NYSE:MRC

Stock Analysis Report

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.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.2%

MRC

-0.2%

US Trade Distributors

0.06%

US Market


1 Year Return

-43.8%

MRC

9.6%

US Trade Distributors

19.4%

US Market

Return vs Industry: MRC underperformed the US Trade Distributors industry which returned 9.6% over the past year.

Return vs Market: MRC underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

MRCIndustryMarket
7 Day-7.2%-0.2%0.06%
30 Day-21.0%-2.5%1.1%
90 Day-23.1%1.7%8.9%
1 Year-43.8%-43.8%11.6%9.6%21.9%19.4%
3 Year-49.2%-49.2%19.8%14.2%48.9%39.3%
5 Year-18.4%-18.4%42.8%32.1%71.9%53.1%

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?

58.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRC ($10.58) is trading above our estimate of fair value ($9.46)

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


Price To Earnings Ratio

PE vs Industry: MRC is poor value based on its PE Ratio (58.5x) compared to the Trade Distributors industry average (16.4x).

PE vs Market: MRC is poor value based on its PE Ratio (58.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: MRC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: MRC is good value based on its PB Ratio (1.3x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is MRC Global forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRC's forecast earnings growth (29.1% per year) is above the savings rate (1.7%).

Earnings vs Market: MRC's earnings (29.1% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: MRC's revenue (1.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MRC's revenue (1.1% 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 (9.6%).


Next Steps

Past Performance

How has MRC Global performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRC has high quality earnings.

Growing Profit Margin: MRC's current net profit margins (0.4%) are lower than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: MRC has become profitable over the past 5 years, growing earnings by 20.9% per year.

Accelerating Growth: MRC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MRC had negative earnings growth (-70%) over the past year, making it difficult to compare to the Trade Distributors industry average (3.5%).


Return on Equity

High ROE: MRC's Return on Equity (3.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MRC Global's financial position?


Financial Position Analysis

Short Term Liabilities: MRC's short term assets ($1.2B) exceed its short term liabilities ($486.0M).

Long Term Liabilities: MRC's short term assets ($1.2B) exceed its long term liabilities ($842.0M).


Debt to Equity History and Analysis

Debt Level: MRC's debt to equity ratio (55.3%) is considered high.

Reducing Debt: MRC's debt to equity ratio has reduced from 104% to 55.3% over the past 5 years.


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 2.2x debt).


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 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: MRC is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.91%

Forecast Dividend Yield


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 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: 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?

7.4yrs

Average management tenure


CEO

Andy Lane (60yo)

11.4yrs

Tenure

US$6,235,599

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 ($USD6.24M) is above average for companies of similar size in the US market ($USD2.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Lane
President11.4yrsUS$6.24m0.72% $6.1m
James Braun
CFO & Executive VP8.3yrsUS$1.92m0.22% $1.9m
Grant Bates
Senior Vice President of Operations1.1yrsUS$1.21m0.046% $390.6k
Daniel Churay
Executive VP of Corporate Affairs8.5yrsUS$1.53m0.038% $326.7k
John Bowhay
Senior Vice President of Supply Chain Management5.5yrsUS$1.22m0.069% $587.0k
Elton Bond
Senior VP & Chief Accounting Officer8.8yrsno data0.056% $479.0k
Monica Broughton
Vice President of Investor Relations0yrsno datano data
Robert Stein
Senior Vice President of Business Development7.4yrsno data0.071% $605.2k
Karl Witt
Senior Vice President of US Operations3.8yrsno data0.067% $574.1k
Kelly Youngblood
Executive Vice President0.3yrsno datano data

7.4yrs

Average Tenure

57yo

Average Age

Experienced Management: MRC's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Lane
President11.4yrsUS$6.24m0.72% $6.1m
Henry Cornell
Director1.7yrsUS$160.97k0.032% $272.0k
Rhys Best
Non-Executive Chairman3.8yrsUS$317.48k0.12% $990.4k
Leonard Anthony
Independent Director11.3yrsUS$226.70k0.087% $740.0k
Robert Wood
Independent Director4.5yrsUS$231.70k0.049% $420.6k
John Perkins
Independent Director10.2yrsUS$213.70k0.11% $896.8k
Barbara Duganier
Independent Director4.8yrsUS$236.70k0.043% $366.7k
Henry Wehrle
Independent Director13.1yrsUS$209.70k0.54% $4.6m
Craig Ketchum
Director12.3yrsUS$209.70k0.091% $775.8k
Cornelis Linse
Independent Director9.8yrsUS$211.70k0.053% $450.0k

10.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: MRC's board of directors are considered experienced (10 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$851.538m
  • Shares outstanding: 81.41m
  • Website: https://www.mrcglobal.com/NorthAmerica/us

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 supplies products across various markets, such as upstream, midstream, and downstream. 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 products, and top work components, as well as measurement, steam, and instrumentation products. The company also provides carbon steel fittings and flanges, including carbon weld fittings, flanges, and piping components; stainless, alloy, and corrosion resistant pipes, tubing, fittings, and flanges; and carbon line pipes. In addition, it offers natural gas distribution products comprising risers, meters, polyethylene pipes and fittings, and various other components and industrial supplies; oilfield and industrial supplies and completion equipment consisting of high density polyethylene pipes, fittings, and rods; and specialized production equipment comprising tanks and separators. Further, the company provides various services, such as product testing, manufacturer assessments, multiple daily deliveries, volume purchasing, inventory and zone store management and warehousing, technical support, training, just-in-time delivery, truck stocking, order consolidation, product tagging, and system interfaces. Its products are used in the construction, maintenance, repair, and overhaul of equipment used in extreme operating conditions, including high pressure, high/low temperature, and high corrosive and abrasive environments. The company was formerly known as McJunkin Red Man Holding Corporation and changed its name to MRC Global Inc. in January 2012. MRC Global Inc. was founded in 1921 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:03
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.