MRC Global (MRC) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: N/A
• Average Volume (3M): 722.55K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 1.36
• Revenue Growth: -9.84%
• EPS Growth: -111.71%
• Country: US
• Employees: 2,500
• Sector: Energy
• Sector Strength: 40
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.14
• Shares Outstanding: 86,066,530
• 10 Day Avg. Volume: 842,504
• 30 Day Avg. Volume: 722,554
• PEG Ratio: -0.30
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.26
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.52
• Enterprise Value/Ebitda: 2.01
• 1Y Price Target: $15.00
• Price Target Upside: 20.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: ―

MRC Global's overall stock score reflects a balance of mixed financial performance, positive technical trends, and strategic corporate actions. Strong cash flow and strategic initiatives like share repurchases and market expansions are key positives. However, high leverage, weak valuation metrics, and profitability challenges pose significant risks.

Positive Factors

Financial Flexibility

Redeeming the outstanding convertible preferred stock for $361 million is likely to be slightly accretive to income and cash flow, enhancing financial flexibility and reducing uncertainty for shareholders.

Profitability

The sale of the Canadian business is expected to be accretive to gross and EBITDA margins, as well as improve EBITDA dollars.

Share Repurchase

MRC announced a $125 million share repurchase program, which is expected to be funded comfortably from cash flow, representing approximately 12% of the company's market cap.

Negative Factors

Market Uncertainty

The adjustment in price target is partly due to lower valuation across the market given geopolitical and economic uncertainty, and a recent pullback in crude prices.

Price Target Adjustment

The price target for MRC Global Inc is now $15, down from $17.

MRC Global Business Overview & Revenue Model

Company Description

MRC Global Inc., through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services to the energy, industrial, and gas utility end-markets in the United States, Canada, and internationally. 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, and top work components, as well as valve modification services; and measurement, steam, and instrumentation products. The company also provides carbon steel fittings and flanges comprising carbon weld fittings, flanges, and piping components; stainless steel, alloy and corrosion resistant pipes, tubing, fittings, and flanges; and carbon line pipes. In addition, it offers natural gas distribution products, including risers, meters, polyethylene pipes and fittings, and various other components and industrial supplies; oilfield and industrial supplies and completion equipment, such as 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, and valve inspection and repair services; and various other services under the ValidTorque and FastTrack names. 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.

How the Company Makes Money

MRC Global primarily generates revenue by distributing PVF products to various sectors, with a strong focus on energy-related industries. The company's revenue model is based on purchasing products from manufacturers and selling them to customers at a markup. Key revenue streams include direct sales to end-users in industries like oil and gas extraction, refineries, and petrochemical companies, as well as sales through long-term customer contracts. MRC Global also benefits from strategic partnerships with leading manufacturers, which help ensure a steady supply of high-quality products. Additionally, the company offers value-added services such as inventory management, technical product support, and customized supply chain solutions, which further contribute to its earnings.

MRC Global Financial Statement Overview

Summary

MRC Global shows a mixed financial performance. While profitability metrics indicate strength, the revenue decline highlights market challenges. The increase in debt-to-equity ratio suggests higher leverage, but cash flow management is robust, showcasing effective conversion of income to cash.

Income Statement

MRC Global demonstrated a strong gross profit margin of 20.60% in 2024, slightly improving from 20.22% in 2023. However, the revenue decreased by 11.77% from 2023 to 2024, reflecting market challenges. The net profit margin improved to 2.59% in 2024 from 3.34% in 2023, indicating better cost management. Notably, EBIT and EBITDA margins were stable at 4.48% in 2024, showcasing operational efficiency.

Balance Sheet

The debt-to-equity ratio increased to 1.11 in 2024 from 0.62 in 2023, indicating higher financial leverage. Return on equity dropped to 15.12% in 2024 from 13.52% in 2023, showing less effective use of equity. The equity ratio stood at 31.77% in 2024, indicating a moderate level of financial stability.

Cash Flow

MRC Global's free cash flow grew significantly by 49.40% from 2023 to 2024, reflecting strong cash generation. The operating cash flow to net income ratio improved to 3.54 in 2024, indicating efficient conversion of net income into cash. The free cash flow to net income ratio was 3.18, showcasing robust cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.01B	3.41B	3.36B	2.67B	2.56B
	Gross Profit
620.00M	690.00M	610.00M	417.00M	431.00M
	EBIT
135.00M	187.00M	140.00M	7.00M	-13.00M
	EBITDA
171.00M	225.00M	173.00M	52.00M	-209.00M
	Net Income Common Stockholders
55.00M	114.00M	75.00M	-39.00M	-274.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
63.00M	131.00M	32.00M	48.00M	119.00M
	Total Assets
1.62B	1.89B	1.90B	1.67B	1.78B
	Total Debt
571.00M	521.00M	558.00M	507.00M	607.00M
	Net Debt
508.00M	390.00M	526.00M	459.00M	488.00M
	Total Liabilities
1.11B	1.04B	1.15B	993.00M	1.08B
	Stockholders Equity
516.00M	843.00M	741.00M	678.00M	705.00M
Cash Flow		Free Cash Flow
248.00M	166.00M	-31.00M	46.00M	250.00M
	Operating Cash Flow
276.00M	181.00M	-20.00M	56.00M	261.00M
	Investing Cash Flow
-27.00M	-14.00M	-11.00M	-7.00M	19.00M
	Financing Cash Flow
-314.00M	-67.00M	17.00M	-118.00M	-195.00M

MRC Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRC, the sentiment is Positive. The current price of 12.41 is above the 20-day moving average (MA) of 12.27, above the 50-day MA of 11.57, and below the 200-day MA of 12.62, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 55.02 is Neutral, neither overbought nor oversold. The STOCH value of 55.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRC.

MRC Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RES	76 Outperform	$1.03B	13.23	7.06%	3.43%	-9.78%	-49.45%
DNOW	76 Outperform	$1.60B	19.78	7.22%	―	4.74%	-65.65%
INVX	75 Outperform	$1.02B	5.41	13.87%	―	72.10%	―
WTTR	69 Neutral	$1.01B	24.35	4.51%	3.10%	-4.91%	-46.51%
HLX	66 Neutral	$980.40M	11.71	5.64%	―	0.34%	―
MRC	65 Neutral	$1.09B	41.18	8.29%	―	-9.84%	-111.71%
Sector *	57 Neutral	$7.14B	3.33	-3.45%	5.75%	0.66%	-50.76%

MRC Global Corporate Events

MRC Global Launches Joint Venture for Smart Metering

MRC Global has announced a new joint venture, IMTEC, aimed at simplifying the procurement, programming, and installation of smart meters and Automated Meter Reading (AMR) technology. This venture is expected to mitigate risks for gas utilities by improving lead times and delivery, while also providing quality assurance through comprehensive inspection and meter proving. The joint venture is anticipated to enhance MRC Global’s market share in meter sales and further simplify the supply chain for gas utilities, potentially increasing its industry positioning and stakeholder value.

The most recent analyst rating on (MRC) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on MRC Global stock, see the MRC Stock Forecast page.

MRC Global Reports Q1 2025 Financial Results

On April 16, 2025, MRC Global announced its preliminary financial results for the first quarter of 2025, reporting a 7% sequential increase in revenue to approximately $710 million. The company also noted a net income from continuing operations of around $7 million and an adjusted EBITDA of about $35 million. The US segment was a significant contributor to the revenue increase, with notable growth in the DIET, Gas Utilities, and PTI sectors. MRC Global’s President and CEO, Rob Saltiel, expressed optimism for continued revenue growth in the second quarter, supported by a growing US backlog. The company also plans to execute a $125 million share repurchase program, despite potential global economic headwinds.

MRC Global Sells Canadian Operations to Emco Corporation

On March 14, 2025, MRC Global Inc. announced the sale of its Canadian operations to Emco Corporation, aiming to focus on geographies with stronger revenue growth and profit potential. The company reported significant strategic accomplishments in 2024, including simplifying its capital structure, initiating a share buyback program, and maintaining strong international growth, despite challenges in the US segment. The company is optimistic about returning to growth in 2025, driven by improvements in its gas utilities business, a favorable inflationary environment, and strong midstream natural gas prospects.

MRC Global Reports Strong 2024 Financial Results

MRC Global reported its full year and fourth quarter 2024 financial results, highlighting a net income of $78 million for the year despite a net loss of $1 million in the fourth quarter. The company achieved $268 million in operating cash flows, the highest since 2015, and maintained strong gross profit margins. Looking forward, MRC Global is optimistic about 2025, driven by growth in its gas utilities business and new market penetrations, alongside a strategic joint venture for smart meter development. The company also plans a $125 million share buyback and aims to achieve a target net debt leverage ratio of 1.5x by year-end.

MRC Global to Announce 2024 Financial Results

MRC Global announced that it will release its financial results for the fourth quarter and full year 2024 on March 14, 2025, before the market opens, followed by a conference call to discuss these results. Additionally, the company has scheduled its 2025 Annual Meeting of Stockholders to be held virtually on May 29, 2025. These announcements indicate MRC Global’s ongoing commitment to transparency and engagement with its stakeholders, potentially impacting its market positioning and investor relations.

MRC Global Delays 2024 Form 10-K Filing

On March 3, 2025, MRC Global announced a delay in filing its 2024 Form 10-K with the SEC, now expected by March 18, 2025, due to extended year-end inventory procedures. The company has completed physical inventory counts but needs additional time for analysis, with no expected material net inventory adjustments or restatements of prior periods.