MRCY Stock Analysis: Mercury Systems | NASDAQ
Aerospace & Defense | NASDAQ, USA | Market Cap: 5.165m USD | 12M Return: 3.7% | US5893781089 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 49.1M
Qual. Beats: 0
Rev. Trend: 53.4%
Qual. Beats: 3
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Mercury Systems, Inc. (NASDAQ: MRCY) is a U.S.-based aerospace and defense electronics company that designs, manufactures, and sells components, modules, and subsystems primarily to defense prime contractors, government agencies, and commercial aerospace customers. Its product portfolio spans radio frequency and microwave components (such as amplifiers, filters, converters, and monolithic microwave integrated circuits), embedded processing boards, digital receivers, and integrated radio frequency assemblies, as well as higher-level subsystems including digital RF memory units for electronic warfare, radar environment simulation systems, signals intelligence payloads, and onboard processors for unmanned aerial vehicles (UAVs).
The company operates across the United States, Europe, and the Asia Pacific, and is headquartered in Andover, Massachusetts. It was incorporated in 1981 under the name Mercury Computer Systems, Inc., adopting its current name in November 2012. Mercury sits within the defense electronics segment of the broader aerospace and defense industry, a sector characterized by long product lifecycles, stringent certification and qualification requirements, and close integration with a limited number of prime contractors and government end-users.
- Defense spending growth lifts mission-critical processing backlog
- Electronic warfare demand accelerates subsystem revenue
- Margin pressure persists from supply chain and labor costs
| Net Income: -29.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -2.09 > 1.0 |
| NWC/Revenue: 65.57% < 20% (prev 83.09%; Δ -17.53% < -1%) |
| CFO/TA 0.04 > 3% & CFO 99.2m > Net Income -29.7m |
| Net Debt (332.4m) to EBITDA (76.1m): 4.37 < 3 |
| Current Ratio: 2.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (61.3m) vs 12m ago 4.27% < -2% |
| Gross Margin: 26.66% > 18% (prev 27.90%; Δ -1.25% > 0.5%) |
| Asset Turnover: 41.35% > 50% (prev 37.46%; Δ 3.89% > 0%) |
| Interest Coverage Ratio: 0.11 > 6 (EBIT TTM 3.39m / Interest Expense TTM 29.6m) |
| A: 0.28 (Total Current Assets 973.4m - Total Current Liabilities 328.5m) / Total Assets 2.32b |
| B: 0.07 (Retained Earnings 152.2m / Total Assets 2.32b) |
| C: 0.00 (EBIT TTM 3.39m / Avg Total Assets 2.38b) |
| D: 1.81 (Book Value of Equity 1.50b / Total Liabilities 825.3m) |
| Altman-Z'' = 3.95 = AA |
| DSRI: 0.85 (Receivables 355.0m/388.1m, Revenue 983.6m/912.0m) |
| GMI: 1.05 (GM 27.90% / 26.66%) |
| AQI: 1.02 (AQ_t 0.51 / AQ_t-1 0.50) |
| SGI: 1.08 (Revenue 983.6m / 912.0m) |
| TATA: -0.06 (NI -29.7m - CFO 99.2m) / TA 2.32b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of October 12, 2026, the stock is trading at USD 79.49 with a total of 294,169 shares traded. Over the past week, the price has changed by -6.34%, over one month by -1.39%, over three months by -19.10% and over the past year by +3.65%.
Current recommended Stop Loss: 70.70 (which is 11.1% or 2.5 ATR below the current price).
Mercury Systems has received a consensus analysts rating of 4.09. Therefore, it is recommended to buy MRCY.
- StrongBuy: 6
- Buy: 2
- Hold: 2
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 115.7 | 45.6% |
P/E Forward = 50.0
P/S = 5.2515
P/B = 3.365
P/EG = 2.788
Revenue TTM = 983.6m USD
EBIT TTM = 3.39m USD
EBITDA TTM = 76.1m USD
Long Term Debt = 441.5m USD (from longTermDebt, last quarter)
Short Term Debt = 13.6m USD (from shortTermDebt, last quarter)
Debt = 546.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 45.8m
Net Debt = 332.4m USD (calculated: Debt 546.7m - CCE 214.3m)
Enterprise Value = 5.50b USD (5.17b + Debt 546.7m - CCE 214.3m)
Interest Coverage Ratio = 0.11 (Ebit TTM 3.39m / Interest Expense TTM 29.6m)
EV/FCF = 84.67x (Enterprise Value 5.50b / FCF TTM 64.9m)
FCF Yield = 1.18% (FCF TTM 64.9m / Enterprise Value 5.50b)
FCF Margin = 6.60% (FCF TTM 64.9m / Revenue TTM 983.6m)
Net Margin = -3.02% (Net Income TTM -29.7m / Revenue TTM 983.6m)
Gross Margin = 26.66% ((Revenue TTM 983.6m - Cost of Revenue TTM 721.4m) / Revenue TTM)
Gross Margin QoQ = 27.33% (prev 25.23%)
Tobins Q-Ratio = 2.37 (Enterprise Value 5.50b / Total Assets 2.32b)
Interest Expense / Debt = 5.41% (Interest Expense 29.6m / Debt 546.7m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 2.68m (EBIT 3.39m * (1 - 21.00%))
Current Ratio = 2.96 (Total Current Assets 973.4m / Total Current Liabilities 328.5m)
Debt / Equity = 0.37 (Debt 546.7m / totalStockholderEquity, last quarter 1.50b)
Debt / EBITDA = 4.37 (Net Debt 332.4m / EBITDA 76.1m)
Debt / FCF = 5.12 (Net Debt 332.4m / FCF TTM 64.9m)
Total Stockholder Equity = 1.48b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.25% (Net Income -29.7m / Total Assets 2.32b)
RoE = -2.01% (Net Income TTM -29.7m / Total Stockholder Equity 1.48b)
RoCE = 0.18% (EBIT 3.39m / Capital Employed (Equity 1.48b + L.T.Debt 441.5m))
RoIC = 0.14% (NOPAT 2.68m / Invested Capital 1.96b)
WACC = 11.63% (E(5.17b)/V(5.71b) * Re(12.41%) + D(546.7m)/V(5.71b) * Rd(5.41%) * (1-Tc(0.21)))
Discount Rate = 12.41% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 87.03 | Cagr: 2.26%
[DCF] Terminal Value 61.91% ; FCFF base≈86.6m ; Y1≈75.9m ; Y5≈61.3m
[DCF] Fair Price = 5.08 (EV 641.6m - Net Debt 332.4m = Equity 309.1m / Shares 60.9m; r=11.63% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.22 | # QB: 0
Revenue Correlation: 53.39 | Revenue CAGR: 2.22% | SUE: 1.02 | # QB: 3
EPS current Quarter (2026-09-30): EPS=0.30 | Chg30d=+14.69% | Revisions=+44% | Analysts=11
EPS next Quarter (2026-12-31): EPS=0.35 | Chg30d=+8.76% | Revisions=+22% | Analysts=11
EPS current Year (2027-06-30): EPS=1.67 | Chg30d=+10.91% | Revisions=+50% | GrowthEPS=+57.6% | GrowthRev=+10.5%
EPS next Year (2028-06-30): EPS=2.23 | Chg30d=+3.79% | Revisions=+22% | GrowthEPS=+33.5% | GrowthRev=+11.4%
[Analyst] Revisions Ratio: +46% (up=19, down=6)