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MRK1

AS Merko EhitusTLSE:MRK1T Stock Report

Market Cap

€268.7m

7D

0.7%

1Y

69.5%

Updated

27 Oct, 2021

Data

Company Financials
MRK1T fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

MRK1T Overview

AS Merko Ehitus, through its subsidiaries, engages in the construction and real estate development activities in the Republic of Estonia, Latvia, Lithuania, Norway, and Finland.

AS Merko Ehitus Competitors

Skanska

OM:SKA B

kr92.0b

YIT Oyj

HLSE:YIT

€970.7m

SRV Yhtiöt Oyj

HLSE:SRV1V

€153.6m

Price History & Performance

Summary of all time highs, changes and price drops for AS Merko Ehitus
Historical stock prices
Current Share Price€15.12
52 Week High€8.82
52 Week Low€17.14
Beta0.57
1 Month Change0.53%
3 Month Change-0.92%
1 Year Change69.51%
3 Year Change63.46%
5 Year Change71.82%
Change since IPO124.00%

Recent News & Updates

May 24
Should You Be Adding AS Merko Ehitus (TAL:MRK1T) To Your Watchlist Today?

Should You Be Adding AS Merko Ehitus (TAL:MRK1T) To Your Watchlist Today?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

MRK1TEE ConstructionEE Market
7D0.7%0.05%0.7%
1Y69.5%36.1%59.3%

Return vs Industry: MRK1T exceeded the EE Construction industry which returned 32.4% over the past year.

Return vs Market: MRK1T exceeded the EE Market which returned 57.9% over the past year.

Price Volatility

Is MRK1T's price volatile compared to industry and market?
MRK1T volatility
MRK1T Beta0.57
Industry Beta1.12
Market Beta1

Stable Share Price: MRK1T is less volatile than 75% of EE stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MRK1T's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1990718Andres Trinkhttps://group.merko.ee

AS Merko Ehitus, through its subsidiaries, engages in the construction and real estate development activities in the Republic of Estonia, Latvia, Lithuania, Norway, and Finland. It operates through Construction Service and Real Estate Development segments. The company constructs various buildings, including commercial and office buildings, retail and entertainment centers, hotels, and spas, as well as public buildings, dwellings, and specific industrial buildings.

AS Merko Ehitus Fundamentals Summary

How do AS Merko Ehitus's earnings and revenue compare to its market cap?
MRK1T fundamental statistics
Market Cap€268.69m
Earnings (TTM)€24.58m
Revenue (TTM)€332.05m

10.9x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRK1T income statement (TTM)
Revenue€332.05m
Cost of Revenue€287.54m
Gross Profit€44.50m
Expenses€19.92m
Earnings€24.58m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)1.39
Gross Margin13.40%
Net Profit Margin7.40%
Debt/Equity Ratio23.5%

How did MRK1T perform over the long term?

See historical performance and comparison

Dividends

6.6%

Current Dividend Yield

72%

Payout Ratio

Valuation

Is AS Merko Ehitus undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRK1T (€15.12) is trading below our estimate of fair value (€137.48)

Significantly Below Fair Value: MRK1T is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MRK1T is good value based on its PE Ratio (10.9x) compared to the European Construction industry average (15.7x).

PE vs Market: MRK1T is good value based on its PE Ratio (10.9x) compared to the EE market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MRK1T's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MRK1T is overvalued based on its PB Ratio (1.8x) compared to the XE Construction industry average (1.5x).


Future Growth

How is AS Merko Ehitus forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AS Merko Ehitus has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has AS Merko Ehitus performed over the past 5 years?

21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRK1T has high quality earnings.

Growing Profit Margin: MRK1T's current net profit margins (7.4%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: MRK1T's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: MRK1T's earnings growth over the past year (23%) exceeds its 5-year average (21.2% per year).

Earnings vs Industry: MRK1T earnings growth over the past year (23%) exceeded the Construction industry 21.9%.


Return on Equity

High ROE: MRK1T's Return on Equity (16.2%) is considered low.


Financial Health

How is AS Merko Ehitus's financial position?


Financial Position Analysis

Short Term Liabilities: MRK1T's short term assets (€221.5M) exceed its short term liabilities (€93.5M).

Long Term Liabilities: MRK1T's short term assets (€221.5M) exceed its long term liabilities (€33.8M).


Debt to Equity History and Analysis

Debt Level: MRK1T's debt to equity ratio (23.5%) is considered satisfactory.

Reducing Debt: MRK1T's debt to equity ratio has reduced from 26.7% to 23.5% over the past 5 years.

Debt Coverage: MRK1T's debt is well covered by operating cash flow (113.5%).

Interest Coverage: MRK1T earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is AS Merko Ehitus's current dividend yield, its reliability and sustainability?

6.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRK1T's dividend (6.61%) is higher than the bottom 25% of dividend payers in the EE market (1.93%).

High Dividend: MRK1T's dividend (6.61%) is in the top 25% of dividend payers in the EE market (5.45%)


Stability and Growth of Payments

Stable Dividend: MRK1T's dividend payments have been volatile in the past 10 years.

Growing Dividend: MRK1T's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), MRK1T's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Andres Trink (54 yo)

9.75yrs

Tenure

€341,389

Compensation

Mr. Andres Trink has been the Chairman and Member of Management Board at AS Merko Ehitus since January 1, 2012. Mr. Trink served as Chairman of Management Board at Uab Merko Statyba and served as its Membe...


Leadership Team

Experienced Management: MRK1T's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: MRK1T's board of directors are seasoned and experienced ( 12.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AS Merko Ehitus's employee growth, exchange listings and data sources


Key Information

  • Name: AS Merko Ehitus
  • Ticker: MRK1T
  • Exchange: TLSE
  • Founded: 1990
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €268.686m
  • Shares outstanding: 17.70m
  • Website: https://group.merko.ee

Number of Employees


Location

  • AS Merko Ehitus
  • Järvevana tee 9G
  • Tallinn
  • 11314
  • Estonia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 16:30
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.