Mrc Global Inc.
MRC
Wholesale-Industrial Machinery & Equipment
Mkt Cap
$1.11BPE
14.81Debt
$587MCash
$146MEV
$1.551BFCF
$231MP/E Ratio
14.81Debt
$587MCash
$146MEV
$1.551BFCF
$231MCharts data: {"Earnings":[{"time":"2014-12-30","value":144110000},{"time":"2015-12-30","value":-344753000},{"time":"2016-12-30","value":-107000000},{"time":"2017-12-30","value":26000000},{"time":"2018-12-30","value":50000000},{"time":"2019-12-30","value":15000000},{"time":"2020-12-30","value":-298000000},{"time":"2021-12-30","value":-38000000},{"time":"2022-12-30","value":51000000},{"time":"2023-12-30","value":90000000}],"Sales":[{"time":"2014-12-30","value":5933212000},{"time":"2015-12-30","value":4529000000},{"time":"2016-12-30","value":3041000000},{"time":"2017-12-30","value":3646000000},{"time":"2018-12-30","value":4172000000},{"time":"2019-12-30","value":3662000000},{"time":"2020-12-30","value":2560000000},{"time":"2021-12-30","value":2666000000},{"time":"2022-12-30","value":3363000000},{"time":"2023-12-30","value":3412000000}],"Net Margins":[{"time":"2014-12-30","value":0.024288698937438947},{"time":"2015-12-30","value":-0.0761212188120998},{"time":"2016-12-30","value":-0.03518579414666228},{"time":"2017-12-30","value":0.007131102578167855},{"time":"2018-12-30","value":0.011984659635666348},{"time":"2019-12-30","value":0.004096122337520481},{"time":"2020-12-30","value":-0.11640625},{"time":"2021-12-30","value":-0.014253563390847712},{"time":"2022-12-30","value":0.015165031222123104},{"time":"2023-12-30","value":0.02637749120750293}],"Assets":[{"time":"2014-12-30","value":3873821000},{"time":"2015-12-30","value":2501546000},{"time":"2016-12-30","value":2164000000},{"time":"2017-12-30","value":2340000000},{"time":"2018-12-30","value":2434000000},{"time":"2019-12-30","value":2325000000},{"time":"2020-12-30","value":1781000000},{"time":"2021-12-30","value":1671000000},{"time":"2022-12-30","value":1895000000},{"time":"2023-12-30","value":1886000000}],"Stockholders Equity":[{"time":"2014-12-30","value":1397215000},{"time":"2015-12-30","value":955845000},{"time":"2016-12-30","value":763000000},{"time":"2017-12-30","value":759000000},{"time":"2018-12-30","value":692000000},{"time":"2019-12-30","value":642000000},{"time":"2020-12-30","value":350000000},{"time":"2021-12-30","value":323000000},{"time":"2022-12-30","value":386000000},{"time":"2023-12-30","value":488000000}],"ROE":[{"time":"2014-12-30","value":0.10314089098671285},{"time":"2015-12-30","value":-0.3606787711396722},{"time":"2016-12-30","value":-0.1402359108781127},{"time":"2017-12-30","value":0.034255599472990776},{"time":"2018-12-30","value":0.07225433526011561},{"time":"2019-12-30","value":0.02336448598130841},{"time":"2020-12-30","value":-0.8514285714285714},{"time":"2021-12-30","value":-0.11764705882352941},{"time":"2022-12-30","value":0.13212435233160622},{"time":"2023-12-30","value":0.18442622950819673}],"ROA":[{"time":"2014-12-30","value":0.07799740875998143},{"time":"2015-12-30","value":-0.11286860205648827},{"time":"2016-12-30","value":-0.025878003696857672},{"time":"2017-12-30","value":0.019658119658119658},{"time":"2018-12-30","value":0.05464256368118324},{"time":"2019-12-30","value":0.04559139784946237},{"time":"2020-12-30","value":-0.14317798989331837},{"time":"2021-12-30","value":0.004189108318372232},{"time":"2022-12-30","value":0.07387862796833773},{"time":"2023-12-30","value":0.09915164369034994}]}
MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the gas utility, energy, and industrial end-markets in the United States, Canada, and internationally. It offers ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves; and other products, such as lined corrosion resistant piping systems, control valves, valve automation, and top work components, as well as valve modification services; and measurement, steam, and instrumentation products. The company also provides carbon steel fittings and flanges comprising carbon weld fittings, flanges, and piping components; stainless steel, alloy and corrosion resistant pipes, tubing, fittings, and flanges; and carbon line pipes. In addition, it offers natural gas distribution products, including risers, meters, polyethylene pipes and fittings, and various other components and industrial supplies; oilfield and industrial supplies and completion equipment, such as high density polyethylene pipes, fittings, and rods; and specialized production equipment comprising tanks and separators. Further, the company provides various services, such as product testing, manufacturer assessments, multiple daily deliveries, volume purchasing, inventory and zone store management and warehousing, technical support, training, just-in-time delivery, truck stocking, order consolidation, product tagging and system interfaces, and valve inspection and repair services; and various other services under the ValidTorque and FastTrack names. Its products are used in the construction, maintenance, repair, and overhaul of equipment used in extreme operating conditions, including high pressure, high/low temperature, and high corrosive and abrasive environments. The company was formerly known as McJunkin Red Man Holding Corporation and changed its name to MRC Global Inc. in January 2012. MRC Global Inc. was founded in 1921 and is headquartered in Houston, Texas.
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DCF
Discounted Cash Flow Valuation of Mrc Global Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $231M | $193.6M | $162.3M | $136M | $114M | $95.55M | $80.08M | $67.12M | $56.26M | $47.15M | $39.52M | $395.2M |
| DCF | $168.4M | $122.7M | $89.43M | $65.18M | $47.5M | $34.62M | $25.23M | $18.39M | $13.4M | $9.769M | $97.69M | |
| Value | $692.3M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 1.8%
Earnings Stability -60%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -7.6% | -3.5% | 0.71% | 1.2% | 0.41% | -12% | -1.4% | 1.5% | 2.6% | 2.3% |
| ROA | -11% | -2.6% | 2% | 5.5% | 4.6% | -14% | 0.42% | 7.4% | 9.9% | 8.8% |
| ROE | -36% | -14% | 3.4% | 7.2% | 2.3% | -85% | -12% | 13% | 18% | 15% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -1.22%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.59%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +2.24%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.3%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -9.28%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +4.63%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 0.82 | 1.92 | -6.79 | -22.19 | 2.48 | 1.55 | 6.50 | -11.06 | 3.57 | 2.54 |
| Debt Equity | 0.56 | 0.55 | 0.70 | 0.99 | 0.86 | 1.11 | 0.93 | 0.89 | 1.22 | 1.19 |
| MIN | ||||||||||
| Graham Stability | - | - | - | - | - | -980% | - | - | - | -980% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 2.54.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 2.66.
What is the Graham’s Stability?
Graham’s Stability measure stands at -9.82.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 1.7% | -3.9% | 10% | 1.5% | 3.4% |
| Net Income | - | 12% | - | 76% | 8.2% |
| Stockholders Equity | -6.2% | -6.7% | 12% | 26% | 5% |
| FCF | -3.9% | - | -13% | - | 3.4% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is -3.94%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +3.36%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +12.47%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +8.2%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -6.75%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +5%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +3.36%.