MRC Global (MRC) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 929.66K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 1.43
• Revenue Growth: -9.84%
• EPS Growth: -111.71%
• Country: US
• Employees: 2,500
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.14
• Shares Outstanding: 85,080,580
• 10 Day Avg. Volume: 1,807,015
• 30 Day Avg. Volume: 929,663
• 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: 1.16
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: 1.83
• 1Y Price Target: $15.67
• Price Target Upside: 17.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: $15.00 ▲(12.61%Upside)

The overall score reflects a balanced view of MRC Global's prospects. Strong cash flow and strategic corporate events positively influence the score, while financial performance and valuation challenges weigh it down. Positive technical indicators are supportive of future price appreciation.

Positive Factors

Financial Flexibility

Redeeming the outstanding convertible preferred stock for $361 million is likely to be slightly accretive to income and cash flow, enhancing financial flexibility and reducing uncertainty for shareholders.

Growth Opportunities

MRC has a number of growth opportunities, including improving fundamentals in the gas utility end market and a bullish natural gas midstream spending outlook.

Share Repurchase Program

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

Negative Factors

Crude Price Pullback

The adjustment in the price target is also influenced by a recent pullback in crude prices.

Price Target Adjustment

The price target for MRC Global Inc is now $15, down from $17, partly due to lower valuation across the market given geopolitical and economic uncertainty.

MRC Global Business Overview & Revenue Model

Company Description

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy, industrial, and gas utility end-markets in the United States, Canada, and internationally. It offers ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves; and other products, such as lined corrosion resistant piping systems, control valves, valve automation, and top work components, as well as valve modification services; and measurement, steam, and instrumentation products. The company also provides carbon steel fittings and flanges comprising carbon weld fittings, flanges, and piping components; stainless steel, alloy and corrosion resistant pipes, tubing, fittings, and flanges; and carbon line pipes. In addition, it offers natural gas distribution products, including risers, meters, polyethylene pipes and fittings, and various other components and industrial supplies; oilfield and industrial supplies and completion equipment, such as high density polyethylene pipes, fittings, and rods; and specialized production equipment comprising tanks and separators. Further, the company provides various services, such as product testing, manufacturer assessments, multiple daily deliveries, volume purchasing, inventory and zone store management and warehousing, technical support, training, just-in-time delivery, truck stocking, order consolidation, product tagging and system interfaces, and valve inspection and repair services; and various other services under the ValidTorque and FastTrack names. Its products are used in the construction, maintenance, repair, and overhaul of equipment used in extreme operating conditions, including high pressure, high/low temperature, and high corrosive and abrasive environments. The company was formerly known as McJunkin Red Man Holding Corporation and changed its name to MRC Global Inc. in January 2012. MRC Global Inc. was founded in 1921 and is headquartered in Houston, Texas.

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
EBITDA	204.00M	171.00M	225.00M	173.00M	52.00M	-209.00M
Net Income	68.00M	55.00M	114.00M	75.00M	-39.00M	-274.00M
Balance Sheet
Total Assets	2.02B	1.62B	1.89B	1.90B	1.67B	1.78B
Cash, Cash Equivalents and Short-Term Investments	39.00M	63.00M	131.00M	32.00M	48.00M	119.00M
Total Debt	613.00M	571.00M	521.00M	558.00M	507.00M	607.00M
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: 13.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 13.32 is above the 20-day moving average (MA) of 13.12, above the 50-day MA of 12.62, and above the 200-day MA of 12.69, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 25.08 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	77 Outperform	$1.10B	6.11	13.87%	―	72.10%	―
RES	76 Outperform	$1.14B	14.71	7.06%	3.09%	-9.78%	-49.45%
DNOW	75 Outperform	$1.49B	18.92	7.22%	―	4.74%	-65.65%
HLX	71 Outperform	$980.40M	11.79	5.64%	―	0.34%	―
WTTR	70 Neutral	$1.10B	26.44	4.51%	3.10%	-4.91%	-46.51%
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%
MRC	67 Neutral	$1.13B	41.18	8.29%	―	-9.84%	-111.71%

MRC Global Corporate Events

MRC Global and DNOW Announce $1.5 Billion Merger

On June 26, 2025, MRC Global Inc. and DNOW Inc. announced a merger agreement valued at approximately $1.5 billion, creating a leading energy and industrial solutions provider. The merger, approved by both companies’ boards, will see MRC Global shareholders receive 0.9489 shares of DNOW stock per MRC share, resulting in a combined enterprise value of about $3 billion. This merger is expected to expand the companies’ product offerings, enhance their global footprint, and generate $70 million in annual cost synergies within three years. The transaction is anticipated to close in the fourth quarter of 2025, pending shareholder and regulatory approvals.

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 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.