Mercury Systems Inc. (MRCY) intrinsic value & 10-year financials

Mercury Systems Inc. (MRCY) has a Graham intrinsic value of $6.46 per share. At $74.27 on Oct 17, 2026, the stock trades 1050% above that value. Over the last 10 fiscal years revenue grew 14.5% a year to $912.0M, with an average return on invested capital of 2.5%.

Graham intrinsic value
$6.46
Share price (Oct 17, 2026)
$74.27
Price vs Graham value
1050% above
Market cap
$4.4B
Revenue (FY2025)
$912.0M
Revenue growth (10-yr CAGR)
14.5%
ROIC (10-yr avg)
2.5%
Free cash flow (FY2025)
$119.0M

MRCY 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $912.0M -$37.9M -$0.65 $119.0M -2.2% -1.1%
FY2024 $835.3M -$137.6M -$2.38 $26.1M -17.7% -7.4%
FY2023 $973.9M -$28.3M -$0.50 -$60.0M -2.2% -0.8%
FY2022 $988.2M $11.3M $0.20 -$46.5M 3.2% 1.3%
FY2021 $924.0M $62.0M $1.12 $51.6M 8.8% 4.9%
FY2020 $796.6M $85.7M $1.56 $71.9M 11.4% 7.4%
FY2019 $654.7M $46.8M $0.96 $70.8M 11.7% 5.9%
FY2018 $493.2M $40.9M $0.86 $28.2M 9.5% 6.6%
FY2017 $408.6M $24.9M $0.58 $26.3M 9.2% 4.7%
FY2016 $270.2M $19.7M $0.56 $29.1M 8.9% 3.2%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

MERCURY SYSTEMS INC is a consistent compounder, expanding top-line revenue at 14.5% annually over the past decade.

MERCURY SYSTEMS INC has historically struggled to out-earn its cost of capital, averaging just 2.5% ROIC.

MERCURY SYSTEMS INC has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, MERCURY SYSTEMS INC is modeled at 14.5% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $6.46 per share.

MRCY stock: frequently asked questions

What is the intrinsic value of Mercury Systems Inc. (MRCY) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 14.5% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, MRCY's intrinsic value is about $6.46 per share.

Is MRCY stock undervalued?

At $74.27 (close on Oct 17, 2026), MRCY trades 1050% above its Graham value of $6.46. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Mercury Systems Inc. grown?

Revenue went from $270.2M in fiscal 2016 to $912.0M in fiscal 2025, a compound annual growth rate of 14.5%. Net income was -$37.9M in fiscal 2025.

Does Mercury Systems Inc. generate free cash flow?

Mercury Systems Inc. generated $119.0M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 8 of the last 10 reported years.

What is MRCY's return on invested capital?

Average ROIC over the last 10 fiscal years was 2.5%, and average return on equity was 1.6%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this MRCY data come from?

From Mercury Systems Inc.'s annual 10-K filings on SEC EDGAR, most recently filed May 5, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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