MERCIALYS (MERY) AI Stock Analysis

• Market Cap: €1.00B
• Dividend Yield: 9.31%
• Average Volume (3M): 155.41K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 0.43
• Revenue Growth: -1.19%
• EPS Growth: -46.75%
• Country: FR
• Employees: 174
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.66
• Shares Outstanding: 93,886,500
• 10 Day Avg. Volume: 166,244
• 30 Day Avg. Volume: 155,409
• PEG Ratio: 10.02
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 4.27
• P/FCF Ratio: 5.85
• 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: €11.60
• Price Target Upside: 8.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: €12.00 ▲(11.73% Upside)

MERCIALYS demonstrates strong financial performance with solid revenue and profit growth, supported by a healthy balance sheet and strong cash flows. However, technical indicators suggest a short-term bearish trend, and the high P/E ratio indicates the stock may be overvalued. The attractive dividend yield provides a positive offset, appealing to income-focused investors.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	218.34M	221.16M	178.01M	176.89M	205.35M	175.44M
Gross Profit	152.00M	172.31M	170.92M	165.93M	160.04M	150.39M
EBITDA	146.77M	130.13M	147.76M	141.56M	149.74M	178.58M
Net Income	31.44M	53.76M	53.37M	43.09M	62.18M	85.83M
Balance Sheet
Total Assets	2.46B	2.16B	2.15B	2.29B	2.43B	2.72B
Cash, Cash Equivalents and Short-Term Investments	442.11M	283.65M	118.16M	216.09M	257.18M	464.61M
Total Debt	1.71B	15.20M	1.20B	1.27B	1.40B	1.67B
Total Liabilities	1.82B	1.40B	1.28B	1.36B	1.49B	1.83B
Stockholders Equity	575.42M	631.07M	677.22M	725.13M	743.12M	692.92M
Cash Flow
Free Cash Flow	124.39M	161.53M	134.27M	147.68M	127.48M	73.29M
Operating Cash Flow	128.81M	161.53M	134.27M	150.12M	135.74M	134.88M
Investing Cash Flow	5.68M	102.22M	-21.74M	59.00M	14.72M	126.76M
Financing Cash Flow	234.12M	-98.26M	-210.37M	-250.20M	-358.00M	130.95M

MERCIALYS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MERY, the sentiment is Negative. The current price of 10.74 is below the 20-day moving average (MA) of 10.83, below the 50-day MA of 10.91, and above the 200-day MA of 10.58, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:MERY.

MERCIALYS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARM	―	€2.40B	6.82	―	7.41%	16.69%	574.43%
LI	―	€9.46B	8.13	14.13%	5.07%	6.74%	74.00%
PAT	―	€393.67M	10.24	―	5.49%	15.61%	17.82%
COVH	―	€3.74B	17.23	6.03%	6.52%	21.24%	241.67%
MERY	―	€1.00B	31.83	5.24%	9.31%	-1.19%	-46.75%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FREY	―	€921.30M	145.47	0.61%	6.60%	8.81%	-78.28%