Mercury Systems Inc.
Our Company Mercury Systems is a technology company that delivers mission-critical processing to the edge - where signals and data are collected - to solve the most pressing aerospace and defense challenges. Mercury s products and solutions are deployed in more than 300 programs and across 35 countries.
$74.27
-$2.14 (-2.80%)
EOD Oct 16, 2026
Operating margin is thin at 0.03%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 7.9%, steady but not accelerating. Free cash flow declined 43% despite revenue growth, conversion is weakening.
Free cash flow declined 43% versus the prior year, cash generation momentum has weakened. Net debt of $287M represents 4.2x FCF, leverage limits flexibility.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$984M
▲ +7.9% YoY
Net Income (TTM)
-$30M
▲ +21.7% YoY
Op. Margin
0.03%
▲ +2.2pp YoY
ROIC
0.01%
▲ +0.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$68M
▼ -42.8% YoY
Op. Cash Flow (TTM)
$102M
▼ -26.3% YoY
Net Debt
$287M
Cash & Equiv.
$214M
5Y CAGR: +1.3%
5Y CAGR: +5.7%
Continue Research
SourceComputed from the 10-Q filed 31 Jul 2026, covering the period ending 3 Jul 2026, as reported to the SEC. Data last refreshed 19 Aug 2026. How this is calculated.
Price from market data, last close as of 16 Oct 2026. Fiscal year ends Jun. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Mercury Systems (MRCY) overvalued?
Mercury Systems (MRCY) trades above a two-stage DCF intrinsic value of about $52.98 per share, so at $74.27 the stock looks overvalued (28.7% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Mercury Systems scores 35/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Mercury Systems's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $52.98 per share for MRCY, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $39.74. At today's $74.27, that puts the stock about 28.7% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Mercury Systems a high-quality business?+
Mercury Systems scores 35 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 0.0% operating margin and a 0.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Mercury Systems a good stock to buy right now?+
That depends on valuation and quality together, not either alone. MRCY currently trades above its estimated intrinsic value and scores 35/100 on quality (lower-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Electronic Components & Accessories
Spot a number that looks wrong?
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.