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MERC vs NEM

MERC
Mercer International Inc.
BEARISH
Price
$1.08
Market Cap
$72.7M
Sector
Basic Materials
AI Confidence
95%
NEM
Newmont Corporation
NEUTRAL
Price
$114.38
Market Cap
$124.43B
Sector
Basic Materials
AI Confidence
45%

Valuation

P/E Ratio
MERC
--
NEM
17.9
Forward P/E
MERC
-1.33
NEM
10.42
P/B Ratio
MERC
1.07
NEM
3.68
P/S Ratio
MERC
0.04
NEM
5.49
EV/EBITDA
MERC
-75.91
NEM
8.33

Profitability

Gross Margin
MERC
4.93%
NEM
63.24%
Operating Margin
MERC
-13.86%
NEM
58.11%
Profit Margin
MERC
-26.65%
NEM
31.25%
ROE
MERC
-200.02%
NEM
22.34%
ROA
MERC
-5.23%
NEM
12.13%

Growth

Revenue Growth
MERC
-8.0%
NEM
20.6%
Earnings Growth
MERC
--
NEM
-4.6%

Financial Health

Debt/Equity
MERC
23.89
NEM
0.17
Current Ratio
MERC
3.05
NEM
2.29
Quick Ratio
MERC
1.71
NEM
1.75

Dividends

Dividend Yield
MERC
16.04%
NEM
0.96%
Payout Ratio
MERC
15.71%
NEM
15.65%

AI Verdict

MERC BEARISH

MERC exhibits severe financial distress, anchored by a weak Piotroski F-Score of 2/9 and a catastrophic ROE of -200.02%. The company is heavily over-leveraged with a Debt/Equity ratio of 23.89, suggesting an unsustainable capital structure. Despite a superficially attractive dividend yield of 16.04%, the combination of negative profit margins (-26.65%) and a technical freefall (1Y change of -78.3%) indicates a high risk of capital impairment or dividend suspension. The stock is currently trading near its 52-week low, reflecting a market that has priced in significant fundamental deterioration.

Strengths
Extremely low Price-to-Sales ratio (0.04)
Current Ratio of 3.05 suggests short-term liquidity is maintained
Price is trading near book value (P/B 1.07)
Risks
Extreme leverage with Debt/Equity at 23.89
Severe profitability collapse with ROE at -200.02%
Negative revenue growth (-8.00% YoY) and crashing EPS (-656% YoY)
NEM NEUTRAL

NEM shows bullish fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Key strengths include strong valuation and growth metrics. Price trades at a 155.7% premium to fair value estimate ($44.73), limiting near-term upside from a valuation perspective.

Strengths
Strong profitability (31.3% margin)
Strong revenue growth of 20.6%
Low debt with D/E ratio of 0.17
Risks
Premium vs Graham Number ($66.88)
Price trades at a 155.7% premium to fair value estimate ($44.73), limiting near-term upside from a valuation perspective.

Compare Another Pair

MERC vs NEM: Head-to-Head Comparison

This page compares Mercer International Inc. (MERC) and Newmont Corporation (NEM) 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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