Mercer International Inc.
MERC Basic Materials Paper & Paper Products
Mercer International Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.9 billion, down 8.58% from fiscal 2024. In the quarter to June 2026, revenue grew 1.49%, EPS grew 12.4%, free cash flow grew 5.46% and total debt rose 7.12%, each against the same quarter a year earlier. Dividend growth for five consecutive years; insiders bought in the last twelve months.
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Mercer International Inc. (MERC) Altman Z-score
Mercer International Inc.'s Altman Z-score for fiscal 2025 is 0.46, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 0.46 | (1.09) |
| FY2024 | 1.56 | 0.31 |
| FY2023 | 1.24 | (0.98) |
| FY2022 | 2.22 | 0.06 |
| FY2021 | 2.16 | 0.61 |
| FY2020 | 1.55 | (0.21) |
| FY2019 | 1.76 | (0.31) |
| FY2018 | 2.07 | 0.13 |
| FY2017 | 1.94 | (0.24) |
| FY2016 | 2.18 | (0.07) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.29 | — | 0.34 | |
| Retained earnings / total assets | (0.14) | — | −0.19 | |
| EBIT / total assets | (0.19) | — | −0.64 | |
| Market value of equity / total liabilities | 0.07 | — | 0.04 | |
| Sales / total assets | 0.92 | — | 0.92 | |
| Altman Z-score | Distress zone | 0.46 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | 0.16 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| SLVM Sylvamo Corporation compare | 3.6× |
| CLW Clearwater Paper Corporation compare | 2.1× |
| SUZ Suzano S.A. Sponsored ADR compare | 1.2× |
| ITP IT Tech Packaging Inc compare | 1.1× |
| MERC Mercer International Inc. | 0.5× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets