# Mears Group PLC (MER.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Professional Services. Price 418p, market value 330 millionp.

## Valuation
- **P/E (trailing): 6.7×** (5-yr avg 947.6×, 3-yr avg 779.9×). Mears Group PLC trades at 6.7× trailing earnings, well below its own five-year average of 947.6×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 10.1×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 1.71**. A PEG of 1.71 is in the range usually read as fairly priced for its growth.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.6×**. The shares trade at 1.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 2.6×**. Enterprise value is 2.6× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 45.4%** (5-yr avg 0.3%). Free cash flow equals 45.4% of the market value, above its five-year average of 0.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 14.8%**. The inverse of the P/E: 14.8% of the price is earned each year.

## Profitability
- **Gross margin: 22.7%**. Mears Group PLC keeps 22.7% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 6.5%**. 6.5% of revenue is left after running the business.
- **Net margin: 4.1%**. 4.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 22.9%**. 22.9% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 22.8%**. Return on all capital, debt included, is 22.8%: comfortably above what that capital costs.
- **Return on assets: 12.5%**. Each dollar of assets produces 12.5% of profit.

## Growth
- **Revenue growth (1 yr): 0.3%** (3-yr 5.8%/yr, 5-yr 7.1%/yr). Revenue grew 0.3% over the last year, against 7.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 5.9%** (3-yr 29.3%/yr). Earnings per share rose 5.9%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -18.5%/yr**. Free cash flow has compounded at -18.5% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.58**. Debt is 1.58 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.2×**. It would take 1.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 5.0×**. Operating profit covers interest 5.0× over, a safe margin.
- **Current ratio: 0.79** (quick 0.79). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.54**. A Z-score of 2.54 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.28%** (0p per share, trailing). Mears Group PLC yields 4.28%, an income-level yield.
- **Payout ratio: 30%** (18% of free cash flow). 30% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Shareholder yield: 25.2%**. Dividends plus net buybacks return 25.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): 26.4%** (YTD 17.8%, 3-mo 6.6%). The shares are up 26.4% over twelve months including dividends.
- **From 52-week high: -9.1%** (34.8% above the low). Trading 9% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): 0.33** (volatility 21%). Beta of 0.33 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MER.L · Page: https://foliofundamentals.com/stocks/mer.l

Not investment advice.