Mears Group Plc (MER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Galliford Try Holdings Plc

Mears Group Plc

Vistry Group Plc

Crest Nicholson Holdings Plc

Bellway Plc

Taylor Wimpey Plc

Henry Boot Plc

Persimmon Plc

Redrow Plc

MJ Gleeson Plc

Barratt Developments Plc

Why is Mears Group Plc ?

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Dec 25

DIVIDEND PER SHARE(HY) Highest at GBP 7.85
DIVIDEND PAYOUT RATIO(Y) Highest at 87.31%
RAW MATERIAL COST(Y) Fallen by -16.41% (YoY)

With ROE of 22.77%, it has a very attractive valuation with a 1.66 Price to Book Value

Over the past year, while the stock has generated a return of 1.54%, its profits have fallen by -3.1% ; the PEG ratio of the company is 3.9

Underperformed the market in the last 1 year

The stock has generated a return of 1.54% in the last 1 year, much lower than market (FTSE 100) returns of 17.87%

Real-Time Research Report

Verdict Report

How much should you hold?

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

1.54%

0.19

20.62%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.10%

EBIT Growth (5y)

83.78%

EBIT to Interest (avg)

3.39

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

3.96

Tax Ratio

27.25%

Dividend Payout Ratio

52.78%

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

24.04%

ROE (avg)

12.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.66

EV to EBIT

4.84

EV to EBITDA

2.35

EV to Capital Employed

1.57

EV to Sales

0.32

PEG Ratio

3.87

Dividend Yield

4.57%

ROCE (Latest)

32.43%

ROE (Latest)

22.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at GBP 7.85

DIVIDEND PAYOUT RATIO(Y)

Highest at 87.31%

RAW MATERIAL COST(Y)

Fallen by -16.41% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 873.19 times

OPERATING PROFIT(Q)

Highest at GBP 82.13 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.26 %

-6What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 133.95 %

INTEREST COVERAGE RATIO(Q)

Lowest at 936.29

CASH AND EQV(HY)

Lowest at GBP 48.48 MM

INTEREST(Q)

Highest at GBP 8.77 MM

Here's what is working for Mears Group Plc

Dividend per share

Highest at GBP 7.85 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Operating Profit

Highest at GBP 82.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 14.26 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 873.19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 87.31%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -16.41% (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

Depreciation

Highest at GBP 43.47 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Mears Group Plc

Interest Coverage Ratio

Lowest at 936.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 133.95 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at GBP 8.77 MM

in the last five periods and Increased by 20.07% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Cash and Eqv

Lowest at GBP 48.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents