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Mercer International

DB:AEZ
Snowflake Description

Moderate growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AEZ
DB
$682M
Market Cap
  1. Home
  2. DE
  3. Materials
Company description

Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood Kraft (NBSK) pulp in the United States, Europe, Asia, and internationally. The last earnings update was 4 days ago. More info.


Add to Portfolio Compare Print
  • Mercer International has significant price volatility in the past 3 months.
AEZ Share Price and Events
7 Day Returns
-2.1%
DB:AEZ
1.4%
Europe Forestry
1.7%
DE Market
1 Year Returns
-27.1%
DB:AEZ
2.1%
Europe Forestry
15%
DE Market
AEZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mercer International (AEZ) -2.1% -19.5% -15.9% -27.1% -17.7% -22.7%
Europe Forestry 1.4% 2.6% -2.1% 2.1% -8.3% 20.5%
DE Market 1.7% 0.8% 3.7% 15% 6.9% 7.3%
1 Year Return vs Industry and Market
  • AEZ underperformed the Forestry industry which returned 2.1% over the past year.
  • AEZ underperformed the Market in Germany which returned 15% over the past year.
Price Volatility
AEZ
Industry
5yr Volatility vs Market

Value

 Is Mercer International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mercer International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mercer International.

DB:AEZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:AEZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Forestry Unlevered Beta Simply Wall St/ S&P Global 1.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.269 (1 + (1- 26.5%) (166.43%))
2.221
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 5.44%)
10.49%

Discounted Cash Flow Calculation for DB:AEZ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Mercer International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:AEZ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.49%)
2020 17.50 Analyst x2 15.84
2021 115.00 Analyst x2 94.20
2022 99.42 Est @ -13.55% 73.70
2023 89.87 Est @ -9.6% 60.30
2024 83.72 Est @ -6.84% 50.84
2025 79.62 Est @ -4.9% 43.76
2026 76.79 Est @ -3.55% 38.20
2027 74.79 Est @ -2.6% 33.67
2028 73.34 Est @ -1.94% 29.89
2029 72.26 Est @ -1.47% 26.65
Present value of next 10 years cash flows $467.00
DB:AEZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $72.26 × (1 + -0.39%) ÷ (10.49% – -0.39%)
$661.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $661.59 ÷ (1 + 10.49%)10
$243.98
DB:AEZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $467.00 + $243.98
$710.98
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $710.98 / 65.60
$10.84
DB:AEZ Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:AEZ represents 0.91346x of NasdaqGS:MERC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91346x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 10.84 x 0.91346
€9.90
Value per share (EUR) From above. €9.90
Current discount Discount to share price of €9.50
= -1 x (€9.50 - €9.90) / €9.90
4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Mercer International is available for.
Intrinsic value
4%
Share price is €9.5 vs Future cash flow value of €9.9
Current Discount Checks
For Mercer International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Mercer International's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Mercer International's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mercer International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mercer International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:AEZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-0.15
NasdaqGS:MERC Share Price ** NasdaqGS (2020-02-17) in USD $10.4
Europe Forestry Industry PE Ratio Median Figure of 30 Publicly-Listed Forestry Companies 11.15x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 21.14x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mercer International.

DB:AEZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MERC Share Price ÷ EPS (both in USD)

= 10.4 ÷ -0.15

-70.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mercer International is loss making, we can't compare its value to the Europe Forestry industry average.
  • Mercer International is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Mercer International's expected growth come at a high price?
Raw Data
DB:AEZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -70.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
94.1%per year
Europe Forestry Industry PEG Ratio Median Figure of 21 Publicly-Listed Forestry Companies 0.38x
Germany Market PEG Ratio Median Figure of 260 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Mercer International, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Mercer International's assets?
Raw Data
DB:AEZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $8.39
NasdaqGS:MERC Share Price * NasdaqGS (2020-02-17) in USD $10.4
Europe Forestry Industry PB Ratio Median Figure of 38 Publicly-Listed Forestry Companies 1.07x
Germany Market PB Ratio Median Figure of 575 Publicly-Listed Companies 1.94x
DB:AEZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MERC Share Price ÷ Book Value per Share (both in USD)

= 10.4 ÷ 8.39

1.24x

* Primary Listing of Mercer International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mercer International is overvalued based on assets compared to the Europe Forestry industry average.
X
Value checks
We assess Mercer International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. Mercer International has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Mercer International expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
94.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mercer International expected to grow at an attractive rate?
  • Mercer International's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Mercer International's earnings growth is expected to exceed the Germany market average.
  • Mercer International's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:AEZ Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:AEZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 94.1%
DB:AEZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 3.9%
Europe Forestry Industry Earnings Growth Rate Market Cap Weighted Average -9.8%
Europe Forestry Industry Revenue Growth Rate Market Cap Weighted Average 0.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:AEZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:AEZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,765 191 25 3
2020-12-31 1,588 108 -21 4
2020-02-17
DB:AEZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,624 244 -10
2019-09-30 1,705 252 108
2019-06-30 1,653 205 148
2019-03-31 1,574 202 155
2018-12-31 1,458 237 129
2018-09-30 1,383 212 125
2018-06-30 1,358 235 105
2018-03-31 1,294 165 86
2017-12-31 1,169 142 70
2017-09-30 1,053 133 47
2017-06-30 986 136 38
2017-03-31 921 131 36

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mercer International's earnings are expected to grow significantly at over 20% yearly.
  • Mercer International's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:AEZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Mercer International Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AEZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 -0.16 -0.16 -0.16 1.00
2020-02-17
DB:AEZ Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -0.15
2019-09-30 1.65
2019-06-30 2.27
2019-03-31 2.37
2018-12-31 1.97
2018-09-30 1.93
2018-06-30 1.62
2018-03-31 1.33
2017-12-31 1.09
2017-09-30 0.73
2017-06-30 0.59
2017-03-31 0.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Mercer International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Mercer International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mercer International has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Mercer International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mercer International's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mercer International does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Mercer International's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Mercer International's 1-year growth to the Europe Forestry industry average as it is not currently profitable.
Earnings and Revenue History
Mercer International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mercer International Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AEZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,624.41 -9.64 74.54
2019-09-30 1,705.46 108.09 68.96
2019-06-30 1,652.99 148.06 65.71
2019-03-31 1,573.77 154.56 61.68
2018-12-31 1,457.72 128.59 59.95
2018-09-30 1,383.18 125.30 58.01
2018-06-30 1,357.62 105.27 56.65
2018-03-31 1,294.26 86.41 54.31
2017-12-31 1,169.15 70.48 49.68
2017-09-30 1,053.15 47.25 48.82
2017-06-30 985.60 38.04 45.46
2017-03-31 920.56 35.90 42.49
2016-12-31 931.62 34.94 44.53
2016-09-30 947.76 38.15 42.83
2016-06-30 980.71 49.98 45.23
2016-03-31 1,029.50 70.64 46.64
2015-12-31 1,033.20 75.50 46.24
2015-09-30 1,078.00 57.01 48.80
2015-06-30 1,108.72 121.59 47.62
2015-03-31 1,126.97 105.75 48.86
2014-12-31 1,175.11 113.15 47.93
2014-09-30 1,175.17 100.12 49.33
2014-06-30 1,142.78 8.81 50.56
2014-03-31 1,132.29 -4.77 49.86
2013-12-31 1,088.39 -26.38 51.17
2013-09-30 1,004.52 -22.71 46.93
2013-06-30 1,060.09 -32.74 48.96
2013-03-31 1,054.74 -17.73 48.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Mercer International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Mercer International used its assets less efficiently than the Europe Forestry industry average last year based on Return on Assets.
  • It is difficult to establish if Mercer International improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Mercer International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mercer International has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Mercer International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mercer International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mercer International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mercer International's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Mercer International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mercer International Company Filings, last reported 1 month ago.

DB:AEZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 550.40 1,087.93 351.09
2019-09-30 591.39 984.09 264.90
2019-06-30 646.53 983.64 257.32
2019-03-31 620.68 1,007.77 233.23
2018-12-31 581.43 1,041.39 240.49
2018-09-30 569.94 696.52 242.19
2018-06-30 538.50 699.26 269.48
2018-03-31 584.49 684.34 213.57
2017-12-31 550.67 958.92 143.30
2017-09-30 498.00 672.12 157.22
2017-06-30 445.25 670.57 142.59
2017-03-31 395.14 645.36 183.58
2016-12-31 379.13 624.07 136.57
2016-09-30 419.32 636.63 141.40
2016-06-30 400.22 628.27 112.65
2016-03-31 437.83 633.93 129.87
2015-12-31 382.98 654.96 99.63
2015-09-30 392.96 693.80 137.29
2015-06-30 389.98 706.22 90.87
2015-03-31 341.59 713.91 99.84
2014-12-31 438.88 706.47 53.17
2014-09-30 475.12 881.49 239.92
2014-06-30 425.61 985.07 241.02
2014-03-31 362.14 991.83 172.11
2013-12-31 348.32 1,031.23 147.73
2013-09-30 355.52 1,024.58 181.59
2013-06-30 337.78 993.48 174.76
2013-03-31 353.42 972.21 141.80
  • Mercer International's level of debt (197.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (160.7% vs 197.7% today).
  • Debt is well covered by operating cash flow (22.5%, greater than 20% of total debt).
  • Mercer International is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Mercer International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mercer International has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Mercer International's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.29%
Current annual income from Mercer International dividends. Estimated to be 5.18% next year.
If you bought €2,000 of Mercer International shares you are expected to receive €106 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mercer International's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.31%).
  • Mercer International's dividend is above the markets top 25% of dividend payers in Germany (3.59%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:AEZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Europe Forestry Industry Average Dividend Yield Market Cap Weighted Average of 25 Stocks 4.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:AEZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.54 3.00
2020-12-31 0.53 3.00
2020-02-17
DB:AEZ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-13 0.550 5.212
2019-10-31 0.550 4.538
2019-05-02 0.550 4.177
2019-02-14 0.500 3.542
2018-10-25 0.500 3.956
2018-05-03 0.500 2.961
2018-02-16 0.500 3.817
2018-02-15 0.500 3.753
2017-10-26 0.500 3.581
2017-07-27 0.460 3.981
2017-04-28 0.460 3.982
2017-04-27 0.460 3.718
2017-02-10 0.460 3.892
2017-02-09 0.460 3.687
2016-10-27 0.460 4.560
2016-07-28 0.460 5.570
2016-04-28 0.460 5.431
2015-10-30 0.460 5.212
2015-07-31 0.460 4.208
2015-07-30 0.460 3.731

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Mercer International has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Mercer International only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Mercer International's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Mercer International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mercer International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mercer International has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Mercer International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Gandossi
COMPENSATION $2,168,008
AGE 61
TENURE AS CEO 4.6 years
CEO Bio

Mr. David M. Gandossi has been the Chief Executive Officer, President and Director at Mercer International Inc. since July 20, 2015. Mr. Gandossi served as the Chief Financial Officer, Executive Vice President of Finance and Secretary at Mercer International Inc. since August 15, 2003 until July 20, 2015. He served as the Chief Financial Officer and Executive Vice-President of Formation Forest Products (a closely held corporation) since 2002. He served as the Chief Financial Officer, Vice-President, Finance and Secretary of the Pacifica Papers Inc., a North American specialty pulp and paper manufacturing company from December 1999 to August 2001 and Controller and Treasurer from June 1998 to December 1999. From June 1998 to August 31, 1998, he served as Secretary to Pacifica Papers Inc. From March 1998 to June 1998, he served as the Controller, Treasurer and Secretary of MB Paper Ltd. From April 1994 to March 1998, he served as a Controller and Treasurer of Harmac Pacific Inc., a Canadian pulp manufacturing company previously listed on the Toronto Stock Exchange. Mr. Gandossi serves as a Member of the Institute of Chartered Accountants in Canada. Mr. Gandossi has previously chaired the BC Bio-economy Transformation Council, and the FPI National Research Advisory Committee. He is a director of FPInnovations, The Forest Products Association of Canada (FPAC) and The Council of Forest Industries (COFI). Mr. Gandossi holds a Bachelor of Commerce degree from the University of British Columbia and is a Fellow of the Institute of Chartered Professional Accountants of British Columbia (ICABC).

CEO Compensation
  • David's compensation has increased whilst company is loss making.
  • David's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Mercer International management team in years:

2.8
Average Tenure
58
Average Age
  • The tenure for the Mercer International management team is about average.
Management Team

Jimmy S. Lee

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
62

David Gandossi

TITLE
President
COMPENSATION
$2M
AGE
61
TENURE
4.6 yrs

David Ure

TITLE
Executive VP
COMPENSATION
$1M
AGE
52
TENURE
4.6 yrs

Adolf Koppensteiner

TITLE
Chief Operating Officer
COMPENSATION
$1M
AGE
58
TENURE
2.1 yrs

Christoph Grewe-Franze

TITLE
Chief Information Officer
TENURE
0.3 yrs

Brian Merwin

TITLE
Vice President of Corporate Development
AGE
45
TENURE
1 yrs

André Listemann

TITLE
Managing Director of Stendal
TENURE
7.3 yrs

Carsten Merforth

TITLE
Managing Director of Friesau
TENURE
2.8 yrs

Bill MacPherson

TITLE
Managing Director of Celgar
TENURE
1.4 yrs

Wolfgang Beck

TITLE
Managing Director of Mercer Holz
TENURE
4.1 yrs
Board of Directors Tenure

Average tenure and age of the Mercer International board of directors in years:

3.7
Average Tenure
62.5
Average Age
  • The tenure for the Mercer International board of directors is about average.
Board of Directors

Jimmy S. Lee

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
62
TENURE
4.6 yrs

David Gandossi

TITLE
President
COMPENSATION
$2M
AGE
61
TENURE
4.6 yrs

Bill McCartney

TITLE
Independent Director
COMPENSATION
$150K
AGE
63
TENURE
17.1 yrs

R. Purchase

TITLE
Lead Director
COMPENSATION
$195K
AGE
75
TENURE
1.7 yrs

Jim Shepherd

TITLE
Independent Director
COMPENSATION
$150K
AGE
66
TENURE
8.7 yrs

Marti Morfitt

TITLE
Independent Director
COMPENSATION
$130K
AGE
61
TENURE
2.8 yrs

Alan Wallace

TITLE
Independent Director
COMPENSATION
$105K
AGE
59
TENURE
1.7 yrs

Linda Welty

TITLE
Independent Director
COMPENSATION
$105K
AGE
63
TENURE
1.7 yrs

Rainer Rettig

TITLE
Director
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
26. Aug 19 Buy Martha A. Morfitt Individual 23. Aug 19 23. Aug 19 10,000 €9.87 €98,747
X
Management checks
We assess Mercer International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mercer International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood Kraft (NBSK) pulp in the United States, Europe, Asia, and internationally. The company operates in two segments, Pulp and Wood Products. It produces NBSK pulp primarily from wood chips and pulp logs; carbon neutral or green energy using carbon-neutral bio-fuels, such as black liquor and wood waste; and tall oil for use as a chemical additive and green energy source. The company also generates and sells green energy produced from bio-mass cogeneration power plant to third party utilities. In addition, it manufactures, distributes, and sells lumber and other wood residuals. The company sells its pulp to tissue, specialty paper, and printing and writing paper manufacturers; and lumber products to distributors, construction firms, secondary manufacturers, retail yards, and home centers. Mercer International Inc. was founded in 1968 and is headquartered in Vancouver, Canada.

Details
Name: Mercer International Inc.
AEZ
Exchange: DB
Founded: 1968
$629,212,465
65,598,177
Website: http://www.mercerint.com
Address: Mercer International Inc.
700 West Pender Street,
Suite 1120,
Vancouver,
British Columbia, V6C 1G8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MERC Common Stock Nasdaq Global Select US USD 19. Jul 1988
DB AEZ Common Stock Deutsche Boerse AG DE EUR 19. Jul 1988
Number of employees
Current staff
Staff numbers
2,325
Mercer International employees.
Industry
Paper Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/02/17 21:09
End of day share price update: 2020/02/17 00:00
Last estimates confirmation: 2020/02/17
Last earnings filing: 2020/02/13
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.