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MRC Global

NYSE:MRC
Snowflake Description

Excellent balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MRC
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy industry in the United States, Canada, and internationally. The last earnings update was 41 days ago. More info.


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MRC Share Price and Events
7 Day Returns
3.1%
NYSE:MRC
2.1%
US Trade Distributors
1.1%
US Market
1 Year Returns
-5.2%
NYSE:MRC
21.8%
US Trade Distributors
17.8%
US Market
MRC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MRC Global (MRC) 3.1% -9.8% 3.3% -5.2% -35.6% -8.6%
US Trade Distributors 2.1% -1.7% 7.1% 21.8% 24% 33.5%
US Market 1.1% 1.4% 3.9% 17.8% 35.4% 52.4%
1 Year Return vs Industry and Market
  • MRC underperformed the Trade Distributors industry which returned 21.8% over the past year.
  • MRC underperformed the Market in United States of America which returned 17.8% over the past year.
Price Volatility
MRC
Industry
5yr Volatility vs Market
Related Companies

MRC Value

 Is MRC Global 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 MRC Global 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 MRC Global.

NYSE:MRC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

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 NYSE:MRC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.947 (1 + (1- 21%) (73.84%))
1.335
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.335 * 5.44%)
9%

Discounted Cash Flow Calculation for NYSE:MRC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MRC Global 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.

NYSE:MRC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9%)
2020 132.06 Analyst x7 121.15
2021 119.72 Analyst x6 100.76
2022 120.00 Analyst x3 92.66
2023 144.10 Analyst x2 102.08
2024 147.70 Est @ 2.5% 95.99
2025 151.06 Est @ 2.27% 90.06
2026 154.25 Est @ 2.11% 84.37
2027 157.33 Est @ 2% 78.95
2028 160.36 Est @ 1.92% 73.82
2029 163.35 Est @ 1.87% 68.99
Present value of next 10 years cash flows $908.00
NYSE:MRC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $163.35 × (1 + 1.74%) ÷ (9% – 1.74%)
$2,288.51
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,288.51 ÷ (1 + 9%)10
$966.50
NYSE:MRC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $908.00 + $966.50
$1,874.50
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,874.50 / 82.19
$22.81
NYSE:MRC Discount to Share Price
Calculation Result
Value per share (USD) From above. $22.81
Current discount Discount to share price of $13.66
= -1 x ($13.66 - $22.81) / $22.81
40.1%

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

Current Discount
Amount off the current price MRC Global is available for.
Intrinsic value
40%
Share price is $13.66 vs Future cash flow value of $22.81
Current Discount Checks
For MRC Global to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MRC Global's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • MRC Global's share price is below the future cash flow value, and 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 MRC Global's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MRC Global's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MRC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.58
NYSE:MRC Share Price ** NYSE (2019-12-11) in USD $13.66
United States of America Trade Distributors Industry PE Ratio Median Figure of 41 Publicly-Listed Trade Distributors Companies 17.96x
United States of America Market PE Ratio Median Figure of 2,928 Publicly-Listed Companies 18.42x

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

** Primary Listing of MRC Global.

NYSE:MRC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MRC Share Price ÷ EPS (both in USD)

= 13.66 ÷ 0.58

23.61x

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

  • MRC Global is overvalued based on earnings compared to the US Trade Distributors industry average.
  • MRC Global is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does MRC Global's expected growth come at a high price?
Raw Data
NYSE:MRC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
26.3%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 1.06x
United States of America Market PEG Ratio Median Figure of 2,039 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

NYSE:MRC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.61x ÷ 26.3%

0.9x

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

  • MRC Global is good value based on expected growth next year.
Price based on value of assets
What value do investors place on MRC Global's assets?
Raw Data
NYSE:MRC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $8.16
NYSE:MRC Share Price * NYSE (2019-12-11) in USD $13.66
United States of America Trade Distributors Industry PB Ratio Median Figure of 51 Publicly-Listed Trade Distributors Companies 1.66x
United States of America Market PB Ratio Median Figure of 5,092 Publicly-Listed Companies 1.78x
NYSE:MRC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MRC Share Price ÷ Book Value per Share (both in USD)

= 13.66 ÷ 8.16

1.67x

* Primary Listing of MRC Global.

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

  • MRC Global is overvalued based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess MRC Global'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 Trade Distributors 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 Trade Distributors industry average (and greater than 0)? (1 check)
  5. MRC Global has a total score of 3/6, 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.

MRC Future Performance

 How is MRC Global expected to perform in the next 1 to 3 years based on estimates from 11 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
26.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MRC Global expected to grow at an attractive rate?
  • MRC Global's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • MRC Global's earnings growth is expected to exceed the United States of America market average.
  • MRC Global's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MRC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MRC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 26.3%
NYSE:MRC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 2.7%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
NYSE:MRC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MRC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,344 173 143 2
2022-12-31 4,002 145 123 3
2021-12-31 3,789 137 106 6
2020-12-31 3,622 150 65 11
2019-12-31 3,746 239 52 11
2019-12-12
NYSE:MRC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 3,905 269 49
2019-06-30 4,034 136 52
2019-03-31 4,132 23 50
2018-12-31 4,172 -11 50
2018-09-30 4,066 -157 75
2018-06-30 3,954 -163 54
2018-03-31 3,794 -144 38
2017-12-31 3,646 -48 26
2017-09-30 3,462 -14 -27
2017-06-30 3,296 81 -70
2017-03-31 3,120 217 -93
2016-12-31 3,041 253 -107

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MRC Global's earnings are expected to grow significantly at over 20% yearly.
  • MRC Global's revenue is expected to grow by 2.7% 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
NYSE:MRC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from MRC Global Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MRC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.73 1.73 1.73 1.00
2022-12-31 1.49 1.49 1.49 1.00
2021-12-31 1.20 1.35 1.03 3.00
2020-12-31 0.74 1.20 0.50 9.00
2019-12-31 0.62 0.68 0.56 9.00
2019-12-12
NYSE:MRC Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.58
2019-06-30 0.60
2019-03-31 0.57
2018-12-31 0.55
2018-09-30 0.82
2018-06-30 0.58
2018-03-31 0.41
2017-12-31 0.28
2017-09-30 -0.29
2017-06-30 -0.74
2017-03-31 -0.97
2016-12-31 -1.10

*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.
  • MRC Global is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess MRC Global'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
MRC Global 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.

MRC Past Performance

  How has MRC Global 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 MRC Global's growth in the last year to its industry (Trade Distributors).
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.
  • MRC Global's year on year earnings growth rate has been positive over the past 5 years.
  • MRC Global's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MRC Global's 1-year earnings growth is negative, it can't be compared to the US Trade Distributors industry average.
Earnings and Revenue History
MRC Global'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 MRC Global Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MRC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 3,905.00 49.00 548.00
2019-06-30 4,034.00 52.00 556.00
2019-03-31 4,132.00 50.00 559.00
2018-12-31 4,172.00 50.00 558.00
2018-09-30 4,066.00 75.00 548.00
2018-06-30 3,954.00 54.00 538.00
2018-03-31 3,794.00 38.00 534.00
2017-12-31 3,646.00 26.00 522.00
2017-09-30 3,462.00 -27.00 501.00
2017-06-30 3,296.00 -70.00 484.00
2017-03-31 3,120.00 -93.00 476.00
2016-12-31 3,041.00 -107.00 504.00
2016-09-30 3,289.00 -481.00 493.00
2016-06-30 3,568.00 -425.00 514.00
2016-03-31 4,020.00 -387.00 532.00
2015-12-31 4,529.00 -344.00 555.00
2015-09-30 5,074.09 85.16 586.44
2015-06-30 5,620.24 125.29 617.68
2015-03-31 5,919.53 149.59 644.17
2014-12-31 5,933.00 144.00 656.00
2014-09-30 5,765.32 136.26 621.77
2014-06-30 5,460.89 124.88 616.64
2014-03-31 5,231.37 129.43 602.13
2013-12-31 5,230.79 152.10 605.79
2013-09-30 5,193.32 122.35 619.67
2013-06-30 5,330.73 139.13 605.11
2013-03-31 5,493.33 126.61 586.33
2012-12-31 5,570.86 117.96 571.95

*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.
  • MRC Global has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MRC Global used its assets less efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • MRC Global has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess MRC Global'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 Trade Distributors 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.
MRC Global has a total score of 2/6, 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.

MRC Health

 How is MRC Global'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 MRC Global's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MRC Global is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MRC Global's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MRC Global'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 covered by short term assets, assets are 2.2x 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 MRC Global Company Filings, last reported 2 months ago.

NYSE:MRC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,026.00 627.00 25.00
2019-06-30 1,027.00 738.00 35.00
2019-03-31 1,033.00 746.00 27.00
2018-12-31 1,047.00 684.00 43.00
2018-09-30 1,128.00 719.00 29.00
2018-06-30 1,105.00 708.00 31.00
2018-03-31 1,098.00 639.00 45.00
2017-12-31 1,114.00 526.00 48.00
2017-09-30 1,131.00 447.00 40.00
2017-06-30 1,120.00 410.00 37.00
2017-03-31 1,107.00 412.00 93.00
2016-12-31 1,118.00 414.00 109.00
2016-09-30 1,160.00 515.00 213.00
2016-06-30 1,220.00 516.00 167.00
2016-03-31 1,277.00 518.00 121.00
2015-12-31 1,311.00 519.00 69.00
2015-09-30 1,729.20 663.79 32.94
2015-06-30 1,759.78 848.04 32.94
2015-03-31 1,375.18 1,373.29 49.28
2014-12-31 1,397.22 1,453.64 25.06
2014-09-30 1,425.23 1,416.93 31.13
2014-06-30 1,415.69 1,397.84 36.49
2014-03-31 1,366.13 1,314.23 30.14
2013-12-31 1,338.27 986.83 25.19
2013-09-30 1,316.56 1,043.76 33.44
2013-06-30 1,261.06 1,083.83 37.81
2013-03-31 1,230.87 1,073.07 27.42
2012-12-31 1,185.92 1,256.59 37.09
  • MRC Global's level of debt (61.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (99.5% vs 61.1% today).
  • Debt is well covered by operating cash flow (42.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess MRC Global'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. MRC Global has a total score of 5/6, 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.

MRC Dividends

 What is MRC Global'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
0%
Current annual income from MRC Global dividends. Estimated to be 0.53% next year.
If you bought $2,000 of MRC Global shares you are expected to receive $0 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?
  • Unable to evaluate MRC Global's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate MRC Global's dividend against the top 25% market benchmark as the company has not reported any payouts.
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
NYSE:MRC 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 11 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1962 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

NYSE:MRC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2019-12-31 0.29 1.00
2019-12-12

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

  • Unable to perform a dividend volatility check as MRC Global has not reported any payouts.
  • Unable to verify if MRC Global's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of MRC Global's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as MRC Global has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of MRC Global's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess MRC Global's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 MRC Global afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MRC Global has a total score of 0/6, see the detailed checks below.


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

MRC Management

 What is the CEO of MRC Global'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
Andy Lane
COMPENSATION $6,235,599
AGE 60
TENURE AS CEO 11.3 years
CEO Bio

Mr. Andrew R. Lane, also known as Andy, has been the Chief Executive Officer and President of MRC Global Inc. and MRC Global (US) Inc. since September 2008. Mr. Lane has been the Chief Executive Officer and President of MRC Management Co., since September 2008. Mr. Lane serves as the Chairman, Chief Executive Officer, & President of Ruffner Realty Company, McJunkin-West Africa Corp., McJunkin-Puerto Rico Corp., McJunkin Red Man Development Corporation, McJunkin Nigeria Limited, Greenbrier Petroleum Corp., and Milton Oil & Gas Co. He serves as Chairman, Chief Executive Officer, and President at The South Texas Supply Company, Inc. He served as Chief Operating Officer and Executive Vice President of Halliburton Company from December 2, 2004 to December 31, 2007. He served as the Chief Executive Officer and President of Midway-Tristate Corporation. He served as the President and Chief Executive Officer of KBR, Inc. from July 2004 to March 2006. He served as a Senior Vice President, Global Operations of Halliburton's Energy Services Group from April 2004 to July 2004; President, Landmark Division of Halliburton Energy Services Group, from May 2003 to March 2004; President and Chief Executive Officer of Landmark Graphics, from April 2002 to April 2003; Chief Operating Officer of Landmark Graphics, from January 2002 to March 2002; Vice President, Production Enhancement PSL, Completion Products PSL and Tools/Testing/TCP of Halliburton Energy Services Group, from January 2000 to December 2001. His career in the oil and gas industry began as a field engineer for Gulf Oil and he worked as a production engineer in Gulf Oil's Pipeline Design and Permits Group. Mr. Lane was the Chairman of MRC Global (US) Inc. (McJunkin Red Man Corporation) since December 2009 until April 2016. He has been Chairman of MRC Management Co., since December 2009. He served as the Chairman of the Board of Midway-Tristate Corp. and served as its Director since September 2008. He served as the Chairman of the Board at MRC Global Inc. from December 2009 to April 28, 2016. He has been a Director of MRC Global Inc. since September 2008. He has been a Director of MRC Global (US) Inc. (alternate name: McJunkin Red Man Corporation) since September 2008. He has been a Director of MRC Management Co. since September 2008. He served as Director of KBR, Inc., from September 2006 to April 5, 2007. He serves on the executive board of Southern Methodist University's School of Engineering. Mr. Lane is a registered professional mechanical engineer in the state of Texas and a member of the Society of Petroleum Engineers and the Society of Exploration Geophysicists. He received a B.S. in Mechanical Engineering from Southern Methodist University in 1981 (cum laude). Mr. Lane also completed the Advanced Management Program (A.M.P.) at Harvard Business School in November 2000.

CEO Compensation
  • Andy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andy's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the MRC Global management team in years:

7.3
Average Tenure
58
Average Age
  • The average tenure for the MRC Global management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Andy Lane

TITLE
President
COMPENSATION
$6M
AGE
60
TENURE
11.3 yrs

Jim Braun

TITLE
CFO & Executive VP
COMPENSATION
$2M
AGE
60
TENURE
8.1 yrs

Grant Bates

TITLE
Senior Vice President of Operations
COMPENSATION
$1M
AGE
47
TENURE
0.9 yrs

Dan Churay

TITLE
Executive VP of Corporate Affairs
COMPENSATION
$2M
AGE
57
TENURE
8.3 yrs

John Bowhay

TITLE
Senior Vice President of Supply Chain Management
COMPENSATION
$1M
AGE
53
TENURE
5.3 yrs

Monica Broughton

TITLE
Vice President of Investor Relations

Robert Stein

TITLE
Senior Vice President of Business Development
AGE
60
TENURE
7.3 yrs

Karl Witt

TITLE
Senior Vice President of US Operations
AGE
58
TENURE
3.7 yrs

Kelly Youngblood

TITLE
Executive Vice President
AGE
53
TENURE
0.1 yrs

John Durbin

TITLE
Senior VP & Treasurer
AGE
64
TENURE
8.3 yrs
Board of Directors Tenure

Average tenure and age of the MRC Global board of directors in years:

9.8
Average Tenure
64.5
Average Age
  • The tenure for the MRC Global board of directors is about average.
Board of Directors

Rhys Best

TITLE
Non-Executive Chairman
COMPENSATION
$317K
AGE
73
TENURE
3.7 yrs

Andy Lane

TITLE
President
COMPENSATION
$6M
AGE
60
TENURE
11.3 yrs

Len Anthony

TITLE
Independent Director
COMPENSATION
$227K
AGE
65
TENURE
11.2 yrs

Barbara Duganier

TITLE
Independent Director
COMPENSATION
$237K
AGE
60
TENURE
4.7 yrs

Bob Wood

TITLE
Independent Director
COMPENSATION
$232K
AGE
64
TENURE
4.3 yrs

Craig Ketchum

TITLE
Director
COMPENSATION
$210K
AGE
62
TENURE
12.2 yrs

Henry Cornell

TITLE
Director
COMPENSATION
$161K
AGE
63
TENURE
1.5 yrs

Bernie Wehrle

TITLE
Independent Director
COMPENSATION
$210K
AGE
67
TENURE
12.9 yrs

Cornelis Linse

TITLE
Independent Director
COMPENSATION
$212K
AGE
69
TENURE
9.6 yrs

John Perkins

TITLE
Independent Director
COMPENSATION
$214K
AGE
71
TENURE
10 yrs
Who owns this company?
Recent Insider Trading
  • MRC Global individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Nov 19 Sell CSK, LLC Company 08. Nov 19 11. Nov 19 -100,000 $15.13 $-1,512,084
12. Nov 19 Sell Andrew Lane Individual 11. Nov 19 11. Nov 19 -109,686 $15.02 $-1,647,484
09. May 19 Sell Daniel Churay Individual 07. May 19 09. May 19 -54,479 $17.11 $-916,976
07. Mar 19 Sell John Bowhay Individual 05. Mar 19 05. Mar 19 -15,000 $17.13 $-256,950
21. Feb 19 Sell Grant Bates Individual 20. Feb 19 20. Feb 19 -30,500 $18.78 $-572,790
X
Management checks
We assess MRC Global'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. MRC Global 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.

MRC News

Simply Wall St News

Should You Be Worried About MRC Global Inc.'s (NYSE:MRC) 7.4% Return On Equity?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for MRC Global: 7.4% = US$52m ÷ US$1.0b (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does MRC Global Have A Good Return On Equity? … Combining MRC Global's Debt And Its 7.4% Return On Equity While MRC Global does have some debt, with debt to equity of just 0.72, we wouldn't say debt is excessive.

Simply Wall St -

How MRC Global Inc. (NYSE:MRC) Can Impact Your Portfolio Volatility

(NYSE:MRC), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … View our latest analysis for MRC Global What we can learn from MRC's beta value Given that it has a beta of 1.97, we can surmise that the MRC Global share price has been fairly sensitive to market volatility (over the last 5 years).

Simply Wall St -

MRC Global (NYSE:MRC) Takes On Some Risk With Its Use Of Debt

NYSE:MRC Historical Debt, July 23rd 2019 How Strong Is MRC Global's Balance Sheet? … Either way, since MRC Global does have more debt than cash, it's worth keeping an eye on its balance sheet. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Are Investors Undervaluing MRC Global Inc. (NYSE:MRC) By 47%?

(NYSE:MRC) by taking the expected future cash flows and discounting them to their present value. … Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $141.6m $168.8m $219.1m $225.0m $231.1m $237.3m $243.8m $250.4m $257.2m $264.2m Growth Rate Estimate Source Analyst x7 Analyst x4 Analyst x2 Analyst x1 Est @ 2.7% Est @ 2.71% Est @ 2.71% Est @ 2.72% Est @ 2.72% Est @ 2.72% Present Value ($, Millions) Discounted @ 10.33% $128.3 $138.7 $163.1 $151.8 $141.3 $131.6 $122.5 $114.0 $106.2 $98.9 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $1.3b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage.

Simply Wall St -

Have Insiders Been Selling MRC Global Inc. (NYSE:MRC) Shares This Year?

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for MRC Global The Last 12 Months Of Insider Transactions At MRC Global In the last twelve months, the biggest single sale by an insider was when the Executive VP of Corporate Affairs, Daniel Churay, sold US$917k worth of shares at a price of US$17.11 per share. … NYSE:MRC Recent Insider Trading, July 4th 2019 MRC Global Insiders Are Selling The Stock Over the last three months, we've seen significant insider selling at MRC Global. … Insider Ownership of MRC Global Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.

Simply Wall St -

Did Changing Sentiment Drive MRC Global's (NYSE:MRC) Share Price Down By 43%?

During five years of share price growth, MRC Global moved from a loss to profitability. … NYSE:MRC Income Statement, June 25th 2019 MRC Global is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. … Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround.

Simply Wall St -

What Does MRC Global Inc.'s (NYSE:MRC) P/E Ratio Tell You?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for MRC Global: P/E of 28.28 = $16.01 ÷ $0.57 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … NYSE:MRC Price Estimation Relative to Market, June 25th 2019 Its relatively high P/E ratio indicates that MRC Global shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

Has MRC Global Inc. (NYSE:MRC) Improved Earnings Growth In Recent Times?

Measuring MRC Global Inc.'s (NYSE:MRC) track record of past performance is a useful exercise for investors. … View our latest analysis for MRC Global Commentary On MRC's Past Performance MRC's trailing twelve-month earnings (from 31 March 2019) of US$50m has jumped 32% compared to the previous year. … I suggest you continue to research MRC Global to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for MRC’s future growth?

Simply Wall St -

Should You Worry About MRC Global Inc.'s (NYSE:MRC) CEO Salary Level?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for MRC Global How Does Andy Lane's Compensation Compare With Similar Sized Companies? … When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.

Simply Wall St -

At US$15.52, Is It Time To Put MRC Global Inc. (NYSE:MRC) On Your Watch List?

NYSE:MRC Past and Future Earnings, May 25th 2019 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.

Simply Wall St -

MRC Company Info

Description

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy industry in the United States, Canada, and internationally. The company supplies products across various markets, such as upstream, midstream, and downstream. 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 products, and top work components, as well as measurement, steam, and instrumentation products. The company also provides carbon steel fittings and flanges, including carbon weld fittings, flanges, and piping components; stainless, alloy, and corrosion resistant pipes, tubing, fittings, and flanges; and carbon line pipes. In addition, it offers natural gas distribution products comprising risers, meters, polyethylene pipes and fittings, and various other components and industrial supplies; oilfield and industrial supplies and completion equipment consisting of 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. 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.

Details
Name: MRC Global Inc.
MRC
Exchange: NYSE
Founded: 1921
$1,122,685,798
82,187,833
Website: http://www.mrcglobal.com/NorthAmerica/us
Address: MRC Global Inc.
Fulbright Tower,
Suite 2300,
Houston,
Texas, 77010,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MRC Common Stock New York Stock Exchange US USD 12. Apr 2012
Number of employees
Current staff
Staff numbers
3,350
MRC Global employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/12 00:14
End of day share price update: 2019/12/11 00:00
Last estimates confirmation: 2019/12/09
Last earnings filing: 2019/11/01
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


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.