(MRCY) Mercury Systems - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NASDAQ (USA) | Market Cap: 6.491m USD | Total Return: 113.9% in 12m
Avg Turnover: 46.4M
Qual. Beats: 1
Rev. Trend: 3.3%
Qual. Beats: 2
Warnings
Interest Coverage Ratio 0.5 is critical
Choppy
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind, Pullback 52w, Confidence
Mercury Systems, Inc. (MRCY) is a Massachusetts-based technology provider specializing in open-architecture computing solutions for the aerospace and defense industries. The company manufactures a broad portfolio of high-performance components and subsystems, including radio frequency (RF) assemblies, embedded processing boards, and electronic warfare simulation tools. Its products are integrated into radar, signals intelligence, and unmanned aerial vehicle (UAV) platforms for global defense primes and government agencies.
Operating within the defense electronics sector, Mercury Systems utilizes an outsourced research and development model to provide commercially developed technology for military applications, a strategy known as commercial-off-the-shelf (COTS). This approach allows the company to capitalize on the defense industrys shift toward modular systems that can be rapidly upgraded without redesigning entire platforms. You can examine detailed valuation metrics for this sector on ValueRay.
The company maintains a geographic footprint across the United States, Europe, and the Asia Pacific, supporting both domestic and international defense programs. By focusing on the intersection of high-tech processing and ruggedized hardware, Mercury Systems addresses the increasing demand for real-time data processing and secure sensor integration in modern combat environments.
- U.S. defense budget allocations drive demand for electronic warfare and radar subsystems
- Transition to fixed-price contracts impacts profit margins and operational cash flow
- Backlog conversion efficiency determines quarterly revenue growth and earnings per share
- Prime contractor outsourcing trends dictate long-term hardware and software integration volume
- Global geopolitical tensions increase requirements for secure embedded processing technology
| 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 (91.2m): 4.06 < 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: 0.52 > 6 (EBIT TTM 16.0m / 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 16.0m / 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 June 06, 2026, the stock is trading at USD 111.27 with a total of 907,851 shares traded.
Over the past week, the price has changed by -0.38%,
over one month by +34.12%,
over three months by +30.97% and
over the past year by +113.94%.
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 | 100.3 | -9.9% |
P/E Forward = 64.9351
P/S = 6.0301
P/B = 3.9463
P/EG = 2.788
Revenue TTM = 966.9m USD
EBIT TTM = 16.0m USD
EBITDA TTM = 91.2m 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 = 6.86b USD (6.49b + Debt 702.3m - CCE 331.8m)
Interest Coverage Ratio = 0.52 (Ebit TTM 16.0m / Interest Expense TTM 31.1m)
EV/FCF = 97.55x (Enterprise Value 6.86b / FCF TTM 70.3m)
FCF Yield = 1.03% (FCF TTM 70.3m / Enterprise Value 6.86b)
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 = 2.77 (Enterprise Value 6.86b / Total Assets 2.48b)
Interest Expense / Debt = 4.43% (Interest Expense 31.1m / Debt 702.3m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 12.7m (EBIT 16.0m * (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 = 4.06 (Net Debt 370.5m / EBITDA 91.2m)
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 = 0.78% (EBIT 16.0m / Capital Employed (Equity 1.47b + L.T.Debt 591.5m))
RoIC = 0.60% (NOPAT 12.7m / Invested Capital 2.10b)
WACC = 10.14% (E(6.49b)/V(7.19b) * Re(10.86%) + D(702.3m)/V(7.19b) * Rd(4.43%) * (1-Tc(0.21)))
Discount Rate = 10.86% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 88.66 | Cagr: 1.30%
[DCF] Terminal Value 66.71% ; FCFF base≈100.8m ; Y1≈88.4m ; Y5≈71.4m
[DCF] Fair Price = 8.59 (EV 886.0m - Net Debt 370.5m = Equity 515.5m / Shares 60.0m; r=10.14% [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 next Quarter (2026-09-30): EPS=0.26 | Chg30d=+3.20% | Revisions=+25% | Analysts=7
EPS current Year (2026-06-30): EPS=1.07 | Chg30d=+11.16% | Revisions=+64% | GrowthEPS=+68.0% | GrowthRev=+5.2%
EPS next Year (2027-06-30): EPS=1.53 | Chg30d=+2.17% | Revisions=+33% | GrowthEPS=+42.5% | GrowthRev=+9.1%
[Analyst] Revisions Ratio: +64%