Mercury Systems (MRCY) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Mercury Systems

NasdaqGS•Industrials•Aerospace & Defense

$87.25+0.24(<0.01%)Pre-market

Market Cap

$5.15B

P/S

5.2x

P/B

3.4x

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.

How this company scores

AverageMetricSide Score: 57/100

Strongest: Balance Sheet & Red Flags (17/25); weakest: Cash & Earnings Quality (9/25).

Profitability16/25

Growth15/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality9/25

Strengths

Long cash runwayLow leverageImproving leverageConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 571.8x5y range 67.1x – 571.8x

Currently above its 5-quarter median.

P/S · 5.2x5y range 1.9x – 5.2x

Currently above its 20-quarter median.

P/B · 3.4x5y range 1.1x – 3.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 3.9x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $5.15B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $983.62M
Q. Revenue: $289.78M
TTM EBITDA: $72.96M
TTM Op. Income: $280,000
Q. Op. Income: $14.46M
TTM Net Income: $-29.67M
Q. Net Income: $798,000
EPS: $0.013
Shares Out.: $59.81M

$983.62M in TTM revenue grew 7.9% YoY, reaching $289.78M last quarter. TTM EBITDA of $72.96M and TTM operating income of $280,000 show growth is flowing through to the bottom line. However, net income is negative at $29.67M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 30.6%
EBITDA Margin: 11.0%
Op. Margin: 5.0%
Net Margin: 0.3%

Op. margin of 5.0% is down 3.6% YoY — costs are rising relative to revenue. Net margin at 0.3% and gross margin of 30.6% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 5.2x
P/B Ratio: 3.4x

P/S of 5.2x and P/B of 3.4x.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.32B
Cash: $214.31M
Long-Term Debt: $441.50M
Book Value: $1.50B
D/E Ratio: 0.3
Debt/EBITDA: 13.8

With $2.32B in assets and $441.50M in long-term debt, D/E is 0.3and book value is $1.50B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $42.15M
TTM Free Cash Flow: $68.09M
FCF Margin: 6.9%
FCF / Net Income: -2.3

TTM FCF of $68.09M on $42.15M in operating cash flow. The FCF / Net Income ratio of -2.3x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has fallen for 3 consecutive quarters — a weakening trend.