MRC Global Inc. has released its 10-K report today. The company, headquartered in Houston, Texas, distributes pipes, valves, fittings, and other infrastructure products and services to the gas utility, energy, and industrial end-markets in the United States, Canada, and internationally. MRC Global offers a wide range of products, including ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves, as well as measurement, steam, and instrumentation products.
The company's revenue for the year ended 2023 was derived 66% from the gas utilities and DIET sectors, with the remainder in the PTI sector. The gas utility business, which makes up 35% of the total company revenue, experienced a 5% decrease compared to 2022. This was due to key gas utilities customers focusing on reducing their product inventory levels, higher interest rates, and inflation in construction costs, causing delays in project activity.
MRC Global highlighted that the long-term market drivers for the gas utilities sector remain positive due to distribution integrity upgrade programs and new home construction in certain U.S. states. The company expects the trend of lower sales activity in this sector to continue into at least the first half of 2024. However, the aging gas distribution networks and continuous replacement and maintenance requirements present revenue opportunities for the business.
For more information, you can read the company's full 10-K submission here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,172 | $3,662 | $2,560 | $2,666 | $3,363 | $3,513 |
| Gross Margins | 17% | 18% | 17% | 16% | 18% | 20% |
| Net Margins | 2% | 1% | -11% | -1% | 2% | 3% |
| Net Income (M) | $74 | $39 | -$274 | -$14 | $75 | $114 |
| Net Interest Expense (M) | $38 | $40 | $28 | $23 | $24 | $33 |
| Depreciation & Amort. (M) | $23 | $21 | $20 | $19 | $18 | $21 |
| Diluted Shares (M) | 92 | 84 | 82 | 82 | 85 | 11 |
| Earnings Per Share | $0.54 | $0.18 | -$3.63 | -$0.46 | $0.6 | $10.76 |
| EPS Growth | n/a | -66.67% | -2116.67% | 87.33% | 230.43% | 1693.33% |
| Avg. Price | $18.42 | $15.05 | $6.44 | $8.7 | $10.2 | $11.995 |
| P/E Ratio | 33.49 | 83.61 | -1.77 | -18.91 | 16.72 | 11.42 |
| Free Cash Flow (M) | -$31 | $224 | $250 | $46 | -$31 | $89 |
| CAPEX (M) | $20 | $18 | $11 | $10 | $11 | $13 |
| EV / EBITDA | 15.59 | 14.4 | -3.3 | 37.13 | 7.34 | 5.83 |
| Total Debt (M) | $688 | $555 | $387 | $299 | $343 | $303 |
| Net Debt / EBITDA | 4.3 | 4.22 | -1.12 | 9.65 | 1.97 | 1.17 |
| Current Ratio | 2.57 | 2.51 | 2.42 | 2.06 | 2.02 | 2.08 |
