Merchants (72HN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 494.52%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 1,618
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 1,178,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 3.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ―

The company's strong financial recovery and robust balance sheet are the primary strengths, indicating resilience and potential for growth. However, limited technical momentum and absence of valuation metrics suggest some uncertainty. The overall score reflects a cautious optimism with a need for more clarity on valuation and technical indicators.

Merchants Business Overview & Revenue Model

Company Description

The Merchants Trust PLC is a United Kingdom-based standalone investment trust company. The Company's objective is to provide shareholders with an above average level of income and income growth with long-term capital growth through a policy of investing mainly in higher yielding the United Kingdom Financial Times Stock Exchange (UK FTSE) 100 companies. The Company's invests in a range of sectors, including oil and gas, banks, pharmaceuticals and biotechnology, tobacco, media, electricity, mobile telecommunications, life insurance, travel and leisure, mining, gas, water and multi-utilities, construction and materials, beverages, support services, general retailers, real estate investment trusts, and aerospace and defense, among other sectors.

How the Company Makes Money

Merchants (72HN) generates revenue through the sale of consumer products across its retail and online channels. The company leverages its extensive supply chain network to source goods at competitive prices, allowing for attractive retail pricing and healthy profit margins. Additionally, Merchants (72HN) has strategic partnerships with various suppliers and manufacturers, enhancing its product offerings and ensuring exclusive deals. The company also benefits from economies of scale, which help reduce costs and increase profitability. Moreover, Merchants (72HN) may engage in marketing and promotional collaborations, further boosting its sales and visibility in the market.

Merchants Financial Statement Overview

Summary

Merchants shows a solid financial recovery in 2025 with strong profitability and no debt, significantly improving from previous years' volatility. The balance sheet is robust with high equity ratios and zero debt, supporting financial stability. Increased free cash flow enhances liquidity, but past fluctuations suggest caution. Overall, the company displays resilience with potential for sustained growth in the asset management sector.

Income Statement

The income statement shows significant recovery in 2025 with a positive net income and total revenue compared to a negative performance in 2024. The gross profit margin is strong at 100% due to zero cost of goods sold. The net profit margin improved dramatically from negative in 2024 to 97.3% in 2025. Revenue growth from 2024 to 2025 is noteworthy. However, volatility in revenue over the years poses a risk.

Balance Sheet

The balance sheet is robust with no debt in 2025, leading to an improved debt-to-equity ratio of 0. The equity ratio is strong at 87.4%. Return on equity is excellent at 12.3% in 2025, indicating effective management of equity to generate profits. Consistent increase in stockholders' equity reflects financial health, though total assets growth is modest.

Cash Flow

Cash flow statements show positive free cash flow growth in 2025. The operating cash flow to net income ratio improved compared to previous years, demonstrating better conversion of income into cash flow. The free cash flow to net income ratio is positive, indicating efficient cash generation. However, past fluctuations in operating cash flow highlight potential instability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.70M	107.14M	-27.05M	43.81M	184.83M	183.59M
Gross Profit	84.31M	107.14M	-27.05M	43.81M	184.83M	183.59M
EBITDA	104.81M	0.00	-23.84M	0.00	0.00	184.64M
Net Income	104.27M	104.27M	-30.25M	40.19M	182.25M	182.25M
Balance Sheet
Total Assets	972.01M	972.01M	899.48M	923.00M	923.00M	836.51M
Cash, Cash Equivalents and Short-Term Investments	15.60M	15.60M	22.89M	11.46M	11.46M	18.63M
Total Debt	116.78M	0.00	108.07M	107.85M	107.85M	91.65M
Total Liabilities	122.19M	122.19M	111.95M	110.63M	110.63M	97.46M
Stockholders Equity	849.82M	849.82M	787.52M	812.38M	812.38M	739.05M
Cash Flow
Free Cash Flow	32.69M	32.69M	11.36M	-53.26M	-53.26M	13.90M
Operating Cash Flow	32.69M	32.69M	11.36M	-53.26M	-53.26M	13.90M
Investing Cash Flow	-8.91M	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-40.01M	-40.01M	119.00K	46.17M	46.17M	-1.90M

Merchants Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
72HN	65 Neutral	―	―	―	494.52%	―	―
MILA	48 Neutral	£15.67M	-16.00	-11.98%	―	―	6.25%
CHP	44 Neutral	£3.10M	―	-95.95%	―	―	-100.00%
JADE	38 Underperform	£443.01K	-0.43	―	―	-96.59%	93.69%