MERLIN PROPERTIES SOCIMI SA (MRL.LS) Stock Fundamental Analysis
ELI:MRL - Euronext Lisbon - ES0105025003 - REIT - Currency: EUR
MRL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 industry peers in the Diversified REITs industry. Both the profitability and the financial health of MRL get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, MRL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MRL had positive earnings in the past year.
MRL had a positive operating cash flow in the past year.
Of the past 5 years MRL 4 years were profitable.
Each year in the past 5 years MRL had a positive operating cash flow.
1.2 Ratios
MRL's Return On Assets of 2.11% is fine compared to the rest of the industry. MRL outperforms 60.47% of its industry peers.
Looking at the Return On Equity, with a value of 3.78%, MRL is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
MRL's Return On Invested Capital of 2.32% is on the low side compared to the rest of the industry. MRL is outperformed by 74.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRL is in line with the industry average of 4.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 3.78% | ||
| ROIC | 2.32% |
ROA(3y)1.2%
ROA(5y)1.52%
ROE(3y)2.12%
ROE(5y)2.9%
ROIC(3y)2.33%
ROIC(5y)2.23%
1.3 Margins
With a decent Profit Margin value of 57.37%, MRL is doing good in the industry, outperforming 74.42% of the companies in the same industry.
In the last couple of years the Profit Margin of MRL has declined.
MRL's Operating Margin of 75.09% is fine compared to the rest of the industry. MRL outperforms 62.79% of its industry peers.
In the last couple of years the Operating Margin of MRL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 75.09% | ||
| PM (TTM) | 57.37% | ||
| GM | N/A |
OM growth 3Y-1.01%
OM growth 5Y0.41%
PM growth 3Y-19.36%
PM growth 5Y-12.12%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MRL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MRL has more shares outstanding
Compared to 5 years ago, MRL has more shares outstanding
The debt/assets ratio for MRL has been reduced compared to a year ago.
2.2 Solvency
MRL has an Altman-Z score of 1.01. This is a bad value and indicates that MRL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MRL (1.01) is better than 67.44% of its industry peers.
MRL has a debt to FCF ratio of 16.58. This is a negative value and a sign of low solvency as MRL would need 16.58 years to pay back of all of its debts.
MRL's Debt to FCF ratio of 16.58 is in line compared to the rest of the industry. MRL outperforms 46.51% of its industry peers.
MRL has a Debt/Equity ratio of 0.57. This is a neutral value indicating MRL is somewhat dependend on debt financing.
The Debt to Equity ratio of MRL (0.57) is better than 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 16.58 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.45
WACC5.22%
2.3 Liquidity
MRL has a Current Ratio of 2.02. This indicates that MRL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MRL (2.02) is better than 95.35% of its industry peers.
A Quick Ratio of 1.96 indicates that MRL should not have too much problems paying its short term obligations.
MRL has a Quick ratio of 1.96. This is amongst the best in the industry. MRL outperforms 95.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 845.70% over the past year.
Measured over the past years, MRL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.43% on average per year.
The Revenue has been growing slightly by 6.41% in the past year.
Measured over the past years, MRL shows a decrease in Revenue. The Revenue has been decreasing by -0.80% on average per year.
EPS 1Y (TTM)845.7%
EPS 3Y-20.27%
EPS 5Y-14.43%
EPS Q2Q%174.01%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y1.84%
Revenue growth 5Y-0.8%
Sales Q2Q%11.91%
3.2 Future
MRL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.24% yearly.
Based on estimates for the next years, MRL will show a quite strong growth in Revenue. The Revenue will grow by 10.67% on average per year.
EPS Next Y5.83%
EPS Next 2Y0.62%
EPS Next 3Y9.24%
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y7.85%
Revenue Next 3Y10.67%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.88, the valuation of MRL can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as MRL.
Compared to an average S&P500 Price/Earnings ratio of 29.35, MRL is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.46, which indicates a correct valuation of MRL.
Based on the Price/Forward Earnings ratio, MRL is valued a bit more expensive than 69.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. MRL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
MRL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MRL is more expensive than 62.79% of the companies in the same industry.
MRL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MRL is more expensive than 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.62 | ||
| EV/EBITDA | 22.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MRL does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.06
PEG (5Y)N/A
EPS Next 2Y0.62%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
MRL has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
The stock price of MRL dropped by -21.10% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 8.71, MRL is paying slightly less dividend.
MRL's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
The dividend of MRL decreases each year by -12.73%.
Dividend Growth(5Y)-12.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
37.06% of the earnings are spent on dividend by MRL. This is a low number and sustainable payout ratio.
DP37.06%
EPS Next 2Y0.62%
EPS Next 3Y9.24%
ELI:MRL (3/7/2025, 7:00:00 PM)
9.295
-0.82 (-8.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners36.69%
Inst Owner ChangeN/A
Ins Owners8.46%
Ins Owner ChangeN/A
Market Cap5.24B
Analysts84.8
Price Target13.83 (48.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend0.2
Dividend Growth(5Y)-12.73%
DP37.06%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-3.75%
Max Revenue beat(2)3.84%
Revenue beat(4)3
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)3.84%
Revenue beat(8)6
Avg Revenue beat(8)0.1%
Revenue beat(12)7
Avg Revenue beat(12)-0.98%
Revenue beat(16)8
Avg Revenue beat(16)-3.35%
PT rev (1m)14.36%
PT rev (3m)14.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.68%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 15.46 | ||
| P/S | 10.59 | ||
| P/FCF | 17.62 | ||
| P/OCF | 16.54 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 22.87 |
EPS(TTM)0.52
EY5.59%
EPS(NY)0.6
Fwd EY6.47%
FCF(TTM)0.53
FCFY5.67%
OCF(TTM)0.56
OCFY6.05%
SpS0.88
BVpS13.31
TBVpS13.3
PEG (NY)3.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 3.78% | ||
| ROCE | 2.94% | ||
| ROIC | 2.32% | ||
| ROICexc | 2.65% | ||
| ROICexgc | 2.65% | ||
| OM | 75.09% | ||
| PM (TTM) | 57.37% | ||
| GM | N/A | ||
| FCFM | 60.11% |
ROA(3y)1.2%
ROA(5y)1.52%
ROE(3y)2.12%
ROE(5y)2.9%
ROIC(3y)2.33%
ROIC(5y)2.23%
ROICexc(3y)2.51%
ROICexc(5y)2.38%
ROICexgc(3y)2.51%
ROICexgc(5y)2.38%
ROCE(3y)2.95%
ROCE(5y)2.82%
ROICexcg growth 3Y5.27%
ROICexcg growth 5Y2.62%
ROICexc growth 3Y5.27%
ROICexc growth 5Y2.62%
OM growth 3Y-1.01%
OM growth 5Y0.41%
PM growth 3Y-19.36%
PM growth 5Y-12.12%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 16.58 | ||
| Debt/EBITDA | 11.46 | ||
| Cap/Depr | 447.82% | ||
| Cap/Sales | 3.94% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 84.32% | ||
| Profit Quality | 104.77% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 1.01 |
F-Score6
WACC5.22%
ROIC/WACC0.45
Cap/Depr(3y)211.84%
Cap/Depr(5y)198.47%
Cap/Sales(3y)1.59%
Cap/Sales(5y)1.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)845.7%
EPS 3Y-20.27%
EPS 5Y-14.43%
EPS Q2Q%174.01%
EPS Next Y5.83%
EPS Next 2Y0.62%
EPS Next 3Y9.24%
EPS Next 5YN/A
Revenue 1Y (TTM)6.41%
Revenue growth 3Y1.84%
Revenue growth 5Y-0.8%
Sales Q2Q%11.91%
Revenue Next Year7.04%
Revenue Next 2Y7.85%
Revenue Next 3Y10.67%
Revenue Next 5YN/A
EBIT growth 1Y5.44%
EBIT growth 3Y0.81%
EBIT growth 5Y-0.4%
EBIT Next Year14.99%
EBIT Next 3Y13.66%
EBIT Next 5YN/A
FCF growth 1Y31.57%
FCF growth 3Y9.44%
FCF growth 5Y0.85%
OCF growth 1Y38.96%
OCF growth 3Y11.19%
OCF growth 5Y1.44%