# Mercantile Investment Trust (MRC.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services. Price 280p, market value 1.8 billionp.

## Valuation
- **P/E (trailing): 9.7×** (5-yr avg 1174.3×, 3-yr avg 1319.6×). Mercantile Investment Trust trades at 9.7× trailing earnings, well below its own five-year average of 1174.3×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×.
- **Price / sales: 3.5×**. Each dollar of revenue is priced at 3.5×.
- **Price / book: 1.0×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 4.3×**. Enterprise value is 4.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 6.0%** (5-yr avg 0.0%). Free cash flow equals 6.0% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 10.4%**. The inverse of the P/E: 10.4% of the price is earned each year.

## Profitability
- **Gross margin: 96.8%**. Mercantile Investment Trust keeps 96.8% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 96.2%**. 96.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 89.9%**. 89.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.6%**. 10.6% on shareholders' equity is solid.
- **Return on invested capital: 21.2%**. Return on all capital, debt included, is 21.2%: comfortably above what that capital costs.
- **Return on assets: 19.5%**. Each dollar of assets produces 19.5% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): -5.3%** (3-yr 119.1%/yr). Revenue fell 5.3% over the last year.
- **EPS growth (1 yr): -6.5%**. Earnings per share fell 6.5%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 5.7%/yr**. Free cash flow has compounded at 5.7% a year over three years.

## Financial health
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.
- **Cash and short-term investments: 50 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: none**. Mercantile Investment Trust does not currently pay a dividend, but it returned 13.6% of its market value through buybacks over the last year.

## Price and momentum
- **Total return (1 yr): 14.4%** (YTD 9.7%, 3-mo 6.2%). The shares are up 14.4% over twelve months including dividends.
- **From 52-week high: -3.6%** (19.5% above the low). Trading within 5% of 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): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.92** (volatility 16%). Beta of 0.92 against the FTSE All-Share: the shares move roughly with the market.

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

Not investment advice.