Mercer International Inc. Common Stock (MERC)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, the market priced Mercer at $0.19 per share, a $12.7 million market value. That is a tiny price for a company with FY2025 revenue of $1.9 billion, but the market is not irrational: FY2025 net loss was $497.9 million, or $7.44 per diluted share. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $460.3 million and net loss was $76.0 million, or $1.13 per share. That narrowed from an $86.1 million loss in fiscal Q2 2025, but it is still a large loss. Trailing free cash flow is negative $154.2 million, producing a FairStock FCF yield of negative 1,210.8% on the current market value. A 16.04% dividend yield cannot be trusted when cash flow is negative. Financial health is poor: FairStock's Piotroski score is 1/9, its Altman Z-score is -0.04, debt-to-equity is 23.89, and ROE is -296.95%. The FairStock P/B of 0.92 at the close suggests the stock trades below accounting book value, but book value is being eroded by losses. Mercer sells commodity pulp and wood products, so I see no durable competitive moat. The Lynch category is TURNAROUND, based on a loss in the latest year after earlier profits, but a Graham-style investor needs a margin of safety. The low price offers potential, but negative cash flow and high leverage make the downside very real. I would want to see sustained positive cash flow, falling debt, and a recovery in revenue before treating this as more than a speculative workout.

In plain English: Mercer International makes pulp, lumber and wood products. The business looks weak: it lost money in its latest quarter and in recent years, and it is burning cash. The share price is very low and near the value of its net assets, but the continuing losses mean it is not clearly a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer