19m0.51% $21.1m
James Bass
Independent Director10.17yrsUS$186.01k0.11% $4.6m
Vincent Vitto
Independent Chairman of the Board10.17yrsUS$243.01k0.15% $6.3m
William O'Brien
Independent Director11.25yrsUS$211.01k0.11% $4.5m
Michael Daniels
Independent Director10.17yrsUS$209.01k0.14% $5.6m
Orlando Carvalho
Independent Director0.17yrno data0.0056% $232.3k
Barry Nearhos
Independent Director1.25yrsUS$261.74k0.012% $485.7k
Mary Krakauer
Independent Director2.67yrsUS$186.01k0.018% $736.1k
Lisa Disbrow
Independent Director2.67yrsUS$198.01k0.018% $736.1k

10.2yrs

Average Tenure

62yo

Average Age

Experienced Board: MRCY's board of directors are seasoned and experienced ( 10.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.


Top Shareholders

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$4.126b
  • Shares outstanding: 55.59m
  • 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, and the Asia Pacific. The company’s products and solutions are deployed in approximately 300 programs with 25 defence prime contractors and commercial aviation customers. It offers hardware products, including components, such as power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; embedded processing modules and boards, switch fabric boards, high speed input/output boards, digital receiver boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video processing, and Ethernet and input-output boards; and integrated subsystems. The company also designs, markets, and licenses software and middleware environments to enhance development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms, as well as designs, markets, and sells software and firmware designed to protect electronic systems that are critical to national security. In addition, it offers subsystem level and safety-critical engineering, and ongoing systems integration services. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. Mercury Systems, Inc. was founded in 1981 and is headquartered in Andover, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:06
End of Day Share Price2020/03/30 00:00
Earnings2019/12/27
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.