Mercury Systems Inc (MRCY) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Mercury Systems Inc stock (MRCY) is currently trading at $74.49. Mercury Systems Inc PS ratio (Price-to-Sales) is 4.92. Analyst consensus price target for MRCY is $97.50. WallStSmart rates MRCY as Sell.
- MRCY PE ratio analysis and historical PE chart
- MRCY PS ratio (Price-to-Sales) history and trend
- MRCY intrinsic value — DCF, Graham Number, EPV models
- MRCY stock price prediction 2025 2026 2027 2028 2029 2030
- MRCY fair value vs current price
- MRCY insider transactions and insider buying
- Is MRCY undervalued or overvalued?
- Mercury Systems Inc financial analysis — revenue, earnings, cash flow
- MRCY Piotroski F-Score and Altman Z-Score
- MRCY analyst price target and Smart Rating
Mercury Systems Inc
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Smart Analysis
Mercury Systems Inc (MRCY) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in institutional own.. Concerns around return on equity and eps growth. Mixed signals suggest waiting for clearer direction before acting.
Mercury Systems Inc (MRCY) Key Strengths (2)
110.04% of shares held by major funds and institutions
Mid-cap company balancing growth potential with stability
Mercury Systems Inc (MRCY) Areas to Watch (8)
Company is destroying shareholder value
Earnings declining -34.70%, profits shrinking
Company is losing money with a negative profit margin
Paying a premium for growth, expensive relative to earnings expansion
Thin operating margins with cost pressures present
Premium valuation at 4.9x annual revenue
Premium pricing at 3.2x book value
Solid revenue growth at 15.40% per year
Supporting Valuation Data
Mercury Systems Inc (MRCY) Detailed Analysis Report
Overall Assessment
This company scores 37/100 in our Smart Analysis, earning a F grade. Out of 10 metrics analyzed, 2 register as strengths (avg 8.5/10) while 8 fall into concern territory (avg 2.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap.
The Bear Case
The primary concerns are Return on Equity, EPS Growth, Profit Margin. Some valuation metrics including PEG Ratio (2.79), Price/Sales (4.92), Price/Book (3.18) suggest expensive pricing. Growth concerns include Revenue Growth at 15.40%, EPS Growth at -34.70%, which may limit upside. Profitability pressure is visible in Return on Equity at -2.08%, Operating Margin at 12.10%, Profit Margin at -3.23%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -2.08% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 15.40% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
MRCY Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
MRCY's Price-to-Sales ratio of 4.92x trades at a 19% premium to its historical average of 4.14x (70th percentile). The current valuation is 45% below its historical high of 8.96x set in May 2017, and 531% above its historical low of 0.78x in Nov 2008. Over the past 12 months, the PS ratio has compressed from ~5.7x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Mercury Systems Inc (MRCY) · INDUSTRIALS › AEROSPACE & DEFENSE
The Big Picture
Mercury Systems Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 943M with 15% growth year-over-year. The company is currently unprofitable, posting a -323.0% profit margin.
Key Findings
Generating 43M in free cash flow and 48M in operating cash flow. Earnings are translating into actual cash generation.
The company is unprofitable with a -323.0% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Sector dynamics: monitor AEROSPACE & DEFENSE industry trends, competitive moves, and regulatory changes that could impact Mercury Systems Inc.
Bottom Line
Mercury Systems Inc offers an attractive blend of growth (15% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(9 last 3 months)
| Insider | Type | Shares |
|---|---|---|
RATNER, STEVEN EVP, CHRO | Buy | +437 |
| Insider | Type | Shares |
|---|---|---|
JANA, PARTNERS MANAGEMENT, LP Director, See Remarks | Sell | -100,899 |
| Insider | Type | Shares |
|---|---|---|
JANA, PARTNERS MANAGEMENT, LP Director, See Remarks | Sell | -168,648 |
| Insider | Type | Shares |
|---|---|---|
JANA, PARTNERS MANAGEMENT, LP Director, See Remarks | Sell | -182,510 |
| Insider | Type | Shares |
|---|---|---|
LANCE, HOWARD L Director | Sell | -4,832 |
| Insider | Type | Shares |
|---|---|---|
JANA, PARTNERS MANAGEMENT, LP Director, See Remarks | Sell | -400,000 |
| Insider | Type | Shares |
|---|---|---|
NEARHOS, BARRY R Director | Buy | +474 |
Data sourced from SEC Form 4 filings
Last updated: 8:26:22 AM
About Mercury Systems Inc(MRCY)
NASDAQ
INDUSTRIALS
AEROSPACE & DEFENSE
USA
Mercury Systems, Inc., a technology company, manufactures and sells components, modules, and subsystems in the United States, Europe, and Asia Pacific. The company is headquartered in Andover, Massachusetts.