← Back to All US Stocks

Mercer International Inc.. (MERC) Stock Fundamental Analysis & AI Rating 2026

MERC Nasdaq Pulp Mills WA CIK: 0001333274
Updated This Month • Analysis: May 8, 2026 • SEC Data: 2026-03-31
Combined AI Rating
STRONG SELL
92% Confidence
N/A
STRONG SELL
92% Conf
Pending
Analysis scheduled

📊 MERC Key Takeaways

Revenue: $489.3M
Net Margin: -10.6%
Free Cash Flow: $-98.8M
Current Ratio: 2.17x
Debt/Equity: N/A
EPS: $-0.78
AI Rating: STRONG SELL with 92% confidence
Mercer International Inc.. (MERC) receives a STRONG SELL rating with 92% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $489.3M, net profit margin of -10.6%, Mercer International Inc.. demonstrates mixed fundamentals in the Market sector. Below is our complete MERC stock analysis for 2026.

Is Mercer International Inc.. (MERC) a Good Investment?

Claude

Mercer International faces severe financial distress with negative stockholders equity (-$5.5M), negative operating cash flow (-$85.7M), and deteriorating profitability. The company cannot service debt from operations (interest coverage -1.1x) while burning $98.8M in free cash flow annually amid 8.6% revenue decline.

Why Buy Mercer International Inc.. Stock? MERC Key Strengths

Claude
  • + Maintains $84.5M cash providing near-term liquidity buffer
  • + Current ratio of 2.17x enables meeting short-term obligations
  • + Commodity pulp exposure offers upside leverage if market prices recover

MERC Stock Risks: Mercer International Inc.. Investment Risks

Claude
  • ! Negative stockholders equity indicates balance sheet insolvency
  • ! Negative operating cash flow with -20.2% FCF margin is unsustainable
  • ! Interest coverage of -1.1x demonstrates inability to service debt from operations
  • ! Revenue declining 8.6% YoY in cyclical commodity industry
  • ! Extremely low 6.8% gross margins reflect lost pricing power

Key Metrics to Watch

Claude
  • * Operating cash flow stabilization and path to positive free cash flow
  • * Revenue and gross margin trajectory in pulp commodity environment
  • * Debt refinancing capability and covenant compliance status

Mercer International Inc.. (MERC) Financial Metrics & Key Ratios

Revenue
$489.3M
Net Income
$-52.0M
EPS (Diluted)
$-0.78
Free Cash Flow
$-98.8M
Total Assets
$2.0B
Cash Position
$84.5M

💡 AI Analyst Insight

Strong liquidity with a 2.17x current ratio provides a solid financial cushion.

MERC Profit Margin, ROE & Profitability Analysis

Gross Margin 6.8%
Operating Margin -6.7%
Net Margin -10.6%
ROE N/A
ROA -2.6%
FCF Margin -20.2%

MERC vs Market Sector: How Mercer International Inc.. Compares

How Mercer International Inc.. compares to Market sector averages

Net Margin
MERC -10.6%
vs
Sector Avg 12.0%
MERC Sector
ROE
MERC 0.0%
vs
Sector Avg 15.0%
MERC Sector
Current Ratio
MERC 2.2x
vs
Sector Avg 1.8x
MERC Sector
Debt/Equity
MERC 0.0x
vs
Sector Avg 0.7x
MERC Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Mercer International Inc.. Stock Overvalued? MERC Valuation Analysis 2026

Based on fundamental analysis, Mercer International Inc.. has mixed fundamental signals relative to the Market sector in 2026.

Return on Equity
N/A
Sector avg: 15%
Net Profit Margin
-10.6%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Mercer International Inc.. Balance Sheet: MERC Debt, Cash & Liquidity

Current Ratio
2.17x
Quick Ratio
1.22x
Debt/Equity
N/A
Debt/Assets
100.3%
Interest Coverage
-1.13x
Long-term Debt
$1.5B

MERC Revenue & Earnings Growth: 5-Year Financial Trend

MERC 5-year financial data: Year 2021: Revenue $1.8B, Net Income -$9.6M, EPS $-0.15. Year 2022: Revenue $2.3B, Net Income -$17.2M, EPS $-0.26. Year 2023: Revenue $2.3B, Net Income $171.0M, EPS $2.58. Year 2024: Revenue $2.3B, Net Income $247.0M, EPS $3.71. Year 2025: Revenue $2.0B, Net Income -$242.1M, EPS $-3.65.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Mercer International Inc..'s revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.65 indicates the company is currently unprofitable.

MERC Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-20.2%
Free cash flow / Revenue

MERC Quarterly Earnings & Performance

Quarterly financial performance data for Mercer International Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $489.3M -$22.3M $-0.33
Q3 2025 $458.1M -$17.6M $-0.26
Q2 2025 $453.5M -$67.6M $-1.01
Q1 2025 $507.0M -$16.7M $-0.25
Q3 2024 $470.8M -$17.6M $-0.26
Q2 2024 $499.4M -$67.6M $-1.01
Q1 2024 $522.7M -$16.7M $-0.25
Q3 2023 $470.8M -$26.0M $-0.39

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Mercer International Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$85.7M
Cash generated from operations
Capital Expenditures
$13.2M
Investment in assets
Dividends Paid
$10.0M
Returned to shareholders

MERC SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Mercer International Inc.. (CIK: 0001333274)

📋 Recent SEC Filings

Date Form Document Action
May 15, 2026 4 xslF345X06/tm2614827-1_4seq1.xml View →
May 7, 2026 10-Q merc-20260331.htm View →
May 7, 2026 8-K merc-20260507.htm View →
May 7, 2026 8-K d102731d8k.htm View →
Apr 21, 2026 DEF 14A merc-20260415.htm View →

Frequently Asked Questions about MERC

What is the AI rating for MERC?

Mercer International Inc.. (MERC) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are MERC's key strengths?

Claude: Maintains $84.5M cash providing near-term liquidity buffer. Current ratio of 2.17x enables meeting short-term obligations.

What are the risks of investing in MERC?

Claude: Negative stockholders equity indicates balance sheet insolvency. Negative operating cash flow with -20.2% FCF margin is unsustainable.

What is MERC's revenue and growth?

Mercer International Inc.. reported revenue of $489.3M.

Does MERC pay dividends?

Mercer International Inc.. pays dividends, with $10.0M distributed to shareholders in the trailing twelve months.

Where can I find MERC SEC filings?

Official SEC filings for Mercer International Inc.. (CIK: 0001333274) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is MERC's EPS?

Mercer International Inc.. has a diluted EPS of $-0.78.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is MERC a good stock to buy right now?

Based on our AI fundamental analysis in May 2026, Mercer International Inc.. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is MERC stock overvalued or undervalued?

Valuation metrics for MERC: ROE of N/A (sector avg: 15%), net margin of -10.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy MERC stock in 2026?

Our dual AI analysis gives Mercer International Inc.. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is MERC's free cash flow?

Mercer International Inc..'s operating cash flow is $-85.7M, with capital expenditures of $13.2M. FCF margin is -20.2%.

How does MERC compare to other Market stocks?

Vs Default sector averages: Net margin -10.6% (avg: 12%), ROE N/A (avg: 15%), current ratio 2.17 (avg: 1.8).

Top Rated Stocks
AAPL 92% MSFT 92% FAST 92% DT 92% DECK 92% DAVEW 92% ANET 88% RDDT 88% KNSL 88% MGRE 88%
Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 8, 2026 | Data as of: 2026-03-31 | Powered by Claude AI