2024-03-20 02:14:35 ET
Summary
- MRC Global reports better-than-expected earnings and expects growth in 2024.
- The company has a diversified business model with many products and clients.
- Net sales growth drivers include multi-year programs with gas utility customers and gas demand from the housing market.
MRC Global Inc. ( MRC ) recently reported better-than-expected EPS GAAP earnings and EPS growth , and positive FCF is also expected in 2024. With a diversified business model that includes many products and many clients, I believe that the largest net sales growth drivers include multi-year programs with gas utility customers and gas demand from the housing market. In addition, I would be expecting conscious demand from the need for replacement and maintenance of all gas infrastructure both in the U.S. and internationally. There are obvious risks from issues with suppliers, and volatility in the energy industry, however, I believe that MRC does trade quite cheaply right now at close to 5-6x cash flow.
MRC Global: Many Products, And Many Clients
MRC is the world's leading distributor of pipes, valves, and fittings and provides innovative supply chain solutions to the gas, power, and industrial services sectors....
Read the full article on Seeking Alpha
For further details see:
MRC Global: Gas Demand From The Housing Market, Multi-Year Agreements, And Cheap