Mercury Systems Inc (MRCY)
Fair ValueFundamental
31
Price
$74.87
Market Cap
$4.59B
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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No competitor list for this company yet.
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
$71.31
Current Price
$74.87
Margin of Safety
-5.0%
Fair Value Range
$46.35 - $96.27
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
3.01
P/FCF
66.13
Gross Margin
28.6%
ROIC
0.0%
Profitability Radar
Value Creation (Economic Moat)
ROIC
0.0%
WACC
9.4%
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 (8)
- Price CAGR 10.60%
- Debt/equity ratio
- Positive free cash flow
- Current ratio
- Earnings surprise, average 89.3%
- 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 66.13
- P/B ratio 3.01
- 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 –
- Price below Graham Number
- PEG ratio (needs P/E > 0 and growth > 0)
- Earnings quality (operating cash flow / 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
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
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much MRCY moves, measured on its daily prices.
More volatile than 82% of the tracked stocks (90-day volatility).
- Volatility 30d
- 33.8%
- Volatility 90d
- 56.3%
- Beta vs S&P 500 (1y)
- 2.10Correlation 0.47
- Max drawdown (12m)
- -41.2%
- ATR (14d, % of price)
- 4.20%
Earnings reactions
How MRCY moved around its past quarterly results.
Next earnings release
Nov 10, 2026 · In 17 days · Time not known
EPS estimate: 0.30Revenue estimate: $245M
What usually happens
- Over the last 12 releases the stock moved a median of 12.0% the next day, up or down.
- Next-day moves: up 6, down 6 (out of 12).
- Of the 4 releases that beat estimates, the stock fell the next day after 1.
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Aug 18, 2026 | After the close | 0.39 | 0.37 | -5.3% | -0.3% | -3.6% | -16.4% |
| May 5, 2026 | After the close | 0.07 | 0.27 | +284.1% | +6.1% | +10.5% | +11.3% |
| Feb 3, 2026 | After the close | 0.07 | 0.16 | +143.5% | -12.4% | -22.3% | -15.0% |
| Nov 4, 2025 | After the close | 0.09 | 0.26 | +192.5% | -1.0% | +3.3% | -3.9% |
| Aug 11, 2025 | After the close | 0.23 | 0.47 | +104.8% | +9.0% | +27.0% | +24.7% |
| May 6, 2025 | After the close | 0.08 | 0.06 | -26.5% | -3.7% | -4.9% | -7.3% |
| Feb 4, 2025 | After the close | n/a | n/a | n/a | +24.1% | +18.5% | +11.1% |
| Nov 5, 2024 | After the close | n/a | n/a | n/a | +20.3% | +23.5% | +27.6% |
| Aug 13, 2024 | After the close | n/a | n/a | n/a | +19.1% | +17.6% | +13.9% |
| May 7, 2024 | After the close | n/a | n/a | n/a | -8.9% | -1.2% | -0.6% |
| Feb 6, 2024 | After the close | n/a | n/a | n/a | -14.2% | -11.4% | -0.7% |
| Nov 7, 2023 | After the close | n/a | n/a | n/a | -3.6% | -12.6% | -5.7% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on MRCY and what the price did next.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for MRCY.