Mears Group Plc (GB:MER)
LSE:MER
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Mears Group Plc
(LSE:MER)
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Rating:65Neutral
Price Target:
431.00 p
▲(14.32% Upside)
Action:Downgraded
Date:03/28/26
The score is driven primarily by decent but not conservative financials (improving profitability, but thin margins, higher leverage, and weaker 2025 free cash flow) and an attractive valuation (low P/E and strong yield), partly offset by currently weak technical momentum with the stock trading below key moving averages and a negative MACD.
Positive Factors
Profitability improvement
The multi-year shift from operating losses to sustained positive operating earnings reflects structural operational improvements and better cost management. Durable operating profitability provides a repeatable earnings base to support contract delivery, reinvestment in capabilities, and longer-term planning across multi-year public-sector contracts.
Negative Factors
Thin net margins
Net margins near 4% provide limited buffer against rising input costs, wage inflation, or contract price pressure. Low margin structure makes profitability sensitive to small cost or volume shocks, constraining the company's ability to absorb contract overruns or to finance additional investments without squeezing returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability improvement
The multi-year shift from operating losses to sustained positive operating earnings reflects structural operational improvements and better cost management. Durable operating profitability provides a repeatable earnings base to support contract delivery, reinvestment in capabilities, and longer-term planning across multi-year public-sector contracts.
Read all positive factors
Mears Group Plc (MER) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£329.44M
Dividend Yield4.65%
Average Volume (3M)162.47K
Price to Earnings (P/E)3.3
Beta (1Y)0.34
Revenue Growth0.26%
EPS Growth10.37%
CountryUK
Employees5,500
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.56
Shares Outstanding85,250,420
10 Day Avg. Volume185,388
30 Day Avg. Volume162,471
Financial Highlights & Ratios
PEG Ratio1.14
Price to Book (P/B)1.47
Price to Sales (P/S)0.26
P/FCF Ratio5.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£565.00Price Target Upside49.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.45
Revenue Forecast (FY)£1.04B
Mears Group Plc Business Overview & Revenue Model
Company Description
Mears Group plc, through its subsidiaries, provides a range of outsourced services to the public and private sectors in the United Kingdom. It offers rapid-response and planned maintenance services to local authorities; gas and repair services; an...
How the Company Makes Money
Mears makes money primarily through contracted service delivery in the UK housing sector. Its main revenue stream comes from housing maintenance and property services contracts—typically multi-year agreements—under which Mears is paid to deliver d...
Mears Group Plc Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.14B | 1.13B | 1.09B | 959.61M | 878.42M |
| Gross Profit | 263.58M | 251.01M | 218.77M | 195.69M | 180.49M |
| EBITDA | 155.82M | 148.15M | 117.70M | 96.19M | 82.65M |
| Net Income | 46.22M | 46.53M | 35.20M | 28.31M | 14.12M |
Balance Sheet | |||||
| Total Assets | 740.11M | 701.35M | 700.01M | 630.87M | 633.92M |
| Cash, Cash Equivalents and Short-Term Investments | 48.48M | 91.40M | 145.85M | 100.10M | 54.63M |
| Total Debt | 318.72M | 297.50M | 291.14M | 225.42M | 216.89M |
| Total Liabilities | 535.29M | 513.88M | 499.55M | 417.04M | 432.88M |
| Stockholders Equity | 201.75M | 184.11M | 197.51M | 212.33M | 200.24M |
Cash Flow | |||||
| Free Cash Flow | 55.05M | 89.76M | 110.05M | 101.52M | 47.90M |
| Operating Cash Flow | 100.30M | 119.58M | 135.89M | 110.93M | 56.67M |
| Investing Cash Flow | -40.49M | -3.56M | -25.65M | -5.91M | -6.20M |
| Financing Cash Flow | -99.41M | -147.14M | -95.08M | -61.52M | -92.06M |
Mears Group Plc Technical Analysis
Positive
377.00
Price Trends
349.84
Positive
354.92
Positive
352.16
Positive
Market Momentum
6.95
Negative
69.78
Neutral
93.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MER, the sentiment is Positive. The current price of 377 is above the 20-day moving average (MA) of 346.60, above the 50-day MA of 349.84, and above the 200-day MA of 352.16, indicating a bullish trend. The MACD of 6.95 indicates Negative momentum. The RSI at 69.78 is Neutral, neither overbought nor oversold. The STOCH value of 93.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MER.
Mears Group Plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | £329.44M | 3.28 | 23.94% | 4.65% | 0.26% | 10.37% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | £352.96M | 5.52 | -6.79% | 6.30% | 3.31% | -340.97% | |
56 Neutral | £281.92M | 4.43 | 13.23% | ― | 8.82% | 440.57% | |
56 Neutral | £381.58M | 7.77 | 29.52% | 3.83% | 6.33% | 125.67% | |
51 Neutral | £142.34M | 47.38 | 4.67% | 2.38% | 8.34% | -13.44% | |
40 Underperform | £185.87M | -23.59 | 0.30% | 1.79% | -1.20% | ― |
* Consumer Cyclical Sector Average
GB:MER
Mears Group Plc
400.50
26.09
6.97%
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Mears Group Plc Corporate Events
Business Operations and StrategyStock Buyback
Mears Cancels Further Shares as Buyback Tops 1.3 Million
Positive
May 13, 2026
Mears Group PLC has continued executing its previously announced share buyback programme, purchasing a total of 247,496 ordinary shares between 6 and 12 May 2026 at prices around 398p to 405p per share. These shares, bought through Panmure Liberum...
Business Operations and StrategyStock Buyback
Mears Advances Buyback as Over 1 Million Shares Are Cancelled
Positive
May 13, 2026
Mears Group PLC has continued executing its previously announced share buyback programme, repurchasing 536,323 ordinary shares between 29 April and 5 May 2026 at daily weighted average prices around 390p to 397p. All of these shares, acquired thro...
Business Operations and StrategyRegulatory Filings and Compliance
Mears Executives Exercise Share Options and Sell Stock to Cover Tax
Neutral
May 11, 2026
Mears Group PLC, a major U.K. housing services contractor that manages and maintains hundreds of thousands of homes for central and local government clients, has expanded into broader housing solutions for vulnerable residents while prioritising l...
Regulatory Filings and Compliance
Mears Group Sets Official Share Capital and Voting Rights Figure
Neutral
May 1, 2026
Mears Group PLC has confirmed that, as of 1 May 2026, its issued share capital comprises 86,034,240 ordinary shares of 1 penny each, with one voting right attached to each share and no shares held in treasury. This disclosure sets the official den...
Business Operations and StrategyStock Buyback
Mears Cancels Further Shares as Buyback Programme Passes 500,000 Mark
Positive
Apr 29, 2026
Mears Group PLC has continued to execute its previously announced share buyback programme, repurchasing 199,847 ordinary shares between 22 and 28 April 2026 at daily weighted average prices ranging from about 379p to 388p. The purchased shares wil...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mears Group Cancels Further Shares Under April Buyback Programme
Positive
Apr 22, 2026
Mears Group PLC has continued executing its previously announced share buyback programme, repurchasing a total of 186,308 ordinary shares between 15 and 21 April 2026 at prices ranging from roughly 369.5p to 390p. All of the shares bought in this ...
Business Operations and Strategy
Mears Wins £200m Moat Homes Contract to Bolster Growth
Positive
Apr 21, 2026
Mears Group PLC has secured a new long-term contract with housing association Moat Homes, valued at more than £200 million over an initial 10-year term, to deliver responsive and void maintenance and planned works to about 20,000 homes across...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Mears Group Publishes 2025 Annual Report and Sets Date for 2026 AGM
Positive
Apr 17, 2026
Mears Group PLC has published its Annual Financial Report for the year ended 31 December 2025 and the Notice of its 2026 Annual General Meeting, which have been sent to shareholders and made available on the company’s website. The AGM will b...
Executive/Board Changes
Mears Grants Deferred Bonus Share Awards to Top Executives
Positive
Apr 10, 2026
Mears Group PLC has granted new awards under its Deferred Bonus Share Plan to chief executive Lucas Critchley and chief financial officer Andrew Smith, in the form of nominal-cost options over ordinary shares. The options, covering 30,642 shares f...
Business Operations and StrategyStock Buyback
Mears Cancels 115,276 Shares as Buyback Programme Gathers Pace
Positive
Apr 8, 2026
Mears Group Plc has begun executing its recently announced share buyback programme, repurchasing 115,276 ordinary shares between 1 and 7 April 2026 at daily weighted average prices in the low- to mid-330 pence range. The company has mandated Panmu...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mears Group Launches Sixth £20m Share Buyback as Cash Generation Supports Capital Returns
Positive
Apr 1, 2026
Mears Group Plc, a major U.K. housing services provider that manages and maintains hundreds of thousands of homes for central and local government clients, has launched a share buyback of up to £20m. The programme, its sixth, follows several ...
DividendsFinancial Disclosures
Mears Group Lifts Full-Year Dividend by 9% for FY25
Positive
Mar 27, 2026
Mears Group PLC, a leading UK housing services provider, has proposed a final dividend of 11.90p per share for FY25, bringing the total dividend for the year to 17.50p, a 9% increase on the prior year. The payout, which underscores the companyR...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Mears lifts dividend as record order book underpins shift to core housing services
Positive
Mar 26, 2026
Mears Group PLC reported steady full-year 2025 results, with revenue broadly flat at £1.14bn but a shift toward higher-margin maintenance-led work, which now accounts for 55% of sales. Statutory operating profit and margins improved modestly,...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Mears Sells Non-Core Facilities Management Arm to Sharpen Housing Focus
Positive
Mar 3, 2026
Mears Group PLC, a major UK housing services provider, has sold its non-core subsidiary Morrison Facilities Services Limited, which delivers facilities management services mainly to the education and health sectors. The disposal, completed for ...
Regulatory Filings and Compliance
Mears Group Confirms Total Voting Rights at 86.5 Million Shares
Neutral
Mar 2, 2026
Mears Group has confirmed that its issued share capital now comprises 86,504,628 ordinary shares of 1 penny each, with one voting right attached to every share and no shares held in treasury. This disclosure clarifies the total number of voting ri...
Executive/Board Changes
Mears Group Strengthens Board With Appointment of Dame Clare Tickell
Positive
Feb 25, 2026
Mears Group PLC, a major contractor to the UK housing sector, delivers property management, maintenance, and wider housing solutions for central and local government clients across the country. Employing over 5,000 people, it targets long-term imp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.