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 slightly overvalued.


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

4.6%

MERY

1.2%

FR REITs

-0.4%

FR Market


1 Year Return

1.0%

MERY

11.0%

FR REITs

9.5%

FR Market

Return vs Industry: MERY underperformed the French REITs industry which returned 11% over the past year.

Return vs Market: MERY underperformed the French Market which returned 9.5% over the past year.


Shareholder returns

MERYIndustryMarket
7 Day4.6%1.2%-0.4%
30 Day3.5%4.6%-0.6%
90 Day16.2%8.0%0.04%
1 Year6.2%1.0%18.2%11.0%13.3%9.5%
3 Year-21.3%-35.0%28.7%8.1%42.5%28.7%
5 Year2.0%-26.2%72.2%29.6%71.0%45.0%

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?

38.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MERY (€12.68) is trading below our estimate of fair value (€20.53)

Significantly Undervalued: MERY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MERY is poor value based on its PE Ratio (15.7x) compared to the REITs industry average (10x).

PE vs Market: MERY is good value based on its PE Ratio (15.7x) compared to the French market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: MERY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MERY is overvalued based on its PB Ratio (1.8x) compared to the FR REITs industry average (1x).


Next Steps

Future Growth

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

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MERY's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: MERY's earnings are forecast to decline over the next 3 years (-1.2% per year).

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

Revenue vs Market: MERY's revenue (1.4% per year) is forecast to grow slower than the French market (4.5% per year).

High Growth Revenue: MERY's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MERY's Return on Equity is forecast to be low in 3 years time (15.1%).


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

Earnings Trend: MERY's earnings have declined by -10.8% 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 (-9.3%) over the past year, making it difficult to compare to the REITs industry average (14.1%).


Return on Equity

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


Return on Assets

ROA vs Industry: MERY's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: MERY has not improved its Return on Capital Employed over the past 3 years.


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?

8.83%

Current Dividend Yield


Dividend Yield vs Market

company8.8%marketbottom25%1.6%markettop25%4.7%industryaverage5.1%forecastin3Years8.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MERY's dividend (8.83%) is higher than the bottom 25% of dividend payers in the French market (1.56%).

High Dividend: MERY's dividend (8.83%) is in the top 25% of dividend payers in the French market (4.72%)

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 (86.8%), 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 (0.5% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Vincent Ravat (45yo)

0.7yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the French market.

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


Management Age and Tenure

3.1yrs

Average Tenure

Experienced Management: MERY's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: MERY's board of directors are considered experienced (5.5 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.


Ownership Breakdown


Management Team

  • Élizabeth Blaise (43yo)

    Deputy CEO

    • Tenure: 5.1yrs
  • Christophe Rigo

    Human Resources Director

    • Tenure: 1.1yrs
  • Vincent Ravat (45yo)

    Chief Executive Officer

    • Tenure: 0.7yrs
    • Compensation: €703.40k
  • Nicolas Joly

    Deputy Director-General & Executive VP

    • Tenure: 3.1yrs
  • Fabrice Haurani

    Director of Asset Management

    • Tenure: 3.8yrs
  • Alexandre Leroy

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Jacques Dumas (67yo)

    Non-independent Director

    • Tenure: 14.2yrs
    • Compensation: €12.50k
  • Michel Savart (57yo)

    Non-independent Director

    • Tenure: 9.4yrs
    • Compensation: €20.00k
  • Éric Le Gentil (59yo)

    Chairman

    • Tenure: 6.7yrs
    • Compensation: €1.47m
  • Victoire Boissier (52yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: €24.09k
  • Élisabeth Cunin-Diéterlé (59yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: €25.95k
  • Bruno Servant (59yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: €14.09k
  • Ingrid Nappi-Choulet (53yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: €23.18k
  • Pascale Roque (58yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: €24.20k
  • Dominique Dudan (65yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: €25.64k
  • Stéphanie Bensimon (43yo)

    Independent Director

    • Tenure: 1.3yrs
    • 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: €1.163b
  • Shares outstanding: 91.70m
  • 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 Analysis2019/10/19 20:41
End of Day Share Price2019/10/18 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.