MERLIN PROPERTIES SOCIMI SA (MRL.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:MRL - ES0105025003 - REIT
12.5 EUR
+0.01 (+0.08%)
We assign a fundamental rating of 5 out of 10 to MRL. MRL was compared to 41 industry peers in the Diversified REITs industry. MRL has an excellent profitability rating, but 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.
- In the past year MRL had a positive cash flow from operations.
- Of the past 5 years MRL 4 years were profitable.
- MRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MRL has a better Return On Assets (4.96%) than 85.37% of its industry peers.
- The Return On Equity of MRL (8.42%) is better than 80.49% of its industry peers.
- With an excellent Return On Invested Capital value of 4.66%, MRL belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MRL is in line with the industry average of 3.37%.
- The 3 year average ROIC (1.58%) for MRL is below the current ROIC(4.66%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 129.18%, MRL belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
- MRL's Profit Margin has declined in the last couple of years.
- MRL has a better Operating Margin (150.20%) than 100.00% 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 | 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
- MRL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for MRL has been increased compared to 1 year ago.
- Compared to 5 years ago, MRL has more shares outstanding
- Compared to 1 year ago, MRL has an improved debt to assets ratio.
2.2 Solvency
- MRL has an Altman-Z score of 1.40. This is a bad value and indicates that MRL is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.40, MRL belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
- 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 comparable to the rest of the industry.
- A Debt/Equity ratio of 0.55 indicates that MRL is somewhat dependend on debt financing.
- MRL has a better Debt to Equity ratio (0.55) than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 14.59 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.84
WACC5.53%
2.3 Liquidity
- A Current Ratio of 3.53 indicates that MRL has no problem at all paying its short term obligations.
- MRL has a Current ratio of 3.53. This is amongst the best in the industry. MRL outperforms 100.00% of its industry peers.
- A Quick Ratio of 3.33 indicates that MRL has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.33, MRL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 3.33 |
3. Growth
3.1 Past
- MRL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.92%.
- 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
- MRL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.09% yearly.
- Based on estimates for the next years, MRL will show a quite strong growth in Revenue. The Revenue will grow by 15.47% on average per year.
EPS Next Y-0.58%
EPS Next 2Y1.24%
EPS Next 3Y3.67%
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 22.32, 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 28.87. MRL is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 21.78, the valuation of MRL can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MRL indicates a slightly more expensive valuation: MRL is more expensive than 78.05% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. MRL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 21.78 |
4.2 Price Multiples
- MRL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MRL is cheaper than 82.93% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MRL is valued a bit more expensive than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.17 | ||
| EV/EBITDA | 13.66 |
4.3 Compensation for Growth
- The decent profitability rating of MRL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.24%
EPS Next 3Y3.67%
5. Dividend
5.1 Amount
- MRL has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.41, MRL's dividend is way lower than its industry peers. On top of this 85.37% of the companies listed in the same industry pay a better dividend than MRL!
- Compared to the average S&P500 Dividend Yield of 1.82, MRL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- On average, the dividend of MRL grows each year by 8.36%, which is quite nice.
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.
- MRL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP16.88%
EPS Next 2Y1.24%
EPS Next 3Y3.67%
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 -0.58% in the next year.