MERC Stock Overview
Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) pulp in Europe, the United States, Asia, and internationally.
Mercer International Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$12.97|
|52 Week High||US$17.17|
|52 Week Low||US$9.51|
|1 Month Change||-13.13%|
|3 Month Change||-9.24%|
|1 Year Change||1.17%|
|3 Year Change||-16.16%|
|5 Year Change||12.78%|
|Change since IPO||49.79%|
Recent News & Updates
These 4 Measures Indicate That Mercer International (NASDAQ:MERC) Is Using Debt Extensively
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
|MERC||US Forestry||US Market|
Return vs Industry: MERC exceeded the US Forestry industry which returned -12.4% over the past year.
Return vs Market: MERC exceeded the US Market which returned -18.4% over the past year.
|MERC Average Weekly Movement||6.2%|
|Forestry Industry Average Movement||8.2%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.6%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: MERC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: MERC's weekly volatility (6%) has been stable over the past year.
About the Company
Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) pulp in Europe, the United States, Asia, and internationally. The company operates through two segments, Pulp and Wood Products. It also generates and sells green energy produced from biomass cogeneration power plant to third party utilities.
Mercer International Fundamentals Summary
|MERC fundamental statistics|
Is MERC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MERC income statement (TTM)|
|Cost of Revenue||US$1.35b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Jul 28, 2022
|Earnings per share (EPS)||3.84|
|Net Profit Margin||12.80%|
How did MERC perform over the long term?See historical performance and comparison
2.3%Current Dividend Yield
Does MERC pay a reliable dividends?See MERC dividend history and benchmarks
|Mercer International dividend dates|
|Ex Dividend Date||Jun 28 2022|
|Dividend Pay Date||Jul 07 2022|
|Days until Ex dividend||0 days|
|Days until Dividend pay date||9 days|
Does MERC pay a reliable dividends?See MERC dividend history and benchmarks
Is MERC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for MERC?
Other financial metrics that can be useful for relative valuation.
|What is MERC's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does MERC's PE Ratio compare to its peers?
|MERC PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
RFP Resolute Forest Products
ITP IT Tech Packaging
NEXA Nexa Resources
MERC Mercer International
Price-To-Earnings vs Peers: MERC is good value based on its Price-To-Earnings Ratio (3.4x) compared to the peer average (4.7x).
Price to Earnings Ratio vs Industry
How does MERC's PE Ratio compare vs other companies in the Global Forestry Industry?
Price-To-Earnings vs Industry: MERC is expensive based on its Price-To-Earnings Ratio (3.4x) compared to the US Forestry industry average (3.4x)
Price to Earnings Ratio vs Fair Ratio
What is MERC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||3.4x|
|Fair PE Ratio||4.2x|
Price-To-Earnings vs Fair Ratio: MERC is good value based on its Price-To-Earnings Ratio (3.4x) compared to the estimated Fair Price-To-Earnings Ratio (4.2x).
Share Price vs Fair Value
What is the Fair Price of MERC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MERC ($12.97) is trading below our estimate of fair value ($16.69)
Significantly Below Fair Value: MERC is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: MERC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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How is Mercer International forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MERC's earnings are forecast to decline over the next 3 years (-43.5% per year).
Earnings vs Market: MERC's earnings are forecast to decline over the next 3 years (-43.5% per year).
High Growth Earnings: MERC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MERC's revenue is expected to decline over the next 3 years (-6.7% per year).
High Growth Revenue: MERC's revenue is forecast to decline over the next 3 years (-6.7% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MERC's Return on Equity is forecast to be low in 3 years time (16.3%).
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How has Mercer International performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MERC has high quality earnings.
Growing Profit Margin: MERC became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MERC's earnings have grown by 0.6% per year over the past 5 years.
Accelerating Growth: MERC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MERC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (76.7%).
Return on Equity
High ROE: Whilst MERC's Return on Equity (33.05%) is high, this metric is skewed due to their high level of debt.
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How is Mercer International's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: MERC's short term assets ($1.2B) exceed its short term liabilities ($281.2M).
Long Term Liabilities: MERC's short term assets ($1.2B) do not cover its long term liabilities ($1.4B).
Debt to Equity History and Analysis
Debt Level: MERC's net debt to equity ratio (104.5%) is considered high.
Reducing Debt: MERC's debt to equity ratio has reduced from 163.2% to 158% over the past 5 years.
Debt Coverage: MERC's debt is not well covered by operating cash flow (18.2%).
Interest Coverage: MERC's interest payments on its debt are well covered by EBIT (6.1x coverage).
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What is Mercer International current dividend yield, its reliability and sustainability?
Dividend Score 2/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MERC's dividend (2.31%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: MERC's dividend (2.31%) is low compared to the top 25% of dividend payers in the US market (4.24%).
Stability and Growth of Payments
Stable Dividend: MERC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MERC has only been paying a dividend for 7 years, and since then payments have fallen.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (7%), MERC's dividend payments are thoroughly covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (37.8%), MERC's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Juan Bueno (53 yo)
Mr. Juan Carlos Bueno, M.Sc. (Industrial Eng.), joined Mercer International Inc. as President, Chief Executive Officer, and Director in May 01, 2022. He has served as an Executive Vice President of Biomate...
Experienced Management: MERC's management team is considered experienced (3.3 years average tenure).
Experienced Board: MERC's board of directors are considered experienced (4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Mercer International Inc.'s employee growth, exchange listings and data sources
- Name: Mercer International Inc.
- Ticker: MERC
- Exchange: NasdaqGS
- Founded: 1968
- Industry: Paper Products
- Sector: Materials
- Implied Market Cap: US$857.100m
- Shares outstanding: 66.08m
- Website: https://www.mercerint.com
Number of Employees
- Mercer International Inc.
- 700 West Pender Street
- Suite 1120
- British Columbia
- V6C 1G8
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/26 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.