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 Analysis

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

Stable Share Price: MERY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

MERY

-0.5%

FR REITs

-0.5%

FR Market


1 Year Return

-9.0%

MERY

22.0%

FR REITs

15.2%

FR Market

Return vs Industry: MERY underperformed the French REITs industry which returned 22% over the past year.

Return vs Market: MERY underperformed the French Market which returned 15.2% over the past year.


Shareholder returns

MERYIndustryMarket
7 Day0.4%-0.5%-0.5%
30 Day-0.2%1.8%0.6%
90 Day-2.0%7.0%2.8%
1 Year-0.6%-9.0%30.2%22.0%19.2%15.2%
3 Year-14.2%-31.8%50.4%26.3%43.8%30.2%
5 Year-23.8%-46.8%56.1%18.5%52.3%30.8%

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 compared to its fair value and its price relative to the market?

49.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MERY (€11.7) is trading below our estimate of fair value (€23.13)

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


Price To Earnings Ratio

PE vs Industry: MERY is poor value based on its PE Ratio (11.9x) compared to the REITs industry average (11.4x).

PE vs Market: MERY is good value based on its PE Ratio (11.9x) compared to the French market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: MERY is poor value based on its PEG Ratio (1641.8x)


Price to Book Ratio

PB vs Industry: MERY is overvalued based on its PB Ratio (1.6x) compared to the FR REITs industry average (1.1x).


Next Steps

Future Growth

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

0.007%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MERY's forecast earnings growth (0.01% per year) is above the savings rate (-0.1%).

Earnings vs Market: MERY's earnings (0.01% per year) are forecast to grow slower than the French market (12.9% per year).

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

Revenue vs Market: MERY's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: MERY's revenue is forecast to decline over the next 3 years (-0.2% 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 (14%).


Next Steps

Past Performance

How has Mercialys performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MERY has high quality earnings.

Growing Profit Margin: MERY's current net profit margins (47.1%) are higher than last year (43.2%).


Past Earnings Growth Analysis

Earnings Trend: MERY's earnings have declined by -7.3% per year over the past 5 years.

Accelerating Growth: MERY's earnings growth over the past year (11.7%) exceeds its 5-year average (-7.3% per year).

Earnings vs Industry: MERY earnings growth over the past year (11.7%) underperformed the REITs industry 19.6%.


Return on Equity

High ROE: MERY's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mercialys'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: MERY has a high level of physical assets or inventory.

Debt Coverage by Assets: MERY's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

9.83%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Mercialys before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company9.8%marketbottom25%1.5%markettop25%4.6%industryaverage4.9%forecastin3Years10.0%

Current dividend yield vs market & industry

Notable Dividend: MERY's dividend (9.83%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: MERY's dividend (9.83%) is in the top 25% of dividend payers in the French market (4.54%)


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.5%), MERY's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MERY's dividends in 3 years are forecast to be thoroughly covered by earnings (0.9% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Vincent Ravat (45yo)

1yrs

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

Compensation vs Market: Vincent's total compensation ($USD764.07K) is about average for companies of similar size in the French market ($USD681.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Vincent Ravat
Chief Executive Officer1yrs€703.40kno data
Élizabeth Blaise
Deputy CEO5.4yrsno datano data
Alexandre Leroy
Investor Relations Manager0yrsno datano data
Christophe Rigo
Human Resources Director1.4yrsno datano data
Nicolas Joly
Deputy Director-General & Executive VP3.4yrsno datano data
Fabrice Haurani
Director of Asset Management4.1yrsno datano data

3.4yrs

Average Tenure

Experienced Management: MERY's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jacques Dumas
Non-independent Director14.5yrs€12.50kno data
Michel Savart
Non-independent Director9.8yrs€20.00kno data
Éric Le Gentil
Chairman7yrs€1.47mno data
Victoire Boissier
Independent Director3.8yrs€24.09kno data
Élisabeth Cunin-Diéterlé
Independent Director7.7yrs€25.95kno data
Bruno Servant
Independent Director5.8yrs€14.09kno data
Ingrid Nappi-Choulet
Independent Director5.8yrs€23.18kno data
Pascale Roque
Independent Director2.3yrs€24.20kno data
Dominique Dudan
Independent Director1.8yrs€25.64kno data
Stéphanie Bensimon
Independent Director1.7yrs€12.65kno data

5.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: MERY's board of directors are considered experienced (5.8 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.


Top Shareholders

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: €1.074b
  • Shares outstanding: 91.77m
  • 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 55 sites, with 873,000 sq.m of retail space throughout metropolitan France and some of the French overseas territories. The company develops a global vision for its sites so they can constantly evolve, anticipating changes in consumer buying behavior. It is rolling out an ambitious development strategy around three key areas: deploying precision merchandising, with an approach tailored to the specific features of each catchment area, setting up service platforms in line with customers’ needs under one dedicated cross-business identity “G La Galerie”, and adopting a modular layout design for centers, opening up opportunities for new forms of retail. As outstanding partners for day-to-day life, its shopping centers are focused on proximity, innovation and local engagement, on a human scale. They represent a different way of looking at retail, with agility and pragmatism, creating value for all the stakeholders involved. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:25
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.