DB:MEQA

Stock Analysis Report

MERLIN Properties SOCIMI

Executive Summary

MERLIN Properties SOCIMI, S.A. (MC:MRL) is the largest real estate company trading on the Spanish Stock Exchange, with a market capitalization of approximately 5,600 million euros, specialized in the acquisition and management of commercial property in the Iberian region.


Snowflake Analysis

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has MERLIN Properties SOCIMI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MEQA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

MEQA

4.2%

DE REITs

2.0%

DE Market


1 Year Return

17.9%

MEQA

44.3%

DE REITs

15.1%

DE Market

Return vs Industry: MEQA underperformed the German REITs industry which returned 44.7% over the past year.

Return vs Market: MEQA exceeded the German Market which returned 15% over the past year.


Shareholder returns

MEQAIndustryMarket
7 Day3.4%4.2%2.0%
30 Day5.1%8.8%1.0%
90 Day-0.8%15.0%3.8%
1 Year22.0%17.9%48.9%44.3%18.6%15.1%
3 Yearn/a41.2%21.0%16.8%6.6%
5 Year52.9%15.6%45.5%14.2%23.7%6.7%

Price Volatility Vs. Market

How volatile is MERLIN Properties SOCIMI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is MERLIN Properties SOCIMI undervalued compared to its fair value and its price relative to the market?

9.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MEQA (€13.22) is trading above our estimate of fair value (€12.84)

Significantly Below Fair Value: MEQA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MEQA is poor value based on its PE Ratio (9.7x) compared to the REITs industry average (9.7x).

PE vs Market: MEQA is good value based on its PE Ratio (9.7x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: MEQA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MEQA is good value based on its PB Ratio (1x) compared to the DE REITs industry average (1.7x).


Next Steps

Future Growth

How is MERLIN Properties SOCIMI forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEQA's earnings are forecast to decline over the next 3 years (-7.3% per year).

Earnings vs Market: MEQA's earnings are forecast to decline over the next 3 years (-7.3% per year).

High Growth Earnings: MEQA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MEQA's revenue (4.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: MEQA's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MEQA's Return on Equity is forecast to be low in 3 years time (5.9%).


Next Steps

Past Performance

How has MERLIN Properties SOCIMI performed over the past 5 years?

37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MEQA has a large one-off gain of €430.6M impacting its September 30 2019 financial results.

Growing Profit Margin: MEQA's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: MEQA's earnings have grown significantly by 37.1% per year over the past 5 years.

Accelerating Growth: MEQA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MEQA had negative earnings growth (-39.8%) over the past year, making it difficult to compare to the REITs industry average (91.2%).


Return on Equity

High ROE: MEQA's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MERLIN Properties SOCIMI's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MEQA has a high level of physical assets or inventory.

Debt Coverage by Assets: MEQA's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: MEQA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MEQA has a sufficient allowance for bad loans.

Low Risk Liabilities: MEQA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MEQA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MEQA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MEQA has an appropriate level of bad loans.


Next Steps

Dividend

What is MERLIN Properties SOCIMI's current dividend yield, its reliability and sustainability?

3.76%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: MEQA's dividend (3.76%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: MEQA's dividend (3.76%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: MEQA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MEQA's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.3%), MEQA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MEQA's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average board tenure


CEO

Ismael Clemente Orrego (49yo)

Mr. Ismael Clemente Orrego serves as the Chief Executive Officer of Merlin Properties Socimi, S.A. Mr. Orrego is a Partner of MAGIC Real Estate responsible for the origination and structuring of real estat ...


Board Members

NamePositionTenureCompensationOwnership
Ismael Clemente Orrego
CEO & Executive Vice-Chairman0yrsno data0.25% 15.7m
Miguel Ollero Barrera
Corporate MD5.8yrsno data0.25% 15.4m
Juan María Aguirre Gonzalo
Independent Director3.4yrsno data0.0026% 159.5k
John Gómez-Hall
Non-Executive Independent Director4.5yrsno data0.021% 1.3m
Ana María García Fau
Non-Executive Independent Director5.7yrsno datano data
George Johnston
Independent Director5yrsno data0.010% 644.6k
María Luisa Jordá Castro
Non-Executive Independent Director5.7yrsno data0.00030% 18.5k
Fernando Javier Ortiz Vaamonde
Non-Executive Independent Director5.7yrsno data0.014% 874.5k
Francisco Javier Garcia-Carranza Benjumea
Chairman of the Board3yrsno data0.035% 2.2m
Emilio Novela Berlín
Independent Director1.8yrsno data0.0030% 187.3k

4.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: MEQA's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MEQA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Top Shareholders

Company Information

MERLIN Properties SOCIMI, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MERLIN Properties SOCIMI, S.A.
  • Ticker: MEQA
  • Exchange: DB
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: €6.180b
  • Shares outstanding: 464.69m
  • Website: https://www.merlinproperties.com

Number of Employees


Location

  • MERLIN Properties SOCIMI, S.A.
  • Paseo de la Castellana, 257
  • Madrid
  • Madrid
  • 28046
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRLBME (Bolsas y Mercados Espanoles)YesCommon SharesESEURJun 2014
MRLEBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJun 2014
0QVMLSE (London Stock Exchange)YesCommon SharesGBEURJun 2014
MEQADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2014
MRPR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2014
MERLWBAG (Wiener Boerse AG)YesCommon SharesATEURJun 2014
MRLENXTLS (Euronext Lisbon)YesCommon SharesPTEURJun 2014

Biography

MERLIN Properties SOCIMI, S.A. (MC:MRL) is the largest real estate company trading on the Spanish Stock Exchange, with a market capitalization of approximately 5,600 million euros, specialized in the acquisition and management of commercial property in the Iberian region. MERLIN Properties mainly invests in offices, shopping centers and logistics facilities, within the Core and Core Plus segments, forming part of the benchmark IBEX-35, Euro STOXX 600, FTSE EPRA/NAREIT Global Real Estate, GPR Global Index, GPR-250 Index, and MSCI Small Caps indices. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:12
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.