MERLIN Properties SOCIMI SA (MRL) AI Stock Analysis

• Market Cap: €7.46B
• Dividend Yield: 2.81%
• Average Volume (3M): 807.75K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.86
• Revenue Growth: 7.19%
• EPS Growth: 470.92%
• Country: ES
• Employees: 282
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Diversified
• EPS (TTM): 0.14
• Shares Outstanding: 563,724,900
• 10 Day Avg. Volume: 819,728
• 30 Day Avg. Volume: 807,746
• PEG Ratio: -0.04
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 10.30
• P/FCF Ratio: 17.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €13.66
• Price Target Upside: 5.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: €13.00 ▲(0.62% Upside)

MERLIN Properties SOCIMI SA's strong financial recovery and robust technical momentum are the most significant contributors to the stock score. The company's valuation and the earnings call analysis suggest a balanced outlook with growth potential tempered by some risks. Despite valuation concerns, the dividend yield provides some appeal to investors.

MERLIN Properties SOCIMI SA Business Overview & Revenue Model

Company Description

MERLIN Properties SOCIMI, SA, one of the main real estate companies listed on the Spanish Stock Exchange (IBEX-35), has as its main activity the acquisition and management of tertiary real estate assets in the Iberian Peninsula. The Company is a public limited company incorporated as a SOCIMI. The main activity of the Company is the acquisition, active management, operation and selective rotation of quality commercial real estate assets in the investment segment Core and Core Plus, mainly in Spain and, to a lesser extent, in Portugal. The Company focuses on the office, retail and logistics market.

How the Company Makes Money

MERLIN Properties generates revenue primarily through the leasing of its real estate assets. The company earns rental income from tenants occupying its office buildings, retail spaces, and logistics properties. In addition to rental income, MERLIN Properties may also engage in the sale of assets within its portfolio to realize capital gains. The company's earnings are further supported by its strategic partnerships and joint ventures, which enable it to expand its asset base and enhance its market presence. MERLIN Properties' focus on high-quality, well-located assets allows it to maintain stable occupancy rates and achieve competitive rental yields, contributing significantly to its overall revenue.

MERLIN Properties SOCIMI SA Financial Statement Overview

Summary

MERLIN Properties SOCIMI SA exhibits a strong financial recovery with improved profitability and robust balance sheet metrics. While cash flow metrics show positive trends, there's potential for enhancing cash conversion. The company is on a solid financial footing with opportunities for further strengthening its cash flow management.

Income Statement

The company shows a strong recovery in profitability with a significant increase in Net Income from a loss in the previous year to a substantial profit, reflecting improved operational performance. Revenue growth is moderate, but the EBIT and EBITDA margins are healthy, indicating efficient cost management.

Balance Sheet

The balance sheet is robust with a healthy equity base as evidenced by a strong equity ratio. The debt-to-equity ratio is reasonable, suggesting a well-managed leverage position. Return on Equity has improved significantly due to increased net income, signaling strong shareholder returns.

Cash Flow

Free Cash Flow has shown growth, indicating improved operational efficiency. The Operating Cash Flow to Net Income ratio is strong, but the Free Cash Flow to Net Income ratio could be better, suggesting room for improvement in cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	519.81M	503.02M	464.78M	439.04M	382.83M	446.13M
Gross Profit	426.95M	508.64M	420.96M	389.94M	336.51M	400.68M
EBITDA	414.55M	430.52M	36.60M	153.42M	518.04M	193.29M
Net Income	303.18M	283.76M	-83.50M	263.09M	512.22M	56.36M
Balance Sheet
Total Assets	13.60B	13.46B	12.07B	12.05B	14.27B	13.48B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.56B	461.22M	427.45M	942.87M	259.62M
Total Debt	5.23B	4.92B	4.52B	4.25B	6.19B	5.68B
Total Liabilities	6.01B	5.96B	5.53B	5.20B	7.25B	6.78B
Stockholders Equity	7.59B	7.50B	6.54B	6.85B	7.03B	6.70B
Cash Flow
Free Cash Flow	62.82M	297.30M	225.96M	220.44M	158.79M	132.09M
Operating Cash Flow	62.82M	316.78M	227.97M	222.16M	162.46M	134.66M
Investing Cash Flow	-57.69M	-294.38M	-274.75M	1.18B	-454.00K	-229.87M
Financing Cash Flow	126.92M	1.07B	78.56M	-1.70B	335.39M	93.21M

MERLIN Properties SOCIMI SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:MRL, the sentiment is Positive. The current price of 12.92 is above the 20-day moving average (MA) of 11.88, above the 50-day MA of 11.32, and above the 200-day MA of 10.33, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 84.27 is Negative, neither overbought nor oversold. The STOCH value of 93.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:MRL.

MERLIN Properties SOCIMI SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISUR	80 Outperform	€251.02M	12.19	10.13%	4.07%	18.54%	82.83%
COL	74 Outperform	€3.67B	7.64	8.84%	5.06%	-16.98%	―
MRL	72 Outperform	€7.46B	11.24	9.06%	2.81%	7.19%	470.92%
HOME	70 Outperform	€1.61B	24.09	5.74%	17.13%	-19.93%	-42.19%
RLIA	70 Outperform	€1.39B	20.58	3.13%	5.33%	-12.40%	47.21%
Sector *	53 Neutral	$1.19B	3.17	-2.22%	6.01%	-2.18%	-157.54%
ARM	47 Neutral	€197.27M	―	-11.03%	―	20.94%	4.76%

MERLIN Properties SOCIMI SA Corporate Events

MERLIN Properties Mourns the Loss of Board Member Emilio Novela Berlín

MERLIN Properties SOCIMI, S.A. announced the passing of board member Mr. Emilio Novela Berlín, highlighting his exceptional contributions and irreplaceable human values. The board expressed deep condolences to his family, acknowledging the significant impact of his loss on the company.

The most recent analyst rating on (ES:MRL) stock is a Buy with a EUR12.50 price target. To see the full list of analyst forecasts on MERLIN Properties SOCIMI SA stock, see the ES:MRL Stock Forecast page.

MERLIN Properties Reports Strong Q1 2025 Performance with Increased Rents and High Occupancy

MERLIN Properties reported a robust first quarter in 2025, with a 6.7% increase in gross rents to €132.5 million and an EBITDA of €102.0 million, marking an 8.9% rise compared to the previous year. The company maintained high occupancy levels at 96.7% and announced a final dividend of 22 cents per share for the 2024 financial year. The logistics portfolio showed strong performance with near-full occupancy and increased rents, while the office segment experienced a slight negative release spread due to a contract renewal in Madrid.

The most recent analyst rating on (ES:MRL) stock is a Buy with a EUR12.50 price target. To see the full list of analyst forecasts on MERLIN Properties SOCIMI SA stock, see the ES:MRL Stock Forecast page.