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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Mercer International's Net-Net Working Capital for the quarter that ended in Jun. 2026 was $-21.94.
The industry rank for Mercer International's Net-Net Working Capital or its related term are showing as below:
MERC's Price-to-Net-Net-Working-Capital is not ranked *
in the Forest Products industry.
Industry Median: 4.135 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Mercer International (NAS:MERC) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Mercer International Net-Net Working Capital Related Terms
Mercer International Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Mercer International's Net-Net Working Capital 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.
Mercer International Net-Net Working Capital Chart
MERC vs ITP, SLVM: Net-Net Working Capital Comparison
For the Paper & Paper Products subindustry, Mercer International's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Mercer International Price-to-Net-Net-Working-Capital vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Mercer International's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Mercer International's Price-to-Net-Net-Working-Capital 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-21.94 mean?
Mercer International (MERC) has a Net-Net Working Capital of $-21.94 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Mercer International According to the industry distribution chart, Mercer International ranks #999999 out of 72 companies in the Forest Products industry.
Is Mercer International's Net-Net Working Capital too high?
Mercer International's current Net-Net Working Capital is $-21.94. Based on the distribution chart, Mercer International ranks #999999 out of 72 companies in the Forest Products industry, which is in the bottom quartile relative to peers. Overall, Mercer International has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Mercer International's Net-Net Working Capital compare to ITP and SLVM?
According to the Forest Products industry distribution chart, Mercer International ranks #999999 out of 72 companies for Net-Net Working Capital. This places Mercer International in the lower half of its industry. The industry median Net-Net Working Capital is 4.14. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Forest Products company?
The median Net-Net Working Capital among Forest Products companies is 4.14, based on 72 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Mercer International For the Forest Products industry, the median Net-Net Working Capital is 4.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercer International's current Net-Net Working Capital is $-21.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercer International stock overvalued right now?
Based on GuruFocus' analysis, Mercer International (MERC) is currently considered Possible Value Trap. The stock's GF Value™ is $5.75, compared to a current price of $0.50 — trading 91.3% below its estimated fair value. The current Net-Net Working Capital is $-21.94. Mercer International's overall GF Score™ is 45/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Mercer International (MERC), the current Net-Net Working Capital is $-21.94 as of Jun. 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 Mercer International (MERC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercer International stock appears to be undervalued.
The current stock price of $0.50 is trading 91.3% below its estimated GF Value™ of $5.75.
GuruFocus considers Mercer International to be Possible Value Trap.
Key valuation signals for MERC:
Net-Net Working Capital: $-21.94
GF Value™: $5.75 vs. price of $0.50 (91.3% below fair value)
No single metric tells the full story. See the MERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercer International Inc is a forest products company with two reportable operating segments in pulp and solid wood. The pulp segment consists of the manufacture, sale, and distribution of pulp, electricity, and chemicals. The company has a geographical presence in the USA, Germany, China, and Other countries, where the maximum of revenue is generated from the China. The majority of the revenue is generated from the Pulp segment.
45GF Score
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