MERLIN Properties SOCIMI (BME:MRL) - Share price, News & Analysis

MRL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	3/6
Dividends	2/6

MRL Stock Overview

Rewards

PE ratio (9.3x) is below the Spanish market (17.8x)

Earnings grew by 808.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 7.4% per year for the next 3 years

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

MERLIN Properties SOCIMI Competitors

Klépierre

ENXTPA:LI

€6.2b

Altarea

ENXTPA:ALTA

€3.0b

Carmila

ENXTPA:CARM

€2.2b

Hammerson

LSE:HMSO

UK£1.3b

Price History & Performance

Summary of all time highs, changes and price drops for MERLIN Properties SOCIMI
Historical stock prices
Current Share Price	€10.19
52 Week High	€11.11
52 Week Low	€8.37
Beta	1.41
1 Month Change	-5.91%
3 Month Change	0.049%
1 Year Change	14.88%
3 Year Change	-14.73%
5 Year Change	-9.14%
Change since IPO	5.60%

Shareholder Returns

	MRL	ES REITs	ES Market
7D	4.2%	1.6%	2.3%
1Y	14.9%	-0.9%	-10.2%

Return vs Industry: MRL exceeded the Spanish REITs industry which returned -1.4% over the past year.

Return vs Market: MRL exceeded the Spanish Market which returned -10% over the past year.

Price Volatility

Is MRL's price volatile compared to industry and market?
MRL volatility
MRL Average Weekly Movement	4.8%
REITs Industry Average Movement	1.4%
Market Average Movement	4.6%
10% most volatile stocks in ES Market	8.4%
10% least volatile stocks in ES Market	1.0%

Stable Share Price: MRL is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MRL's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	239	Ismael Clemente Orrego	https://www.merlinproperties.com

MERLIN Properties SOCIMI, SA, one of the main real estate companies listed on the Spanish Stock Exchange (IBEX-35), has as its main activity the acquisition and management of tertiary real estate assets in the Iberian Peninsula. The Company is a public limited company incorporated as a SOCIMI. The main activity of the Company is the acquisition, active management, operation and selective rotation of quality commercial real estate assets in the investment segment “Core” and “Core Plus”, mainly in Spain and, to a lesser extent, in Portugal.

MERLIN Properties SOCIMI Fundamentals Summary

How do MERLIN Properties SOCIMI's earnings and revenue compare to its market cap?
MRL fundamental statistics
Market Cap	€4.76b
Earnings (TTM)	€512.22m
Revenue (TTM)	€502.76m

9.3x

P/E Ratio

9.5x

P/S Ratio

Is MRL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRL income statement (TTM)
Revenue	€502.76m
Cost of Revenue	€0
Gross Profit	€502.76m
Other Expenses	-€9.45m
Earnings	€512.22m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)	1.10
Gross Margin	100.00%
Net Profit Margin	101.88%
Debt/Equity Ratio	89.1%

How did MRL perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

26%

Payout Ratio

Does MRL pay a reliable dividends?

See MRL dividend history and benchmarks

When do you need to buy MRL by to receive an upcoming dividend?
MERLIN Properties SOCIMI dividend dates
Ex Dividend Date	May 16 2022
Dividend Pay Date	May 27 2022
Days until Ex dividend	2 days
Days until Dividend pay date	9 days

Does MRL pay a reliable dividends?

See MRL dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

9.29x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: MRL (€10.19) is trading above our estimate of fair value (€6.22)

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

Price To Earnings Ratio

PE vs Industry: MRL is good value based on its PE Ratio (9.3x) compared to the Spanish REITs industry average (24x).

PE vs Market: MRL is good value based on its PE Ratio (9.3x) compared to the Spanish market (17.8x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: MRL is good value based on its PB Ratio (0.7x) compared to the ES REITs industry average (1.2x).

Future Growth

How is MERLIN Properties SOCIMI forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-7.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRL's earnings are forecast to decline over the next 3 years (-7.4% per year).

Earnings vs Market: MRL's earnings are forecast to decline over the next 3 years (-7.4% per year).

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

Revenue vs Market: MRL's revenue (1.9% per year) is forecast to grow slower than the Spanish market (4.2% per year).

High Growth Revenue: MRL's revenue (1.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MRL's Return on Equity is forecast to be low in 3 years time (4.3%).

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-25.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MRL has a large one-off gain of €180.2M impacting its December 31 2021 financial results.

Growing Profit Margin: MRL's current net profit margins are higher than last year (12.7%).

Past Earnings Growth Analysis

Earnings Trend: MRL's earnings have declined by 25.1% per year over the past 5 years.

Accelerating Growth: MRL's earnings growth over the past year (808.9%) exceeds its 5-year average (-25.1% per year).

Earnings vs Industry: MRL earnings growth over the past year (808.9%) exceeded the REITs industry 48.5%.

Return on Equity

High ROE: MRL's Return on Equity (7.3%) is considered low.

Financial Health

How is MERLIN Properties SOCIMI's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MRL's short term assets (€955.8M) exceed its short term liabilities (€736.6M).

Long Term Liabilities: MRL's short term assets (€955.8M) do not cover its long term liabilities (€6.5B).

Debt to Equity History and Analysis

Debt Level: MRL's net debt to equity ratio (76.8%) is considered high.

Reducing Debt: MRL's debt to equity ratio has reduced from 105.4% to 89.1% over the past 5 years.

Debt Coverage: MRL's debt is not well covered by operating cash flow (3.7%).

Interest Coverage: MRL's interest payments on its debt are well covered by EBIT (3.1x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.69%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MRL's dividend (1.69%) isn’t notable compared to the bottom 25% of dividend payers in the Spanish market (1.83%).

High Dividend: MRL's dividend (1.69%) is low compared to the top 25% of dividend payers in the Spanish market (5.45%).

Stability and Growth of Payments

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

Growing Dividend: MRL's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.7%), MRL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (35.2%), MRL's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Real Estate industry.

Management

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

6.8yrs

Average board tenure

CEO

Ismael Clemente Orrego (51 yo)

no data

Tenure

€1,000,000

Compensation

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

Experienced Board: MRL's board of directors are considered experienced (6.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31