MRCYMercury Systems, Inc.
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MRCY?
Mercury Systems, Inc. earns 0.02% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 9.0 points below what the capital costs: growth destroys value
- Operating margin
- 0.03%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q4 2026
- R&D as % of revenue
- 6.1%
R&D as % of revenue
- Gross margin
- 29%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 8.8% |
| FY2022 | 3.2% |
| FY2023 | −2.2% |
| FY2024 | −18% |
| FY2025 | −2.1% |
| FY2026 | 0.03% |
Details›
- Gross margin12 months to Q4 2026
- 29%
- Operating margin12 months to Q4 2026
- 0.03%
- Net margin12 months to Q4 2026
- −3.0%
- Free cash flow margin
- 6.9%
- R&D as % of revenue
- 6.1%
- Revenue, trailing twelve months
- $984M
- Free cash flow, trailing twelve months
- $68M
- Net income, trailing twelve months
- −$30M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.02%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
Ranks #31 of 36 by RyuScore