Fact based stock research
Mercer (NasdaqGS:MERC)

US5880561015

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Mercer stock research in summary

mercerint.com

ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Mercer (Paper Products, Canada) shares have much better financial characteristics than comparable stocks. Shares of Mercer are a good value (attractively priced) with a consolidated Value Rank of 99 (better than 99% of alternatives) but show below-average growth (Growth Rank of 43), and are riskily financed (Safety Rank of 43), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Mercer's financial characteristics. As the company Mercer's key financial metrics exhibit good value (Obermatt Value Rank of 99) but low growth (Obermatt Growth Rank of 43) and risky financing practices (Obermatt Safety Rank of 43), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 99% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	99
Growth Rank	43
Safety Rank	43
Combined Rank	85

Country	Canada
Industry	Paper Products
Index	NASDAQ
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Mercer

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	86	91	96	99
GROWTH
GROWTH	67	37	1	43
SAFETY
SAFETY	33	35	55	43
SENTIMENT
SENTIMENT	n/a	25	4	^new
360° VIEW
360° VIEW	n/a	41	16	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Mercer is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	86	91	96	99
GROWTH
GROWTH	67	37	1	43
SAFETY
SAFETY	33	35	55	43
COMBINED
COMBINED	77	57	42	85

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Mercer the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 99 (better than 99% compared with alternatives) for 2024, Mercer shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Mercer. Price-to-Sales (P/S) is 96 which means that the stock price compared with what market professionals expect for future sales is lower than for 96% of comparable companies, indicating a good value for Mercer's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 85. Finally, compared with other companies in the same industry, dividend yields of Mercer are expected to be higher than for 95% of all competitors (a Dividend Yield rank of 95). The only low rank is for expected profits with a Price-to-Profit Rank of 5, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 99, is a buy recommendation based on Mercer's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	86	81	95	96
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	69	70	80	5
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	73	71	84	85
DIVIDEND YIELD
DIVIDEND YIELD	65	77	84	95
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	86	91	96	99

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Mercer; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Mercer shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Mercer. Profit Growth, with a rank of 78 (better than 78% of its competitors), and Capital Growth, with a rank of 61, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Stock Returns are at a rank of 17. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	48	41	58	19
PROFIT GROWTH
PROFIT GROWTH	15	94	8	78
CAPITAL GROWTH
CAPITAL GROWTH	n/a	9	11	61
STOCK RETURNS
STOCK RETURNS	67	45	17	17
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	67	37	1	43

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Mercer.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 43 (better than 43% compared with alternatives), the company Mercer has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Mercer is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Mercer and the other two below average. Refinancing is at 100, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 100% of its competitors. But Leverage is high with a rank of 6, meaning the company has an above-average debt-to-equity ratio. It has more debt than 94% of its competitors. Liquidity is also on the riskier side with a rank of 16, meaning the company generates less profit to service its debt than 84% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 43 (worse than 57% compared with alternatives), Mercer has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Mercer are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Mercer and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	10	12	14	6
REFINANCING
REFINANCING	92	89	100	100
LIQUIDITY
LIQUIDITY	18	22	37	16
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	33	35	55	43

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Mercer and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	18	3	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	18	83	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	81	1	^new
MARKET PULSE
MARKET PULSE	n/a	42	5	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	25	4	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Mercer.
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