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MRC

MRC Global NYSE:MRC Stock Report

Last Price

US$10.01

Market Cap

US$836.9m

7D

-11.6%

1Y

14.0%

Updated

10 Aug, 2022

Data

Company Financials +
MRC fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends0/6

MRC Stock Overview

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy, industrial, and gas utility end-markets in the United States, Canada, and internationally.

MRC Global Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MRC Global
Historical stock prices
Current Share PriceUS$10.01
52 Week HighUS$13.45
52 Week LowUS$6.38
Beta1.99
1 Month Change-4.49%
3 Month Change6.60%
1 Year Change14.01%
3 Year Change-24.34%
5 Year Change-35.83%
Change since IPO-52.42%

Recent News & Updates

Jul 25
MRC Global (NYSE:MRC) Is Experiencing Growth In Returns On Capital

MRC Global (NYSE:MRC) Is Experiencing Growth In Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...

Shareholder Returns

MRCUS Trade DistributorsUS Market
7D-11.6%3.4%1.2%
1Y14.0%0.7%-11.6%

Return vs Industry: MRC exceeded the US Trade Distributors industry which returned 0.5% over the past year.

Return vs Market: MRC exceeded the US Market which returned -13.5% over the past year.

Price Volatility

Is MRC's price volatile compared to industry and market?
MRC volatility
MRC Average Weekly Movement9.1%
Trade Distributors Industry Average Movement6.6%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.2%

Stable Share Price: MRC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: MRC's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19212,600Rob Saltielhttps://www.mrcglobal.com

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy, industrial, and gas utility end-markets in the United States, Canada, and internationally. It offers ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves; and other products, such as lined corrosion resistant piping systems, control valves, valve automation, and top work components, as well as valve modification services; and measurement, steam, and instrumentation products. The company also provides carbon steel fittings and flanges comprising carbon weld fittings, flanges, and piping components; stainless steel, alloy and corrosion resistant pipes, tubing, fittings, and flanges; and carbon line pipes.

MRC Global Fundamentals Summary

How do MRC Global's earnings and revenue compare to its market cap?
MRC fundamental statistics
Market CapUS$836.86m
Earnings (TTM)-US$9.00m
Revenue (TTM)US$2.96b

0.3x

P/S Ratio

-93.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRC income statement (TTM)
RevenueUS$2.96b
Cost of RevenueUS$2.47b
Gross ProfitUS$489.00m
Other ExpensesUS$498.00m
Earnings-US$9.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.11
Gross Margin16.51%
Net Profit Margin-0.30%
Debt/Equity Ratio50.7%

How did MRC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MRC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MRC?

Other financial metrics that can be useful for relative valuation.

MRC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA18.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does MRC's PS Ratio compare to its peers?

MRC PS Ratio vs Peers
The above table shows the PS ratio for MRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.8x
DNOW NOW
0.6x5.0%US$1.2b
HEES H&E Equipment Services
1.1x9.1%US$1.3b
DXPE DXP Enterprises
0.4x9.3%US$530.9m
GIC Global Industrial
1.1x1.7%US$1.2b
MRC MRC Global
0.3x5.9%US$836.9m

Price-To-Sales vs Peers: MRC is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.8x).


Price to Earnings Ratio vs Industry

How does MRC's PE Ratio compare vs other companies in the US Trade Distributors Industry?

Price-To-Sales vs Industry: MRC is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Trade Distributors industry average (1.1x)


Price to Sales Ratio vs Fair Ratio

What is MRC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MRC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: MRC is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).


Share Price vs Fair Value

What is the Fair Price of MRC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MRC ($10.01) is trading below our estimate of fair value ($31.01)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is MRC Global forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


92.3%

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 (1.9%).

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 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 (7.9% 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: Insufficient data to determine if MRC's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has MRC Global performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-35.1%

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 35.1% 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 (70.5%).


Return on Equity

High ROE: MRC has a negative Return on Equity (2.14%), as it is currently unprofitable.


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Financial Health

How is MRC Global's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MRC's short term assets ($1.1B) exceed its short term liabilities ($549.0M).

Long Term Liabilities: MRC's short term assets ($1.1B) exceed its long term liabilities ($613.0M).


Debt to Equity History and Analysis

Debt Level: MRC's net debt to equity ratio (47.7%) is considered high.

Reducing Debt: MRC's debt to equity ratio has increased from 36.6% to 50.7% 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: MRC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MRC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MRC has not reported any payouts.


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Management

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

1.9yrs

Average management tenure


CEO

Rob Saltiel (59 yo)

1.42yrs

Tenure

US$6,056,146

Compensation

Mr. Robert James Saltiel, Jr., also known as Rob, has been President, Chief Executive Officer and Director of MRC Global Inc. since March 15, 2021. He had been the President, Chief Executive Officer and Di...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD6.06M) is above average for companies of similar size in the US market ($USD3.93M).

Compensation vs Earnings: Insufficient data to compare Rob's compensation with company performance.


Leadership Team

Experienced Management: MRC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: MRC's board of directors are considered experienced (4.8 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

MRC Global Inc.'s 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
  • Implied Market Cap: US$836.861m
  • Shares outstanding: 83.60m
  • Website: https://www.mrcglobal.com

Number of Employees


Location

  • MRC Global Inc.
  • 1301 McKinney Street
  • Suite 2300
  • Houston
  • Texas
  • 77010
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.