Mercer International Inc
NASDAQ:MERC
Intrinsic Value
Mercer International, Inc. engages in the manufacture and sale of pulp. [ Read More ]
The intrinsic value of one
MERC
stock under the Base Case scenario is
20.1
USD.
Compared to the current market price of 10.23 USD,
Mercer International Inc
is
Undervalued by 49%.
MERC's market price has consistently been higher than its intrinsic value.This persistent overvaluation suggests the market may be overly optimistic about
MERC or that its price is influenced by factors unrelated to fundamentals.
Mercer International Inc's market capitalization is 680.6m USD.
MERC stock price is 10.23 USD.
MERC stock price (10.23 USD) is 49% less than its Intrinsic Value (20.1 USD).
MERC. Open DCF Valuation
MERC stock price (10.23 USD) is 49% less than its Relative Value (20.1 USD). Open Relative Valuation
MERC has downside potential of 3% compared to the average analyst price target.
Open Wall St Estimates
MERC has negative Operating Income for the last twelve months.
MERC has negative Free Cash Flow for the last twelve months.
MERC has positive three-year average ROIC (Return on Invested Capital): 9%. The company is efficient at using invested capital to generate operating income.
MERC has positive three-year average ROE (Return on Equity): 12%. The company is efficient at transforming stockholders' equity into net income.
MERC has positive Gross Profit for the last twelve months.
MERC's long-term assets (3B USD) exceed its long-term liabilties (2B USD).
MERC's Revenue has dropped by 13% over the past 12 months.
MERC has negative Net Income for the last twelve months.
MERC's Revenue has been growing by 12% per year for the last 3 years.
MERC's ROIC (Return on Invested Capital) for the past 12 months is negative and is equal to -4%.
MERC's ROIC (Return on Invested Capital) has significantly decreased in the last 3 years from 12% to -4%.
MERC's ROE (Return on Equity) has significantly decreased in the last 3 years from -2% to -33%, and is approaching profitability.
MERC's ROE (Return on Equity) for the past 12 months is negative and is equal to -33%.
MERC's D/E (Debt to Equity) is very high and is equal to 2.53.
MERC has positive Net Debt. This means that the company has more debt (2B USD) than cash and short-term investments (314m USD).
MERC's Altman Z-Score is very low and is equal to 1.21.
MERC's short-term assets (1B USD) exceed its short-term liabilties (286m USD).
MERC doesn't generate enough operating income (-96m USD) to safely cover interest payments on its debt (80m USD).
Valuation Backtest
Mercer International Inc
Run backtest to discover the historical profit from buying and selling
MERC
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Mercer International Inc
Balance Sheet Decomposition
Mercer International Inc
| Current Assets | 1.1B |
| Cash & Short-Term Investments | 314m |
| Receivables | 306.2m |
| Other Current Assets | 472.7m |
| Non-Current Assets | 1.6B |
| Long-Term Investments | 41.7m |
| PP&E | 1.4B |
| Intangibles | 88m |
| Other Non-Current Assets | 18.3m |
| Current Liabilities | 286.4m |
| Accounts Payable | 61.1m |
| Accrued Liabilities | 161.1m |
| Other Current Liabilities | 64.3m |
| Non-Current Liabilities | 1.7B |
| Long-Term Debt | 1.6B |
| Other Non-Current Liabilities | 131.3m |
Earnings Waterfall
Mercer International Inc
|
Revenue
|
2B
USD
|
|
Cost of Revenue
|
-2B
USD
|
|
Gross Profit
|
26.7m
USD
|
|
Operating Expenses
|
-123.2m
USD
|
|
Operating Income
|
-96.4m
USD
|
|
Other Expenses
|
-145.6m
USD
|
|
Net Income
|
-242.1m
USD
|
Free Cash Flow Analysis
Mercer International Inc
MERC Profitability Score
Profitability Due Diligence
Mercer International Inc's profitability score is 43/100. The higher the profitability score, the more profitable the company is.
Score
Mercer International Inc's profitability score is 43/100. The higher the profitability score, the more profitable the company is.
MERC Solvency Score
Solvency Due Diligence
Mercer International Inc's solvency score is 33/100. The higher the solvency score, the more solvent the company is.
Score
Mercer International Inc's solvency score is 33/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
MERC Price Targets Summary
Mercer International Inc
According to Wall Street analysts, the average 1-year price target for
MERC
is 9.95 USD
with a low forecast of 8.59 USD and a high forecast of 11.55 USD.
Ownership
MERC Insider Trading
Buy and sell transactions by insiders
| Period | Sold | Bought | Net |
|---|---|---|---|
| 3 Months |
|
|
|
| 6 Months |
|
|
|
| 9 Months |
|
|
|
| 12 Months |
|
|
|
Shareholder Return
MERC Price
Mercer International Inc
| Average Annual Return | -0.38% |
| Standard Deviation of Annual Returns | 14.7% |
| Max Drawdown | -64% |
| Market Capitalization | 680.6m USD |
| Shares Outstanding | 66 524 900 |
| Percentage of Shares Shorted | 3.58% |
Company Profile
Mercer International Inc
Country
Industry
Market Cap
Dividend Yield
Description
Mercer International, Inc. engages in the manufacture and sale of pulp. The company is headquartered in Vancouver, British Columbia and currently employs 2,415 full-time employees. The firm operates through two segments: Pulp and Wood Products. Its Pulp segment consists of the manufacture, sale and distribution of pulp, electricity and other byproducts at its pulp mills. Its pulp mills include Rosenthal mill, Stendal mill, Celgar mill, and Peace River mill. The company is a producer of northern bleached softwood kraft (NBSK) pulp, which is the pulp that is sold on the open market. The firm operates two NBSK mills in Eastern Germany and one NBSK mill and a swing kraft mill in Western Canada, which produces both NBSK and northern bleached hardwood kraft (NBHK). The company also produces and sells tall oil, a byproduct of its production process, which is used as both a chemical additive and as a green energy source. Its Wood Products segment consists of the manufacture, sale and distribution of lumber, electricity and other wood residuals at the Friesau mill, Germany.
Contact
IPO
Employees
Officers
The intrinsic value of one
MERC
stock under the Base Case scenario is
20.1
USD.
Compared to the current market price of 10.23 USD,
Mercer International Inc
is
Undervalued by 49%.
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