ENXTPA:MERY

Stock Analysis Report

Executive Summary

Mercialys is one of the top real estate companies in France and Europe, specializing in the enhancement, transformation and promotion of shopping centers.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Mercialys's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

ENXTPA:MERY

1.8%

FR REITs

3.0%

FR Market


1 Year Return

-29.6%

ENXTPA:MERY

-3.8%

FR REITs

-1.3%

FR Market

MERY underperformed the REITs industry which returned -3.4% over the past year.

MERY underperformed the Market in France which returned -0.3% over the past year.


Share holder returns

MERYIndustryMarket
7 Day3.9%1.8%3.0%
30 Day-1.6%-0.4%-4.1%
90 Day-5.9%-1.6%1.2%
1 Year-23.0%-29.6%2.5%-3.8%2.1%-1.3%
3 Year-37.2%-49.3%14.4%-3.9%41.3%27.5%
5 Year-19.9%-43.2%47.8%11.0%55.6%32.6%

Price Volatility Vs. Market

How volatile is Mercialys's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mercialys undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Mercialys's share price is below the future cash flow value, and at a moderate discount (> 20%).

Mercialys's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Mercialys is overvalued based on earnings compared to the FR REITs industry average.

Mercialys is good value based on earnings compared to the France market.


Price Based on Expected Growth

Mercialys is poor value based on expected growth next year.


Price Based on Value of Assets

Mercialys is overvalued based on assets compared to the FR REITs industry average.


Next Steps

Future Growth

How is Mercialys expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mercialys's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).

Mercialys's earnings are expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Mercialys's revenue growth is positive but not above the France market average.

Mercialys's earnings growth is positive but not above the France market average.

Mercialys's earnings growth is expected to exceed the low risk savings rate of 0.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Mercialys is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Mercialys performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Mercialys's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Mercialys's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Mercialys's 1-year earnings growth is negative, it can't be compared to the FR REITs industry average.


Return on Equity

Mercialys has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Mercialys used its assets less efficiently than the FR REITs industry average last year based on Return on Assets.


Return on Capital Employed

Mercialys's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Mercialys's financial position?


Financial Position Analysis

Mercialys's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Mercialys's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Mercialys's level of debt (193.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (110.6% vs 193.9% today).

Debt is not well covered by operating cash flow (10%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

9.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Mercialys's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.55%).

Mercialys's dividend is above the markets top 25% of dividend payers in France (4.53%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (207x coverage).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Vincent Ravat (45yo)

0.5yrs

Tenure

€703,403

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

Vincent's remuneration is about average for companies of similar size in France.

Vincent's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

The tenure for the Mercialys management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

58.5yo

Average Age

The tenure for the Mercialys board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Élizabeth Blaise (43yo)

    Deputy CEO

    • Tenure: 4.9yrs
  • Christophe Rigo

    Human Resources Director

    • Tenure: 0.9yrs
  • Vincent Ravat (45yo)

    Chief Executive Officer

    • Tenure: 0.5yrs
    • Compensation: €703.40k
  • Nicolas Joly

    Deputy Director-General & Executive VP

    • Tenure: 2.9yrs
  • Fabrice Haurani

    Director of Asset Management

    • Tenure: 3.6yrs
  • Alexandre Leroy

    Investor Relations Manager

    • Tenure: 0.0yrs

Board Members

  • Jacques Dumas (67yo)

    Non-independent Director

    • Tenure: 14.0yrs
    • Compensation: €12.50k
  • Michel Savart (57yo)

    Non-independent Director

    • Tenure: 9.3yrs
    • Compensation: €20.00k
  • Éric Le Gentil (59yo)

    Chairman

    • Tenure: 6.5yrs
    • Compensation: €4.32m
  • Victoire Boissier (52yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: €24.09k
  • Élisabeth Cunin-Diéterlé (59yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: €25.95k
  • Bruno Servant (59yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €14.09k
  • Ingrid Nappi-Choulet (53yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €23.18k
  • Pascale Roque (58yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: €24.20k
  • Dominique Dudan (65yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: €25.64k
  • Stéphanie Bensimon (43yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: €12.65k

Company Information

Mercialys's company bio, 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: €970.903m
  • Shares outstanding: 91.68m
  • Website: https://www.mercialys.com

Number of Employees


Location

  • Mercialys
  • 148, rue de l’Université
  • Paris
  • Languedoc-Roussillon
  • 75007
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MERYENXTPA (Euronext Paris)YesOrdinary SharesFREUROct 2005
M8YDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2005
0IQULSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2005
MEIY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2005
MERYPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2005

Biography

Mercialys is one of the top real estate companies in France and Europe, specializing in the enhancement, transformation and promotion of shopping centers. Mercialys owns a real estate portfolio of 56 sites ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 20:53
End of Day Share Price2019/08/22 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.