Mercia Asset Management Plc (MERC) 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

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Mercia Asset Management Plc

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Arbuthnot Banking Group Plc

Why is Mercia Asset Management Plc ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.47%

Poor long term growth as Operating profit has grown by an annual rate of 20.24%
The company has been able to generate a Return on Equity (avg) of 7.47% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate of 20.24%

Negative results in Mar 26

INTEREST(HY) At GBP 0.04 MM has Grown at 30%
ROCE(HY) Lowest at -4.76%
DEBT-EQUITY RATIO (HY) Highest at -14.66 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -18.18%, its profits have risen by 152.1%

Below par performance in long term as well as near term

Along with generating -18.18% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to re-enter? - We will constantly monitor the company and review our call based on new data

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.64%

EBIT Growth (5y)

20.24%

EBIT to Interest (avg)

4.57

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

12.44%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.32%

ROE (avg)

7.47%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.65

EV to EBIT

25.79

EV to EBITDA

12.55

EV to Capital Employed

0.57

EV to Sales

2.55

PEG Ratio

Dividend Yield

3.56%

ROCE (Latest)

2.22%

ROE (Latest)

-1.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-17What is not working for the Company

INTEREST(HY)

At GBP 0.04 MM has Grown at 30%

ROCE(HY)

Lowest at -4.76%

DEBT-EQUITY RATIO (HY)

Highest at -14.66 %

CASH AND EQV(HY)

Lowest at GBP 26.38 MM

NET SALES(Q)

Lowest at GBP 16.93 MM

PRE-TAX PROFIT(Q)

Lowest at GBP -10.12 MM

NET PROFIT(Q)

Lowest at GBP -10.29 MM

EPS(Q)

Lowest at GBP -0.02

Here's what is working for Mercia Asset Management Plc

Raw Material Cost

Fallen by 0% (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 Mercia Asset Management Plc

Pre-Tax Profit

At GBP -10.12 MM has Fallen at -428.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -10.29 MM has Fallen at -681.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Interest

At GBP 0.04 MM has Grown at 30%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at -14.66 % 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

Net Sales

Lowest at GBP 16.93 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Pre-Tax Profit

Lowest at GBP -10.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP -10.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Cash and Eqv

Lowest at GBP 26.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents