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Mercury Systems Inc (MRCY) stock analysis

MRCYNasdaqElectronic Components & AccessoriesFiscal year ends June 30
Financials through Q1 FY2027, quarter ended Oct 2, 2026Last filing: 10-Q on Nov 10, 2026Score 5/3082% above fair value
$83.43−4.90 (-5.55%)

Close on Nov 12, 2026Market cap $5.02BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value1Growth1Performance1Health2Dividend0

Weak5 of 30 checks passed

Mercury Systems passes 5 of the 30 checks behind our score; 14 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
1/6
Past performance
1/6
Financial health
2/6
Dividend
0/6

What stands out

  • Low bankruptcy risk

    The Altman Z-score is 5.40; above 3 is the safe zone and below 1.8 the distress zone.

  • P/B below the industry

    Mercury Systems's price-to-book of 3.43 is below the Electronic Components and Accessories median of 3.49.

  • Gross margin improving

    Gross margin was 30.4% over the last twelve months, against 28.5% a year earlier.

  • Net margin above its 5-year average

    Net margin was -0.4% over the last twelve months, against a 5-year average of -5.1%.

What to watch

  • Margin of safety under 20%

    The price is 81.5% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $88.33 is above our fair value estimate of $48.66.

  • Return on equity under 15%

    Return on equity was -0.3% over the last twelve months and averaged -2.9% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 1.1%, below the 10% that usually covers the cost of capital.

Valuation1/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA above its 5-year median

    Mercury Systems's EV/EBITDA of 52.6 is above its 5-year median of 28.7.

  • P/B below the industry

    Mercury Systems's price-to-book of 3.43 is below the Electronic Components and Accessories median of 3.49.

  • Trading above fair value

    The share price of $88.33 is above our fair value estimate of $48.66.

  • Margin of safety under 20%

    The price is 81.5% above fair value, so there is no margin of safety.

Growth1/6

  • Revenue growing under 10% a year

    Revenue grew 0.3% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew 8.4% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin improving

    Gross margin was 30.4% over the last twelve months, against 28.5% a year earlier.

Past performance1/6

  • Return on equity under 15%

    Return on equity was -0.3% over the last twelve months and averaged -2.9% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 1.1%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Mercury Systems's return on equity of -0.3% is below the Electronic Components and Accessories median of 4.8%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -0.4% over the last twelve months, against a 5-year average of -5.1%.

  • Net margin below the industry

    Mercury Systems's net margin of -0.4% is below the Electronic Components and Accessories median of 2.9%.

Financial health2/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt coverage

    Needs operating cash flow.

  • Interest not well covered

    Operating income covers interest expense 1.0 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 2.90 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 5.40; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Mercury Systems has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$48.66

The share price is 82% above this estimate.

20%+ below
Near fair value
20%+ above
$88.33Price$48.66Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
EV/EBITDA25.0×28.7×21.3×$43.0078%
P/B2.7×1.8×3.5×$68.4622%
Earnings powerleft out, too far from the others9.9% cost of equity––$11.94–
Fair value$48.66100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Electronic Components and Accessories median 34.8

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$53.43M
Value traded per 1% price move
$22.51M

Downside

High risk

Typical loss in a bad month
25.2%
Volatility (annualized)
61%
Sharpe ratio, 1 year
0.23
Beta to the S&P 500 (5Y)
1.00

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

28.6%−13.1 pts over 5 years

Operating margin

0.0%−8.7 pts over 5 years

Net margin

-3.0%−9.7 pts over 5 years

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