MRC Global (MRC) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: N/A
• Average Volume (3M): 717.84K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 1.40
• Revenue Growth: -9.81%
• EPS Growth: -124.43%
• Country: US
• Employees: 2,500
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.25
• Shares Outstanding: 85,084,460
• 10 Day Avg. Volume: 1,213,777
• 30 Day Avg. Volume: 717,842
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: 13.05
• 1Y Price Target: $15.50
• Price Target Upside: 6.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: $15.50 ▲(6.02% Upside)

MRC Global's overall stock score reflects a mix of challenges and opportunities. The financial performance is the most significant concern, with declining profitability and cash flow issues. However, technical analysis shows a positive trend, and the merger with DNOW Inc. presents a strategic opportunity for growth and synergies. Valuation remains a concern due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Merger with DNOW

The merger with DNOW is expected to enhance product offerings, expand global footprint, and generate $70 million in annual cost synergies, strengthening MRC Global's market position and operational efficiency.

Product Offering and Partnerships

MRC Global's strategic partnerships with manufacturers and suppliers enhance its product offerings and pricing competitiveness, supporting long-term revenue growth and market adaptability.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management, which is crucial for maintaining profitability and competitiveness in the long term.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market expansion and customer acquisition, potentially impacting long-term business sustainability and profitability.

Profitability Challenges

A significant drop in net profit margin reflects operational inefficiencies and profitability challenges, which could hinder financial stability and growth prospects.

Decline in Free Cash Flow

A substantial decline in free cash flow growth indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities and manage financial obligations.

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 generates revenue primarily through the sale of pipe, valve, and fitting products to customers in the energy and industrial sectors. The company operates a business model that includes direct sales, inventory management services, and supply chain solutions, allowing it to cater to the specific needs of its clients. Key revenue streams include the sale of industrial products, project-based sales for large infrastructure projects, and recurring revenue from long-term contracts with clients. Additionally, partnerships with manufacturers and suppliers enhance MRC's product offerings and pricing competitiveness, further contributing to its earnings.

MRC Global Financial Statement Overview

Summary

MRC Global faces challenges in maintaining revenue growth and profitability, as reflected in the declining net profit margin and negative revenue growth rate. The balance sheet shows moderate leverage, but profitability issues impact return on equity. Cash flow concerns are evident with a significant drop in free cash flow growth. Overall, the company needs to focus on improving profitability and cash flow generation to enhance financial health.

Income Statement

MRC Global's income statement shows mixed performance. The TTM data reveals a slight decline in revenue growth, with a negative growth rate of -1.17%. The gross profit margin remains stable at around 20.5%, indicating consistent cost management. However, the net profit margin has decreased significantly to 0.48% in the TTM, reflecting challenges in maintaining profitability. EBIT and EBITDA margins have also slightly declined, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet indicates a moderate level of financial leverage with a debt-to-equity ratio of 1.06 in the TTM, slightly improved from the previous year. The return on equity has turned negative in the TTM, highlighting profitability challenges. The equity ratio remains stable, suggesting a balanced capital structure. Overall, the balance sheet reflects a need for improved profitability to enhance financial stability.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth by -51.58% in the TTM, indicating potential liquidity concerns. The operating cash flow to net income ratio is 0.42, suggesting moderate cash generation relative to earnings. The free cash flow to net income ratio is relatively high at 0.88, indicating efficient cash conversion despite the decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.88B	3.01B	3.41B	3.36B	2.67B	2.56B
Gross Profit	577.00M	620.00M	690.00M	610.00M	417.00M	431.00M
EBITDA	133.00M	171.00M	225.00M	173.00M	52.00M	-209.00M
Net Income	-3.00M	55.00M	114.00M	75.00M	-39.00M	-274.00M
Balance Sheet
Total Assets	1.77B	1.62B	1.89B	1.90B	1.67B	1.78B
Cash, Cash Equivalents and Short-Term Investments	75.00M	63.00M	131.00M	32.00M	48.00M	119.00M
Total Debt	622.00M	571.00M	521.00M	558.00M	507.00M	607.00M
Total Liabilities	1.24B	1.11B	1.04B	1.15B	993.00M	1.08B
Stockholders Equity	536.00M	516.00M	843.00M	741.00M	678.00M	705.00M
Cash Flow
Free Cash Flow	107.00M	248.00M	166.00M	-31.00M	46.00M	250.00M
Operating Cash Flow	145.00M	276.00M	181.00M	-20.00M	56.00M	261.00M
Investing Cash Flow	-16.00M	-27.00M	-14.00M	-11.00M	-7.00M	19.00M
Financing Cash Flow	-106.00M	-314.00M	-67.00M	17.00M	-118.00M	-195.00M

MRC Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.62
• 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 14.62 is below the 20-day moving average (MA) of 14.66, above the 50-day MA of 14.46, and above the 200-day MA of 13.06, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 52.79 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
DNOW	79 Outperform	1.66B	20.16	7.18%	―	2.78%	-63.09%
INVX	78 Outperform	1.29B	6.48	14.65%	―	82.86%	―
RES	69 Neutral	1.07B	19.57	4.93%	3.29%	-2.74%	-54.52%
HLX	68 Neutral	1.02B	21.52	3.19%	―	-8.19%	―
MRC	61 Neutral	$1.24B	41.18	5.66%	―	-9.81%	-124.43%
WTTR	61 Neutral	1.34B	34.31	4.13%	2.53%	-2.46%	-44.11%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

MRC Global Corporate Events

MRC Global Stockholders Approve Merger Agreement

On September 9, 2025, MRC Global held a special meeting of stockholders to vote on several key proposals, including the approval of a Merger Agreement, executive compensation related to the merger, and the potential adjournment of the meeting to solicit additional votes if necessary. The meeting was attended by stockholders representing a quorum, and all proposals were approved by the required number of votes, indicating strong support for the merger and related actions.

MRC Global Faces Shareholder Actions Over Merger

On June 26, 2025, MRC Global Inc. entered into a merger agreement with DNOW Inc., which involves a two-step merger process. The merger has led to shareholder actions alleging material omissions in the joint proxy statement/prospectus, with MRC Global responding by supplementing disclosures to avoid delays in closing the merger.

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.