MRC Global (MRC) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: N/A
• Average Volume (3M): 642.51K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 1.35
• Revenue Growth: -9.84%
• EPS Growth: -111.71%
• Country: US
• Employees: 2,500
• Sector: Energy
• Sector Strength: 72
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.14
• Shares Outstanding: 86,066,530
• 10 Day Avg. Volume: 540,530
• 30 Day Avg. Volume: 642,507
• PEG Ratio: -0.04
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.19
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: 1.83
• 1Y Price Target: $15.00
• Price Target Upside: 17.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $14.00 ▲(9.89%Upside)

MRC Global's overall stock score is driven by strong technical indicators and positive corporate events, offset by challenges in financial performance and valuation. While the company is strategically positioned for growth, high leverage and low profitability remain concerns.

Positive Factors

Financial Flexibility

Redeeming the outstanding convertible preferred stock is likely to enhance financial flexibility and reduce uncertainty for shareholders.

Growth Opportunities

MRC has growth opportunities including improving fundamentals in the gas utility market, potential for product price inflation, and positive expectations for natural gas midstream spending.

Share Repurchase Program

MRC announced a $125 million share repurchase program, expected to be comfortably funded from cash flow, representing about 12% of the company's market cap.

Negative Factors

Price Target Adjustment

The price target for MRC Global Inc has been reduced from $17 to $15 due to lower valuation across the market amidst geopolitical and economic uncertainty and a recent pullback in crude prices.

MRC Global Business Overview & Revenue Model

Company Description

MRC Global (MRC) is a leading distributor of pipe, valve, and fitting (PVF) products and services to the energy and industrial sectors. Headquartered in Houston, Texas, the company operates globally, serving customers in the upstream, midstream, and downstream sectors of the energy industry, as well as the chemical and gas distribution markets. MRC Global's core offerings include a wide range of PVF products, along with supply chain management services to enhance operational efficiency for its clients.

How the Company Makes Money

MRC Global makes money primarily through the distribution and sale of PVF products to various industries, including oil and gas, chemical, and industrial markets. The company generates revenue by procuring PVF products from manufacturers and supplying them to customers across the globe. Key revenue streams include sales to the upstream, midstream, and downstream sectors, with significant income from both large project contracts and ongoing maintenance, repair, and operations (MRO) supply agreements. MRC Global also benefits from strategic partnerships with major PVF manufacturers, providing access to a broad product portfolio and competitive pricing, which enhance its market position and profitability.

MRC Global Financial Statement Overview

Summary

MRC Global's financial performance is mixed. While cash flow remains strong, income statement and balance sheet metrics present challenges, such as low profitability and high leverage. The company faces pressures in maintaining revenue growth and operational margins, which could affect future financial stability.

Income Statement

MRC Global shows a moderate income statement performance. The TTM (Trailing-Twelve-Months) figures indicate a gross profit margin of approximately 20.53%, which is relatively healthy. However, the net profit margin is low at 0.48%, reflecting challenges in converting top-line revenue to bottom-line profit. The revenue growth has been volatile, with a decline in recent years following a peak in 2023. The EBIT and EBITDA margins have decreased from previous years, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial health with some areas of concern. The debt-to-equity ratio is approximately 1.06, indicating a high level of leverage which could pose risks if market conditions worsen. Return on Equity (ROE) has decreased significantly to 2.67% in the TTM, indicating limited profitability from shareholders' equity. The equity ratio stands at about 30.81%, suggesting a moderate reliance on equity financing.

Cash Flow

Cash flow analysis reveals a relatively strong position with stable operating cash flows. The free cash flow has shown growth, with a recent TTM figure of $221 million. The operating cash flow to net income ratio is robust, indicating strong cash generation relative to reported profits. However, the free cash flow to net income ratio reflects challenges in translating profit into free cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.13B	3.01B	3.41B	3.36B	2.67B	2.56B
	Gross Profit
694.00M	620.00M	690.00M	610.00M	417.00M	431.00M
	EBIT
131.00M	135.00M	187.00M	140.00M	7.00M	-13.00M
	EBITDA
204.00M	171.00M	225.00M	173.00M	52.00M	-209.00M
	Net Income Common Stockholders
68.00M	55.00M	114.00M	75.00M	-39.00M	-274.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.00M	63.00M	131.00M	32.00M	48.00M	119.00M
	Total Assets
2.02B	1.62B	1.89B	1.90B	1.67B	1.78B
	Total Debt
613.00M	571.00M	521.00M	558.00M	507.00M	607.00M
	Net Debt
574.00M	508.00M	390.00M	526.00M	459.00M	488.00M
	Total Liabilities
1.25B	1.11B	1.04B	1.15B	993.00M	1.08B
	Stockholders Equity
767.00M	516.00M	843.00M	741.00M	678.00M	705.00M
Cash Flow		Free Cash Flow
6.00M	248.00M	166.00M	-31.00M	46.00M	250.00M
	Operating Cash Flow
23.00M	276.00M	181.00M	-20.00M	56.00M	261.00M
	Investing Cash Flow
-17.00M	-27.00M	-14.00M	-11.00M	-7.00M	19.00M
	Financing Cash Flow
-26.00M	-314.00M	-67.00M	17.00M	-118.00M	-195.00M

MRC Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRC, the sentiment is Positive. The current price of 12.74 is above the 20-day moving average (MA) of 12.65, above the 50-day MA of 11.84, and above the 200-day MA of 12.63, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 54.25 is Neutral, neither overbought nor oversold. The STOCH value of 76.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRC.

MRC Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVX	75 Outperform	$1.16B	6.42	13.87%	―	72.10%	―
RES	75 Outperform	$1.12B	14.40	7.06%	3.15%	-9.78%	-49.45%
DNOW	72 Outperform	$1.59B	20.18	7.22%	―	4.74%	-65.65%
HLX	71 Outperform	$1.08B	12.99	5.64%	―	0.34%	―
WTTR	69 Neutral	$1.10B	26.47	4.51%	3.07%	-4.91%	-46.51%
MRC	68 Neutral	$1.10B	41.18	8.29%	―	-9.84%	-111.71%
Sector *	58 Neutral	$7.56B	3.50	-4.45%	10.15%	0.79%	-49.51%

MRC Global Corporate Events

MRC Global Holds Virtual Annual Stockholders Meeting

On May 29, 2025, MRC Global Inc. held its Annual Meeting of Stockholders virtually, where several key decisions were made. Stockholders elected directors for the upcoming year, approved executive compensation, decided on the frequency of advisory votes on executive pay, and ratified the appointment of Ernst & Young LLP as the company’s independent auditors for 2025.

The most recent analyst rating on (MRC) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on MRC Global stock, see the MRC Stock Forecast page.

MRC Global Launches Joint Venture for Smart Metering

MRC Global has announced a new joint venture, IMTEC, aimed at simplifying the procurement, programming, and installation of smart meters and Automated Meter Reading (AMR) technology. This venture is expected to mitigate risks for gas utilities by improving lead times and delivery, while also providing quality assurance through comprehensive inspection and meter proving. The joint venture is anticipated to enhance MRC Global’s market share in meter sales and further simplify the supply chain for gas utilities, potentially increasing its industry positioning and stakeholder value.

The most recent analyst rating on (MRC) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on MRC Global stock, see the MRC Stock Forecast page.

MRC Global Reports Q1 2025 Financial Results

On April 16, 2025, MRC Global announced its preliminary financial results for the first quarter of 2025, reporting a 7% sequential increase in revenue to approximately $710 million. The company also noted a net income from continuing operations of around $7 million and an adjusted EBITDA of about $35 million. The US segment was a significant contributor to the revenue increase, with notable growth in the DIET, Gas Utilities, and PTI sectors. MRC Global’s President and CEO, Rob Saltiel, expressed optimism for continued revenue growth in the second quarter, supported by a growing US backlog. The company also plans to execute a $125 million share repurchase program, despite potential global economic headwinds.

MRC Global Sells Canadian Operations to Emco Corporation

On March 14, 2025, MRC Global Inc. announced the sale of its Canadian operations to Emco Corporation, aiming to focus on geographies with stronger revenue growth and profit potential. The company reported significant strategic accomplishments in 2024, including simplifying its capital structure, initiating a share buyback program, and maintaining strong international growth, despite challenges in the US segment. The company is optimistic about returning to growth in 2025, driven by improvements in its gas utilities business, a favorable inflationary environment, and strong midstream natural gas prospects.