MERCIALYS (MERY.PA)
FR0010241638 - REIT
We assign a fundamental rating of 6 out of 10 to MERY. MERY was compared to 46 industry peers in the Diversified REITs industry. While MERY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MERY scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
MERY had positive earnings in the past year.
MERY had a positive operating cash flow in the past year.
Each year in the past 5 years MERY has been profitable.
In the past 5 years MERY always reported a positive cash flow from operatings.
1.2 Ratios
MERY has a better Return On Assets (3.90%) than 93.18% of its industry peers.
MERY's Return On Equity of 12.38% is amongst the best of the industry. MERY outperforms 95.45% of its industry peers.
MERY's Return On Invested Capital of 4.46% is fine compared to the rest of the industry. MERY outperforms 77.27% of its industry peers.
MERY had an Average Return On Invested Capital over the past 3 years of 4.23%. This is in line with the industry average of 3.70%.
The last Return On Invested Capital (4.46%) for MERY is above the 3 year average (4.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 12.38% | ||
| ROIC | 4.46% |
ROA(3y)2.31%
ROA(5y)2.75%
ROE(3y)7.4%
ROE(5y)9.66%
ROIC(3y)4.23%
ROIC(5y)4.6%
1.3 Margins
MERY has a better Profit Margin (31.49%) than 75.00% of its industry peers.
MERY's Profit Margin has declined in the last couple of years.
MERY has a worse Operating Margin (46.47%) than 77.27% of its industry peers.
MERY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 95.23%, MERY belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
In the last couple of years the Gross Margin of MERY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.47% | ||
| PM (TTM) | 31.49% | ||
| GM | 95.23% |
OM growth 3Y-15.98%
OM growth 5Y-10.78%
PM growth 3Y-15.06%
PM growth 5Y-7.03%
GM growth 3Y4.56%
GM growth 5Y0.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MERY is destroying value.
MERY has about the same amout of shares outstanding than it did 1 year ago.
MERY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MERY has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MERY is 8.90, which is on the high side as it means it would take MERY, 8.90 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 8.90, MERY belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
MERY has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
MERY's Debt to Equity ratio of 1.69 is on the low side compared to the rest of the industry. MERY is outperformed by 97.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 8.9 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC4.77%
2.3 Liquidity
MERY has a Current Ratio of 1.67. This is a normal value and indicates that MERY is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MERY (1.67) is better than 84.09% of its industry peers.
A Quick Ratio of 1.67 indicates that MERY should not have too much problems paying its short term obligations.
MERY has a better Quick ratio (1.67) than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
MERY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 95.65%, which is quite impressive.
MERY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.32% yearly.
MERY shows a strong growth in Revenue. In the last year, the Revenue has grown by 53.61%.
MERY shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.01% yearly.
EPS 1Y (TTM)95.65%
EPS 3Y-15.36%
EPS 5Y-8.32%
EPS growth Q2Q72.73%
Revenue 1Y (TTM)53.61%
Revenue growth 3Y0.49%
Revenue growth 5Y-1.01%
Revenue growth Q2Q105.02%
3.2 Future
MERY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.29% yearly.
MERY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.15% yearly.
EPS Next Y-0.31%
EPS Next 2Y1.39%
EPS Next 3Y3.29%
EPS Next 5YN/A
Revenue Next Year3.4%
Revenue Next 2Y2.7%
Revenue Next 3Y2.15%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MERY is valuated reasonably with a Price/Earnings ratio of 11.34.
Based on the Price/Earnings ratio, MERY is valued a bit cheaper than 77.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.05, MERY is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.37, the valuation of MERY can be described as very reasonable.
63.64% of the companies in the same industry are more expensive than MERY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.53. MERY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MERY indicates a rather cheap valuation: MERY is cheaper than 88.64% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MERY is valued cheaply inside the industry as 93.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.09 | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
MERY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.39%
EPS Next 3Y3.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.46%, MERY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.30, MERY pays a better dividend. On top of this MERY pays more dividend than 95.45% of the companies listed in the same industry.
MERY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
5.2 History
The dividend of MERY decreases each year by -4.03%.
Dividend Growth(5Y)-4.03%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
106.86% of the earnings are spent on dividend by MERY. This is not a sustainable payout ratio.
DP106.86%
EPS Next 2Y1.39%
EPS Next 3Y3.29%
MERCIALYS
EPA:MERY (4/16/2024, 5:29:54 PM)
10.205
-0.15 (-1.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap951.90M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 10.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 12.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 46.47% | ||
| PM (TTM) | 31.49% | ||
| GM | 95.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)95.65%
EPS 3Y-15.36%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)53.61%
Revenue growth 3Y0.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y