Mercury Systems provides open sensor processing systems and services. The company operates through two segments, Mercury Commercial Electronics (MCE) and Mercury Defense Systems (MDS). The company was founded in 1981 and is based in Chelmsford, Massachusetts.
MRCY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Mercury Systems Inc. To summarize, we found that Mercury Systems Inc ranked in the 40th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for MRCY, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 95.14 -- which is good for besting 96.23% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately merely 8.29% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
MRCY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 49.84% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Mercury Systems Inc? See ALLE, IEP, INFO, RXN, and CAE.
Mercury Systems (MRCY) is up 5.8% following an upgrade to Buy at Goldman Sachs, which sees an attractive opportunity on valuation. Shares have fallen nearly 13% over the past month, and that makes an attractive entry point for a stock where the fundamentals haven't changed, analyst Noah Poponak writes. As...
ANDOVER, Mass., July 22, 2020 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a leader in trusted, secure mission-critical technologies for aerospace and defense, announced it received $11.7 million in orders against its previously announced $152 million 5 year sole-source basic ordering agreement (BOA) to deliver advanced Digital RF Memory (DRFM) jammers to the U.S. Navy. The orders were received in the fourth quarter of the Company's fiscal 2020 year and are expected to be delivered over the next several quarters. Mercury DRFM jammers are size, weight and power (SWaP) optimized to meet the electronic protection requirements of airborne pod-based solutions and incorporate decades of DRFM technology development, validated electronic attack technique...