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Mears Group Plc
(LSE:MER)
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Rating:72Outperform
Price Target:
480.00 p
▲(10.47% Upside)
Action:Upgraded
Date:07/05/26
The score is driven primarily by attractive valuation (low P/E and ~4% dividend yield) and supportive technical trend signals (price above key moving averages, positive MACD). These positives are tempered by financial risk factors—thin margins, higher leverage (debt above equity), and a notable 2025 free-cash-flow decline that weakens cash-conversion quality.
Positive Factors
Contracted, recurring revenue
Mears’ business is driven by long-term, contracted services to public and regulated housing clients. This contract-heavy model creates recurring revenue streams and predictable scheduling, supporting durable cash flow visibility and competitive stickiness with councils and housing associations.
Negative Factors
Thin net margins
Net margins around 4% leave limited buffer against cost shocks such as labor, materials, or energy. In a services business with tight schedules and regulated clients, slim margins reduce flexibility to absorb contract underperformance or inflation without eroding profitability materially over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted, recurring revenue
Mears’ business is driven by long-term, contracted services to public and regulated housing clients. This contract-heavy model creates recurring revenue streams and predictable scheduling, supporting durable cash flow visibility and competitive stickiness with councils and housing associations.
Read all positive factors
Mears Group Plc (MER) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£348.67M
Dividend Yield2.74%
Average Volume (3M)162.47K
Price to Earnings (P/E)6.5
Beta (1Y)0.47
Revenue Growth2.18%
EPS Growth14.86%
CountryUK
Employees5,480
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.66
Shares Outstanding84,219,920
10 Day Avg. Volume185,388
30 Day Avg. Volume162,471
Financial Highlights & Ratios
PEG Ratio1.13
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
£497.50Price Target Upside14.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.44
Revenue Forecast (FY)£1.05B
Mears Group Plc Business Overview & Revenue Model
Company Description
Mears Group plc is a United Kingdom-based entity that delivers a broad spectrum of outsourced provisions to both public and private sector clients. Its offerings include diverse maintenance solutions, such as urgent and pre-planned repair services...
How the Company Makes Money
Mears Group Plc makes money by delivering contracted services to housing-sector clients, with revenue primarily earned from service contracts rather than from selling products. Key revenue streams typically include: (1) property services—income fr...
Mears Group Plc Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.14B | 1.14B | 1.13B | 1.09B | 959.61M | 878.42M |
| Gross Profit | 267.13M | 265.84M | 251.01M | 218.77M | 195.69M | 180.49M |
| EBITDA | 86.86M | 157.51M | 148.15M | 117.70M | 96.19M | 82.65M |
| Net Income | 52.89M | 46.22M | 46.53M | 35.20M | 28.31M | 14.12M |
Balance Sheet | ||||||
| Total Assets | 747.22M | 740.11M | 701.35M | 700.01M | 630.87M | 633.92M |
| Cash, Cash Equivalents and Short-Term Investments | 70.47M | 48.48M | 91.40M | 145.85M | 100.10M | 54.63M |
| Total Debt | 307.64M | 318.72M | 297.50M | 291.14M | 225.42M | 216.89M |
| Total Liabilities | 531.42M | 535.29M | 513.88M | 499.55M | 417.04M | 432.88M |
| Stockholders Equity | 212.73M | 201.75M | 184.11M | 197.51M | 212.33M | 200.24M |
Cash Flow | ||||||
| Free Cash Flow | 70.07M | 55.05M | 89.76M | 110.05M | 101.52M | 47.90M |
| Operating Cash Flow | 90.79M | 100.30M | 119.58M | 135.89M | 110.93M | 56.67M |
| Investing Cash Flow | -220.00K | -40.49M | -3.56M | -25.65M | -5.91M | -6.20M |
| Financing Cash Flow | -101.24M | -99.41M | -147.14M | -95.08M | -61.52M | -92.06M |
Mears Group Plc Technical Analysis
Positive
434.50
Price Trends
420.59
Positive
394.91
Positive
370.24
Positive
Market Momentum
4.83
Positive
52.26
Neutral
35.29
Neutral
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 434.5 is below the 20-day moving average (MA) of 436.10, above the 50-day MA of 420.59, and above the 200-day MA of 370.24, indicating a neutral trend. The MACD of 4.83 indicates Positive momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.29 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | £348.67M | 6.53 | 25.52% | 4.03% | 2.18% | 14.86% | |
70 Outperform | £508.74M | 15.73 | 6.52% | 3.73% | 5.04% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £436.72M | 12.02 | 29.52% | 5.71% | 6.33% | 125.67% | |
56 Neutral | £367.42M | 10.54 | 13.23% | 0.72% | 8.82% | 440.57% | |
51 Neutral | £162.17M | 11.35 | 4.67% | 4.05% | 8.34% | -13.44% | |
44 Neutral | £183.07M | -6.10 | -4.32% | 4.94% | -8.41% | 58.66% |
* Consumer Cyclical Sector Average
GB:MER
Mears Group Plc
431.00
82.99
23.85%
GB:CRST
Crest Nicholson Holdings
71.70
-102.91
-58.94%
GB:DFS
DFS Furniture
160.00
4.17
2.68%
GB:HFD
Halfords
237.50
107.95
83.33%
GB:GLE
MJ Gleeson PLC
275.00
-65.86
-19.32%
GB:WIX
Wickes Group
199.00
-5.47
-2.68%
Mears Group Plc Corporate Events
Business Operations and StrategyStock Buyback
Mears Group Cancels Further Shares as Buyback Programme Advances
Positive
Jul 20, 2026
Mears Group Plc has continued to execute its previously announced share buyback programme, purchasing a total of 124,709 ordinary shares between 13 and 15 July 2026 at prices around 428–430 pence per share. The shares, acquired through Panmu...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mears Group Cancels Further Shares as Buyback Programme Passes 3.1 Million Mark
Positive
Jul 13, 2026
Mears Group PLC announced that under its ongoing share buyback programme, it repurchased 45,044 ordinary shares on 8 July and 112,475 shares on 10 July through Panmure Liberum at weighted average prices of 428.81p and 421.47p respectively. All sha...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mears Group Cancels Over 3 Million Shares Under Ongoing Buyback Programme
Positive
Jul 6, 2026
Mears Group PLC has continued to execute its previously announced share buyback programme, purchasing a total of 137,172 ordinary shares between 29 June and 3 July 2026 at daily weighted average prices ranging from about 404 pence to 428 pence per...
Regulatory Filings and Compliance
Mears Group Clarifies Total Voting Rights and Share Capital Structure
Neutral
Jul 1, 2026
Mears Group PLC has confirmed that its issued share capital currently comprises 83,656,265 ordinary shares of 1 penny each, with one voting right per share and no shares held in treasury. This disclosure clarifies the total number of voting shares...
Business Operations and StrategyFinancial Disclosures
Mears Group Builds Momentum With Major New Housing Contracts
Positive
Jun 30, 2026
Mears Group PLC, a major contractor in the U.K. housing maintenance and management market, underpins thousands of government-backed, long-term housing contracts. The company combines large-scale property services with broader housing solutions, ta...
Business Operations and StrategyStock Buyback
Mears Cancels Further Shares as Buyback Programme Passes 2.8 Million Threshold
Positive
Jun 29, 2026
Mears Group Plc has continued executing its previously announced share buyback programme, repurchasing 290,142 ordinary shares between 22 and 26 June 2026 at daily weighted average prices ranging from about 393.5p to 404.9p. The bought-back shares...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mears Cancels Further Shares as Buyback Tops 2.5 Million
Positive
Jun 22, 2026
Mears Group PLC has continued to execute its previously announced share buyback programme, repurchasing 165,714 ordinary shares between 16 and 19 June 2026 through Deutsche Bank AG’s London branch at daily weighted average prices ranging fro...
Business Operations and StrategyStock Buyback
Mears Continues Share Buyback, Cancels Over 2.4 Million Shares
Positive
Jun 15, 2026
Mears Group Plc, the U.K. housing and care services provider, continues to execute its previously announced share buyback programme as part of its capital management strategy. The company works mainly with public-sector housing bodies, providing m...
Executive/Board Changes
Mears grants long-term incentive awards to top executives
Positive
Jun 9, 2026
Mears Group PLC has granted new awards under its Long Term Incentive Plan to chief executive Lucas Critchley and chief financial officer Andrew Smith, in the form of nominal-cost options over 121,902 and 105,203 ordinary shares respectively. The o...
Business Operations and StrategyStock Buyback
Mears Cancels Further Shares as Buyback Programme Passes 2.25 Million Mark
Positive
Jun 8, 2026
Mears Group Plc has continued executing its previously announced share buyback programme, repurchasing 296,108 ordinary shares between 1 and 5 June 2026 at daily weighted average prices around 395 to 410 pence. The company stated that all shares a...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsShareholder Meetings
Mears shareholders back all AGM resolutions and confirm 2025 dividend
Positive
Jun 3, 2026
Mears Group Plc reported that shareholders overwhelmingly backed all resolutions at its annual general meeting, including approval of the 2025 audited accounts, the directors’ remuneration policy and report, and amendments to the group’...
Regulatory Filings and Compliance
Mears Group Confirms Total Voting Rights at 84.68 Million Shares
Neutral
Jun 1, 2026
Mears Group PLC has confirmed that its issued share capital currently comprises 84,680,550 ordinary shares of 1 penny each, with one voting right attached to every share and no shares held in treasury. This clarification sets the official denomina...
Stock Buyback
Mears Cancels Further Shares as Buyback Nears Two Million Mark
Positive
Jun 1, 2026
Mears Group PLC has continued to execute its previously announced share buyback programme, repurchasing 218,513 ordinary shares between 26 and 29 May 2026 at daily weighted average prices of around 416 to 418 pence. The shares, acquired via Deutsc...
Regulatory Filings and Compliance
Mears CEO Boosts Stake with Purchase of Additional Shares
Positive
May 26, 2026
Mears Group PLC reported that its Chief Executive Officer, Lucas Critchley, has purchased 9,217 ordinary shares in the company at an average price of 415.50 pence per share. Following this transaction, Critchley’s holding has risen to 79,258...
Business Operations and StrategyStock Buyback
Mears cancels further shares as buyback tops 1.7 million
Positive
May 26, 2026
Mears Group PLC has continued to execute its previously announced share buyback programme, repurchasing 252,689 ordinary shares between 18 and 22 May 2026 at daily weighted average prices ranging from about 400p to 416p. The company stated that al...
Business Operations and Strategy
Mears wins £240m Thurrock housing contract as rebid momentum tops £1bn
Positive
May 19, 2026
Mears Group PLC, a major contractor in the UK housing sector, has secured a significant new agreement with long-standing client Thurrock Council that broadens its role from core maintenance into a fuller asset management offering. The contract cov...
Business Operations and StrategyStock Buyback
Mears Steps Up Share Buybacks, Cancels Over 1.48 Million Shares
Positive
May 18, 2026
Mears Group Plc has continued to execute its previously announced share buyback programme, repurchasing a total of 183,088 ordinary shares between 13 and 15 May 2026 through Deutsche Bank’s London branch. The shares were bought at weighted a...
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...
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.