- MRC expects to generate a billion dollars from its natural gas utility business in the medium-term, while the downstream & industrial business offers upside in the short term.
- However, lower demand in the international market and the transition toward alternative energy will keep pressure on the revenue and margin in the short to medium term.
- A higher working capital requirement can keep cash flows low in 2021, while the balance sheet remains leveraged.
- The stock is overvalued relative to its peers.
For further details see:
MRC Global: International Headwinds To Partially Balance The Medium-Term Growth