MERCIALYS (MERY) AI Stock Analysis

• Market Cap: €1.06B
• Dividend Yield: 8.77%
• Average Volume (3M): 167.63K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.41
• Revenue Growth: -1.19%
• EPS Growth: -46.75%
• Country: FR
• Employees: 174
• Sector: Real Estate
• Sector Strength: 45
• Industry: REIT - Retail
• EPS (TTM): 0.66
• Shares Outstanding: 93,886,500
• 10 Day Avg. Volume: 143,423
• 30 Day Avg. Volume: 167,628
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €12.70
• Price Target Upside: 11.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: €12.50 ▲(9.65% Upside)

MERCIALYS demonstrates strong financial performance with consistent revenue and profit growth, supported by a healthy balance sheet and strong cash flows. The technical analysis indicates a positive trend, although the valuation suggests the stock may be overvalued. The high dividend yield provides an attractive income component, balancing the high P/E ratio.

MERCIALYS Business Overview & Revenue Model

Company Description

Mercialys is one of France's leading real estate companies, focused exclusively on shopping centers and high-street retail assets. At June 30, 2020, Mercialys had a portfolio of 2,111 leases, representing a rental value of Euro 182.3 million on an annualized basis. At June 30, 2020, it owned properties with an estimated value of Euro 3.5 billion (including transfer taxes). Mercialys has had SIIC real estate investment trust (REIT) tax status since November 1, 2005 and has been listed on Euronext Paris Compartment A (ticker: MERY) since its initial public offering on October 12, 2005. At June 30, 2020, there were 92,049,169 shares outstanding.

How the Company Makes Money

MERCIALYS generates revenue primarily through leasing retail spaces to tenants within its shopping centers and properties. The company benefits from long-term lease agreements, which provide stable rental income. Additional revenue streams include service charges related to property management, marketing income from promotional events, and revenue from ancillary services such as parking and advertising. MERCIALYS also engages in strategic partnerships with retailers and local businesses to enhance its offerings, which can lead to increased foot traffic and sales for its tenants, indirectly boosting its rental income. Factors contributing to its earnings include the location and attractiveness of its properties, the diversity of its tenant mix, and its ability to adapt to changing retail trends.

MERCIALYS Financial Statement Overview

Summary

MERCIALYS presents a robust financial profile with consistent revenue and profit growth. The balance sheet is healthy, underscoring financial stability and low leverage. Cash flows are strong, supporting the company's operational and growth strategies. Potential areas for improvement include stabilizing EBITDA margins and maintaining consistent cash flow performance.

Income Statement

MERCIALYS shows consistent revenue growth with a notable increase from 2023 to 2024. Gross and net profit margins are strong, indicating profitable operations. However, the slight decline in EBITDA margin in 2024 compared to 2023 could warrant attention.

Balance Sheet

The company's balance sheet reflects a solid equity position with a low debt-to-equity ratio, signaling financial stability. The equity ratio is strong, supporting asset-backed growth. Improvement in net debt position over the years enhances the balance sheet strength.

Cash Flow

Operating cash flow has shown growth, indicating efficient cash generation from core activities. The positive free cash flow trend and its favorable ratio to net income reflect strong liquidity, although fluctuations in investing and financing cash flows should be monitored.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	221.16M	178.01M	211.16M	210.71M	214.00M
Gross Profit	172.31M	170.92M	165.93M	160.04M	147.36M
EBITDA	130.13M	144.83M	149.78M	149.74M	153.49M
Net Income	53.76M	53.37M	43.09M	62.18M	85.83M
Balance Sheet
Total Assets	2.16B	2.15B	2.29B	2.43B	2.72B
Cash, Cash Equivalents and Short-Term Investments	283.65M	118.16M	216.09M	257.18M	464.61M
Total Debt	15.20M	1.20B	1.27B	1.40B	1.67B
Total Liabilities	1.40B	1.28B	1.36B	1.49B	1.83B
Stockholders Equity	631.07M	677.22M	725.13M	743.12M	692.92M
Cash Flow
Free Cash Flow	161.53M	134.27M	147.68M	127.48M	73.29M
Operating Cash Flow	161.53M	134.27M	150.12M	135.74M	134.88M
Investing Cash Flow	102.22M	-21.74M	59.00M	14.72M	126.76M
Financing Cash Flow	-98.26M	-210.37M	-250.20M	-358.00M	130.95M

MERCIALYS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MERY, the sentiment is Positive. The current price of 11.4 is above the 20-day moving average (MA) of 11.20, above the 50-day MA of 10.95, and above the 200-day MA of 10.19, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 56.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:MERY.

MERCIALYS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MERY	72 Outperform	€1.06B	33.79	5.24%	8.77%	-1.19%	-46.75%
Sector *	63 Neutral	$6.87B	13.26	-1.02%	7.28%	3.62%	-23.52%
0IS8	―	€3.71B	17.08	6.03%	―	―	―
0F4I	―	€9.80B	8.40	14.13%	―	―	―
CARM	77 Outperform	€2.51B	7.15		7.01%	16.69%	574.43%
943	―	€947.07M	144.46	0.61%	―	―	―
PAT	72 Outperform	€379.44M	9.87		5.62%	15.61%	17.82%