MRCY Stock Analysis: Mercury Systems | NASDAQ
Aerospace & Defense | NASDAQ, USA | Market Cap: 6.568m USD | 12M Return: 145.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 86.4M
Qual. Beats: 1
Rev. Trend: 3.3%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 10.5 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. is a U.S.-based technology company that designs and manufactures components, modules, and subsystems for defense prime contractors, OEMs, government agencies, and commercial aerospace customers. Its product portfolio spans RF and microwave components, embedded processing boards, digital receivers, and integrated subsystems, with specialized offerings in electronic warfare, radar environment simulation, signals intelligence payloads, and EO/IR technologies for small UAV platforms.
The company operates across the United States, Europe, and Asia Pacific, and is headquartered in Andover, Massachusetts. Originally incorporated in 1981 as Mercury Computer Systems, it adopted its current name in November 2012. As a player in the Aerospace & Defense sector, Mercury focuses on mission-critical defense electronics, a segment where suppliers typically benefit from long product lifecycles and high barriers to entry driven by stringent certification and security requirements.
- DoD spending on EW and missile defense boosts bookings momentum
- Supply chain inflation and M&A costs pressure near-term margins
- Consolidation strategy faces scrutiny as organic growth reaccelerates
| Net Income: -14.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -3.23 > 1.0 |
| NWC/Revenue: 79.24% < 20% (prev 81.46%; Δ -2.22% < -1%) |
| CFO/TA 0.04 > 3% & CFO 95.2m > Net Income -14.1m |
| Net Debt (370.5m) to EBITDA (88.4m): 4.19 < 3 |
| Current Ratio: 3.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (59.4m) vs 12m ago 1.08% < -2% |
| Gross Margin: 27.69% > 18% (prev 27.37%; Δ 0.32% > 0.5%) |
| Asset Turnover: 39.50% > 50% (prev 36.76%; Δ 2.74% > 0%) |
| Interest Coverage Ratio: 0.43 > 6 (EBIT TTM 13.2m / Interest Expense TTM 31.1m) |
| A: 0.31 (Total Current Assets 1.12b - Total Current Liabilities 350.5m) / Total Assets 2.48b |
| B: 0.06 (Retained Earnings 151.4m / Total Assets 2.48b) |
| C: 0.01 (EBIT TTM 13.2m / Avg Total Assets 2.45b) |
| D: 1.47 (Book Value of Equity 1.48b / Total Liabilities 1.00b) |
| Altman-Z'' = 3.81 = AA |
| DSRI: 0.89 (Receivables 365.0m/374.7m, Revenue 966.9m/887.5m) |
| GMI: 0.99 (GM 27.37% / 27.69%) |
| AQI: 0.96 (AQ_t 0.49 / AQ_t-1 0.51) |
| SGI: 1.09 (Revenue 966.9m / 887.5m) |
| TATA: -0.04 (NI -14.1m - CFO 95.2m) / TA 2.48b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of July 06, 2026, the stock is trading at USD 126.21 with a total of 595,300 shares traded. Over the past week, the price has changed by +19.55%, over one month by +13.43%, over three months by +66.59% and over the past year by +145.31%.
Current recommended Stop Loss: 114.80 (which is 9% or 1.7 ATR below the current price).
Mercury Systems has received a consensus analysts rating of 3.56. Therefore, it is recommended to hold MRCY.
- StrongBuy: 3
- Buy: 1
- Hold: 3
- Sell: 2
- StrongSell: 0
| Analysts Target Price | 101.5 | -19.6% |
P/E Forward = 72.9927
P/S = 6.792
P/B = 4.4392
P/EG = 2.788
Revenue TTM = 966.9m USD
EBIT TTM = 13.2m USD
EBITDA TTM = 88.4m USD
Long Term Debt = 591.5m USD (from longTermDebt, last quarter)
Short Term Debt = 14.1m USD (from shortTermDebt, last quarter)
Debt = 702.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 48.3m
Net Debt = 370.5m USD (calculated: Debt 702.3m - CCE 331.8m)
Enterprise Value = 6.94b USD (6.57b + Debt 702.3m - CCE 331.8m)
Interest Coverage Ratio = 0.43 (Ebit TTM 13.2m / Interest Expense TTM 31.1m)
EV/FCF = 98.63x (Enterprise Value 6.94b / FCF TTM 70.3m)
FCF Yield = 1.01% (FCF TTM 70.3m / Enterprise Value 6.94b)
FCF Margin = 7.27% (FCF TTM 70.3m / Revenue TTM 966.9m)
Net Margin = -1.46% (Net Income TTM -14.1m / Revenue TTM 966.9m)
Gross Margin = 27.69% ((Revenue TTM 966.9m - Cost of Revenue TTM 699.2m) / Revenue TTM)
Gross Margin QoQ = 25.23% (prev 26.04%)
Tobins Q-Ratio = 2.80 (Enterprise Value 6.94b / Total Assets 2.48b)
Interest Expense / Debt = 4.43% (Interest Expense 31.1m / Debt 702.3m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 10.4m (EBIT 13.2m * (1 - 21.00%))
Current Ratio = 3.19 (Total Current Assets 1.12b / Total Current Liabilities 350.5m)
Debt / Equity = 0.48 (Debt 702.3m / totalStockholderEquity, last quarter 1.48b)
Debt / EBITDA = 4.19 (Net Debt 370.5m / EBITDA 88.4m)
Debt / FCF = 5.27 (Net Debt 370.5m / FCF TTM 70.3m)
Total Stockholder Equity = 1.47b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.58% (Net Income -14.1m / Total Assets 2.48b)
RoE = -0.96% (Net Income TTM -14.1m / Total Stockholder Equity 1.47b)
RoCE = 0.64% (EBIT 13.2m / Capital Employed (Equity 1.47b + L.T.Debt 591.5m))
RoIC = 0.50% (NOPAT 10.4m / Invested Capital 2.10b)
WACC = 10.55% (E(6.57b)/V(7.27b) * Re(11.30%) + D(702.3m)/V(7.27b) * Rd(4.43%) * (1-Tc(0.21)))
Discount Rate = 11.30% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 88.66 | Cagr: 1.30%
[DCF] Terminal Value 65.36% ; FCFF base≈100.8m ; Y1≈88.4m ; Y5≈71.4m
[DCF] Fair Price = 7.87 (EV 843.2m - Net Debt 370.5m = Equity 472.7m / Shares 60.0m; r=10.55% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.31 | # QB: 1
Revenue Correlation: 3.33 | Revenue CAGR: 0.13% | SUE: 1.11 | # QB: 2
EPS current Quarter (2026-09-30): EPS=0.26 | Chg30d=+3.20% | Revisions=+29% | Analysts=7
EPS current Year (2026-06-30): EPS=1.06 | Chg30d=+2.17% | Revisions=+70% | GrowthEPS=+65.3% | GrowthRev=+5.2%
EPS next Year (2027-06-30): EPS=1.53 | Chg30d=-0.16% | Revisions=+38% | GrowthEPS=+44.7% | GrowthRev=+9.1%
[Analyst] Revisions Ratio: +63% (up=14, down=2)