Mercury Laboratories Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (13.5x coverage).

Cons

• Dividend payments have increased, but Mercury Laboratories only paid a dividend in the past 5 years.
• Whilst dividend payments have been stable, Mercury Laboratories has been paying a dividend for less than 10 years.
• Mercury Laboratories's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Mercury Laboratories's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Mercury Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Mercury Laboratories is profitable, therefore cash runway is not a concern.
• Mercury Laboratories is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (86.8%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 5x debt.
• Mercury Laboratories's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (48.8% vs 19.8% today).
• Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
• Mercury Laboratories's level of debt (19.8%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Mercury Laboratories board of directors is about average.
• Rajendra's remuneration is lower than average for companies of similar size in India.
• Rajendra's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

• Mercury Laboratories is not covered by any analysts.
• Mercury Laboratories has significant price volatility in the past 3 months.

past

Pros

• Mercury Laboratories's 1-year earnings growth exceeds its 5-year average (13.7% vs -2.4%)

Cons

• Mercury Laboratories's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• Mercury Laboratories used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• Mercury Laboratories's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Mercury Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Mercury Laboratories's earnings growth has not exceeded the IN Pharmaceuticals industry average in the past year (13.7% vs 22.7%).

value

Pros

• Mercury Laboratories is good value based on assets compared to the IN Pharmaceuticals industry average.
• Mercury Laboratories is good value based on earnings compared to the IN Pharmaceuticals industry average.
• 538964 outperformed the Pharmaceuticals industry which returned 26.7% over the past year.
• 538964 outperformed the Market in India which returned -14.5% over the past year.
• BSE:538964 is up 7.7% along with the Pharmaceuticals industry (6.8%) over the past month.
• BSE:538964 is up 7.7% along with the India market (8%) over the past month.

Cons

• Mercury Laboratories's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Mercury Laboratories's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Mercury Laboratories is overvalued based on earnings compared to the India market.