Mercer International (MERC) AI Stock Analysis

• Market Cap: $242.07M
• Dividend Yield: 8.29%
• Average Volume (3M): 558.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -1.37%
• EPS Growth: 60.42%
• Country: US
• Employees: 3,580
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.33
• Shares Outstanding: 66,870,770
• 10 Day Avg. Volume: 333,322
• 30 Day Avg. Volume: 557,998
• PEG Ratio: 0.07
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.24
• Enterprise Value/Market Cap: 6.55
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 9.27
• Enterprise Value/Ebitda: 2.65
• 1Y Price Target: $4.67
• Price Target Upside: 29.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: ―

Mercer International's overall stock score reflects significant financial challenges, including declining revenues and high leverage, which are major concerns. Technical analysis indicates bearish momentum, reinforcing a cautious outlook. Despite these challenges, the company's strong liquidity position and high dividend yield provide some positive aspects, making it a complex investment scenario.

Mercer International Business Overview & Revenue Model

Company Description

Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) pulp in Europe, the United States, Asia, and internationally. The company operates through two segments, Pulp and Wood Products. It also generates and sells green energy produced from biomass cogeneration power plant to third party utilities. In addition, the company manufactures, distributes, and sells lumber and other wood residuals. Further, it produces NBSK pulp primarily from wood chips, pulp logs, and sawlogs; carbon neutral or green energy using carbon-neutral bio-fuels, such as black liquor and wood waste; and tall oil for use as a chemical additive and green energy source. The company sells its pulp to tissue, specialty paper, and printing and writing paper, and other manufacturers; and lumber products to distributors, construction firms, secondary manufacturers, retail yards, and home centers. Mercer International Inc. was founded in 1968 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Mercer International generates revenue primarily through the sale of its pulp products, which are integral to the production of tissue, specialty papers, and printing and writing papers. The company operates several large-scale pulp mills, which enable efficient production and distribution to a global customer base. In addition to pulp, Mercer earns revenue from its wood products segment, which includes the production and sale of lumber and other wood-based materials. The company's commitment to sustainability is further supported by its bioenergy operations, which convert wood waste into renewable energy. By leveraging its extensive manufacturing infrastructure, strategic location of mills, and commitment to sustainability, Mercer International is able to maintain a competitive edge in the pulp and paper industry.

Mercer International Financial Statement Overview

Summary

Mercer International faces challenges with declining revenues and profitability, as shown by negative margins and net income. The balance sheet indicates high leverage, raising financial risk concerns, while improvements in cash flow generation provide some optimism. The company needs to address its revenue decline and manage leverage to enhance financial stability.

Income Statement

The income statement shows declining revenue from the previous year, with a notable decrease in gross profit margin from positive to negative. The net profit margin is also negative, indicating a loss. The EBIT and EBITDA margins have improved slightly in the TTM period compared to the previous year, but still reflect a challenging operating environment.

Balance Sheet

The balance sheet reveals a relatively high debt-to-equity ratio, indicating significant leverage. The equity ratio has decreased over the years, suggesting reduced equity backing for assets. Return on Equity (ROE) is negative due to net losses, raising concerns about profitability. However, total assets have increased, providing some balance sheet stability.

Cash Flow

Cash flow analysis shows a positive free cash flow in the TTM period, an improvement from previous losses, indicating better cash management. Operating cash flow to net income ratio is strong, highlighting efficient cash generation despite net losses. However, free cash flow growth remains a concern due to historical volatility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.00B	2.04B	1.99B	2.28B	1.80B	1.42B
	Gross Profit
170.90M	189.36M	-31.86M	498.20M	425.52M	130.60M
	EBIT
56.47M	15.01M	-188.77M	392.37M	346.58M	63.73M
	EBITDA
195.04M	15.01M	-9.07M	560.96M	478.78M	192.65M
	Net Income Common Stockholders
-90.78M	-85.14M	-242.06M	247.04M	170.99M	-17.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
181.47M	184.93M	313.99M	354.03M	345.61M	361.10M
	Total Assets
2.34B	2.26B	2.66B	2.73B	2.35B	2.13B
	Total Debt
1.52B	1.49B	1.63B	1.36B	1.24B	1.20B
	Net Debt
1.34B	1.31B	1.31B	1.00B	898.51M	835.46M
	Total Liabilities
1.90B	1.83B	2.03B	1.89B	1.66B	1.53B
	Stockholders Equity
437.35M	429.77M	635.41M	838.78M	694.02M	601.03M
Cash Flow		Free Cash Flow
30.47M	5.89M	-205.33M	181.42M	21.39M	-37.60M
	Operating Cash Flow
116.41M	90.20M	-69.00M	360.66M	182.21M	41.56M
	Investing Cash Flow
-69.37M	-66.99M	-199.87M	-425.68M	-187.13M	-59.83M
	Financing Cash Flow
-140.36M	-152.78M	228.62M	81.97M	-9.50M	26.32M

Mercer International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MERC, the sentiment is Negative. The current price of 3.62 is below the 20-day moving average (MA) of 3.73, below the 50-day MA of 4.19, and below the 200-day MA of 5.87, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 45.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MERC.

Mercer International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPI	74 Outperform	$5.78B	15.78	11.33%	1.46%	-6.06%	-24.97%
SLVM	67 Neutral	$2.07B	7.43	31.83%	3.55%	0.11%	46.54%
RYAM	61 Neutral	$258.42M	―	-10.12%	―	2.20%	34.71%
CLW	60 Neutral	$447.52M	33.74	-8.15%	―	-15.03%	-233.06%
MERC	51 Neutral	$242.07M	―	-17.96%	8.29%	-1.37%	60.42%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
NWGL	34 Underperform	$26.15M	―	-65.63%	―	―	―

Mercer International Corporate Events

Mercer International Holds 2025 Shareholders Meeting

Mercer International Inc. held its 2025 Annual Meeting of Shareholders on May 30, 2025, where shareholders voted on several key proposals. All ten nominees for the board of directors were elected, the executive compensation was approved on a non-binding basis, PricewaterhouseCoopers LLP was ratified as the independent public accounting firm, and an amendment to the 2022 Stock Incentive Plan was approved.

The most recent analyst rating on (MERC) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Mercer International stock, see the MERC Stock Forecast page.