MRC Global (MRC) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 601.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: -10.96%
• EPS Growth: -169.10%
• Country: US
• Employees: 2,500
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.13
• Shares Outstanding: 82,187,000
• 10 Day Avg. Volume: 669,708
• 30 Day Avg. Volume: 601,403
• PEG Ratio: -0.28
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 4.39
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 21.90
• 1Y Price Target: $15.67
• Price Target Upside: 13.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $13.50 ▼(-2.03% Downside)

MRC Global's overall stock score is primarily impacted by its financial performance, which is challenged by declining revenue, profitability, and negative cash flow trends. The technical analysis indicates weak momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a lower stock score, highlighting the need for significant improvements in financial health and market sentiment.

Positive Factors

ERP System Implementation

The ERP system implementation, despite initial challenges, is expected to improve operational efficiency and customer service long-term.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management and pricing strategy, supporting long-term profitability.

Product and Service Diversification

Diversification across industries reduces dependency on a single sector, enhancing resilience against industry-specific downturns.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow Trends

Negative cash flow trends indicate challenges in sustaining operations and funding investments, stressing the need for improved cash management.

Declining Revenue

Declining revenue reflects challenges in market demand or competitive positioning, necessitating strategic initiatives to drive growth.

MRC Global Business Overview & Revenue Model

Company Description

MRC Global Inc. is a leading distributor of pipe, valve, and fitting products, primarily serving the energy and industrial sectors. The company operates through a network of distribution centers and offers a wide range of services, including inventory management, supply chain solutions, and project support. MRC Global caters to various industries such as oil and gas, chemical, power generation, and water treatment, providing essential products that ensure the efficient operation of infrastructure and facilities.

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 revenue growth and profitability, with high leverage and negative cash flow trends. While the company maintains a stable gross profit margin, it must focus on improving its net income and cash flow generation to enhance financial stability and reduce risk.

Income Statement

MRC Global's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 4.13%, and the net profit margin is negative at -0.10%, reflecting a loss. However, the gross profit margin remains stable at around 20%, and the EBIT and EBITDA margins, although lower than previous years, are still positive. The company needs to address its declining revenue and profitability to improve its financial health.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.16 in the TTM period, indicating significant leverage. The return on equity is negative, reflecting the company's net loss. However, the equity ratio is relatively stable, suggesting a balanced asset structure. MRC Global must manage its debt levels to mitigate financial risk.

Cash Flow

Cash flow analysis shows a concerning trend with a negative free cash flow growth rate of -121.50% in the TTM period. The operating cash flow to net income ratio is low at 0.25, indicating challenges in converting income into cash. The company needs to improve its cash generation capabilities to support operations and reduce financial strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.76B	3.01B	3.41B	3.20B	2.67B	2.56B
Gross Profit	542.00M	620.00M	690.00M	584.00M	417.00M	431.00M
EBITDA	83.00M	171.00M	225.00M	168.00M	52.00M	-209.00M
Net Income	-41.00M	55.00M	114.00M	75.00M	-14.00M	-274.00M
Balance Sheet
Total Assets	1.79B	1.62B	1.89B	1.90B	1.67B	1.78B
Cash, Cash Equivalents and Short-Term Investments	59.00M	63.00M	131.00M	32.00M	48.00M	119.00M
Total Debt	648.00M	571.00M	521.00M	558.00M	507.00M	607.00M
Total Liabilities	1.26B	1.11B	1.04B	1.15B	993.00M	1.08B
Stockholders Equity	531.00M	516.00M	843.00M	741.00M	678.00M	705.00M
Cash Flow
Free Cash Flow	-23.00M	248.00M	166.00M	-31.00M	46.00M	250.00M
Operating Cash Flow	12.00M	276.00M	181.00M	-20.00M	56.00M	261.00M
Investing Cash Flow	-12.00M	-27.00M	-14.00M	-11.00M	-7.00M	19.00M
Financing Cash Flow	-7.00M	-314.00M	-67.00M	17.00M	-118.00M	-195.00M

MRC Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.78
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 13.78 is above the 20-day moving average (MA) of 13.76, below the 50-day MA of 14.33, and above the 200-day MA of 13.17, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 44.52 is Neutral, neither overbought nor oversold. The STOCH value of 38.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRC.

MRC Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVX	82 Outperform	$1.35B	13.65	10.41%	―	87.76%	1.77%
NESR	79 Outperform	$1.20B	16.34	8.17%	―	―	―
XPRO	76 Outperform	$1.48B	21.91	4.60%	―	-1.24%	337.41%
HLX	71 Outperform	$954.56M	22.98	2.71%	―	-1.95%	530.91%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
RES	63 Neutral	$1.21B	24.94	4.31%	3.08%	4.20%	-59.96%
MRC	45 Neutral	$1.17B	―	0.28%	―	-10.96%	-169.10%

MRC Global Corporate Events

MRC Global Awaits Finalization of DNOW Merger

On June 26, 2025, MRC Global Inc. entered into a Merger Agreement with DNOW Inc., involving a series of mergers resulting in MRC Global becoming a wholly-owned subsidiary of DNOW. As of November 3, 2025, all necessary regulatory approvals have been received, but the closing of the transactions is still pending the fulfillment of customary closing conditions.

The most recent analyst rating on (MRC) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on MRC Global stock, see the MRC Stock Forecast page.

MRC Global Awaits Final Approvals for DNOW Merger

On June 26, 2025, MRC Global Inc. entered into a Merger Agreement with DNOW Inc., involving a two-step merger process. The statutory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired on October 6, 2025, but the Transactions still require other regulatory approvals and customary closing conditions to be fulfilled.

The most recent analyst rating on (MRC) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on MRC Global stock, see the MRC Stock Forecast page.

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.

The most recent analyst rating on (MRC) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on MRC Global stock, see the MRC Stock Forecast page.

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.

The most recent analyst rating on (MRC) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on MRC Global stock, see the MRC Stock Forecast page.

MRC Global Reports Q2 2025 Results and Merger Plans

MRC Global Inc., headquartered in Houston, Texas, is a leading global distributor of pipe, valves, fittings, and other infrastructure products and services, catering to diverse sectors such as gas utilities, downstream, industrial and energy transition, and production and transmission infrastructure. With over 100 years of experience, the company offers innovative supply chain solutions and technical product expertise from a worldwide network of approximately 200 locations.