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MERY

MercialysENXTPA:MERY Stock Report

Market Cap

€880.6m

7D

-1.7%

1Y

124.4%

Updated

26 Oct, 2021

Data

Company Financials +
MERY fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance1/6
Financial Health2/6
Dividends4/6

MERY Overview

Mercialys is one of France’s leading real estate companies, focused exclusively on shopping centers and high-street retail assets.

Mercialys Competitors

Klépierre

ENXTPA:LI

€5.9b

Carmila

ENXTPA:CARM

€1.9b

Unibail-Rodamco-Westfield

ENXTAM:URW

€9.2b

Gecina

ENXTPA:GFC

€8.9b

Price History & Performance

Summary of all time highs, changes and price drops for Mercialys
Historical stock prices
Current Share Price€9.46
52 Week High€3.89
52 Week Low€11.07
Beta1.98
1 Month Change-0.37%
3 Month Change-12.25%
1 Year Change124.38%
3 Year Change-26.21%
5 Year Change-49.61%
Change since IPO-55.27%

Recent News & Updates

Shareholder Returns

MERYFR REITsFR Market
7D-1.7%1.9%1.0%
1Y124.4%35.6%37.0%

Return vs Industry: MERY exceeded the French REITs industry which returned 35% over the past year.

Return vs Market: MERY exceeded the French Market which returned 35.2% over the past year.

Price Volatility

Is MERY's price volatile compared to industry and market?
MERY volatility
MERY Beta1.98
Industry Beta1.31
Market Beta1

Stable Share Price: MERY is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MERY's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999126Vincent Ravathttps://www.mercialys.com

Mercialys is one of France’s leading real estate companies, focused exclusively on shopping centers and high-street retail assets. At June 30, 2020, Mercialys had a portfolio of 2,111 leases, representing a rental value of Euro 182.3 million on an annualized basis. At June 30, 2020, it owned properties with an estimated value of Euro 3.5 billion (including transfer taxes).

Mercialys Fundamentals Summary

How do Mercialys's earnings and revenue compare to its market cap?
MERY fundamental statistics
Market Cap€880.63m
Earnings (TTM)€84.01m
Revenue (TTM)€168.10m

10.5x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MERY income statement (TTM)
Revenue€168.10m
Cost of Revenue€22.41m
Gross Profit€145.70m
Expenses€61.69m
Earnings€84.01m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.90
Gross Margin86.67%
Net Profit Margin49.97%
Debt/Equity Ratio164.2%

How did MERY perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

25%

Payout Ratio

Valuation

Is Mercialys 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: MERY (€9.41) is trading below our estimate of fair value (€23)

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


Price To Earnings Ratio

PE vs Industry: MERY is good value based on its PE Ratio (10.5x) compared to the French REITs industry average (11.1x).

PE vs Market: MERY is good value based on its PE Ratio (10.5x) compared to the French market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: MERY is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: MERY is overvalued based on its PB Ratio (1.2x) compared to the FR REITs industry average (0.7x).


Future Growth

How is Mercialys forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MERY's forecast earnings growth (2.7% per year) is above the savings rate (0.3%).

Earnings vs Market: MERY's earnings (2.7% per year) are forecast to grow slower than the French market (12.3% per year).

High Growth Earnings: MERY's earnings are forecast to grow, but not significantly.

Revenue vs Market: MERY's revenue (3.2% per year) is forecast to grow slower than the French market (6.2% per year).

High Growth Revenue: MERY's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MERY's Return on Equity is forecast to be low in 3 years time (12.9%).


Past Performance

How has Mercialys performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MERY has a large one-off gain of €35.8M impacting its June 30 2021 financial results.

Growing Profit Margin: MERY's current net profit margins (50%) are higher than last year (45.4%).


Past Earnings Growth Analysis

Earnings Trend: MERY's earnings have declined by 4.3% per year over the past 5 years.

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

Earnings vs Industry: MERY had negative earnings growth (-1.8%) over the past year, making it difficult to compare to the REITs industry average (3.1%).


Return on Equity

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


Financial Health

How is Mercialys's financial position?


Financial Position Analysis

Short Term Liabilities: MERY's short term assets (€374.5M) exceed its short term liabilities (€244.4M).

Long Term Liabilities: MERY's short term assets (€374.5M) do not cover its long term liabilities (€1.4B).


Debt to Equity History and Analysis

Debt Level: MERY's debt to equity ratio (164.2%) is considered high.

Reducing Debt: MERY's debt to equity ratio has reduced from 165.8% to 164.2% over the past 5 years.

Debt Coverage: MERY's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: MERY's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

What is Mercialys's current dividend yield, its reliability and sustainability?

4.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MERY's dividend (4.57%) is higher than the bottom 25% of dividend payers in the French market (1.32%).

High Dividend: MERY's dividend (4.57%) is in the top 25% of dividend payers in the French market (3.93%)


Stability and Growth of Payments

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

Growing Dividend: MERY's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.4%), MERY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MERY's dividends in 3 years are forecast to be covered by earnings (65.1% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Vincent Ravat (47 yo)

2.67yrs

Tenure

€1,084,881

Compensation

Mr. Vincent Ravat has been the Chief Executive Officer at Mercialys since February 13, 2019. He was Chief Operating Officer and MD of Mercialys until February 13, 2019. He joined Mercialys in January 2014...


CEO Compensation Analysis

Compensation vs Market: Vincent's total compensation ($USD1.26M) is above average for companies of similar size in the French market ($USD549.68K).

Compensation vs Earnings: Vincent's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MERY's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: MERY'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: 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 been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

Mercialys's employee growth, exchange listings and data sources


Key Information

  • Name: Mercialys
  • Ticker: MERY
  • Exchange: ENXTPA
  • Founded: 1999
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: €880.634m
  • Shares outstanding: 93.58m
  • Website: https://www.mercialys.com

Number of Employees


Location

  • Mercialys
  • 16-18 rue du Quatre Septembre
  • Paris
  • Ile-de-France
  • 75082
  • France

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 17:54
End of Day Share Price2021/10/26 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.