Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) pulp in Europe, the United States, Asia, and internationally. More Details
Reasonable growth potential and slightly overvalued.
Share Price & News
How has Mercer International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MERC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MERC's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MERC underperformed the US Forestry industry which returned 80.4% over the past year.
Return vs Market: MERC exceeded the US Market which returned 43.1% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Mercer International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StMercer International (NASDAQ:MERC) Has Re-Affirmed Its Dividend Of US$0.065
3 weeks ago | Simply Wall StHere's Why Mercer International Inc.'s (NASDAQ:MERC) CEO Is Unlikely to Expect A Pay Rise This Year
3 weeks ago | Simply Wall StHave Insiders Sold Mercer International Inc. (NASDAQ:MERC) Shares Recently?
Is Mercer International undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MERC ($13.5) is trading below our estimate of fair value ($27.89)
Significantly Below Fair Value: MERC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MERC is unprofitable, so we can't compare its PE Ratio to the US Forestry industry average.
PE vs Market: MERC 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 MERC's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MERC is overvalued based on its PB Ratio (1.6x) compared to the US Forestry industry average (1.2x).
How is Mercer International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MERC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: MERC is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: MERC's is expected to become profitable in the next 3 years.
Revenue vs Market: MERC's revenue (4.9% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: MERC's revenue (4.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MERC's Return on Equity is forecast to be high in 3 years time (28.8%)
How has Mercer International performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MERC is currently unprofitable.
Growing Profit Margin: MERC is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MERC is unprofitable, and losses have increased over the past 5 years at a rate of 24.3% per year.
Accelerating Growth: Unable to compare MERC's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: MERC is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (323.1%).
Return on Equity
High ROE: MERC has a negative Return on Equity (-1.39%), as it is currently unprofitable.
How is Mercer International's financial position?
Financial Position Analysis
Short Term Liabilities: MERC's short term assets ($935.1M) exceed its short term liabilities ($230.2M).
Long Term Liabilities: MERC's short term assets ($935.1M) do not cover its long term liabilities ($1.4B).
Debt to Equity History and Analysis
Debt Level: MERC's debt to equity ratio (209.5%) is considered high.
Reducing Debt: MERC's debt to equity ratio has increased from 144.9% to 209.5% over the past 5 years.
Debt Coverage: MERC's debt is not well covered by operating cash flow (11.9%).
Interest Coverage: MERC is unprofitable, therefore interest payments are not well covered by earnings.
What is Mercer International current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MERC's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: MERC's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (3.36%).
Stability and Growth of Payments
Stable Dividend: MERC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MERC has only been paying a dividend for 6 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: MERC is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: MERC's dividends in 3 years are forecast to be well covered by earnings (15.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Gandossi (62 yo)
Mr. David M. Gandossi, FCPA, F.C.A., has been the Chief Executive Officer, President and Director at Mercer International Inc. since July 20, 2015. Mr. Gandossi served as the Chief Financial Officer, Execu...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD2.65M) is about average for companies of similar size in the US market ($USD2.39M).
Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.
Experienced Management: MERC's management team is seasoned and experienced (5.9 years average tenure).
Experienced Board: MERC's board of directors are considered experienced (3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MERC insiders have sold more shares than they have bought 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 company bio, employee growth, exchange listings and data sources
- Name: Mercer International Inc.
- Ticker: MERC
- Exchange: NasdaqGS
- Founded: 1968
- Industry: Paper Products
- Sector: Materials
- Market Cap: US$889.923m
- Shares outstanding: 65.92m
- Website: https://www.mercerint.com
Number of Employees
- Mercer International Inc.
- 700 West Pender Street
- Suite 1120
- British Columbia
- V6C 1G8
Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) pulp in Europe, the United States, Asia, and internationally. It operates through t...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/15 06:38|
|End of Day Share Price||2021/06/14 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.