BME:MRL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

MERLIN Properties SOCIMI

Executive Summary

MERLIN Properties SOCIMI, S.A. is one of the leading real estate companies listed on the Spanish Stock Exchange (IBEX-35), focused on the acquisition and management of commercial assets in the Iberian Peninsula. More Details


Snowflake Analysis

Good value with reasonable growth potential and pays a dividend.


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: MRL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

MRL

1.6%

ES REITs

0.5%

ES Market


1 Year Return

-44.6%

MRL

-24.3%

ES REITs

-20.2%

ES Market

Return vs Industry: MRL underperformed the Spanish REITs industry which returned -24.3% over the past year.

Return vs Market: MRL underperformed the Spanish Market which returned -20.2% over the past year.


Shareholder returns

MRLIndustryMarket
7 Day1.1%1.6%0.5%
30 Day-6.5%-2.1%0.4%
90 Day-8.4%-6.3%-3.8%
1 Year-43.0%-44.6%-21.4%-24.3%-17.6%-20.2%
3 Year-33.3%-39.6%-2.6%-12.1%-20.1%-27.4%
5 Year-23.0%-33.7%-2.8%-16.7%-7.3%-21.8%

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?

8.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRL (€7.08) is trading above our estimate of fair value (€5.6)

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 (8.8x) compared to the ES REITs industry average (17.6x).

PE vs Market: MRL is good value based on its PE Ratio (8.8x) compared to the Spanish market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: MRL is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: MRL is good value based on its PB Ratio (0.5x) compared to the ES REITs industry average (1.1x).


Next Steps

Future Growth

How is MERLIN Properties SOCIMI forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

78.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRL's forecast earnings growth (78.1% per year) is above the savings rate (1.3%).

Earnings vs Market: MRL's earnings (78.1% per year) are forecast to grow faster than the Spanish market (31.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MRL's revenue (6.5% per year) is forecast to grow faster than the Spanish market (6.2% per year).

High Growth Revenue: MRL's revenue (6.5% 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 (4.6%).


Next Steps

Past Performance

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

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRL has a large one-off gain of €194.2M impacting its June 30 2020 financial results.

Growing Profit Margin: MRL's current net profit margins (77%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: MRL has become profitable over the past 5 years, growing earnings by 19.2% per year.

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 (-41.6%) over the past year, making it difficult to compare to the REITs industry average (6.1%).


Return on Equity

High ROE: MRL's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is MERLIN Properties SOCIMI's financial position?


Financial Position Analysis

Short Term Liabilities: MRL's short term assets (€948.2M) exceed its short term liabilities (€220.2M).

Long Term Liabilities: MRL's short term assets (€948.2M) do not cover its long term liabilities (€7.2B).


Debt to Equity History and Analysis

Debt Level: MRL's debt to equity ratio (95.1%) is considered high.

Reducing Debt: MRL's debt to equity ratio has reduced from 109.1% to 95.1% over the past 5 years.

Debt Coverage: MRL's debt is not well covered by operating cash flow (0.4%).

Interest Coverage: MRL's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

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

7.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRL's dividend (7.34%) is higher than the bottom 25% of dividend payers in the Spanish market (2.29%).

High Dividend: MRL's dividend (7.34%) is in the top 25% of dividend payers in the Spanish market (6.42%)


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32%), MRL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRL's dividends in 3 years are forecast to be covered by earnings (69.7% payout ratio).


Next Steps

Management

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

4.9yrs

Average board tenure


CEO

Ismael Clemente Orrego (50 yo)

no data

Tenure

€2,450,000

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

NamePositionTenureCompensationOwnership
Ismael Clemente Orrego
CEO & Executive Vice-Chairmanno data€2.45m0.25%
€ 8.4m
Miguel Ollero Barrera
Corporate MD6.33yrs€2.40m0.25%
€ 8.2m
Juan María Aguirre Gonzalo
Independent Director4yrs€134.00k0.0026%
€ 84.9k
John Gómez-Hall
Non-Executive Independent Director5.08yrs€100.00k0.021%
€ 698.3k
Ana María García Fau
Non-Executive Independent Director6.25yrs€129.00kno data
George Johnston
Independent Director5.58yrs€117.00k0.010%
€ 332.7k
María Luisa Jordá Castro
Non-Executive Independent Director6.25yrs€129.00k0.0030%
€ 99.7k
Fernando Javier Ortiz Vaamonde
Non-Executive Independent Director6.25yrs€115.00k0.014%
€ 465.6k
Francisco Javier Garcia-Carranza Benjumea
Non-Executive Chairman of the Board3.58yrsno data0.018%
€ 598.6k
Francisca Ortega Hernández-Agero
Proprietary Director4yrsno datano data
Pilar Cavero Mestre
Independent Director4yrs€117.00kno data
Emilio Novela Berlín
Independent Director2.33yrs€111.00k0.0030%
€ 99.7k

4.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: MRL's board of directors are considered experienced (4.9 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.


Recent Insider Transactions

Ownership Breakdown

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


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: MRL
  • Exchange: BME
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: €3.291b
  • Shares outstanding: 464.80m
  • 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. is one of the leading real estate companies listed on the Spanish Stock Exchange (IBEX-35), focused on the acquisition and management of commercial assets in the Iberian Peni ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 03:36
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.