NYSE:MRC

Stock Analysis Report

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Executive Summary

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy industry in the United States, Canada, and internationally. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MRC is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: MRC's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

6.3%

MRC

2.7%

US Trade Distributors

2.8%

US Market


1 Year Return

-53.1%

MRC

21.1%

US Trade Distributors

20.7%

US Market

Return vs Industry: MRC underperformed the US Trade Distributors industry which returned 21.1% over the past year.

Return vs Market: MRC underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

MRCIndustryMarket
7 Day6.3%2.7%2.8%
30 Day55.9%22.8%12.3%
90 Day7.0%14.7%6.4%
1 Year-53.1%-53.1%23.5%21.1%23.4%20.7%
3 Year-61.1%-61.1%36.8%30.3%47.2%37.4%
5 Year-56.2%-56.2%91.0%77.3%94.1%72.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRC ($6.25) is trading below our estimate of fair value ($13.14)

Significantly Below Fair Value: MRC is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: MRC is unprofitable, so we can't compare its PE Ratio to the US 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 (1.5x) compared to the US Trade Distributors industry average (1.8x).


Next Steps

Future Growth

How is MRC Global forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

95.6%

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 (2.2%).

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 (5.9% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: MRC's revenue (5.9% 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 (9.1%).


Next Steps

Past Performance

How has MRC Global performed over the past 5 years?

27.7%

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, but has reduced losses over the past 5 years at a rate of 27.7% 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 Trade Distributors industry (-6.9%).


Return on Equity

High ROE: MRC has a negative Return on Equity (-41.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is MRC Global's financial position?


Financial Position Analysis

Short Term Liabilities: MRC's short term assets ($994.0M) exceed its short term liabilities ($417.0M).

Long Term Liabilities: MRC's short term assets ($994.0M) exceed its long term liabilities ($686.0M).


Debt to Equity History and Analysis

Debt Level: MRC's debt to equity ratio (58.3%) is considered high.

Reducing Debt: MRC's debt to equity ratio has increased from 38.4% to 58.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MRC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MRC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 6.8% per year.


Next Steps

Dividend

What is MRC Global current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MRC'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 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: 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 MRC'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?

4.6yrs

Average management tenure


CEO

Andy Lane (61 yo)

12.17yrs

Tenure

US$5,506,172

Compensation

Mr. Andrew R. Lane, also known as Andy, has been the Chief Executive Officer and President of MRC Global Inc. and MRC Global (US) Inc. since September 2008. Mr. Lane has been the Chief Executive Officer an...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD5.51M) is above average for companies of similar size in the US market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Lane
President12.17yrsUS$5.51m0.64%
$ 3.3m
Kelly Youngblood
Executive VP & CFO0.67yrUS$2.03m0.18%
$ 906.7k
Daniel Churay
Executive VP of Corporate Affairs9.25yrsUS$1.26m0.038%
$ 195.2k
Grant Bates
Senior Vice President of Strategy0.83yrUS$1.04m0.045%
$ 232.3k
John Bowhay
Senior Vice President of International Operations & Global VAMI0.83yrUS$1.22m0.068%
$ 350.7k
Elton Bond
Senior VP & Chief Accounting Officer9.5yrsno data0.071%
$ 367.5k
Monica Broughton
Vice President of Investor Relationsno datano datano data
Robert Stein
Senior Vice President of Business Development & Supply Chain Transition8.17yrsno data0.070%
$ 361.6k
Rance Long
Senior Vice President of Business Development0.83yrno data0.021%
$ 108.5k
Karl Witt
Senior Vice President of US Operations4.58yrsno data0.070%
$ 362.1k
Jack McCarthy
Senior Vice President of Supply Chain0.83yrno data0.010%
$ 51.4k
John Durbin
Senior VP & Treasurer9.17yrsno datano data

4.6yrs

Average Tenure

58yo

Average Age

Experienced Management: MRC's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Lane
President12.17yrsUS$5.51m0.64%
$ 3.3m
Henry Cornell
Director2.42yrsUS$198.77k0.055%
$ 283.0k
Rhys Best
Independent Non-Executive Chairman4.58yrsUS$297.77k0.18%
$ 939.4k
Leonard Anthony
Independent Director12.08yrsUS$215.77k0.11%
$ 562.6k
Robert Wood
Independent Director5.25yrsUS$220.77k0.072%
$ 371.8k
John Perkins
Independent Director10.92yrsUS$202.77k0.19%
$ 968.9k
Barbara Duganier
Independent Director5.58yrsUS$225.77k0.066%
$ 339.5k
Cornelis Linse
Independent Director10.5yrsUS$202.53k0.082%
$ 421.7k
Deborah Adams
Independent Director3.08yrsUS$202.77k0.057%
$ 291.9k

5.6yrs

Average Tenure

65yo

Average Age

Experienced Board: MRC's board of directors are considered experienced (5.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MRC Global Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MRC Global Inc.
  • Ticker: MRC
  • Exchange: NYSE
  • Founded: 1921
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$513.994m
  • Shares outstanding: 82.24m
  • Website: https://www.mrcglobal.com

Number of Employees


Location

  • MRC Global Inc.
  • Fulbright Tower
  • Suite 2300
  • Houston
  • Texas
  • 77010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRCNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2012

Biography

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy industry in the United States, Canada, and internationally. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:20
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.