Mermeren Kombinat AD (ATSE:MERKO) - Share price, News & Analysis

MERKO fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	6/6
Financial Health	6/6
Dividends	4/6

MERKO Stock Overview

Mermeren Kombinat AD engages in the mining, processing, and distribution of marble and decorative stones in Macedonia and internationally.

Rewards

Trading at 36.5% below our estimate of its fair value

Earnings grew by 78.5% over the past year

Risk Analysis

Unstable dividend track record

Volatile share price over the past 3 months

Mermeren Kombinat AD Competitors

OM:JM

kr14.1b

NCC

OM:NCC B

kr13.6b

PJSC LSR Group

MISX:LSRG

₽49.5b

Dom Development

WSE:DOM

zł2.5b

Price History & Performance

Summary of all time highs, changes and price drops for Mermeren Kombinat AD
Historical stock prices
Current Share Price	€57.50
52 Week High	€61.50
52 Week Low	€43.00
Beta	0.094
1 Month Change	8.49%
3 Month Change	17.83%
1 Year Change	4.55%
3 Year Change	6.09%
5 Year Change	512.35%
Change since IPO	919.50%

Recent News & Updates

Feb 25

Estimating The Intrinsic Value Of Mermeren Kombinat AD (ATH:MERKO)

In this article we are going to estimate the intrinsic value of Mermeren Kombinat AD ( ATH:MERKO ) by taking the...

Shareholder Returns

	MERKO	GR Basic Materials	GR Market
7D	0%	-1.2%	-0.7%
1Y	4.5%	-17.8%	4.3%

Return vs Industry: MERKO exceeded the Greek Basic Materials industry which returned -17.8% over the past year.

Return vs Market: MERKO matched the Greek Market which returned 4.3% over the past year.

Price Volatility

Is MERKO's price volatile compared to industry and market?
MERKO volatility
MERKO Average Weekly Movement	7.3%
Basic Materials Industry Average Movement	5.8%
Market Average Movement	5.9%
10% most volatile stocks in GR Market	8.2%
10% least volatile stocks in GR Market	3.9%

Stable Share Price: MERKO is more volatile than 75% of Greek stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MERKO's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Greek stocks.

About the Company

Founded	Employees	CEO	Website
1946	284	Periklis Nikolaou	https://www.mermeren.com

Mermeren Kombinat AD engages in the mining, processing, and distribution of marble and decorative stones in Macedonia and internationally. The company operates five quarries located to the northeast of the city of Prilep. Its products are used in various projects, including mosques, hotels, palaces, commercial and residential buildings, villas, artworks, etc. The company was founded in 1946 and is headquartered in Prilep, North Macedonia.

Mermeren Kombinat AD Fundamentals Summary

How do Mermeren Kombinat AD's earnings and revenue compare to its market cap?
MERKO fundamental statistics
Market Cap	€269.49m
Earnings (TTM)	€14.80m
Revenue (TTM)	€30.13m

18.2x

P/E Ratio

8.9x

P/S Ratio

Is MERKO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MERKO income statement (TTM)
Revenue	€30.13m
Cost of Revenue	€8.87m
Gross Profit	€21.25m
Other Expenses	€6.46m
Earnings	€14.80m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	3.16
Gross Margin	70.55%
Net Profit Margin	49.11%
Debt/Equity Ratio	0.0%

How did MERKO perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

71%

Payout Ratio

Valuation

Is Mermeren Kombinat AD undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

36.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MERKO (€57.5) is trading below our estimate of fair value (€90.49)

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

Price To Earnings Ratio

PE vs Industry: MERKO is poor value based on its PE Ratio (18.2x) compared to the European Basic Materials industry average (11.5x).

PE vs Market: MERKO is poor value based on its PE Ratio (18.2x) compared to the Greek market (11.8x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MERKO's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: MERKO is overvalued based on its PB Ratio (6.3x) compared to the XE Basic Materials industry average (1.2x).

Future Growth

How is Mermeren Kombinat AD forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.5%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mermeren Kombinat AD has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Mermeren Kombinat AD performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MERKO has high quality earnings.

Growing Profit Margin: MERKO's current net profit margins (49.1%) are higher than last year (37.5%).

Past Earnings Growth Analysis

Earnings Trend: MERKO's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: MERKO's earnings growth over the past year (78.5%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: MERKO earnings growth over the past year (78.5%) exceeded the Basic Materials industry 51.2%.

Return on Equity

High ROE: MERKO's Return on Equity (34.4%) is considered high.

Financial Health

How is Mermeren Kombinat AD's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MERKO's short term assets (€28.2M) exceed its short term liabilities (€1.0M).

Long Term Liabilities: MERKO's short term assets (€28.2M) exceed its long term liabilities (€10.0).

Debt to Equity History and Analysis

Debt Level: MERKO is debt free.

Reducing Debt: MERKO has no debt compared to 5 years ago when its debt to equity ratio was 19.2%.

Debt Coverage: MERKO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MERKO has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Mermeren Kombinat AD current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MERKO's dividend (3.9%) is higher than the bottom 25% of dividend payers in the Greek market (1.96%).

High Dividend: MERKO's dividend (3.9%) is low compared to the top 25% of dividend payers in the Greek market (4.68%).

Stability and Growth of Payments

Stable Dividend: MERKO's dividend payments have been volatile in the past 10 years.

Growing Dividend: MERKO's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (71%), MERKO's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (72.8%), MERKO's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

CEO

Periklis Nikolaou

no data

Tenure

Pericles Nikolaou serves as the Chief Executive Officer and Executive Director at Mermeren Kombinat AD.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/21 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31