# Mercia Asset Management PLC (MERC.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services / Capital Markets. Price 27p, market value 115 millionp.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Mercia Asset Management PLC reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 1.7×**. Each dollar of revenue is priced at 1.7×.
- **Price / book: 0.7×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 54.4×**. Enterprise value is 54.4× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 12.8%** (5-yr avg 0.1%). Free cash flow equals 12.8% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 92.2%**. Mercia Asset Management PLC keeps 92.2% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: -8.6%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -25.2%**. The company reported a net loss over the last twelve months.
- **Return on equity: -5.0%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: -4.0%**. Return on all capital, debt included, is -4.0%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -2.8%**. Each dollar of assets produces -2.8% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): -3.0%** (3-yr 10.9%/yr, 5-yr -4.8%/yr). Revenue fell 3.0% over the last year, against -4.8% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -350.0%**. Earnings per share fell 350.0%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 10.5%/yr**. Free cash flow has compounded at 10.5% a year over three years.

## Financial health
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.
- **Cash and short-term investments: 26 millionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 3.70%** (0p per share, trailing). Mercia Asset Management PLC yields 3.70%, an income-level yield.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 57.5%/yr** (1-yr 5.4%). The dividend has compounded at 57.5% a year over five years, doubling roughly every 1 years at that pace.
- **Shareholder yield: 7.2%**. Dividends plus net buybacks return 7.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): -18.2%** (YTD -8.5%, 3-mo -6.1%). The shares are down 18.2% over twelve months including dividends.
- **From 52-week high: -19.6%** (9.3% above the low). Trading 20% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 54**. An RSI of 54 is neutral.
- **Beta (1 yr): 0.21** (volatility 20%). Beta of 0.21 against the FTSE All-Share: the shares move much less than the market.

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

Not investment advice.