MERLIN PROPERTIES SOCIMI SA (MRL.LS) Stock Fundamental Analysis
ELI:MRL - Euronext Lisbon - ES0105025003 - REIT - Currency: EUR
We assign a fundamental rating of 4 out of 10 to MRL. MRL was compared to 40 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. MRL is quite expensive at the moment. It does show a decent growth rate.
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.
MRL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MRL had a positive operating cash flow.
1.2 Ratios
MRL has a Return On Assets of 2.11%. This is comparable to the rest of the industry: MRL outperforms 45.00% of its industry peers.
With a Return On Equity value of 3.78%, MRL perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
MRL has a Return On Invested Capital of 2.32%. This is amonst the worse of the industry: MRL underperforms 82.50% of its industry peers.
MRL had an Average Return On Invested Capital over the past 3 years of 2.33%. This is in line with the industry average of 3.66%.
| 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
MRL's Profit Margin of 57.37% is fine compared to the rest of the industry. MRL outperforms 62.50% of its industry peers.
MRL's Profit Margin has declined in the last couple of years.
MRL's Operating Margin of 75.09% is in line compared to the rest of the industry. MRL outperforms 60.00% 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 | 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.
MRL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MRL has been increased compared to 5 years ago.
MRL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that MRL is in the distress zone and has some risk of bankruptcy.
MRL has a Altman-Z score of 1.11. This is in the better half of the industry: MRL outperforms 65.00% 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 has a Debt to FCF ratio (16.58) which is in line with its industry peers.
A Debt/Equity ratio of 0.57 indicates that MRL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, MRL is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 16.58 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.44
WACC5.32%
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.
MRL has a Current ratio of 2.02. This is amongst the best in the industry. MRL outperforms 90.00% 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 better Quick ratio (1.96) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
MRL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.56%.
MRL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.43% yearly.
Looking at the last year, MRL shows a small growth in Revenue. The Revenue has grown by 7.06% in the last year.
MRL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.80% yearly.
EPS 1Y (TTM)-6.56%
EPS 3Y-19.91%
EPS 5Y-14.43%
EPS Q2Q%7.14%
Revenue 1Y (TTM)7.06%
Revenue growth 3Y1.84%
Revenue growth 5Y-0.8%
Sales Q2Q%11.08%
3.2 Future
The Earnings Per Share is expected to grow by 4.44% on average over the next years.
MRL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.60% yearly.
EPS Next Y-1.63%
EPS Next 2Y0.82%
EPS Next 3Y4.35%
EPS Next 5Y4.44%
Revenue Next Year9.25%
Revenue Next 2Y9.21%
Revenue Next 3Y10.7%
Revenue Next 5Y10.6%
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
MRL is valuated rather expensively with a Price/Earnings ratio of 19.16.
Based on the Price/Earnings ratio, MRL is valued a bit more expensive than 65.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of MRL to the average of the S&P500 Index (26.35), we can say MRL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 19.18, MRL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MRL is valued a bit more expensive than 77.50% of the companies in the same industry.
MRL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRL is valued a bit more expensive than 72.50% 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 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.71 | ||
| EV/EBITDA | 25.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.82%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
MRL has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.52, MRL is paying slightly less dividend.
MRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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
MRL pays out 37.06% of its income as dividend. This is a sustainable payout ratio.
DP37.06%
EPS Next 2Y0.82%
EPS Next 3Y4.35%
ELI:MRL (6/18/2025, 7:00:00 PM)
10.92
+0.07 (+0.65%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners33.83%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap6.16B
Analysts84.62
Price Target13.16 (20.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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)1
Avg EPS beat(2)3.36%
Min EPS beat(2)-15.13%
Max EPS beat(2)21.86%
EPS beat(4)1
Avg EPS beat(4)-0.46%
Min EPS beat(4)-15.13%
Max EPS beat(4)21.86%
EPS beat(8)2
Avg EPS beat(8)0.86%
EPS beat(12)6
Avg EPS beat(12)70.22%
EPS beat(16)8
Avg EPS beat(16)74.9%
Revenue beat(2)1
Avg Revenue beat(2)-4.18%
Min Revenue beat(2)-12.21%
Max Revenue beat(2)3.84%
Revenue beat(4)3
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-12.21%
Max Revenue beat(4)3.84%
Revenue beat(8)6
Avg Revenue beat(8)-0.96%
Revenue beat(12)7
Avg Revenue beat(12)-1.68%
Revenue beat(16)8
Avg Revenue beat(16)-3.88%
PT rev (1m)-4.85%
PT rev (3m)-4.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.4%
Revenue NQ rev (1m)-6.47%
Revenue NQ rev (3m)-6.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 19.18 | ||
| P/S | 12.45 | ||
| P/FCF | 20.71 | ||
| P/OCF | 19.43 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 25.31 |
EPS(TTM)0.57
EY5.22%
EPS(NY)0.57
Fwd EY5.21%
FCF(TTM)0.53
FCFY4.83%
OCF(TTM)0.56
OCFY5.15%
SpS0.88
BVpS13.31
TBVpS13.3
PEG (NY)N/A
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 | 1.11 |
F-Score6
WACC5.32%
ROIC/WACC0.44
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)-6.56%
EPS 3Y-19.91%
EPS 5Y-14.43%
EPS Q2Q%7.14%
EPS Next Y-1.63%
EPS Next 2Y0.82%
EPS Next 3Y4.35%
EPS Next 5Y4.44%
Revenue 1Y (TTM)7.06%
Revenue growth 3Y1.84%
Revenue growth 5Y-0.8%
Sales Q2Q%11.08%
Revenue Next Year9.25%
Revenue Next 2Y9.21%
Revenue Next 3Y10.7%
Revenue Next 5Y10.6%
EBIT growth 1Y5.44%
EBIT growth 3Y0.81%
EBIT growth 5Y-0.4%
EBIT Next Year12%
EBIT Next 3Y11.15%
EBIT Next 5Y10.33%
FCF growth 1Y31.57%
FCF growth 3Y9.44%
FCF growth 5Y0.85%
OCF growth 1Y38.96%
OCF growth 3Y11.19%
OCF growth 5Y1.44%