Mercury Systems Inc (MRCY)
Fair ValueFundamental
31
Price
$83.00
Market Cap
$5.05B
Part 1 · What the company is worth
Overview
Mercury Systems, Inc., engages in the aerospace and defense electronics industry. The company manufactures and sells components, products, modules, and subsystems for defense prime contractors, original equipment manufacturers, government, and commercial aerospace companies. It offers components, including power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; modules and sub-assemblies, such as embedded processing boards, switched fabrics and boards, digital receivers, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video; and integrated subsystems. The company also designs, develops, and manufactures digital radio frequency memory units for various modern electronic warfare applications; radar environment simulation and test systems for defense and intelligence applications; and signals intelligence payloads and EO/IR technologies for small UAV platforms, as well as onboard UAV processor systems for real-time wide area motion imagery. It operates in the United States, Europe, and the Asia Pacific. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. Mercury Systems, Inc. was incorporated in 1981 and is headquartered in Andover, Massachusetts.
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Direct competitors
Who this company fights with for the same customers
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Balance Sheet & Liquidity
Revenue
$984M
Trailing 12 months (through 7/3/2026)
Net Income
$-30M
Trailing 12 months (through 7/3/2026)
Free Cash Flow
$68M
Total Equity
$1.50B
Total Liabilities
$825M
Current Ratio
2.96
Interest Coverage
0.01
Debt/EBITDA
6.89
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$71.70
Current Price
$83.00
Margin of Safety
-15.8%
Fair Value Range
$46.60 - $96.79
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-2.0%
P/B Ratio
3.33
P/FCF
73.31
Gross Margin
28.6%
ROIC
0.0%
Profitability Radar
Value Creation (Economic Moat)
ROIC
0.0%
WACC
9.5%
ROIC − WACC
-9.4 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (9)
- Price CAGR 10.60%
- Debt/Equity ratio
- Positive Free Cash Flow
- Current Ratio
- Analyst Consensus 71% Buy
- Earnings Surprise avg 153.7%
- Share Dilution 1.8%
- Net Margin Trend -3.0% vs -4.2%
- Piotroski F-Score 6/9
Failed (14)
- EPS shows upward trend
- ROIC 0.0%
- Gross Margin 28.6%
- P/FCF 73.31
- P/B Ratio 3.33
- Operating Margin 0.0%
- CapEx intensity
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- DCF valuation (Overvalued)
- ROE -2.0%
- Revenue Growth 5Y 1.3%
Unavailable (4)
- Dividend Payout NaN%
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Dr. William L. Ballhaus | President, CEO & Chairman | 57 |
| Mr. David E. Farnsworth | Executive VP & CFO | 64 |
| Mr. Stuart H. Kupinsky | Executive VP, Chief Legal Officer & Corporate Secretary | 57 |
| Mr. Steven V. Ratner | Executive VP & Chief Human Resources Officer | 49 |
| Mr. Douglas D. Munro | VP & Chief Accounting Officer | - |
| Dr. William Conley Ph.D. | Chief Technology Officer | - |
| Mr. Ghassan Alaka | Chief Information Officer | - |
| Mr. Tyler Hojo CFA | VP of Investors Relations | - |
| Mr. Krishna Sinha | Vice President of Strategy & Corporate Development | - |
| Mr. Tod Brindlinger | Senior Vice President of Operations | - |
Audit Risk
6
Board Risk
5
Compensation Risk
5
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-08-18
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-05-05
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-18
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for MRCY, sourced from Markets Gazette.