Mears Group Plc (MER) AI Stock Analysis

• Market Cap: £304.71M
• Dividend Yield: 3.08%
• Average Volume (3M): 193.52K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.63
• Revenue Growth: -2.79%
• EPS Growth: 37.33%
• Country: UK
• Employees: 5,500
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Personal Products & Services
• EPS (TTM): 0.28
• Shares Outstanding: 86,474,625
• 10 Day Avg. Volume: 346,311
• 30 Day Avg. Volume: 193,523
• 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: £470.50
• Price Target Upside: 28.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: 431.00p ▲(18.08% Upside)

Mears Group Plc's overall stock score is driven by strong financial performance and attractive valuation. The company's solid cash flow and profitability are offset by high leverage, which poses a risk. Positive corporate events and strategic progress enhance the outlook, while technical indicators suggest caution in the short term.

Mears Group Plc Business Overview & Revenue Model

Company Description

Mears Group Plc (MER) is a leading provider of support services in the UK, operating primarily in the housing and care sectors. The company specializes in delivering integrated services such as housing maintenance, repair services, and care solutions for vulnerable individuals. Mears focuses on providing high-quality services to local authorities, housing associations, and private sector clients, ensuring the maintenance and improvement of residential properties while enhancing the quality of life for its service users.

How the Company Makes Money

Mears Group generates revenue through multiple streams, primarily by providing maintenance and repair services to social housing and local authorities, which includes planned and responsive repairs, as well as the management of housing stock. Additionally, the company earns income from its care services, which cater to elderly and vulnerable individuals, often funded through local authority contracts and direct payments. Mears also engages in partnerships with local governments and housing associations, allowing for long-term contracts that ensure a steady cash flow. The company’s commitment to quality service delivery and efficiency helps to secure repeat business and maintain its competitive edge in the market.

Mears Group Plc Financial Statement Overview

Summary

Mears Group Plc demonstrates solid growth and profitability in its income statement, supported by strong cash generation. However, the high leverage indicated in the balance sheet poses a potential risk. Overall, the company is performing well but needs to address its debt levels to enhance financial stability.

Income Statement

The company has shown consistent revenue growth, with a strong revenue increase of 4% from 2023 to 2024. The gross profit margin improved to 22.16% in 2024, indicating efficient cost management. The net profit margin also increased to 4.11%, reflecting enhanced profitability. However, the EBIT margin of 6.43% and EBITDA margin of 13.08% suggest there is room for further operational improvement.

Balance Sheet

The debt-to-equity ratio remains elevated at 1.62, indicating high leverage, which could pose a risk if not managed carefully. Conversely, the equity ratio stands at a stable 26.25%, and the return on equity improved to 25.27% in 2024, suggesting effective use of shareholder capital.

Cash Flow

Operating cash flow to net income ratio is robust at 2.57, highlighting strong cash generation relative to profits. The free cash flow to net income ratio is also strong at 1.93, indicating efficient cash management. However, free cash flow decreased by 18.49% from 2023 to 2024, suggesting a need to monitor capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.09B	959.61M	878.42M	805.82M
Gross Profit	251.01M	218.77M	195.69M	180.49M	156.29M
EBITDA	148.15M	117.70M	96.19M	82.65M	52.95M
Net Income	46.53M	35.20M	28.31M	14.12M	-12.01M
Balance Sheet
Total Assets	701.35M	700.01M	630.87M	633.92M	676.09M
Cash, Cash Equivalents and Short-Term Investments	91.40M	145.85M	100.10M	54.63M	96.22M
Total Debt	297.50M	291.14M	225.42M	216.89M	248.42M
Total Liabilities	513.88M	499.55M	417.04M	432.88M	520.04M
Stockholders Equity	184.11M	197.51M	212.33M	200.24M	155.39M
Cash Flow
Free Cash Flow	89.76M	110.05M	101.52M	47.90M	99.01M
Operating Cash Flow	119.58M	135.89M	110.93M	56.67M	105.79M
Investing Cash Flow	-7.59M	-29.82M	-5.91M	-6.20M	52.56M
Financing Cash Flow	-133.88M	-95.08M	-61.52M	-92.06M	-135.19M

Mears Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 365.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MER, the sentiment is Negative. The current price of 365 is below the 20-day moving average (MA) of 384.17, below the 50-day MA of 386.50, and below the 200-day MA of 369.61, indicating a bearish trend. The MACD of -4.70 indicates Positive momentum. The RSI at 29.34 is Positive, neither overbought nor oversold. The STOCH value of 5.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MER.

Mears Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MER	74 Outperform	£304.71M	6.33	25.63%	3.08%	-2.79%	37.33%
GLE	68 Neutral	£205.48M	12.42	5.65%	2.33%	13.91%	-2.75%
ABDP	64 Neutral	£328.25M	30.87	8.09%	0.57%	12.52%	-22.03%
Sector *	63 Neutral	£1.73B	10.39	4.37%	3.51%	0.67%	-36.99%
DOCS	56 Neutral	£721.48M	158.94	1.23%	2.46%	-10.20%	-93.32%
MUL	50 Neutral	£70.16M	―	-410.43%	―	-21.23%	16.09%
CRST	50 Neutral	£459.56M	―	-9.56%	1.23%	-3.50%	-176.18%

Mears Group Plc Corporate Events

Mears Group CFO Increases Stake in Company Shares

Mears Group PLC announced that its Chief Financial Officer, Andrew Smith, has purchased 6,500 ordinary shares of the company at an average price of 382.45 pence per share. This transaction increases Mr. Smith’s total shareholding to 500,039 shares, representing approximately 0.58% of the company’s voting share capital. This move could be interpreted as a sign of confidence in the company’s future prospects by a key executive, potentially impacting stakeholder perceptions and market positioning.

The most recent analyst rating on (GB:MER) stock is a Buy with a £4.80 price target. To see the full list of analyst forecasts on Mears Group Plc stock, see the GB:MER Stock Forecast page.

Mears Group Reports Strong Interim Results and Strategic Progress

Mears Group PLC reported strong financial and operational performance for the first half of 2025, with a 5% increase in profit before tax despite a 4% decline in revenue. The company achieved an 8% growth in Maintenance-led activities and maintained a 100% contract retention rate, securing new orders worth approximately £1.5 billion. Mears’ strategic focus on compliance and asset management, along with investments in technology and key account management, positions the company well for future growth. The Board expects adjusted profit before tax for the full year to exceed market expectations, reflecting confidence in the company’s growth momentum.

The most recent analyst rating on (GB:MER) stock is a Buy with a £4.80 price target. To see the full list of analyst forecasts on Mears Group Plc stock, see the GB:MER Stock Forecast page.

Mears Group Announces Key Appointment in TheWorks.co.uk plc

Mears Group PLC announced the appointment of Nick Wharton as a Non-Executive Director and Chair Designate of the Audit Committee at TheWorks.co.uk plc. This strategic move, pending shareholder approval, is expected to enhance the governance and oversight capabilities of TheWorks.co.uk plc, potentially impacting its operational effectiveness and stakeholder confidence.

The most recent analyst rating on (GB:MER) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Mears Group Plc stock, see the GB:MER Stock Forecast page.

Mears Group Reports Strong First Half Trading in 2025

Mears Group PLC has reported strong trading performance in the first half of 2025, with profit before tax expected to be modestly ahead of the previous year. The company has seen solid growth in its maintenance-led activities, supported by regulatory market drivers and 100% contract retention. Operating margins have strengthened, and the company anticipates full-year results to exceed current market expectations, with revenues and adjusted profit before tax projected at no less than £1,055m and £54m, respectively. This positive momentum reflects Mears’ strategic focus on expanding maintenance activities, compliance, and asset management, as well as delivering additional housing services to the Central Government.

The most recent analyst rating on (GB:MER) stock is a Buy with a £4.35 price target. To see the full list of analyst forecasts on Mears Group Plc stock, see the GB:MER Stock Forecast page.

Mears Group Plc Announces Block Listing of Ordinary Shares

Mears Group Plc has applied for the listing of 105,290 ordinary shares on the London Stock Exchange, under an extension to an existing block listing. These shares, resulting from the exercise of share options, are expected to be admitted on 23 June 2025, and will rank equally with existing shares. This move reflects Mears’ ongoing efforts to enhance its financial structure and support its strategic objectives in the housing sector.

The most recent analyst rating on (GB:MER) stock is a Buy with a £4.35 price target. To see the full list of analyst forecasts on Mears Group Plc stock, see the GB:MER Stock Forecast page.

Mears Group PLC AGM Results: All Resolutions Passed

Mears Group PLC successfully held its Annual General Meeting, where all proposed resolutions were passed. Key outcomes included the approval of the audited accounts for 2024, reappointment of PricewaterhouseCoopers as auditors, and the declaration of a final dividend. The re-election of directors and authorizations for share allotment and market purchases were also confirmed, reflecting strong shareholder support and positioning the company for continued stability and growth.

The most recent analyst rating on (GB:MER) stock is a Buy with a £4.80 price target. To see the full list of analyst forecasts on Mears Group Plc stock, see the GB:MER Stock Forecast page.

Mears Group PLC Announces Total Voting Rights

Mears Group PLC announced its total voting rights, stating that the company’s issued share capital consists of 86,474,628 ordinary shares, each with one voting right. This information is crucial for shareholders to determine their interest in the company’s share capital under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:MER) stock is a Buy with a £4.35 price target. To see the full list of analyst forecasts on Mears Group Plc stock, see the GB:MER Stock Forecast page.