BME:MRL

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 exceeding 5,800 million euros, specialized in the acquisition and management of commercial property in the Iberian region.

Snowflake

Fundamentals

Fair value second-rate dividend payer.


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


Market Performance


7 Day Return

-0.5%

MRL

-0.3%

ES REITs

1.3%

ES Market


1 Year Return

19.4%

MRL

16.8%

ES REITs

6.2%

ES Market

Return vs Industry: MRL exceeded the Spanish REITs industry which returned 16.8% over the past year.

Return vs Market: MRL exceeded the Spanish Market which returned 6.2% over the past year.


Shareholder returns

MRLIndustryMarket
7 Day-0.5%-0.3%1.3%
30 Day3.3%2.3%1.6%
90 Day6.4%7.7%0.05%
1 Year23.5%19.4%20.8%16.8%9.8%6.2%
3 Year39.8%26.5%47.1%34.9%12.8%2.4%
5 Year101.7%40.8%106.8%60.3%10.8%-9.7%

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

Valuation

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

9.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRL (€13.19) is trading above our estimate of fair value (€11.86)

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 (9.6x) compared to the REITs industry average (17.2x).

PE vs Market: MRL is good value based on its PE Ratio (9.6x) compared to the Spanish market (16.6x).


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 (0.9x) compared to the ES REITs industry average (1.2x).


Next Steps

Future Growth

How is MERLIN Properties SOCIMI forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-15.8%

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 (-15.8% per year).

Earnings vs Market: MRL's earnings are forecast to decline over the next 3 years (-15.8% per year).

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

Revenue vs Market: MRL's revenue (5.3% per year) is forecast to grow faster than the Spanish market (3.7% per year).

High Growth Revenue: MRL's revenue (5.3% 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 (5.5%).


Next Steps

Past Performance

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

43.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MRL's earnings have grown significantly by 43.1% per year over the past 5 years.

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

Earnings vs Industry: MRL had negative earnings growth (-45%) over the past year, making it difficult to compare to the REITs industry average (45%).


Return on Equity

High ROE: MRL's Return on Equity (9.8%) is considered low.


Return on Assets

ROA vs Industry: MRL has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: MRL's Return on Capital Employed has declined over the past 3 years.


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: MRL has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.79%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%2.3%markettop25%5.6%industryaverage3.2%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MRL's dividend (3.79%) is higher than the bottom 25% of dividend payers in the Spanish market (2.31%).

High Dividend: MRL's dividend (3.79%) is low compared to the top 25% of dividend payers in the Spanish market (5.64%).

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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.9%), MRL's dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of MERLIN Properties SOCIMI's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average board tenure


CEO

Ismael Clemente Orrego (49yo)

0yrs

Tenure

0

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 Age and Tenure

4.4yrs

Average Tenure

53.5yo

Average Age

Experienced Board: MRL's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€1215 Apr 19
Ismael Clemente Orrego
EntityIndividual
Role
Chief Executive Officer
Deputy Chairman of the Board of Directors & CEO
Shares1.03
Max Price€11.64
Buy€11,98915 Apr 19
Miguel Ollero Barrera
EntityIndividual
Role
Member of the Board of Directors
Corporate MD
Shares1,030
Max Price€11.64
Buy€100,47115 Apr 19
George Johnston
EntityIndividual
Role
Lead Director
Independent Director
Shares8,450
Max Price€11.89
Buy€43,91704 Jan 19
Juan María Aguirre Gonzalo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max Price€11.11
Buy€105,90026 Dec 18
Miguel Ollero Barrera
EntityIndividual
Role
Member of the Board of Directors
Corporate MD
Shares10,000
Max Price€10.59
Buy€105,90026 Dec 18
Ismael Clemente Orrego
EntityIndividual
Role
Chief Executive Officer
Deputy Chairman of the Board of Directors & CEO
Shares10,000
Max Price€10.59
Buy€43,96021 Dec 18
Juan María Aguirre Gonzalo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max Price€11.13
Buy€172,78620 Dec 18
Emilio Novela Berlín
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,000
Max Price€10.80
Buy€107,70027 Nov 18
Ismael Clemente Orrego
EntityIndividual
Role
Chief Executive Officer
Deputy Chairman of the Board of Directors & CEO
Shares10,000
Max Price€10.77
Buy€107,70026 Nov 18
Miguel Ollero Barrera
EntityIndividual
Role
Member of the Board of Directors
Corporate MD
Shares10,000
Max Price€10.77

Ownership Breakdown


Management Team

  • Mónica Martín de Vidales Godino

    Secretary of the Board

    • Tenure: 0yrs
  • Fernando Lacadena Azpeitia (63yo)

    Financial Director

    • Tenure: 2.8yrs
  • David Brush (59yo)

    Chief Investment Officer

    • Tenure: 0yrs
  • Ismael Clemente Orrego (49yo)

    Deputy Chairman of the Board of Directors & CEO

    • Tenure: 0yrs
  • Miguel Ollero Barrera (50yo)

    Corporate MD

    • Tenure: 5.4yrs
  • Francisco Rivas

    Director

    • Tenure: 0yrs
  • Javier Zarrabeitia Unzueta

    Director

    • Tenure: 0yrs
  • Manuel García Casas

    Director

    • Tenure: 0yrs
  • Inés Arellano

    Director

    • Tenure: 0yrs
  • Fernando Ramirez

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Juan María Aguirre Gonzalo (57yo)

    Independent Director

    • Tenure: 3.1yrs
  • John Gómez-Hall (85yo)

    Non-Executive Independent Director

    • Tenure: 4.2yrs
  • Ana María García Fau (51yo)

    Non-Executive Independent Director

    • Tenure: 5.3yrs
  • George Johnston (64yo)

    Independent Director

    • Tenure: 4.7yrs
  • María Luisa Jordá Castro (56yo)

    Non-Executive Independent Director

    • Tenure: 5.3yrs
  • Ismael Clemente Orrego (49yo)

    Deputy Chairman of the Board of Directors & CEO

    • Tenure: 0yrs
  • Miguel Ollero Barrera (50yo)

    Corporate MD

    • Tenure: 5.4yrs
  • Fernando Javier Ortiz Vaamonde (50yo)

    Non-Executive Independent Director

    • Tenure: 5.3yrs
  • Francisco Javier Garcia-Carranza Benjumea (48yo)

    Chairman of the Board

    • Tenure: 2.7yrs
  • Emilio Novela Berlín (68yo)

    Independent Director

    • Tenure: 1.4yrs

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: MRL
  • Exchange: BME
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: €6.129b
  • 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

Biography

MERLIN Properties SOCIMI, S.A. (MC:MRL) is the largest real estate company trading on the Spanish Stock Exchange, with a market capitalization exceeding 5,800 million euros, specialized in the acquisition  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:37
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.