Added to YB: 2024-11-22
Pitch date: 2024-11-21
MER.L [bullish]
Mears Group plc
+6.54%
current return
Author Info
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Company Info
Mears Group plc, together with its subsidiaries, provides various outsourced services to the public and private sectors in the United Kingdom.
Market Cap
GBP 336.0M
Pitch Price
GBP 3.52
Price Target
N/A
Dividend
4.12%
EV/EBITDA
3.82
P/E
7.95
EV/Sales
0.48
Sector
Commercial Services and Supplies
Category
value
Mears Group: A highly predictable property services company with a double-digit earnings yield
MER.L: UK social housing specialist w/ long-term contracts. AASC rev normalization risk (-20% rev). 10x 2025 P/E. 5-6% op margin target. 85% contract renewal. Risks: AASC decline, price competition, operational issues. Strong balance sheet. Buybacks ongoing. 10-15% expected returns in likely scenarios.
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