MRC Global (MRC) AI Stock Analysis

• Market Cap: $1.28B
• Dividend Yield: N/A
• Average Volume (3M): 688.90K
• 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: 58
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.25
• Shares Outstanding: 85,084,460
• 10 Day Avg. Volume: 473,471
• 30 Day Avg. Volume: 688,900
• 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: 1.35
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: 13.05
• 1Y Price Target: $15.50
• Price Target Upside: 2.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $16.50 ▲(9.27% Upside)

MRC Global's overall stock score reflects a mix of strengths and challenges. The most significant factor is the positive technical analysis, indicating bullish momentum. The earnings call also provides an optimistic outlook with strong revenue growth and strategic initiatives. However, financial performance and valuation concerns, including negative profitability metrics and a lack of dividend yield, weigh on the score. The merger with DNOW Inc. is a notable event but introduces potential risks due to shareholder actions.

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 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: 15.10
• 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 15.1 is above the 20-day moving average (MA) of 14.48, above the 50-day MA of 14.12, and above the 200-day MA of 13.01, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 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	$1.71B	20.74	7.29%	―	2.78%	-63.09%
INVX	72 Outperform	$1.16B	5.82	15.64%	―	82.86%	―
RES	72 Outperform	$1.04B	19.01	4.92%	3.38%	-2.74%	-54.52%
MRC	67 Neutral	$1.28B	41.18	5.66%	―	-9.81%	-124.43%
Sector *	65 Neutral	$15.01B	7.39	3.39%	5.33%	4.10%	-61.80%
HLX	64 Neutral	$933.36M	19.64	3.27%	―	-8.19%	―
WTTR	59 Neutral	$1.02B	26.05	4.18%	3.34%	-2.46%	-44.11%

MRC Global Corporate Events

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.

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.