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Upturn AI SWOT - About
MERC 
Mercer International Inc (MERC)
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Upturn Advisory Summary
06/30/2025: MERC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
4 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $4.75
1 Year Target Price $4.75
| 0 | Strong Buy |
| 0 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -37.43% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/30/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 234.72M USD | Price to earnings Ratio - | 1Y Target Price 4.75 |
Price to earnings Ratio - | 1Y Target Price 4.75 | ||
Volume (30-day avg) 4 | Beta 1.06 | 52 Weeks Range 3.13 - 8.10 | Updated Date 06/29/2025 |
52 Weeks Range 3.13 - 8.10 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 8.56% | Basic EPS (TTM) -1.35 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -4.55% | Operating Margin (TTM) 1.43% |
Management Effectiveness
Return on Assets (TTM) 1.47% | Return on Equity (TTM) -17.96% |
Valuation
Trailing PE - | Forward PE 94.34 | Enterprise Value 1572951062 | Price to Sales(TTM) 0.12 |
Enterprise Value 1572951062 | Price to Sales(TTM) 0.12 | ||
Enterprise Value to Revenue 0.79 | Enterprise Value to EBITDA 8.06 | Shares Outstanding 66870800 | Shares Floating 54742567 |
Shares Outstanding 66870800 | Shares Floating 54742567 | ||
Percent Insiders 37.99 | Percent Institutions 54.48 |
Analyst Ratings
Rating 2 | Target Price 4.75 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Mercer International Inc
Company Overview
History and Background
Mercer International Inc. was founded in 1968 as Eurocan Pulp & Paper Co. It has evolved from a regional pulp producer to a global supplier of pulp, lumber, and other wood products, through strategic acquisitions and expansions. The company rebranded as Mercer International in 2005.
Core Business Areas
- Pulp: Mercer produces and sells NBSK (Northern Bleached Softwood Kraft) pulp, a primary raw material for paper and tissue products. The company has multiple pulp mills located in North America and Europe.
- Lumber: Mercer operates lumber mills, producing a variety of softwood lumber products for construction and industrial applications. The lumber segment leverages the same forest resources as the pulp segment.
- Wood Products: This encompasses a broader range of wood-based products and services derived from the forest resources managed by Mercer.
Leadership and Structure
Juan Carlos Bueno is the CEO of Mercer International Inc. The organizational structure includes departments for operations, finance, sales, and sustainability, reflecting the company's focus on both profitability and environmental responsibility.
Top Products and Market Share
Key Offerings
- NBSK Pulp: Mercer's primary product is NBSK pulp. Market share data fluctuates based on global pulp demand and production capacity. Competitors include Resolute Forest Products, Domtar, and Suzano. It is challenging to get the exact market share but the top 5 pulp producers control more than 50% of the market.
- Softwood Lumber: Mercer's lumber products are used in residential and commercial construction. Competitors are Canfor, West Fraser Timber and Interfor. The lumber market is very fragmented, hence Mercer's market share for Lumber is relatively small.
Market Dynamics
Industry Overview
The pulp and paper industry is cyclical, influenced by global economic conditions, paper demand, and raw material prices. The lumber industry is similarly impacted by housing starts and construction activity.
Positioning
Mercer is positioned as a leading producer of NBSK pulp and lumber, emphasizing sustainable forestry practices and operational efficiency. Its scale provides some competitive advantage.
Total Addressable Market (TAM)
The global pulp and paper market is estimated to be in the hundreds of billions of dollars. The lumber market is also substantial, influenced by regional construction trends. Mercer captures a small percentage of the TAM, striving to increase its share through strategic expansions and product diversification.
Upturn SWOT Analysis
Strengths
- Sustainable forestry practices
- Operational efficiency
- Diversified product portfolio (pulp and lumber)
- Strategic mill locations in North America and Europe
- Strong relationships with customers
Weaknesses
- Exposure to commodity price volatility
- High capital expenditures
- Dependence on the cyclical nature of the pulp and paper market
- Geographic concentration in certain regions
Opportunities
- Increasing demand for sustainable packaging
- Expansion into new markets
- Acquisition of smaller competitors
- Development of new wood-based products
- Government incentives for sustainable forestry
Threats
- Fluctuations in pulp and lumber prices
- Increased competition from lower-cost producers
- Environmental regulations
- Disruptions in supply chain
- Economic downturns affecting construction and paper demand
Competitors and Market Share
Key Competitors
- West Fraser Timber Co. Ltd. (WFG.TO)
- Resolute Forest Products (RFP)
- Canfor Corporation (CFP.TO)
- Domtar Corporation (UFS)
Competitive Landscape
Mercer competes on cost, quality, and sustainability. Its advantages include scale and strategically located mills. Disadvantages include commodity price exposure and cyclical demand.
Major Acquisitions
Fibre Excellence
- Year: 2023
- Acquisition Price (USD millions): 895
- Strategic Rationale: Expands pulp production capacity in Europe, enhancing Mercer's global presence and diversifying its product offerings
Growth Trajectory and Initiatives
Historical Growth: Mercer's growth has been driven by acquisitions and capacity expansions, alongside organic growth from increased demand.
Future Projections: Analyst estimates and company guidance provide insights into future growth projections, which are influenced by market conditions and strategic initiatives.
Recent Initiatives: Recent strategic initiatives typically involve mill upgrades, sustainability programs, and acquisitions or expansions.
Summary
Mercer International is a notable player in the pulp and lumber industry, driven by sustainable practices and efficient operations. Its cyclical industry and commodity price exposure presents challenges. Strategic acquisitions and a focus on growth markets offer potential for expansion. Monitoring market dynamics and managing costs effectively are crucial for long-term success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- Public Filings (SEC)
- Industry Reports
- Financial News Outlets
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Mercer International Inc
Exchange NASDAQ | Headquaters Vancouver, BC, Canada | ||
IPO Launch date 1987-04-20 | CEO, President & Director Mr. Juan Carlos Bueno | ||
Sector Basic Materials | Industry Paper & Paper Products | Full time employees 3580 | Website https://mercerint.com |
Full time employees 3580 | Website https://mercerint.com | ||
Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp in the United States, Germany, China, and internationally. It operates through two segments, Pulp and Solid Wood. The company manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills. It also manufactures, distributes, and sells lumber, cross-laminated timber, finger joint lumber, glue-laminated timber, wood pallets, electricity, biofuels, and wood residuals. In addition, the company generates and sells green energy produced from biomass cogeneration power plants. Further, it produces and sells NBSK pulp manufactured from softwood; green energy using carbon neutral biofuels, such as black liquor and wood waste; tall oil from black liquor for use as a chemical additive and green energy source; wood pellets and briquettes; lignin; and wood procurement and logistics services. The company sells its pulp products to pulp markets, integrated paper and paperboard manufacturers; and lumber products to distributors, construction firms, secondary manufacturers, retail yards, and home centers. Mercer International Inc. was incorporated in 1968 and is headquartered in Vancouver, Canada.
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