$MRCC
Market Cap:
$187.2 Million
$MRCC Insights BETA
Expenses
- Gross Profit Margin is relatively inconsistent.
- Avg. Gross Profit Margin is ≈63.69%, which is fantastically high. There is a good chance this business has strong competitive advantages. Be sure to make sure SGA, R&D, & Interest expenses are not eating up all the gross profits.
Cost Of Revenues
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Gross Profit
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Gross Profit Margin
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- SGA is relatively inconsistent, which can mean they face intense competition.
- Avg. SGA is ≈9.97% of Gross Profits, which is great. R&D and Interest Expense should be checked to ensure the good economics isn't getting destroyed through a different mechanism.
Selling, General & Admin Expense
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Research & Development
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Depreciation, Depletion & Amortization
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SGA Expense to Gross Profit Ratio
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R&D To Gross Profit Ratio
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DDA To Gross Profit Ratio
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Operating Expenses Total
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Operating Profits/Loss
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Income/Loss
- The tax rate (Income Tax Paid / Pretax Income) is 17.33% on average, which is well below the 21% corporate tax rate. It might be worth trying to understand what's going on.
- Net Income is relatively inconsistent. When Net Income is inconsistent, it's hard to determine a value of the company you can feel confident in.
- Net Income / Total Revenues is 26.38% on average. This is good when it's above 10%. When comparing with competitors, the company with the highest ratio will likely be the one with the competitive advantage.
- Earnings Per Share is relatively inconsistent. Erratic earnings picture is a red flag that indicates a fiercely competitive industry with lots of booms and busts. During the bust part of the cycle, the stock price might fall significantly after a bad earnings performance. This creates the illusion of a value buying opportunity but it’s not. Also keep in mind if the company has had stock splits or reverse splits.
Pretax Income
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Income Tax
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Net Profits/Loss
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Pretax Income YoY Change
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Income Tax Rate
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Net Profits/Loss YoY Change
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Basic EPS
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Net Income To Revenue Ratio
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Ownership
- Return on Shareholders' Equity has been 1.41%, which is low (<10%). If Net Income as percentage of Total Revenue also weak (<10%) or negative, it’s a red flag. If it's strong (>10%), it's a green flag since this indicates that they are returning the earnings to shareholders somehow.
Return On Shareholders' Equity
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Book Value
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Free Cash Flow
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Free Cash Flow YoY
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Free Cash Flow Margin
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