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 44 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MRL had positive earnings in the past year.
In the past year MRL had a positive cash flow from operations.
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
With a Return On Assets value of 2.11%, MRL perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
MRL's Return On Equity of 3.78% is in line compared to the rest of the industry. MRL outperforms 50.00% of its industry peers.
MRL has a Return On Invested Capital of 2.32%. This is in the lower half of the industry: MRL underperforms 77.27% 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 3.64%.
| 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 65.91% of the companies in the same industry.
In the last couple of years the Profit Margin of MRL has declined.
With a decent Operating Margin value of 75.09%, MRL is doing good in the industry, outperforming 63.64% 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 | 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.
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 1.11. This is a bad value and indicates that MRL is not financially healthy and even has some risk of bankruptcy.
MRL's Altman-Z score of 1.11 is fine compared to the rest of the industry. MRL outperforms 68.18% of its industry peers.
The Debt to FCF ratio of MRL is 16.58, which is on the high side as it means it would take MRL, 16.58 years of fcf income to pay off all of its debts.
MRL has a Debt to FCF ratio of 16.58. This is comparable to the rest of the industry: MRL outperforms 47.73% 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.
With a decent Debt to Equity ratio value of 0.57, MRL is doing good in the industry, outperforming 72.73% 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.
The Current ratio of MRL (2.02) is better than 90.91% of its industry peers.
MRL has a Quick Ratio of 1.96. This is a normal value and indicates that MRL is financially healthy and should not expect problems in meeting its short term obligations.
MRL's Quick ratio of 1.96 is amongst the best of the industry. MRL outperforms 90.91% 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 for MRL have decreased by -6.56% 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 -14.43% 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 5.23% 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 10.17% yearly.
EPS Next Y-1.63%
EPS Next 2Y0.82%
EPS Next 3Y4.35%
EPS Next 5Y5.23%
Revenue Next Year9.25%
Revenue Next 2Y9.21%
Revenue Next 3Y10.7%
Revenue Next 5Y10.17%
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
With a Price/Earnings ratio of 19.26, MRL is valued on the expensive side.
Based on the Price/Earnings ratio, MRL is valued a bit more expensive than 61.36% of the companies in the same industry.
MRL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.35.
With a Price/Forward Earnings ratio of 19.29, MRL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MRL is valued a bit more expensive than 75.00% 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 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 19.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRL indicates a slightly more expensive valuation: MRL is more expensive than 68.18% of the companies listed 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 65.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.82 | ||
| EV/EBITDA | 25.4 |
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
With a Yearly Dividend Yield of 3.76%, MRL has a reasonable but not impressive dividend return.
MRL's Dividend Yield is slightly below the industry average, which is at 6.80.
Compared to an average S&P500 Dividend Yield of 2.40, MRL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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 (5/27/2025, 7:00:00 PM)
10.98
+0.45 (+4.27%)
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 Cap6.19B
Analysts84.8
Price Target13.83 (25.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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)0%
PT rev (3m)0%
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)-6.07%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 19.29 | ||
| P/S | 12.52 | ||
| P/FCF | 20.82 | ||
| P/OCF | 19.54 | ||
| P/B | 0.83 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 25.4 |
EPS(TTM)0.57
EY5.19%
EPS(NY)0.57
Fwd EY5.18%
FCF(TTM)0.53
FCFY4.8%
OCF(TTM)0.56
OCFY5.12%
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 5Y5.23%
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 5Y10.17%
EBIT growth 1Y5.44%
EBIT growth 3Y0.81%
EBIT growth 5Y-0.4%
EBIT Next Year12%
EBIT Next 3Y11.15%
EBIT Next 5Y10.14%
FCF growth 1Y31.57%
FCF growth 3Y9.44%
FCF growth 5Y0.85%
OCF growth 1Y38.96%
OCF growth 3Y11.19%
OCF growth 5Y1.44%