Latest Ratios: P/E Ratio -189.3x · EV/EBITDA 123.7x · ROE -2.6%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.4B | $3.1B | $1.6B | $2.0B | $3.6B | $3.7B | $4.3B | $3.4B | $1.8B | $1.8B | $873M |
| Enterprise Value | $7.7B | $3.5B | $2.0B | $2.5B | $4.1B | $3.8B | $4.2B | $3.2B | $1.9B | $1.8B | $983M |
| P/E Ratio → | -189.34 | — | — | — | — | 59.18 | 50.42 | 73.28 | 44.26 | 72.57 | 44.39 |
| P/S Ratio | 8.10 | 3.44 | 1.87 | 2.01 | 3.74 | 3.98 | 5.44 | 5.21 | 3.66 | 4.43 | 3.23 |
| P/B Ratio | 4.91 | 2.13 | 1.06 | 1.25 | 2.37 | 2.48 | 3.13 | 2.66 | 2.34 | 2.50 | 1.84 |
| P/FCF | 62.04 | 26.36 | 13.09 | 74.98 | — | — | 60.31 | 48.17 | 64.03 | 68.84 | 30.03 |
| P/OCF | 53.19 | 22.60 | 11.22 | 32.40 | — | — | 37.64 | 34.99 | 41.71 | 30.61 | 23.62 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.81 | 2.43 | 2.53 | 4.20 | 4.16 | 5.24 | 4.82 | 3.92 | 4.33 | 3.64 |
| EV / EBITDA | 123.74 | 55.65 | — | 32.56 | 54.12 | 25.96 | 29.74 | 25.65 | 21.68 | 25.39 | 24.75 |
| EV / EBIT | — | — | — | — | — | 39.96 | 43.98 | 39.77 | 42.60 | 45.79 | 31.90 |
| EV / FCF | — | 29.17 | 17.07 | 94.40 | — | — | 58.08 | 44.53 | 68.59 | 67.26 | 33.84 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.9% | 27.9% | 23.5% | 32.5% | 32.5% | 41.7% | 44.8% | 43.7% | 45.8% | 46.9% | 46.2% |
| Operating Margin | -2.2% | -2.2% | -17.7% | -2.2% | -2.2% | 8.8% | 11.4% | 11.7% | 9.5% | 9.2% | 8.9% |
| Net Profit Margin | -4.2% | -4.2% | -16.5% | -2.9% | -2.9% | 6.7% | 10.8% | 7.1% | 8.3% | 6.1% | 7.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -2.6% | -2.6% | -9.1% | -1.8% | -1.9% | 4.3% | 6.4% | 4.5% | 5.5% | 4.2% | 4.8% |
| ROA | -1.6% | -1.6% | -5.8% | -1.2% | -1.3% | 3.5% | 5.7% | 3.8% | 4.3% | 3.2% | 3.5% |
| ROIC | -0.8% | -0.8% | -5.5% | -0.8% | -0.9% | 4.2% | 6.1% | 6.0% | 4.4% | 4.4% | 4.2% |
| ROCE | -0.9% | -0.9% | -6.9% | -1.0% | -1.1% | 4.9% | 6.5% | 6.6% | 5.4% | 5.3% | 4.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.44 | 0.44 | 0.44 | 0.37 | 0.34 | 0.19 | 0.05 | — | 0.25 | — | 0.41 |
| Debt / EBITDA | 10.32 | 10.32 | — | 7.64 | 6.89 | 1.90 | 0.48 | — | 2.18 | — | 4.84 |
| Net Debt / Equity | — | 0.23 | 0.32 | 0.32 | 0.30 | 0.11 | -0.12 | -0.20 | 0.17 | -0.06 | 0.23 |
| Net Debt / EBITDA | 5.37 | 5.37 | — | 6.70 | 6.02 | 1.13 | -1.14 | -2.10 | 1.44 | -0.60 | 2.78 |
| Debt / FCF | — | 2.82 | 3.98 | 19.42 | — | — | -2.22 | -3.64 | 4.55 | -1.58 | 3.81 |
| Interest Coverage | -0.51 | -0.51 | -4.41 | -0.93 | -0.93 | 78.72 | 94.37 | 8.71 | 15.94 | 5.11 | 26.30 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.52 | 3.52 | 4.07 | 4.02 | 4.20 | 4.26 | 5.04 | 5.94 | 4.63 | 3.38 | 3.63 |
| Quick Ratio | 2.41 | 2.41 | 2.64 | 2.57 | 2.81 | 2.79 | 3.63 | 4.54 | 3.11 | 2.27 | 2.77 |
| Cash Ratio | 1.03 | 1.03 | 0.77 | 0.31 | 0.34 | 0.75 | 1.80 | 2.63 | 0.93 | 0.57 | 1.21 |
| Asset Turnover | — | 0.37 | 0.35 | 0.41 | 0.42 | 0.47 | 0.49 | 0.46 | 0.46 | 0.50 | 0.37 |
| Inventory Turnover | 1.98 | 1.98 | 1.91 | 1.95 | 2.43 | 2.43 | 2.47 | 2.69 | 2.46 | 2.68 | 2.49 |
| Days Sales Outstanding | — | 155.31 | 181.55 | 190.13 | 167.85 | 115.24 | 96.55 | 98.24 | 106.44 | 101.55 | 129.56 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | 1.7% | 2.0% | 1.4% | 2.3% | 1.4% | 2.3% |
| FCF Yield | 1.6% | 3.8% | 7.6% | 1.3% | — | — | 1.7% | 2.1% | 1.6% | 1.5% | 3.3% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.4% | 0.2% | 0.9% | 0.5% | 0.9% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.4% | 0.2% | 0.9% | 0.5% | 0.9% |
| Shares Outstanding | — | $59M | $58M | $57M | $57M | $55M | $55M | $49M | $47M | $43M | $35M |
Operational execution and margin compression
Based on current market data, Mercury Systems trades at an EV/EBITDA multiple of 110.57, a figure that appears disconnected from historical norms and suggests investors are pricing the equity as a distressed turnaround play rather than a traditional growth-oriented defense electronics provider within the broader industrial sector.
The absence of a meaningful P/E ratio and the elevated forward multiples indicate that the market is currently discounting the company's ability to restore profitability. This valuation profile implies that any potential upside is contingent upon a successful operational pivot rather than current earnings power, which remains elusive.
As reported in recent financial filings, Mercury Systems' ROIC has struggled to maintain positive territory, with the 2026Q3 figure of 0.2% highlighting a persistent inability to generate returns that exceed the cost of capital, a trend that has persisted across the last ten quarters of operations.
The decay in returns on invested capital appears driven by the company's inability to scale margins alongside its revenue base. This suggests that the capital deployed through previous acquisitions has not yet been effectively integrated into a profitable, high-margin manufacturing engine.
According to quarterly data, Mercury Systems' cash conversion cycle remains extended at 281 days as of 2026Q3, a metric that reflects significant inefficiencies in inventory management and the conversion of contract assets into cash compared to more streamlined peers in the defense electronics industry.
The high days-inventory-outstanding of 194 days suggests that the company is carrying substantial hardware buffers, which may be a response to supply chain volatility or poor program execution. This working capital intensity acts as a persistent drag on free cash flow generation and overall liquidity.
Based on reported figures, Mercury Systems maintains a debt-to-equity ratio of 0.43, which appears manageable in isolation but warrants caution given the company's recent history of negative operating margins and the resulting lack of consistent interest coverage to support its current capital structure.
While the leverage levels are not immediately threatening, the company's inability to generate positive EBITDA consistently makes the debt burden appear more significant than the raw ratio suggests. Investors should monitor whether the current cash balance is sufficient to avoid further reliance on debt during this period of operational restructuring.
Market participants frequently over-rely on top-line revenue growth as a proxy for success at Mercury Systems, a metric that obscures the underlying margin erosion and the high cost of program execution inherent in the company's current project-based, ruggedized hardware business model.
Focusing on revenue growth ignores the reality that Mercury's business model requires high-margin conversion to be sustainable. A more appropriate metric for this specific entity would be 'Operating Margin per Program' or 'Cash-to-Revenue Conversion,' which would better highlight the operational friction currently masked by top-line expansion.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying MRCY stock.
Mercury Systems, Inc.'s current P/E ratio is -189.3x. The historical average is 35.9x.
Mercury Systems, Inc.'s current EV/EBITDA is 123.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.2x.
Mercury Systems, Inc.'s return on equity (ROE) is -2.6%. The historical average is 4.7%.
Based on historical data, Mercury Systems, Inc. is trading at a P/E of -189.3x. Compare with industry peers and growth rates for a complete picture.
Mercury Systems, Inc. has 27.9% gross margin and -2.2% operating margin.
Mercury Systems, Inc.'s Debt/EBITDA ratio is 10.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.