Mercer International (MERC)
Market Price (12/4/2025): $1.925 | Market Cap: $128.9 MilSector: Materials | Industry: Paper Products
Mercer International (MERC)
Market Price (12/4/2025): $1.925Market Cap: $128.9 MilSector: MaterialsIndustry: Paper Products
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -51% | Weak multi-year price returns2Y Excs Rtn is -129%, 3Y Excs Rtn is -158% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -69 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -3.6% |
| Attractive yieldDividend Yield is 10% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 763% | |
| Megatrend and thematic driversMegatrends include Circular Economy & Recycling, and Sustainable Resource Management. Themes include Sustainable Packaging Materials, Waste-to-Energy Solutions, Show more. | Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -5.8%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -4.9%, Rev Chg QQuarterly Revenue Change % is -8.8% | |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -3.2% | ||
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -83% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -51% |
| Attractive yieldDividend Yield is 10% |
| Megatrend and thematic driversMegatrends include Circular Economy & Recycling, and Sustainable Resource Management. Themes include Sustainable Packaging Materials, Waste-to-Energy Solutions, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -129%, 3Y Excs Rtn is -158% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -69 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -3.6% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 763% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -5.8%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -4.9%, Rev Chg QQuarterly Revenue Change % is -8.8% |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -3.2% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -83% |
Valuation, Metrics & Events
MERC Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
1. Mercer International (MERC) experienced a sharp decline in its stock following disappointing Q2 2025 earnings. The company reported a consolidated net loss of $86 million and a negative Operating EBITDA of $21 million, which led to the stock falling sharply by 24.88% in after-hours trading after the announcement.
2. The company continued to face significant financial deterioration in Q3 2025. Operating EBITDA for the third quarter of 2025 was reported as negative $28.1 million, a notable decrease from positive $50.5 million in the same quarter of 2024. Additionally, the net loss widened to $80.8 million, or $1.21 per share, compared to a net loss of $17.6 million, or $0.26 per share, in Q3 2024.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| MERC Return | -13% | 19% | -1% | -16% | -29% | -73% | -83% |
| Peers Return | 3% | -7% | -17% | -16% | 17% | -47% | -58% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% |
Monthly Win Rates [3] | |||||||
| MERC Win Rate | 42% | 42% | 67% | 33% | 42% | 30% | |
| Peers Win Rate | 37% | 43% | 43% | 47% | 52% | 30% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| MERC Max Drawdown | -50% | 0% | -9% | -35% | -40% | -77% | |
| Peers Max Drawdown | -38% | -20% | -42% | -34% | -30% | -60% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: SLVM, MAGN, CLW, MERC, ITP.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/3/2025 (YTD)
How Low Can It Go
| Event | MERC | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -56.7% | -25.4% |
| % Gain to Breakeven | 131.1% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -55.6% | -33.9% |
| % Gain to Breakeven | 125.5% | 51.3% |
| Time to Breakeven | 105 days | 148 days |
| 2018 Correction | ||
| % Loss | -48.8% | -19.8% |
| % Gain to Breakeven | 95.4% | 24.7% |
| Time to Breakeven | Not Fully Recovered days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -98.0% | -56.8% |
| % Gain to Breakeven | 4966.6% | 131.3% |
| Time to Breakeven | 714 days | 1480 days |
Compare to SLVM, MAGN, CLW, MERC, ITP
In The Past
Mercer International's stock fell -56.7% during the 2022 Inflation Shock from a high on 8/12/2022. A -56.7% loss requires a 131.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth over time.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Latest Trefis Analyses
| Title | Topic | |
|---|---|---|
| DASHBOARDS | ||
| With Mercer International Stock Sliding, Have You Assessed The Risk? | Return |
| Title | |
|---|---|
| ARTICLES |
Trade Ideas
Select past ideas related to MERC. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | DD | DuPont de Nemours | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 3.1% | 3.1% | -0.2% |
| 11212025 | CF | CF Industries | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.5% | 0.5% | -1.1% |
| 11212025 | HL | Hecla Mining | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 30.9% | 30.9% | 0.0% |
| 11072025 | CDE | Coeur Mining | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 12.7% | 12.7% | -5.7% |
| 10312025 | ATR | AptarGroup | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 4.8% | 4.8% | -2.5% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | DD | DuPont de Nemours | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 3.1% | 3.1% | -0.2% |
| 11212025 | CF | CF Industries | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.5% | 0.5% | -1.1% |
| 11212025 | HL | Hecla Mining | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 30.9% | 30.9% | 0.0% |
| 11072025 | CDE | Coeur Mining | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 12.7% | 12.7% | -5.7% |
| 10312025 | ATR | AptarGroup | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 4.8% | 4.8% | -2.5% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Mercer International
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 13.98 |
| Mkt Cap | 0.3 |
| Rev LTM | 1,907 |
| Op Inc LTM | -4 |
| FCF LTM | -41 |
| FCF 3Y Avg | -0 |
| CFO LTM | 19 |
| CFO 3Y Avg | 11 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 12.3% |
| Rev Chg 3Y Avg | -0.3% |
| Rev Chg Q | -5.5% |
| QoQ Delta Rev Chg LTM | -1.8% |
| Op Mgn LTM | -0.3% |
| Op Mgn 3Y Avg | 1.9% |
| QoQ Delta Op Mgn LTM | -1.1% |
| CFO/Rev LTM | 1.8% |
| CFO/Rev 3Y Avg | 8.6% |
| FCF/Rev LTM | -1.5% |
| FCF/Rev 3Y Avg | -1.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 0.3 |
| P/S | 0.2 |
| P/EBIT | -2.7 |
| P/E | -0.2 |
| P/CFO | 5.2 |
| Total Yield | 14.4% |
| Dividend Yield | 4.2% |
| FCF Yield 3Y Avg | -26.4% |
| D/E | 4.6 |
| Net D/E | 1.7 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 0.7% |
| 3M Rtn | 10.4% |
| 6M Rtn | -7.6% |
| 12M Rtn | -32.6% |
| 3Y Rtn | -61.6% |
| 1M Excs Rtn | 0.7% |
| 3M Excs Rtn | 3.7% |
| 6M Excs Rtn | -22.3% |
| 12M Excs Rtn | -46.6% |
| 3Y Excs Rtn | -132.6% |
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 9302025 | 11062025 | 10-Q 9/30/2025 |
| 6302025 | 7312025 | 10-Q 6/30/2025 |
| 3312025 | 5012025 | 10-Q 3/31/2025 |
| 12312024 | 2202025 | 10-K 12/31/2024 |
| 9302024 | 10312024 | 10-Q 9/30/2024 |
| 6302024 | 8082024 | 10-Q 6/30/2024 |
| 3312024 | 5092024 | 10-Q 3/31/2024 |
| 12312023 | 2152024 | 10-K 12/31/2023 |
| 9302023 | 11022023 | 10-Q 9/30/2023 |
| 6302023 | 8042023 | 10-Q 6/30/2023 |
| 3312023 | 5042023 | 10-Q 3/31/2023 |
| 12312022 | 2162023 | 10-K 12/31/2022 |
| 9302022 | 10272022 | 10-Q 9/30/2022 |
| 6302022 | 7282022 | 10-Q 6/30/2022 |
| 3312022 | 4282022 | 10-Q 3/31/2022 |
| 12312021 | 2172022 | 10-K 12/31/2021 |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |