The growth of the EPS is critical in understanding the current valuation of MRC Global. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 19.50 % over the last twelve months. EPS growth is a vital measure of execution of the strategy for MRC Global since it indicates how well the business is allocating resources to benefit shareholders.



MRC Global trades as part of the energy sector and is part of the oil and gas services industry. The company CEO is Andrew R. Lane. MRC Global Inc along with its subsidiaries is an industrial distributor of pipe, valves and fittings and related products and services to energy industries. Its other products are pipe, steel fitting, and tubular goods.

Previous Intraday Performance:

The MRC shares had a previous change of -4.60% which opened at 16.40 and closed at 15.75. It moved to an intraday high of 16.48 and a low of 15.73.

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Historical Performance:

Over the last five trading days, MRC shares returned -3.96% and in the past 30 trading days it returned -0.94%. Over three months, it changed -20.69%. In one year it has changed 4.65% and within that year its 52-week high was 22.98 and its 52-week low was 14.71. MRC stock is 7.07% above its 52 Week Low.

Our calculations result in a 200 day moving average of 18.94 and a 50 day moving average of 16.92. Right now, MRC stock is trading -16.83% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

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Liquidity:

The company has a market cap of $1.4b with 90.3m shares outstanding and a float of 90.3m shares. Trading volume was 528,050 shares and has experienced an average volume of 865,614 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for MRC Global was 0.27 which ended on 31st of December 2017, which according to the previous close, that is a PE of 58.33. Based on 10 analyst estimates, the consensus EPS for the next quarter is 0.23. The trailing twelve month EPS is 0.49, which comes to a trailing twelve month PE of 32.14.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.20
06-30-2018:  0.17
03-31-2018:  0.13
12-31-2017:  -0.01



Base on our calculations, the intrinsic value per share is 19.41, which means it might be undervalued and has a margin of safety of 18.85%

Indicators Also to Watch:

Based on the latest filings, there is 67.70% of institutional ownership. Short-interest was 3,991,251, which was 4.42% of shares outstanding. The short-interest ratio or days-to-cover ratio was 4.45. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 1.58

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Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 9.73%, return on assets is 3.07%, profit margin is 2.43%, price-to-sales is 0.37 and price-to-book is 1.93.

Company Score Card:

Results are out of six:
 3  : Growth Expectations Result
 4  : Financial Safety Result
 0  : Past Performance Result
 1  : Valuation Result
 0  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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