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ZYBERNO

Stock Report

Updated Sep 1, 2026

MERCER INTERNATIONAL INC. (MERC)

NASDAQ

$0.39

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

11.0/100

POOR BUSINESS

MERCER INTERNATIONAL INC. (MERC) scores 11/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full MERC quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full MERC valuation analysis · → View full MERC Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-638.7%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)

Operating Margin (Operational Efficiency):CRITICAL (-23.6%)

Return on Capital (Capital Efficiency):CRITICAL (-22.5%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

MERCER INTERNATIONAL INC. (MERC) stock report — Zyberno Score 11/100 (POOR BUSINESS). Full financial analysis on Zyberno.

Over the trailing twelve months, MERC generated -$154.18M in Owner Earnings. Capital was deployed as follows: $10.04M paid as dividends, $69.50M invested in capital expenditures. Reinvestment rate: 21.8%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:0.39

Market Cap:$26.16M

Valuation Multiples (2)

P/S Ratio:0.01x

Peg Ratio:-999.00x

Enterprise Metrics (1)

Enterprise Value:$1.58B

Price Action & Momentum (3)

12-1 Momentum:

-87.2% (2th pctile)

📈 Click to view full MERC Momentum analysis →

Momentum Percentile:2 / 100

% of 52-Week High:11.5%

B. Profitability Assessment

Return Metrics (5)

ROE:

-638.7%

📊 Click to view full MERC ROE analysis →

ROA:-25.3%

Roic:

-22.5%

📊 Click to view full MERC ROIC analysis →

Reinvestment Rate:21.8%

Fundamental Growth Rate (g):-4.9%

Margin Analysis (3)

Operating Margin Ttm:-23.6%

Net Margin Ttm:-27.9%

Ebitda Margin:-14.9%

TTM Performance (2)

Operating Margin Ttm:-23.6%

Net Margin Ttm:-27.9%

Yield Metrics (2)

Earnings Yield:-$65.50

Dividend Yield:29.7%

C. Log-Linear Regression Growth Trends

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-4.4%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):89.5%

Operating Cash Flow Growth Rate (Linear):3.0%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-50.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.30x

Quick Ratio:0.68x

Cash Ratio:0.13x

Leverage Analysis (1)

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-3.36x

Times Interest Earned:-3.36

Capital Structure (4)

Working Capital:182,474,000.00

Cash And Cash Equivalents:78,775,000.00

Long Term Debt:$1.31B

Net Debt:$1.56B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $1.86B

Linear Growth: -4.4%

📊 Click to view full MERC Revenue analysis & methodology →

Cost Of Revenue Ttm:$783.85M

Profitability Breakdown (2)

$1.07B

Operating income TTM: -$437.94M

Linear Growth: -50.0%

📊 Click to view full MERC Operating Income analysis & methodology →

Bottom Line Performance (3)

-$517.45M

Income Before Tax:-$551.23M

Ebitda Ttm:-277,053,000.00

Operating Expenses (5)

Operating Expenses:934,511,783.40

R And D Expense:0.00

Sga Expense:114,401,000.00

Income Tax Expense:-$18.64M

Interest Expense:118,289,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:24.9%

Ebitda Margin:-14.9%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.87B

Current Assets:$783.35M

Ppe Net:1,028,469,000.00

Goodwill:0.00

Intangible Assets:$24.34M

Liability Structure (4)

Total Liabilities:1,967,881,000.00

Current Liabilities:600,876,000.00

Long Term Debt:$1.31B

Short Term Debt:$329.66M

Equity & Capital (3)

Equity:-$97.97M

Retained Earnings:-$404.99M

Common Stock:67,083,000.00

Working Capital Items (3)

Accounts Receivable:308,554,000.00

Inventory:375,301,000.00

Accounts Payable:270,496,000.00

Special Items (2)

Contract Liabilities:8,216,000.00

Stock Based Compensation:-857,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: -$84.68M

Linear Growth: 3.0%

Free cash flow TTM: -$154.18M

Linear Growth: 89.5%

📊 Click to view full MERC Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$6.52M

Capital Expenditures Ttm:69,500,000.00

Financing Activities (3)

Financing Cash Flow:$15.85M

Dividends Paid Ttm:10,039,000.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:160,891,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.33

Eps diluted TTM: -$0.33

Linear Growth: -50.0%

📊 Click to view full MERC EPS analysis & methodology →

Earnings Per Share Ttm:-$7.72

Revenue & Cash Per Share (2)

Sales Per Share Ttm:27.70

Operating Cash Flow Per Share:$0.13

Book Value & Capital (2)

Book Value Per Share:-$1.46

Cash Per Share:1.18

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.91x

Working Capital Turnover Ttm:10.18x

Receivables Management (2)

Receivables Turnover Ttm:6.02x

Days Sales Outstanding Ttm:60.64

Inventory Management (2)

Inventory Turnover Ttm:2.09x

Days Inventory Outstanding Ttm:174.76

Payables & Cash Cycle (2)

Days Payable Outstanding:125.96

Cash Conversion Cycle:109.44

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:20.00

Quality Score:30.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$154.18M

Damodaran Growth Analysis (2)

Reinvestment Rate:21.8%

Fundamental Growth Rate (g):-4.9%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (2)

Revenue Growth Rate (Linear):-4.4%

Operating Income Growth Rate (Linear):-50.0%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):89.5%

Operating Cash Flow Growth Rate (Linear):3.0%

Other Growth Rates (1)

Book Value Growth Rate (Linear):-31.2%

C. Company Profile & Context

Corporate Information (6)

Symbol:MERC

Company Name:MERCER INTERNATIONAL INC.

Sector:Unknown

Industry:Pulp Mills

Exchange:NASDAQ

Country:Canada

Market Classification (3)

Market Cap Category:N/A

Price Category:penny

Volume Category:N/A

Share Structure (3)

Shares Outstanding:67.04M

Shares Outstanding Basic:67.04M

Shares Outstanding Diluted:67.04M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 02:05:48 UTC

Data Timestamp:2026-08-20T08:39:40.742957