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Mercury SystemsMEX:MRCY 64 Debt-to-EBITDA is 7.23 as of Mar. 2026, which is 117% above its 10-year median of 3.33. GuruFocus rates MEX:MRCY with a GF Score™ of 64/100 and a GF Value™ of MXN771.39. The stock has 4 warning signs investors should review. Among 256 Aerospace & Defense companies, Mercury Systems ranks worse than 91.8% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Mercury Systems's Debt-to-EBITDA or its related term are showing as below:
MEX:MRCY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -9.88 Med: 3.33 Max: 9.91
Current: 7.4
During the past 13 years, the highest Debt-to-EBITDA Ratio of Mercury Systems was 9.91. The lowest was -9.88. And the median was 3.33.
MEX:MRCY's Debt-to-EBITDA is ranked worse than 91.8% of 256
companies
in the Aerospace & Defense industry
Industry Median: 1.795
vs MEX:MRCY: 7.40
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Mercury Systems Debt-to-EBITDA Related Terms
Mercury Systems Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Mercury Systems's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:MRCY vs KRMN, LOAR, VSEC: Debt-to-EBITDA Comparison
For the Aerospace & Defense subindustry, Mercury Systems's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mercury Systems Debt-to-EBITDA vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Mercury Systems's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Mercury Systems's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Mercury Systems (MEX:MRCY) has a Debt-to-EBITDA of 7.23 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Mercury Systems. This is 117% above median its historical median of 3.33. According to the industry distribution chart, Mercury Systems ranks #235 out of 256 companies in the Aerospace & Defense industry, placing it in the top 91.8%.
Is Mercury Systems' Debt-to-EBITDA too high?
Mercury Systems' current Debt-to-EBITDA of 7.23 is 117% above median its 10-year median of 3.33. The Aerospace & Defense industry median Debt-to-EBITDA is 1.80. Mercury Systems' value of 7.23 is 302.8% above this industry median. Based on the distribution chart, Mercury Systems ranks #235 out of 256 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Mercury Systems has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Mercury Systems' Debt-to-EBITDA compare to KRMN and LOAR?
According to the Aerospace & Defense industry distribution chart, Mercury Systems ranks #235 out of 256 companies for Debt-to-EBITDA. This places Mercury Systems in the lower half of its industry. The industry median Debt-to-EBITDA is 1.80. Mercury Systems' value of 7.23 is 302.8% above this benchmark. While the company's 10-year median is 3.33 vs. the industry median of 1.80, Mercury Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Aerospace & Defense company?
The median Debt-to-EBITDA among Aerospace & Defense companies is 1.80, based on 256 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mercury Systems's current Debt-to-EBITDA of 7.23 is 302.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Mercury Systems. For the Aerospace & Defense industry, the median Debt-to-EBITDA is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury Systems's current Debt-to-EBITDA is 7.23, which is 117% above median its own 10-year median of 3.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercury Systems stock overvalued right now?
Mercury Systems (MEX:MRCY) has a current Debt-to-EBITDA of 7.23. The stock's GF Value™ is MXN771.39, compared to a current price of MXN1,937.83 — trading 151.2% above its estimated fair value. The current Debt-to-EBITDA is 7.23, which is 117% above median its 10-year median of 3.33 and 302.8% above the Aerospace & Defense industry median of 1.80. Mercury Systems' overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Mercury Systems (MEX:MRCY), the current Debt-to-EBITDA is 7.23 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mercury Systems (MEX:MRCY) Overvalued in 2026?
Based on GuruFocus' analysis, Mercury Systems stock appears to be overvalued.
The current stock price of MXN1,937.83 is trading 151.2% above its estimated GF Value™ of MXN771.39.
Key valuation signals for MEX:MRCY:
Debt-to-EBITDA: 7.23 (117% above median its 10-year median of 3.33)
GF Value™: MXN771.39 vs. price of MXN1,937.83 (151.2% above fair value)
Industry Position: 302.8% above the Aerospace & Defense median (#235 of 256)
No single metric tells the full story. See the MEX:MRCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercury Systems Inc is a commercial technology company serving the aerospace and defense industry. The company envisions, creates, and delivers secure open architecture solutions powering a broad range of mission-critical applications in challenging and demanding environments. Its Mercury Processing Platform spans the full breadth of signal processing from radio frequency front end to the human-machine interface to convert meaningful data, gathered in remote and hostile environments, into critical decisions. The company manufactures components, products, modules, and subsystems and sells to defense prime contractors, the U.S. government, original equipment manufacturers, and commercial aerospace companies. Geographically, it derives maximum revenue from the United States.
64GF Score
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