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CSW vs MRCY

CSW
CSW Industrials, Inc.
NEUTRAL
Price
$296.18
Market Cap
$4.94B
Sector
Industrials
AI Confidence
85%
MRCY
Mercury Systems, Inc.
NEUTRAL
Price
$84.09
Market Cap
$5.05B
Sector
Industrials
AI Confidence
80%

Valuation

P/E Ratio
CSW
39.23
MRCY
--
Forward P/E
CSW
25.29
MRCY
56.09
P/B Ratio
CSW
4.57
MRCY
3.42
P/S Ratio
CSW
4.92
MRCY
5.35
EV/EBITDA
CSW
24.26
MRCY
70.16

Profitability

Gross Margin
CSW
42.72%
MRCY
28.16%
Operating Margin
CSW
7.44%
MRCY
-2.83%
Profit Margin
CSW
12.64%
MRCY
-3.23%
ROE
CSW
11.87%
MRCY
-2.08%
ROA
CSW
6.1%
MRCY
-0.01%

Growth

Revenue Growth
CSW
20.3%
MRCY
4.4%
Earnings Growth
CSW
-61.3%
MRCY
--

Financial Health

Debt/Equity
CSW
0.81
MRCY
0.47
Current Ratio
CSW
2.36
MRCY
2.96
Quick Ratio
CSW
0.82
MRCY
1.87

Dividends

Dividend Yield
CSW
0.37%
MRCY
--
Payout Ratio
CSW
13.91%
MRCY
0.0%

AI Verdict

CSW NEUTRAL

CSW exhibits strong operational health with a Piotroski F-Score of 7/9, indicating a robust financial foundation. However, there is a severe valuation disconnect, as the current price of $296.18 trades at a massive premium to both the Graham Number ($104.91) and the growth-based Intrinsic Value ($52.85). While revenue growth remains strong at 20.30%, the company is facing a significant earnings collapse (-61.30% YoY), which is not yet reflected in the current valuation. The combination of bearish insider selling and a 0/100 technical trend offsets the bullish analyst consensus.

Strengths
Strong Piotroski F-Score (7/9) indicating high financial health
Robust top-line revenue growth of 20.30% YoY
Healthy liquidity with a Current Ratio of 2.36
Risks
Severe earnings contraction (-61.30% YoY)
Extreme overvaluation relative to defensive fair value (Graham Number)
Bearish insider activity with multiple sales by the CEO and officers
MRCY NEUTRAL

Mercury Systems presents a contradictory profile: a stable financial foundation (Piotroski F-Score 5/9) and strong liquidity contrasted by negative profitability and aggressive insider selling. While the balance sheet is healthy with a low Debt/Equity ratio of 0.47 and a strong Current Ratio of 2.96, the valuation is stretched with a Forward P/E of 56.09 and negative profit margins. The stark divergence between bullish analyst targets ($96.88) and bearish insider activity ($150M in sales) suggests significant internal skepticism despite external optimism.

Strengths
Strong liquidity position with a Current Ratio of 2.96
Conservative leverage with Debt/Equity at 0.47
Positive earnings surprise trend in the last 4 quarters
Risks
Negative profit margins (-3.23%) and ROE (-2.08%)
Extremely bearish insider sentiment with $150.16M in net sales
High valuation premium (Forward P/E 56.09) relative to slow revenue growth (4.4%)

Compare Another Pair

CSW vs MRCY: Head-to-Head Comparison

This page compares CSW Industrials, Inc. (CSW) and Mercury Systems, Inc. (MRCY) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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