Detailed financial statements for Mercury Systems, Inc. (MRCY): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Mercury Systems, Inc. is a technology firm dedicated to the creation and delivery of a wide range of advanced components, modules, and integrated subsystems, primarily catering to the aerospace and defense industries. The company's operations span globally, with a presence in the United States, Europe, and the Asia Pacific regions.
Analysis Summary
Mercury Systems, Inc. reported revenue of $983.6M in the most recent fiscal year, growing at a 5-year CAGR of 1.3%.
Trailing-twelve-month margins: gross margin 26.7%, operating margin 0.5%, net margin -3.0%.
At the current price of $87.25, MRCY has negative trailing earnings (P/E not meaningful) and an ROE of -2.01%. Market capitalisation stands at $5.2B.
Balance sheet quality for MRCY: current ratio of 3.0, net debt of $273.0M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $408.6M | $493.2M | $654.7M | $796.6M | $924.0M | $973.9M | $973.9M | $835.3M | $912.0M | $983.6M |
| Cost of Revenue | $217.0M | $267.3M | $368.6M | $439.8M | $538.8M | $657.2M | $657.2M | $639.4M | $657.5M | $741.4M |
| Gross Profit | $191.5M | $225.9M | $286.2M | $356.8M | $385.2M | $316.7M | $316.7M | $195.9M | $254.5M | $242.3M |
| Research & Development | $54.1M | $58.8M | $68.9M | $98.5M | $113.5M | $108.8M | $108.8M | $101.3M | $67.6M | $59.7M |
| Selling, General & Admin | $76.5M | $88.4M | $110.7M | $132.3M | $134.3M | $160.6M | $160.6M | $166.8M | $154.4M | $175.0M |
| Operating Expenses | $150.3M | $173.2M | $207.6M | $265.8M | $304.2M | $338.4M | $338.4M | $343.7M | $274.1M | $221.3M |
| Operating Income | $37.4M | $47.0M | $76.6M | $91.1M | $81.0M | -$21.7M | -$21.7M | -$147.8M | -$19.6M | $20.9M |
| EBITDA | $77.2M | $97.0M | $125.7M | $144.3M | $163.3M | $73.9M | $73.9M | -$66.2M | $65.0M | $93.6M |
| Interest Expense | $7.6M | $2.9M | $9.1M | $1.0M | $1.2M | $25.2M | $25.2M | $35.0M | $33.4M | $29.6M |
| Pre-tax Income | $31.1M | $42.6M | $59.5M | $93.9M | $77.2M | -$48.5M | -$48.5M | -$189.3M | -$50.4M | -$28.9M |
| Income Tax | $6.2M | $1.7M | $12.8M | $8.2M | $15.1M | -$20.2M | -$20.2M | -$51.6M | -$12.5M | $784000 |
| Net Income | $24.9M | $40.9M | $46.8M | $85.7M | $62.0M | -$28.3M | -$28.3M | -$137.6M | -$37.9M | -$29.7M |
| EPS | $0.59 | $0.88 | $0.98 | $1.57 | $1.13 | $-0.50 | $-0.50 | $-2.38 | $-0.65 | $-0.50 |
| EPS (Diluted) | $0.58 | $0.86 | $0.96 | $1.56 | $1.12 | $-0.50 | $-0.50 | $-2.38 | $-0.65 | $-0.50 |
| Shares Outstanding (Diluted) | $43.0M | $47.5M | $48.5M | $55.1M | $55.5M | $56.6M | $56.6M | $57.7M | $58.7M | $59.5M |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $41.6M | $66.5M | $257.9M | $226.8M | $113.8M | $65.7M | $71.6M | $180.5M | $309.1M | $214.3M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $113.7M | $143.8M | $176.2M | $210.7M | $291.7M | $447.9M | $507.3M | $415.5M | $388.1M | $355.0M |
| Inventory | $81.1M | $108.6M | $137.1M | $178.1M | $221.6M | $270.3M | $337.2M | $335.3M | $332.9M | $367.0M |
| Total Current Assets | $246.2M | $331.7M | $582.2M | $634.8M | $643.1M | $815.3M | $937.0M | $953.8M | $1.06B | $973.4M |
| Property, Plant & Equipment | $51.6M | $51.0M | $60.0M | $148.3M | $194.9M | $193.6M | $182.6M | $171.2M | $153.7M | $156.1M |
| Goodwill | $380.8M | $497.4M | $562.1M | $614.1M | $804.9M | $937.9M | $938.1M | $938.1M | $938.1M | $942.4M |
| Intangible Assets | $129.0M | $177.9M | $206.1M | $208.7M | $307.6M | $351.5M | $298.1M | $250.5M | $210.6M | $175.8M |
| Total Assets | $815.7M | $1.06B | $1.42B | $1.61B | $1.96B | $2.30B | $2.39B | $2.38B | $2.43B | $2.32B |
| Accounts Payable | $27.5M | $21.3M | $39.0M | $41.9M | $48.0M | $98.7M | $104.0M | $81.1M | $79.1M | $91.0M |
| Short-term Debt | 0 | 0 | 0 | 0 | $10.0M | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $72.8M | $71.7M | $98.0M | $125.9M | $150.8M | $193.9M | $233.3M | $234.4M | $300.4M | $328.5M |
| Long-term Debt | 0 | $195.0M | 0 | 0 | $200.0M | $451.5M | $511.5M | $591.5M | $591.5M | $441.5M |
| Total Liabilities | $90.3M | $292.6M | $132.2M | $225.9M | $471.0M | $767.2M | $824.7M | $906.1M | $961.3M | $825.3M |
| Retained Earnings | $139.1M | $180.0M | $226.7M | $312.5M | $374.5M | $385.8M | $357.4M | $219.8M | $181.9M | $152.2M |
| Total Equity | $725.4M | $771.9M | $1.28B | $1.38B | $1.48B | $1.54B | $1.57B | $1.47B | $1.47B | $1.50B |
| Total Debt | 0 | $195.0M | 0 | $67.0M | $281.5M | $521.4M | $578.3M | $654.1M | $644.2M | $487.3M |
| Net Debt | -$41.6M | $128.5M | -$257.9M | -$159.9M | $167.7M | $455.7M | $506.7M | $473.6M | $335.1M | $273.0M |
| Working Capital | $173.4M | $260.1M | $484.1M | $508.9M | $492.3M | $621.3M | $703.8M | $719.4M | $757.8M | $644.9M |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $24.9M | $40.9M | $46.8M | $85.7M | $11.3M | -$28.3M | -$137.6M | -$37.9M | -$37.9M | -$29.7M |
| Depreciation & Amortization | $32.3M | $42.3M | $46.4M | $49.3M | $93.4M | $97.3M | $88.0M | $82.0M | $82.0M | $72.7M |
| Stock-based Compensation | $15.3M | $17.3M | $19.4M | $26.5M | $38.3M | $43.4M | $41.5M | $39.9M | $39.9M | 0 |
| Change in Working Capital | -$6.7M | -$53.8M | -$22.7M | -$41.1M | -$158.9M | -$79.3M | $76.8M | $68.1M | $68.1M | -$2.0M |
| Operating Cash Flow | $59.1M | $43.3M | $97.5M | $115.2M | -$18.9M | -$21.3M | $60.4M | $138.9M | $138.9M | $102.4M |
| Capital Expenditure | -$32.8M | -$15.1M | -$26.7M | -$43.3M | -$27.7M | -$38.8M | -$34.3M | -$19.8M | -$19.8M | -$34.3M |
| Acquisitions | -$77.8M | -$185.4M | -$127.1M | -$96.5M | -$243.5M | 0 | 0 | -$4.5M | -$4.5M | -$1.4M |
| Stock Repurchased | -$8.8M | -$15.5M | -$8.0M | -$16.2M | -$8.2M | -$63000 | -$31000 | 0 | 0 | -$15.0M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $26.3M | $28.2M | $70.8M | $71.9M | -$46.5M | -$60.0M | $26.1M | $119.0M | $119.0M | $68.1M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +20.7% | +32.8% | +21.7% | +16.0% | +5.4% | +0.0% | -14.2% | +9.2% | +7.9% | |
| Net Income Growth (YoY) | +64.4% | +14.4% | +83.2% | -27.6% | -145.7% | +0.0% | -385.8% | +72.5% | +21.7% | |
| EPS Growth (YoY) | +49.2% | +11.4% | +60.2% | -28.0% | -144.2% | +0.0% | -376.0% | +72.7% | +23.1% | |
| Shares Change (YoY) | +10.4% | +2.2% | +13.6% | +0.7% | +1.9% | +0.0% | +2.1% | +1.7% | +1.2% | |
| FCF Growth (YoY) | +7.3% | +151.0% | +1.5% | -164.7% | -29.1% | +143.4% | +356.3% | +0.0% | -42.8% | |
| Gross Margin | 46.9% | 45.8% | 43.7% | 44.8% | 41.7% | 32.5% | 32.5% | 23.5% | 27.9% | 24.6% |
| Operating Margin | 9.2% | 9.5% | 11.7% | 11.4% | 8.8% | -2.2% | -2.2% | -17.7% | -2.2% | 2.1% |
| EBITDA Margin | 18.9% | 19.7% | 19.2% | 18.1% | 17.7% | 7.6% | 7.6% | -7.9% | 7.1% | 9.5% |
| Net Margin | 6.1% | 8.3% | 7.1% | 10.8% | 6.7% | -2.9% | -2.9% | -16.5% | -4.2% | -3.0% |
| FCF Margin | 6.4% | 5.7% | 10.8% | 9.0% | -5.0% | -6.2% | 2.7% | 14.3% | 13.1% | 6.9% |
| Effective Tax Rate | 19.9% | 4.0% | 21.4% | 8.8% | 19.6% | 41.6% | 41.6% | 27.3% | 24.8% | -2.7% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.61 | $0.59 | $1.46 | $1.30 | $-0.84 | $-1.06 | $0.46 | $2.06 | $2.03 | $1.15 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $42.0M | $46.7M | $47.8M | $54.5M | $55.1M | $56.6M | $56.6M | $57.7M | $58.7M | $59.5M |
What to look at in Industrials
Aerospace, defence, machinery, transport. Semi-cyclical. Key: backlog, operating margins, and FCF conversion.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — The best indicator of operational discipline in industrials
- ROIC — Quality industrials have ROIC >15% — the rest destroy capital
- FCF conversion — FCF / Net Income — in industrials good >85%
- Net debt / EBITDA — Cyclical industrials with high debt suffer hard in recessions
- Capex / Revenue — Maintaining the machinery. <4% = possible underinvestment (future decline)
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
Profitability
| Return on Equity | -2.01% |
| Return on Invested Capital | 0.25% |
| Return on Assets | -1.28% |
| Gross Margin | 26.66% |
| Operating Margin | 0.51% |
| Net Margin | -3.02% |
Financial Health
| Debt / Equity | 0.33 |
| Current Ratio | 2.96 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 6.33 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 71.34 | 43.25 | 70.33 | 50.10 | 58.65 | -128.66 | -69.18 | -11.91 | -82.17 | -252.42 |
| P/B | 2.44 | 2.30 | 2.57 | 3.10 | 2.46 | 2.37 | 1.25 | 1.11 | 2.13 | 5.01 |
| P/S | 4.33 | 3.61 | 5.03 | 5.39 | 3.95 | 3.74 | 2.01 | 1.96 | 3.44 | 7.63 |
| Gross Margin | 46.9% | 45.8% | 43.7% | 44.8% | 41.7% | 32.5% | 32.5% | 23.5% | 27.9% | 24.6% |
| Operating Margin | 9.2% | 9.5% | 11.7% | 11.4% | 8.8% | -2.2% | -2.2% | -17.7% | -2.2% | 2.1% |
| Net Margin | 6.1% | 8.3% | 7.1% | 10.8% | 6.7% | -2.9% | -2.9% | -16.5% | -4.2% | -3.0% |
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Explore sector: Industrials · Aerospace & Defense
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