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.


Snowflake Analysis

Adequate balance sheet with questionable track record.


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

8.3%

MRC

5.7%

US Trade Distributors

2.8%

US Market


1 Year Return

-60.7%

MRC

0.9%

US Trade Distributors

9.3%

US Market

Return vs Industry: MRC underperformed the US Trade Distributors industry which returned 0.9% over the past year.

Return vs Market: MRC underperformed the US Market which returned 9.3% over the past year.


Shareholder returns

MRCIndustryMarket
7 Day8.3%5.7%2.8%
30 Day28.3%15.1%8.9%
90 Day-31.1%-3.5%-0.5%
1 Year-60.7%-60.7%2.9%0.9%11.8%9.3%
3 Year-66.7%-66.7%15.3%10.1%31.4%22.7%
5 Year-58.5%-58.5%24.7%15.0%58.7%40.9%

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?

6.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MRC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MRC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MRC is poor value based on its PE Ratio (84x) compared to the Trade Distributors industry average (15.7x).

PE vs Market: MRC is poor value based on its PE Ratio (84x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: MRC is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: MRC is good value based on its PB Ratio (0.8x) compared to the US Trade Distributors industry average (1.2x).


Next Steps

Future Growth

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

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRC's forecast earnings growth (16.9% per year) is above the savings rate (2.2%).

Earnings vs Market: MRC's earnings (16.9% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: MRC's revenue (2.1% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: MRC's revenue (2.1% 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


Next Steps

Past Performance

How has MRC Global performed over the past 5 years?

32.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRC has high quality earnings.

Growing Profit Margin: MRC's current net profit margins (0.2%) 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 32.6% 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 (-88%) over the past year, making it difficult to compare to the Trade Distributors industry average (-5.5%).


Return on Equity

High ROE: MRC's Return on Equity (3.1%) is considered low.


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 ($518.0M).

Long Term Liabilities: MRC's short term assets ($1.2B) exceed its long term liabilities ($811.0M).


Debt to Equity History and Analysis

Debt Level: MRC's debt to equity ratio (53.6%) is considered high.

Reducing Debt: MRC's debt to equity ratio has reduced from 98.4% to 53.6% over the past 5 years.

Debt Coverage: MRC's debt is well covered by operating cash flow (61.2%).

Interest Coverage: MRC's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is MRC Global's 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?

7.8yrs

Average management tenure


CEO

Andy Lane (60yo)

11.75yrs

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 ($USD5.51M) is above average for companies of similar size in the US market ($USD2.22M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Lane
President11.75yrsUS$5.51m0.65% $3.2m
Kelly Youngblood
Executive VP & CFO0.25yrUS$2.03mno data
Daniel Churay
Executive VP of Corporate Affairs8.83yrsUS$1.26m0.038% $191.2k
Grant Bates
Senior Vice President of Strategy0.42yrUS$1.04m0.045% $227.5k
John Bowhay
Senior Vice President of International Operations & Global VAMI0.42yrUS$1.22m0.068% $343.4k
Elton Bond
Senior VP & Chief Accounting Officer9.08yrsno data0.072% $359.8k
Monica Broughton
Vice President of Investor Relationsno datano datano data
Robert Stein
Senior Vice President of Business Development & Supply Chain7.75yrsno data0.071% $354.1k
Karl Witt
Senior Vice President of North American Operations4.17yrsno data0.071% $354.6k
John Durbin
Senior VP & Treasurer8.75yrsno datano data

7.8yrs

Average Tenure

57yo

Average Age

Experienced Management: MRC's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Lane
President11.75yrsUS$5.51m0.65% $3.2m
Henry Cornell
Director2yrsUS$198.77k0.055% $277.1k
Rhys Best
Independent Non-Executive Chairman4.17yrsUS$297.77k0.18% $919.9k
Leonard Anthony
Independent Director11.67yrsUS$215.77k0.11% $550.9k
Robert Wood
Independent Director4.83yrsUS$220.77k0.073% $364.0k
John Perkins
Independent Director10.5yrsUS$202.77k0.19% $948.7k
Barbara Duganier
Independent Director5.17yrsUS$225.77k0.066% $332.5k
Cornelis Linse
Independent Director10.08yrsUS$202.53k0.082% $413.0k
Deborah Adams
Independent Director2.67yrsUS$202.77k0.057% $285.8k

5.2yrs

Average Tenure

64yo

Average Age

Experienced Board: MRC's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MRC 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$501.811m
  • Shares outstanding: 82.00m
  • 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 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, top work components, and valve modification services, as well as 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, tubing, fittings, and flanges; and carbon line pipes. In addition, it offers natural gas distribution products, including risers, meters, polyethylene pipes and fittings, and various other components and industrial supplies; oilfield and industrial supplies and completion equipment, such as 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; and various other services under the ValidTorque and FastTrack names. 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 Analysis2020/06/02 12:14
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
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.