Want to see GB:72HN full AI Analyst Report?
Top Page
Merchants
(LSE:72HN)
Select Model
Select Model
Rating:65Neutral
Price Target:
53.00 p
▲(7.94% Upside)
Action:Reiterated
Date:08/04/26
The score is supported mainly by strong valuation (very low P/E and very high dividend yield) and a generally solid balance sheet. Offsetting this are weak technical signals (below major moving averages with negative MACD and low RSI) and inconsistent cash flow history, which raises sustainability risk despite the recent profitability rebound.
Positive Factors
Conservative leverage
Persistently low debt-to-equity provides durable financial flexibility, lowering default risk and preserving capacity to fund operations or opportunistic investments during downturns. This structural conservatism supports long-term resilience and strategic optionality for the business.
Negative Factors
Inconsistent cash generation
Material swings in operating cash flow demonstrate weak cash conversion consistency, undermining the firm's ability to self-fund growth or distributions. Over multiple years, this variability raises the likelihood of needing external financing and reduces certainty around capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
Persistently low debt-to-equity provides durable financial flexibility, lowering default risk and preserving capacity to fund operations or opportunistic investments during downturns. This structural conservatism supports long-term resilience and strategic optionality for the business.
Read all positive factors
Merchants (72HN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£578.40K
Dividend Yield511.68%
Average Volume (3M)0.00
Price to Earnings (P/E)0.5
Beta (1Y)-0.17
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees1,618
SectorGeneral
Sector StrengthN/A
IndustryAsset Management
Share Statistics
EPS (TTM)1.10
Shares Outstanding1,178,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00658
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Merchants Business Overview & Revenue Model
Company Description
Merchants Trust PLC operates as an independent investment fund based in the United Kingdom. Its primary aim is to generate a superior level of income and consistent income growth, alongside sustained capital appreciation, for its investors. To ach...
How the Company Makes Money
null...
Merchants Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
44
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 173.50M | 89.70M | -19.55M | 48.86M | 217.64M |
| Gross Profit | 173.50M | 84.31M | -19.55M | 48.86M | 189.54M |
| EBITDA | 168.70M | 110.42M | -23.97M | 44.74M | 185.94M |
| Net Income | 162.41M | 104.27M | -30.25M | 40.19M | 182.25M |
Balance Sheet | |||||
| Total Assets | 1.08B | 972.01M | 899.48M | 923.00M | 836.51M |
| Cash, Cash Equivalents and Short-Term Investments | 26.08M | 15.60M | 22.89M | 11.46M | 18.63M |
| Total Debt | 116.85M | 116.78M | 109.25M | 109.02M | 92.82M |
| Total Liabilities | 119.44M | 122.19M | 111.95M | 110.63M | 97.46M |
| Stockholders Equity | 964.46M | 849.82M | 787.52M | 812.38M | 812.38M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 32.69M | 11.36M | -53.26M | -53.26M |
| Operating Cash Flow | 38.79M | 32.69M | 11.36M | -53.26M | -53.26M |
| Investing Cash Flow | 19.58M | -8.91M | 0.00 | -91.67M | -15.61M |
| Financing Cash Flow | -47.81M | -40.01M | 119.00K | 46.17M | 46.17M |
Merchants Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | £578.40K | 0.48 | 17.67% | 511.68% | ― | ― | |
62 Neutral | £17.29M | 4.76 | 23.41% | ― | 543.02% | 30.22% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | £4.22M | 4.42 | 15.97% | 0.26% | -106.88% | -66.67% | |
44 Neutral | £2.55M | -5.91 | -17.10% | 1.86% | ― | 68.42% | |
34 Underperform | £2.04M | -1.01 | -57.16% | ― | 112.02% | 31.51% |
* General Sector Average
GB:72HN
Merchants
49.10
-0.50
-1.02%
GB:TRUE
Braveheart Investment
3.25
1.15
54.76%
GB:MAFL
Mineral & Financial Investments
44.50
16.50
58.93%
GB:PRIM
Primorus Investments
3.40
-0.60
-15.00%
GB:BSFA
BSF Enterprise PLC
1.00
-1.20
-54.55%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.