Mears Group PLC, through its subsidiaries, provides a range of outsourced services to the public and private sectors in the United Kingdom. More Details
Moderate growth potential with imperfect balance sheet.
Share Price & News
How has Mears Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MER is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MER's weekly volatility (4%) has been stable over the past year.
7 Day Return
GB Commercial Services
1 Year Return
GB Commercial Services
Return vs Industry: MER underperformed the UK Commercial Services industry which returned 23.3% over the past year.
Return vs Market: MER underperformed the UK Market which returned 25.5% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Mears Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall StIs Mears Group plc (LON:MER) Worth UK£1.8 Based On Its Intrinsic Value?
3 months ago | Simply Wall StWhat Type Of Returns Would Mears Group's(LON:MER) Shareholders Have Earned If They Purchased Their SharesFive Years Ago?
4 months ago | Simply Wall StHere's Why We Think Mears Group's (LON:MER) Statutory Earnings Might Be Conservative
Is Mears Group undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MER (£1.9) is trading above our estimate of fair value (£1.38)
Significantly Below Fair Value: MER is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MER is poor value based on its PE Ratio (172.6x) compared to the GB Commercial Services industry average (37.8x).
PE vs Market: MER is poor value based on its PE Ratio (172.6x) compared to the UK market (25.9x).
Price to Earnings Growth Ratio
PEG Ratio: MER is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: MER is good value based on its PB Ratio (2.1x) compared to the GB Commercial Services industry average (2.5x).
How is Mears Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MER's forecast earnings growth (76% per year) is above the savings rate (0.9%).
Earnings vs Market: MER's earnings (76% per year) are forecast to grow faster than the UK market (17.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MER's revenue (2.7% per year) is forecast to grow slower than the UK market (5.3% per year).
High Growth Revenue: MER's revenue (2.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MER's Return on Equity is forecast to be low in 3 years time (15.6%).
How has Mears Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MER has a large one-off loss of £2.0M impacting its June 30 2020 financial results.
Growing Profit Margin: MER's current net profit margins (0.1%) are lower than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: MER's earnings have declined by 10.2% per year over the past 5 years.
Accelerating Growth: MER's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MER had negative earnings growth (-94.4%) over the past year, making it difficult to compare to the Commercial Services industry average (-12.7%).
Return on Equity
High ROE: MER's Return on Equity (1.2%) is considered low.
How is Mears Group's financial position?
Financial Position Analysis
Short Term Liabilities: MER's short term assets (£229.1M) exceed its short term liabilities (£202.5M).
Long Term Liabilities: MER's short term assets (£229.1M) do not cover its long term liabilities (£441.6M).
Debt to Equity History and Analysis
Debt Level: MER's debt to equity ratio (127.2%) is considered high.
Reducing Debt: MER's debt to equity ratio has increased from 33.8% to 127.2% over the past 5 years.
Debt Coverage: MER's debt is well covered by operating cash flow (56.2%).
Interest Coverage: MER's interest payments on its debt are not well covered by EBIT (1.3x coverage).
What is Mears Group current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MER's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MER's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MER's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MER's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MER is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MER's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Miles (54 yo)
Mr. David J. Miles has been Chief Executive Officer of Mears Group plc since November 25, 2010 and served as its Chief Operating Officer since August 2009. Mr. Miles served as a Managing Director of Mears ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD656.03K) is about average for companies of similar size in the UK market ($USD565.51K).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Experienced Management: MER's management team is seasoned and experienced (10.5 years average tenure).
Experienced Board: MER's board of directors are considered experienced (4 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Mears Group plc's company bio, employee growth, exchange listings and data sources
- Name: Mears Group plc
- Ticker: MER
- Exchange: LSE
- Founded: 1988
- Industry: Diversified Support Services
- Sector: Commercial Services
- Market Cap: UK£210.590m
- Shares outstanding: 110.84m
- Website: https://www.mearsgroup.co.uk
Number of Employees
- Mears Group plc
- 1390 Montpellier Court
- Gloucester Business Park
- GL3 4AH
- United Kingdom
Mears Group PLC, through its subsidiaries, provides a range of outsourced services to the public and private sectors in the United Kingdom. The company offers rapid response and planned maintenance service...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/08 01:56|
|End of Day Share Price||2021/05/07 00:00|
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.