Mercury Systems Inc (MRCY) Stock Analysis
Verdict: AVOID
Improving execution is priced to perfection, leaving no margin for error as the stock sits 24% above analyst consensus and 52W highs.
Investment score: 38/100
Analysis as of
Is Mercury Systems Inc stock worth reviewing? AI model thesis
Avoid Mercury Systems due to extreme overvaluation (7.6x P/S) and aggressive insider selling, despite strong earnings momentum.
7-factor investment score
- Valuation: 15/100 (weight 20%)
- Financial Health: 25/100 (weight 15%)
- Technical Momentum: 85/100 (weight 15%)
- Earnings Quality: 90/100 (weight 15%)
- Insider Sentiment: 0/100 (weight 10%)
- Analyst Consensus: 30/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
Mercury Systems Inc opportunities and risks
What speaks for MRCY
- EPS Surprise Momentum
What speaks against MRCY
- Valuation Disconnect from Fundamentals
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| MRCY | n/a | 7.6x | 86.8x | 27.7% | -1.5% | 1.0% |
| SARO | 33.2x | 1.6x | 16.3x | 14.3% | 4.7% | 1.3% |
| KTOS | 288.4x | 6.6x | 74.0x | 21.8% | 2.1% | -1.4% |
| AVAV | n/a | 4.2x | n/a | 25.3% | -13.4% | -1.5% |
| HXL | 65.8x | 3.9x | 27.6x | 23.6% | 6.1% | 3.3% |
| LOAR | 112.0x | 14.0x | 49.2x | 50.8% | 12.6% | 1.3% |
| Peer median | 65.8x | 4.2x | 27.6x | 23.6% | 4.7% | 1.3% |
Frequently asked questions about Mercury Systems Inc (MRCY)
Is MRCY stock a good investment?
The cached TradeMates AI model rates Mercury Systems Inc as AVOID with an investment score of 38/100. Avoid Mercury Systems due to extreme overvaluation (7.6x P/S) and aggressive insider selling, despite strong earnings momentum. This is algorithmic model output, not personal investment advice.
Is MRCY stock a buy?
The TradeMates model verdict for MRCY is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.