Marks Electrical Group PLC

AIM:MRK Stock Report

Market Cap: UK£52.9m

Marks Electrical Group Valuation

Is MRK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MRK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MRK (£0.51) is trading above our estimate of fair value (£0.46)

Significantly Below Fair Value: MRK is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MRK?

Key metric: As MRK is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MRK. This is calculated by dividing MRK's market cap by their current revenue.
What is MRK's PS Ratio?
PS Ratio0.4x
SalesUK£119.25m
Market CapUK£52.87m

Price to Sales Ratio vs Peers

How does MRK's PS Ratio compare to its peers?

The above table shows the PS ratio for MRK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.5x
TPT Topps Tiles
0.3x7.9%UK£80.0m
CMO CMO Group
0.2x3.9%UK£10.3m
VIC Victorian Plumbing Group
1.3x9.8%UK£361.5m
WIX Wickes Group
0.2x3.7%UK£359.2m
MRK Marks Electrical Group
0.4x8.0%UK£52.9m

Price-To-Sales vs Peers: MRK is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does MRK's PS Ratio compare vs other companies in the GB Specialty Retail Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
VTU Vertu Motors
0.04x5.8%US$252.18m
WRKS TheWorks.co.uk
0.05xn/aUS$18.56m
CFYN Caffyns
0.05xn/aUS$15.47m
MMAG musicMagpie
0.07xn/aUS$10.94m
MRK 0.4xIndustry Avg. 0.3xNo. of Companies7PS00.40.81.21.62+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MRK is expensive based on its Price-To-Sales Ratio (0.4x) compared to the UK Specialty Retail industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is MRK's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MRK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: MRK is expensive based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MRK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.51
UK£0.57
+13.9%
21.7%UK£0.70UK£0.45n/a2
Sep ’25UK£0.64
UK£0.95
+49.6%
7.4%UK£1.00UK£0.85n/a3
Aug ’25UK£0.66
UK£0.96
+46.9%
6.7%UK£1.00UK£0.85n/a4
Jul ’25UK£0.71
UK£0.96
+35.6%
6.7%UK£1.00UK£0.85n/a4
Jun ’25UK£0.69
UK£0.90
+31.4%
9.3%UK£1.00UK£0.80n/a5
May ’25UK£0.69
UK£0.90
+30.4%
9.3%UK£1.00UK£0.80n/a5
Apr ’25UK£0.72
UK£0.90
+25.0%
9.3%UK£1.00UK£0.80n/a5
Mar ’25UK£0.73
UK£0.90
+23.3%
9.3%UK£1.00UK£0.80n/a5
Feb ’25UK£0.73
UK£0.90
+22.4%
9.3%UK£1.00UK£0.80n/a5
Jan ’25UK£0.91
UK£1.21
+32.5%
12.9%UK£1.50UK£1.10n/a5
Dec ’24UK£0.89
UK£1.21
+35.5%
12.9%UK£1.50UK£1.10n/a5
Nov ’24UK£0.89
UK£1.24
+38.9%
11.3%UK£1.50UK£1.10UK£0.575
Oct ’24UK£1.06
UK£1.24
+16.8%
10.0%UK£1.50UK£1.10UK£0.606
Sep ’24UK£0.98
UK£1.20
+22.3%
11.8%UK£1.50UK£1.00UK£0.647
Aug ’24UK£0.99
UK£1.20
+21.6%
11.8%UK£1.50UK£1.00UK£0.667
Jul ’24UK£0.97
UK£1.20
+24.2%
11.8%UK£1.50UK£1.00UK£0.717
Jun ’24UK£0.87
UK£1.21
+39.3%
12.2%UK£1.50UK£1.00UK£0.696
May ’24UK£0.87
UK£1.21
+39.3%
12.2%UK£1.50UK£1.00UK£0.696
Apr ’24UK£0.83
UK£1.16
+38.7%
15.0%UK£1.50UK£1.00UK£0.726
Mar ’24UK£0.91
UK£1.14
+25.5%
15.0%UK£1.50UK£1.00UK£0.737
Feb ’24UK£0.84
UK£1.14
+35.2%
15.0%UK£1.50UK£1.00UK£0.737
Jan ’24UK£0.84
UK£1.11
+31.4%
18.0%UK£1.50UK£0.82UK£0.917
Dec ’23UK£0.77
UK£1.12
+46.4%
19.2%UK£1.50UK£0.82UK£0.896
Nov ’23UK£0.64
UK£1.12
+75.0%
19.2%UK£1.50UK£0.82UK£0.896

Analyst Forecast: Target price is less than 20% higher than the current share price.

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