Mercury Systems Inc Common Stock (MRCY)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

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

I approach Mercury as a Graham-style bargain hunter: I want proven earning power, a durable franchise, and a price that leaves room for error. Mercury supplies electronics into aerospace and defense, a field with high qualification hurdles and switching costs. That can be a moat, but it is not yet visible in the numbers. In fiscal 2026, the year ended 2026-07-03, revenue was $983.6 million, yet net income was negative $29.7 million and diluted EPS was negative $0.50. In fiscal 2025, the year ended 2025-06-27, revenue was $912.0 million and net loss was $37.9 million. In fiscal 2024, the year ended 2024-06-28, revenue was $835.3 million and net loss was $137.6 million. Losses are narrowing, and in fiscal Q3 2026, the quarter ended 2026-03-27, the net loss was only $2.9 million, or $0.04 per diluted share. That is progress. Still, at the 2026-10-13 close of $76.71, the FairStock-calculated P/E is negative, price-to-book is 3.05 and EV/EBITDA is 66.59. Free cash flow is positive at $68.1 million trailing, but that is only a 1.5% FCF yield. Debt/equity of 0.34 and an Altman Z-Score of 3.92 suggest the balance sheet is not fragile, and a Piotroski F-Score of 7/9 is decent. But ROE is -2.00% and ROCE is 0.20%. The Lynch category is none because the company has lost money in each of the last four years. I would call this a promising but unproven turnaround, not a classic value bargain. The price already assumes much better profitability ahead.

In plain English: Mercury Systems makes electronics used in aerospace and defense. The business has been losing money for years, but the losses are getting smaller and it is generating some cash. At the recent price, the stock looks expensive compared with current profits and cash flow.

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

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-27) · fiscal Q2 2026 10-Q (period ended 2025-12-26) · fiscal Q1 2026 10-Q (period ended 2025-09-26) · fiscal Q3 2025 10-Q (period ended 2025-03-28) · FY2026 10-K (period ended 2026-07-03) · FY2025 10-K (period ended 2025-06-27) · FY2024 10-K (period ended 2024-06-28)

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