Mercury SystemsFRA:MCY -2.09%61 Return-on-Tangible-Equity is -3.39% as of Mar. 2026. GuruFocus rates FRA:MCY with a GF Score™ of 61/100 and a GF Value™ of €38.12 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 333 Aerospace & Defense companies, Mercury Systems ranks worse than 75.38% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Mercury Systems's annualized net income for the quarter that ended in Mar. 2026 was €-9.9 Mil. Mercury Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €291.6 Mil. Therefore, Mercury Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -3.39%.
The historical rank and industry rank for Mercury Systems's Return-on-Tangible-Equity or its related term are showing as below:
FRA:MCY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -44.78 Med: 14.28 Max: 26.2
Current: -4.31
During the past 13 years, Mercury Systems's highest Return-on-Tangible-Equity was 26.20%. The lowest was -44.78%. And the median was 14.28%.
FRA:MCY's Return-on-Tangible-Equity is ranked worse than 75.38% of 333
companies
in the Aerospace & Defense industry
Industry Median: 8.29
vs FRA:MCY: -4.31
Mercury Systems (FRA:MCY) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Mercury Systems Return-on-Tangible-Equity Related Terms
Mercury Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Mercury Systems's Return-on-Tangible-Equity 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.
FRA:MCY vs DPC, VSEC, KRMN: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Mercury Systems's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Mercury Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Mercury Systems's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -3.39% mean?
Mercury Systems (FRA:MCY) has a Return-on-Tangible-Equity of -3.39% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mercury Systems and its competitors. According to the industry distribution chart, Mercury Systems ranks #251 out of 333 companies in the Aerospace & Defense industry, placing it in the top 75.4%.
Is Mercury Systems' Return-on-Tangible-Equity too high?
Mercury Systems' current Return-on-Tangible-Equity is -3.39%. Based on the distribution chart, Mercury Systems ranks #251 out of 333 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Mercury Systems has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mercury Systems' Return-on-Tangible-Equity compare to DPC and VSEC?
According to the Aerospace & Defense industry distribution chart, Mercury Systems ranks #251 out of 333 companies for Return-on-Tangible-Equity. This places Mercury Systems in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.29. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.29, based on 333 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mercury Systems and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury Systems's current Return-on-Tangible-Equity is -3.39%. 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?
Based on GuruFocus' analysis, Mercury Systems (FRA:MCY) is currently considered Significantly Overvalued. The stock's GF Value™ is €38.12, compared to a current price of €95.80 — trading 151.3% above its estimated fair value. The current Return-on-Tangible-Equity is -3.39%. Mercury Systems' overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Mercury Systems (FRA:MCY), the current Return-on-Tangible-Equity is -3.39% 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 (FRA:MCY) Overvalued in 2026?
Based on GuruFocus' analysis, Mercury Systems stock appears to be overvalued.
The current stock price of €95.80 is trading 151.3% above its estimated GF Value™ of €38.12.
GuruFocus considers Mercury Systems to be Significantly Overvalued.
Key valuation signals for FRA:MCY:
Return-on-Tangible-Equity: -3.39%
GF Value™: €38.12 vs. price of €95.80 (151.3% above fair value)
No single metric tells the full story. See the FRA:MCY 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.
61GF Score
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