MRCY Stock Analysis: Mercury Systems | NASDAQ
Aerospace & Defense | NASDAQ, USA | Market Cap: 4.837m USD | 12M Return: 10.3% | US5893781089 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 70.7M
Qual. Beats: 0
Rev. Trend: 53.4%
Qual. Beats: 3
Warnings
Tailwinds
Seasonality 11.6 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: -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 September 12, 2026, the stock is trading at USD 80.61 with a total of 474,834 shares traded. Over the past week, the price has changed by -4.84%, over one month by -26.15%, over three months by -32.44% and over the past year by +10.30%.
Current recommended Stop Loss: 70.00 (which is 13.2% or 2.3 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 | 115.8 | 43.6% |
P/E Forward = 48.7805
P/S = 4.9173
P/B = 3.2432
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 = 5.17b USD (4.84b + Debt 546.7m - CCE 214.3m)
Interest Coverage Ratio = 0.11 (Ebit TTM 3.39m / Interest Expense TTM 29.6m)
EV/FCF = 79.61x (Enterprise Value 5.17b / FCF TTM 64.9m)
FCF Yield = 1.26% (FCF TTM 64.9m / Enterprise Value 5.17b)
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 = 2.23 (Enterprise Value 5.17b / 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 = 11.84% (E(4.84b)/V(5.38b) * Re(12.69%) + D(546.7m)/V(5.38b) * Rd(5.41%) * (1-Tc(0.21)))
Discount Rate = 12.69% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 87.03 | Cagr: 2.26%
[DCF] Terminal Value 61.29% ; FCFF base≈86.6m ; Y1≈75.9m ; Y5≈61.3m
[DCF] Fair Price = 4.92 (EV 628.2m - Net Debt 332.4m = Equity 295.7m / Shares 60.1m; r=11.84% [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=+12.60% | Revisions=+44% | Analysts=10
EPS next Quarter (2026-12-31): EPS=0.35 | Chg30d=+3.84% | Revisions=+22% | Analysts=10
EPS current Year (2027-06-30): EPS=1.67 | Chg30d=+8.14% | Revisions=+50% | GrowthEPS=+57.7% | GrowthRev=+10.3%
EPS next Year (2028-06-30): EPS=2.24 | Chg30d=+4.10% | Revisions=+22% | GrowthEPS=+33.8% | GrowthRev=+11.2%
[Analyst] Revisions Ratio: +46% (up=19, down=6)