MERLIN PROPERTIES SOCIMI SA (MRL.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:MRL - ES0105025003 - REIT
12.49 EUR
+0.29 (+2.38%)
We assign a fundamental rating of 5 out of 10 to MRL. MRL was compared to 42 industry peers in the Diversified REITs industry. While MRL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, MRL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year MRL was profitable.
- 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 4.96% is amongst the best of the industry. MRL outperforms 85.71% of its industry peers.
- MRL has a better Return On Equity (8.42%) than 78.57% of its industry peers.
- MRL has a better Return On Invested Capital (4.66%) than 83.33% 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 3.45%.
- The last Return On Invested Capital (4.66%) for MRL is above the 3 year average (1.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 8.42% | ||
| ROIC | 4.66% |
ROA(3y)1.2%
ROA(5y)1.52%
ROE(3y)2.12%
ROE(5y)2.9%
ROIC(3y)1.58%
ROIC(5y)1.78%
1.3 Margins
- MRL's Profit Margin of 129.18% is amongst the best of the industry. MRL outperforms 97.62% of its industry peers.
- MRL's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 150.20%, MRL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- MRL's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 150.2% | ||
| PM (TTM) | 129.18% | ||
| GM | N/A |
OM growth 3Y-1.09%
OM growth 5Y0.36%
PM growth 3Y-19.36%
PM growth 5Y-12.12%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MRL is destroying value.
- MRL has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MRL has more shares outstanding
- MRL has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.40, we must say that MRL is in the distress zone and has some risk of bankruptcy.
- MRL has a better Altman-Z score (1.40) than 90.48% of its industry peers.
- The Debt to FCF ratio of MRL is 14.59, which is on the high side as it means it would take MRL, 14.59 years of fcf income to pay off all of its debts.
- MRL has a Debt to FCF ratio (14.59) which is in line with its industry peers.
- MRL has a Debt/Equity ratio of 0.55. This is a neutral value indicating MRL is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.55, MRL is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 14.59 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.84
WACC5.53%
2.3 Liquidity
- MRL has a Current Ratio of 3.53. This indicates that MRL is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 3.53, MRL belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
- MRL has a Quick Ratio of 3.33. This indicates that MRL is financially healthy and has no problem in meeting its short term obligations.
- MRL has a Quick ratio of 3.33. This is amongst the best in the industry. MRL outperforms 97.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 3.33 |
3. Growth
3.1 Past
- The earnings per share for MRL have decreased strongly by -42.92% in the last year.
- MRL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.33% yearly.
- The Revenue has been growing slightly by 7.93% in the past year.
- The Revenue has been decreasing by -0.78% on average over the past years.
EPS 1Y (TTM)-42.92%
EPS 3Y-19.91%
EPS 5Y-14.33%
EPS Q2Q%0%
Revenue 1Y (TTM)7.93%
Revenue growth 3Y1.87%
Revenue growth 5Y-0.78%
Sales Q2Q%16.75%
3.2 Future
- The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
- The Revenue is expected to grow by 15.47% on average over the next years. This is quite good.
EPS Next Y-0.75%
EPS Next 2Y1.3%
EPS Next 3Y3.49%
EPS Next 5Y9.09%
Revenue Next Year9.75%
Revenue Next 2Y8.81%
Revenue Next 3Y9.99%
Revenue Next 5Y15.47%
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 22.30, the valuation of MRL can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of MRL is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. MRL is around the same levels.
- The Price/Forward Earnings ratio is 21.73, which indicates a rather expensive current valuation of MRL.
- Based on the Price/Forward Earnings ratio, MRL is valued expensively inside the industry as 80.95% of the companies are valued cheaper.
- MRL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 21.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MRL is valued cheaper than 80.95% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRL indicates a slightly more expensive valuation: MRL is more expensive than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.15 | ||
| EV/EBITDA | 13.66 |
4.3 Compensation for Growth
- MRL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.3%
EPS Next 3Y3.49%
5. Dividend
5.1 Amount
- MRL has a Yearly Dividend Yield of 1.44%.
- Compared to an average industry Dividend Yield of 5.43, MRL's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than MRL!
- MRL's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- The dividend of MRL is nicely growing with an annual growth rate of 8.36%!
Dividend Growth(5Y)8.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 16.88% of the earnings are spent on dividend by MRL. This is a low number and sustainable payout ratio.
- The dividend of MRL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP16.88%
EPS Next 2Y1.3%
EPS Next 3Y3.49%
MERLIN PROPERTIES SOCIMI SA / MRL.LS FAQ
What is the ChartMill fundamental rating of MERLIN PROPERTIES SOCIMI SA (MRL.LS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MRL.LS.
Can you provide the valuation status for MERLIN PROPERTIES SOCIMI SA?
ChartMill assigns a valuation rating of 2 / 10 to MERLIN PROPERTIES SOCIMI SA (MRL.LS). This can be considered as Overvalued.
What is the profitability of MRL stock?
MERLIN PROPERTIES SOCIMI SA (MRL.LS) has a profitability rating of 7 / 10.
What is the financial health of MERLIN PROPERTIES SOCIMI SA (MRL.LS) stock?
The financial health rating of MERLIN PROPERTIES SOCIMI SA (MRL.LS) is 5 / 10.
What is the expected EPS growth for MERLIN PROPERTIES SOCIMI SA (MRL.LS) stock?
The Earnings per Share (EPS) of MERLIN PROPERTIES SOCIMI SA (MRL.LS) is expected to decline by -0.75% in the next year.