Forensic Analysis · General / Diversified · as of Jun 27, 2026
MERCURY SYSTEMS INC (MRCY)
A forensic read on MERCURY SYSTEMS INC built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
3.8
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-1.0%
ROE
$6.6B
Market cap
MERCURY SYSTEMS INC earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 3.8, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-1%Return on invested capital.Return on invested capital is -1% and slipping from 1% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+1.7%/yrShare-count dilution.Diluted share count changed +5% over the last 3 years to FY2025 (+1.7%/yr). The count is GROWING — existing holders are being diluted. That's ~1.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~5%.
stoppedShareholder returns — halted.Capital returns have STOPPED — $31,000 of buybacks + dividends in FY2024, but ~$0 in FY2025. A halt usually means the company is conserving cash; understand why before reading it as neutral.
3% of revStock-based comp load.Stock-based compensation ran 3% of revenue and 21% of free cash flow in FY2025 — about $0.43 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-4.2%
Debt / Equity0.13x
Free Cash Flow$119.0M
Latest Revenue$912.0M
Return on Equity-2.6%
Revenue Growth YoY+9.2%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on MERCURY SYSTEMS INC:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about MRCY's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown