Why is Mears Group Plc ?
1
Positive results in Jun 26
- ROCE(HY) Highest at 26.63%
- RAW MATERIAL COST(Y) Fallen by -4.39% (YoY)
- PRE-TAX PROFIT(Q) Highest at GBP 38.31 MM
2
With ROE of 22.77%, it has a very attractive valuation with a 1.69 Price to Book Value
- Over the past year, while the stock has generated a return of 33.17%, its profits have fallen by -3.1% ; the PEG ratio of the company is 3.9
3
Market Beating performance in long term as well as near term
- Along with generating 33.17% returns in the last 1 year, the stock has outperformed FTSE 100 in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to Mears Group Plc should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Mears Group Plc for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Mears Group Plc
-100.0%
0.44
21.35%
FTSE 100
16.06%
1.36
11.82%
Quality key factors
Factor
Value
Sales Growth (5y)
7.10%
EBIT Growth (5y)
83.78%
EBIT to Interest (avg)
4.71
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.13
Sales to Capital Employed (avg)
4.03
Tax Ratio
23.75%
Dividend Payout Ratio
52.78%
Pledged Shares
0
Institutional Holding
0.08%
ROCE (avg)
35.36%
ROE (avg)
12.85%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
1.69
EV to EBIT
4.91
EV to EBITDA
2.38
EV to Capital Employed
1.59
EV to Sales
0.33
PEG Ratio
3.94
Dividend Yield
4.50%
ROCE (Latest)
32.43%
ROE (Latest)
22.77%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
6What is working for the Company
ROCE(HY)
Highest at 26.63%
RAW MATERIAL COST(Y)
Fallen by -4.39% (YoY
PRE-TAX PROFIT(Q)
Highest at GBP 38.31 MM
NET PROFIT(Q)
Highest at GBP 30.42 MM
EPS(Q)
Highest at GBP 0.38
-2What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 15.91%
DIVIDEND PER SHARE(HY)
Lowest at GBP 7.88
Here's what is working for Mears Group Plc
Pre-Tax Profit
Highest at GBP 38.31 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 30.42 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
EPS
Highest at GBP 0.38
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Raw Material Cost
Fallen by -4.39% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Mears Group Plc
Dividend per share
Lowest at GBP 7.88
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (GBP)
Dividend Payout Ratio
Lowest at 15.91%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Non Operating Income
Highest at GBP 0.29 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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