ENXTPA:MERY

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with proven track record and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.5%

MERY

-1.3%

FR REITs

-0.04%

FR Market


1 Year Return

-61.2%

MERY

-39.1%

FR REITs

-6.4%

FR Market

Return vs Industry: MERY underperformed the French REITs industry which returned -39.8% over the past year.

Return vs Market: MERY underperformed the French Market which returned -6.6% over the past year.


Shareholder returns

MERYIndustryMarket
7 Day11.5%-1.3%-0.04%
30 Day-1.2%-1.2%0.6%
90 Day-30.8%-10.0%-0.03%
1 Year-58.6%-61.2%-34.9%-39.1%-4.3%-6.4%
3 Year-63.8%-71.4%-22.5%-35.1%7.1%-2.2%
5 Year-66.4%-77.1%-7.6%-30.9%31.9%13.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MERY (€4.78) is trading below our estimate of fair value (€12.23)

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 (5.1x) compared to the FR REITs industry average (8.3x).

PE vs Market: MERY is good value based on its PE Ratio (5.1x) compared to the French market (18.5x).


Price to Earnings Growth Ratio

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's PB Ratio (0.7x) is in line with the FR REITs industry average.


Next Steps

Future Growth

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

-0.5%

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 (-0.5% per year).

Earnings vs Market: MERY's earnings are forecast to decline over the next 3 years (-0.5% per year).

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

Revenue vs Market: MERY's revenue (1.6% per year) is forecast to grow slower than the French market (6.7% per year).

High Growth Revenue: MERY's revenue (1.6% 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 (18.2%).


Next Steps

Past Performance

How has Mercialys performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MERY has high quality earnings.

Growing Profit Margin: MERY's current net profit margins (45.4%) are higher than last year (38.8%).


Past Earnings Growth Analysis

Earnings Trend: MERY's earnings have declined by 2.5% per year over the past 5 years.

Accelerating Growth: MERY's earnings growth over the past year (15.6%) exceeds its 5-year average (-2.5% per year).

Earnings vs Industry: MERY earnings growth over the past year (15.6%) exceeded the REITs industry 5.7%.


Return on Equity

High ROE: MERY's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Mercialys's financial position?


Financial Position Analysis

Short Term Liabilities: MERY's short term assets (€272.3M) do not cover its short term liabilities (€447.3M).

Long Term Liabilities: MERY's short term assets (€272.3M) do not cover its long term liabilities (€1.3B).


Debt to Equity History and Analysis

Debt Level: MERY's debt to equity ratio (192.7%) is considered high.

Reducing Debt: MERY's debt to equity ratio has increased from 139.7% to 192.7% over the past 5 years.

Debt Coverage: MERY's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: MERY's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

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

19.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MERY's dividend (19.89%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: MERY's dividend (19.89%) is in the top 25% of dividend payers in the French market (5.22%)


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 reasonable payout ratio (70.1%), MERY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MERY's dividends in 3 years are forecast to be covered by earnings (73% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Vincent Ravat (46 yo)

1.67yrs

Tenure

€1,044,524

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 ($USD1.24M) is above average for companies of similar size in the French market ($USD571.53K).

Compensation vs Earnings: Vincent's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vincent Ravat
Chief Executive Officer1.67yrs€1.04mno data
Élizabeth Blaise
Deputy Chief Executive Officer & CFO6.08yrs€435.42kno data
Alexandre Leroy
Investor Relations Managerno datano datano data
Fabrice Haurani
Head of Acquisitions & Sales0.33yrno datano data
Christophe Rigo
Human Resources Director2.08yrsno datano data
Nicolas Joly
Deputy Director-General & Executive VP4.08yrsno datano data

2.1yrs

Average Tenure

Experienced Management: MERY's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jacques Dumas
Non-independent Director15.17yrs€12.50kno data
Michel Savart
Non-independent Director10.42yrs€20.00kno data
Éric Le Gentil
Chairman7.67yrs€533.55kno data
Victoire Boissier
Independent Director4.5yrs€23.75kno data
Élisabeth Cunin-Diéterlé
Independent Director8.33yrs€28.75kno data
Bruno Servant
Independent Director6.5yrs€15.00kno data
Pascale Roque
Independent Director3yrs€24.33kno data
David Lubek
Non-Independent Director2.92yrs€9.25kno data
Dominique Dudan
Independent Director2.5yrs€45.00kno data
Stéphanie Bensimon
Independent Director2.33yrs€28.18kno data

5.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MERY's board of directors are considered experienced (5.5 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: €436.662m
  • Shares outstanding: 91.43m
  • 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 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 20:56
End of Day Share Price2020/10/20 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.