Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

Cash to Debt 0.02
MRC's Cash to Debt is ranked lower than
66% of the 1947 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.47 vs. MRC: 0.02 )
MRC' s 10-Year Cash to Debt Range
Min: 0.02   Max: No Debt
Current: 0.02

Equity to Asset 0.37
MRC's Equity to Asset is ranked lower than
53% of the 1933 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.51 vs. MRC: 0.37 )
MRC' s 10-Year Equity to Asset Range
Min: 0.22   Max: 0.4
Current: 0.37

Interest Coverage 5.14
MRC's Interest Coverage is ranked lower than
55% of the 1122 Companies
in the Global Tools & Accessories industry.

( Industry Median: 27.24 vs. MRC: 5.14 )
MRC' s 10-Year Interest Coverage Range
Min: 0.48   Max: 5.14
Current: 5.14

F-Score: 4
Z-Score: 2.55
M-Score: -2.27
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

Operating margin (%) 5.96
MRC's Operating margin (%) is ranked higher than
68% of the 1815 Companies
in the Global Tools & Accessories industry.

( Industry Median: 6.33 vs. MRC: 5.96 )
MRC' s 10-Year Operating margin (%) Range
Min: -6.74   Max: 7.31
Current: 5.96

Net-margin (%) 2.91
MRC's Net-margin (%) is ranked higher than
60% of the 1815 Companies
in the Global Tools & Accessories industry.

( Industry Median: 4.40 vs. MRC: 2.91 )
MRC' s 10-Year Net-margin (%) Range
Min: -9.28   Max: 2.91
Current: 2.91

ROE (%) 11.37
MRC's ROE (%) is ranked higher than
84% of the 1800 Companies
in the Global Tools & Accessories industry.

( Industry Median: 7.31 vs. MRC: 11.37 )
MRC' s 10-Year ROE (%) Range
Min: -45.67   Max: 11.37
Current: 11.37

ROA (%) 4.56
MRC's ROA (%) is ranked higher than
74% of the 1819 Companies
in the Global Tools & Accessories industry.

( Industry Median: 3.50 vs. MRC: 4.56 )
MRC' s 10-Year ROA (%) Range
Min: -11.02   Max: 4.56
Current: 4.56

ROC (Joel Greenblatt) (%) 26.30
MRC's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 1815 Companies
in the Global Tools & Accessories industry.

( Industry Median: 14.43 vs. MRC: 26.30 )
MRC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -24.8   Max: 31.49
Current: 26.3

» MRC's 10-Y Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

MRC Guru Trades in Q2 2013

RS Investment Management 1,879,609 sh (New)
Joel Greenblatt 52,529 sh (New)
Columbia Wanger 2,509,000 sh (+258.43%)
Ron Baron 1,462,817 sh (+29.96%)
Steven Cohen 265,159 sh (+25.85%)
Alan Fournier 6,619,971 sh (-9.56%)
Jim Simons 141,100 sh (-21.78%)
» More
Q3 2013

MRC Guru Trades in Q3 2013

Joel Greenblatt 150,549 sh (+186.6%)
Jim Simons 273,000 sh (+93.48%)
Columbia Wanger 2,961,000 sh (+18.02%)
Ron Baron 1,609,064 sh (+10%)
RS Investment Management 1,945,909 sh (+3.53%)
Alan Fournier 6,598,771 sh (-0.32%)
Steven Cohen 16,743 sh (-93.69%)
» More
Q4 2013

MRC Guru Trades in Q4 2013

RS Investment Management 2,752,754 sh (+41.46%)
Steven Cohen 20,538 sh (+22.67%)
Columbia Wanger 2,954,000 sh (-0.24%)
Ron Baron 1,539,595 sh (-4.32%)
Alan Fournier 5,922,083 sh (-10.25%)
Joel Greenblatt 108,258 sh (-28.09%)
Jim Simons 155,000 sh (-43.22%)
» More
Q1 2014

MRC Guru Trades in Q1 2014

Paul Tudor Jones 25,847 sh (New)
Louis Moore Bacon 32,873 sh (New)
Joel Greenblatt 903,948 sh (+734.99%)
RS Investment Management 3,374,628 sh (+22.59%)
Columbia Wanger 2,947,000 sh (-0.24%)
Alan Fournier 4,931,187 sh (-16.73%)
Ron Baron 1,118,071 sh (-27.38%)
Jim Simons 109,090 sh (-29.62%)
Steven Cohen 7,236 sh (-64.77%)
» More
» Details

Insider Trades

Latest Guru Trades with MRC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-03-31 Add 734.99%0.33%$24.91 - $32.26 $ 27.66-2%903948
Ron Baron 2014-03-31 Reduce -27.38%0.06%$24.91 - $32.26 $ 27.66-2%1118071
Joel Greenblatt 2013-12-31 Reduce -28.09%0.04%$26.75 - $32.49 $ 27.66-8%108258
Joel Greenblatt 2013-09-30 Add 186.6%0.08%$24.07 - $28.97 $ 27.664%150549
Joel Greenblatt 2013-06-30 New Buy0.06%$26.85 - $33.7 $ 27.66-7%52529
Ron Baron 2013-06-30 Add 29.96%0.05%$26.85 - $33.7 $ 27.66-7%1462817
Ron Baron 2013-03-31 Add 32.95%0.05%$27.62 - $32.93 $ 27.66-9%1125623
Ron Baron 2012-12-31 New Buy0.15%$22.8 - $28.12 $ 27.669%846645
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on MRC Global Inc

Baron Funds Comments on MRC Global - Feb 06, 2013

During the quarter, the Fund initiated a position in MRC Global, Inc. (MRC) With approximately $6 billion in sales, MRC Global is the largest distributor of pipes, valves and fittings (PVF) to the energy end market. Though the company became public earlier in 2012, its predecessor businesses date back nearly a century. Based in Houston, MRC carries a broad portfolio of highly technical and mission-critical products found on a variety of energy infrastructure assets, ranging from pipelines to refineries to drilling rigs. The company's blue chip customer base includes Conoco, Exxon Mobil, BP and Royal Dutch Shell. These customers rely on value-added distributors like MRC to help them save costs, cut working capital and streamline their supply chains. In particular, MRC's 'one-stop-shop' approach allows global energy players the ability to consolidate their vendors and rely on one global supplier for all their PVF needs.

MRC has good visibility into its revenue stream, a factor that we find attractive. The majority of products MRC distributes are tied to maintenance and repair contracts, in which regular wear and tear at customer facilities generates recurring revenue. Customer renewal rates on these contracts run in excess of 90%. The company operates 400 facilities, including 200 service centers, 22 valve shops and 180 pipe yards that are strategically located near major shale and refining regions across the globe. We are optimistic about the company's growth prospects for several reasons, including strong end market demand driven by promising new shale discoveries, unconventional drilling techniques, and the need to upgrade aging energy transmission infrastructure. Furthermore, MRC's business is well-diversified across the three key segments of the energy market: upstream, midstream and downstream.

In addition to posting double-digit organic growth during the last three years, MRC has also done a fine job acquiring smaller PVF distributors and gaining operational efficiencies. We envision ongoing acquisitions, particularly overseas where margins are higher and competition more fragmented. International revenues represent just 20% of the business today, whereas an estimated 75% of total global energy spending occurs outside North America.

Finally, we believe that MRC possesses a high quality management team. CEO Andrew Lane has a long track record in the energy sector, serving most recently as the COO of Halliburton until 2008, when he joined MRC prior to its IPO, citing its compelling growth prospects and market share opportunities.

From Baron Funds' fourth quarter letter.

Check out Ron Baron latest stock trades

Top Ranked Articles about MRC Global Inc

Columbia Wanger's Top Portfolio Increases
Columbia Wanger is one of the largest asset managers in America. As of June 30, the firm held 310 stocks valued at over $22 billion. The following companies represent the stocks that the portfolio managers of Columbia Wanger made the largest increases to. Read more...


P/E(ttm) 21.90
MRC's P/E(ttm) is ranked higher than
71% of the 2028 Companies
in the Global Tools & Accessories industry.

( Industry Median: 24.10 vs. MRC: 21.90 )
MRC' s 10-Year P/E(ttm) Range
Min: 16.82   Max: 26.71
Current: 21.9

P/B 2.00
MRC's P/B is ranked higher than
59% of the 2028 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.73 vs. MRC: 2.00 )
MRC' s 10-Year P/B Range
Min: 1.78   Max: 2.75
Current: 2

P/S 0.54
MRC's P/S is ranked higher than
82% of the 2028 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.07 vs. MRC: 0.54 )
MRC' s 10-Year P/S Range
Min: 0.31   Max: 0.63
Current: 0.54

PFCF 50.20
MRC's PFCF is ranked higher than
69% of the 2028 Companies
in the Global Tools & Accessories industry.

( Industry Median: 43.56 vs. MRC: 50.20 )
MRC' s 10-Year PFCF Range
Min: 5.52   Max: 112.12
Current: 50.2

EV-to-EBIT 14.16
MRC's EV-to-EBIT is ranked higher than
76% of the 2028 Companies
in the Global Tools & Accessories industry.

( Industry Median: 17.19 vs. MRC: 14.16 )
MRC' s 10-Year EV-to-EBIT Range
Min: 8.8   Max: 14.9
Current: 14.16

Current Ratio 2.63
MRC's Current Ratio is ranked higher than
81% of the 1944 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.82 vs. MRC: 2.63 )
MRC' s 10-Year Current Ratio Range
Min: 2.36   Max: 2.85
Current: 2.63

Quick Ratio 1.26
MRC's Quick Ratio is ranked higher than
64% of the 1944 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.29 vs. MRC: 1.26 )
MRC' s 10-Year Quick Ratio Range
Min: 1.11   Max: 1.35
Current: 1.26


Valuation & Return

Price/Median PS Value 1.00
MRC's Price/Median PS Value is ranked higher than
77% of the 2028 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.16 vs. MRC: 1.00 )
MRC' s 10-Year Price/Median PS Value Range
Min: 0.64   Max: 1.19
Current: 1

Earnings Yield (Greenblatt) 7.00
MRC's Earnings Yield (Greenblatt) is ranked higher than
71% of the 1806 Companies
in the Global Tools & Accessories industry.

( Industry Median: 6.70 vs. MRC: 7.00 )
MRC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6.7   Max: 11.4
Current: 7


Business Description

Industry: Industrial Products » Tools & Accessories
Compare: » details
Traded in other countries:37M.Germany
MRC Global Inc. was incorporated in the state of Delaware on November 20, 2006. The Company is the global industrial distributor of pipe, valves and fittings and related products and services to the energy industry based on sales and hold the position in industry across each of the upstream (exploration, production and extraction of underground oil and natural gas), midstream (gathering and transmission of oil and natural gas, natural gas utilities and the storage and distribution of oil and natural gas) and downstream (petrochemical processing, crude oil refining and general industrials) sectors. Globally, it has two operating segments through which it serves its customers in over 400 service locations. The Company's North American segment includes over 175 branch locations, six distribution centers in the U.S., one distribution center in Canada, 12 valve automation service centers and over 160 pipe yards located in the active oil and natural gas regions in North America. The other is International segment which includes over 30 branch locations throughout Europe, Asia and Australasia with distribution centers in each of the United Kingdom, Singapore and Australia and 10 automation service centers in Europe and Asia. It offers an array of PVF and oilfield supplies encompassing a complete line of products from its global network of suppliers to more than 12,000 active customers. The Company is subject to a variety of federal, state, local, foreign and provincial environmental, health and safety laws and regulations, including those governing the discharge of pollutants into the air, soil or water, the management, storage and disposal of, or exposure to, hazardous substances and wastes, the responsibility to investigate, remediate, monitor and clean up contamination and occupational health and safety.
» More Articles for MRC


Articles On GuruFocus.com
Morguard Corporation: Selling at a 30% Discount to Asset Value Mar 13 2014 
Insiders Are Buying MRC Global Aug 22 2013 
Columbia Wanger's Top Portfolio Increases Aug 09 2013 
Baron Funds Comments on MRC Global Feb 06 2013 

More From Other Websites
MRC GLOBAL INC. Files SEC form 8-K, Entry into a Material Definitive Agreement, Creation of a Direct... Jul 21 2014
Valmont's (VMI) Q2 Earnings Meet Estimates, Revenues Miss Jul 18 2014
Outlook for MRC Global positive into Q2 earnings, says KeyBanc Jul 15 2014
UPDATE: Bank Of America Upgrades MRC Global On Multiple Positive Factors Jul 11 2014
A Constructive Outlook on the Oil and Gas Sector for 2014: Barclays Managing Director James West... Jul 09 2014
J. Mike Stice, the CEO of Access Midstream Partners, L.P. (ACMP), Interviews with The Wall Street... Jul 03 2014
MRC Global's Organic Growth on Track Jun 24 2014
MRC GLOBAL INC. Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits Jun 17 2014
MRC Global Announces Second Quarter 2014 Earnings Release And Conference Call Schedule Jun 17 2014
MRC Global Closes Hypteck Acquisition Jun 10 2014
MRC Global Acquires MSD Engineering May 30 2014
MRC Global acquires valve distributor in Singapore May 29 2014
MRC Global acquires valve distributor in Singapore May 29 2014
MRC Global Acquires Valve Distributor in Singapore May 29 2014
MRC Global to Acquire Hypteck May 28 2014
MRC Global to acquire Hypteck in Norway May 27 2014
MRC Global to Acquire Hypteck in Norway May 27 2014
Valmont Reaches a New 52-Week High May 15 2014
Valmont Announces Capital Allocation Plan May 14 2014
MRC GLOBAL INC. Financials May 09 2014

Personalized Checklist

Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
Email Hide