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Mears Group Plc
(LSE:MER)
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Rating:66Neutral
Price Target:
441.00 p
â–²(3.76% Upside)
Action:Downgraded
Date:10/05/26
The score is driven primarily by decent but not conservative fundamentals (improved profitability and positive cash flow, offset by thin margins, higher leverage, and weaker 2025 free cash flow) and a very attractive valuation (low P/E and strong dividend). Technical indicators are a headwind due to negative MACD and below-50 RSI, which tempers the overall rating.
Positive Factors
Improved profitability
Operating earnings moved from negative in 2020 to solidly positive in 2023–2025, while gross profit steadily lifted. This indicates improved operating execution and earnings capacity that can support the business over coming quarters, although thin net margins moderate the benefit.
Negative Factors
Thin net margins
Net margins of roughly 4% leave limited protection if labour, materials or contract delivery costs increase, or if revenue growth slows. The narrow earnings cushion makes profitability more sensitive to operational execution and reduces the ability to absorb adverse changes without affecting returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Operating earnings moved from negative in 2020 to solidly positive in 2023–2025, while gross profit steadily lifted. This indicates improved operating execution and earnings capacity that can support the business over coming quarters, although thin net margins moderate the benefit.
Read all positive factors
Mears Group Plc (MER) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£315.03M
Dividend Yield4.46%
Average Volume (3M)160.25K
Price to Earnings (P/E)6.1
Beta (1Y)0.53
Revenue Growth2.18%
EPS Growth14.86%
CountryUK
Employees5,750
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.66
Shares Outstanding81,606,610
10 Day Avg. Volume178,354
30 Day Avg. Volume160,251
Financial Highlights & Ratios
PEG Ratio1.13
Price to Book (P/B)1.47
Price to Sales (P/S)0.26
P/FCF Ratio5.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£515.00Price Target Upside21.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.45
Revenue Forecast (FY)£1.08B
Mears Group Plc Business Overview & Revenue Model
Company Description
Mears Group plc is a United Kingdom-based entity that delivers a broad spectrum of outsourced provisions to both public and private sector clients. Its offerings include diverse maintenance solutions, such as urgent and pre-planned repair services...
How the Company Makes Money
Mears Group Plc primarily makes money by providing contracted housing and property services to clients, with revenue generally earned under multi-year service contracts and framework agreements. Key revenue streams typically include: (1) Responsiv...
Mears Group Plc Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.14B | 1.14B | 1.13B | 1.09B | 959.61M | 878.42M |
| Gross Profit | 267.13M | 265.84M | 251.01M | 218.77M | 195.69M | 180.49M |
| EBITDA | 160.52M | 157.51M | 148.15M | 117.70M | 96.19M | 82.64M |
| Net Income | 52.89M | 46.22M | 46.53M | 35.20M | 28.31M | 14.12M |
Balance Sheet | ||||||
| Total Assets | 747.22M | 740.11M | 701.35M | 700.01M | 630.87M | 633.92M |
| Cash, Cash Equivalents and Short-Term Investments | 70.47M | 48.48M | 91.40M | 145.85M | 100.10M | 54.63M |
| Total Debt | 307.64M | 318.72M | 297.50M | 291.14M | 225.42M | 216.89M |
| Total Liabilities | 531.42M | 535.29M | 513.88M | 499.55M | 417.04M | 432.88M |
| Stockholders Equity | 212.73M | 201.75M | 184.11M | 197.51M | 212.33M | 200.24M |
Cash Flow | ||||||
| Free Cash Flow | 70.07M | 55.05M | 89.76M | 110.05M | 101.52M | 47.90M |
| Operating Cash Flow | 90.79M | 100.30M | 119.58M | 135.89M | 110.93M | 56.67M |
| Investing Cash Flow | -220.00K | -40.49M | -3.56M | -25.65M | -5.91M | -6.20M |
| Financing Cash Flow | -101.24M | -99.41M | -147.14M | -95.08M | -61.52M | -92.06M |
Mears Group Plc Technical Analysis
Negative
425.00
Price Trends
414.64
Negative
415.35
Negative
383.28
Positive
Market Momentum
0.31
Positive
40.36
Neutral
25.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MER, the sentiment is Negative. The current price of 425 is above the 20-day moving average (MA) of 414.55, above the 50-day MA of 414.64, and above the 200-day MA of 383.28, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 40.36 is Neutral, neither overbought nor oversold. The STOCH value of 25.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MER.
Mears Group Plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | £315.03M | 6.14 | 25.52% | 4.46% | 2.18% | 14.86% | |
65 Neutral | £574.11M | 17.45 | 6.52% | 3.42% | 5.04% | ― | |
62 Neutral | £516.76M | 14.52 | 30.64% | 3.11% | 4.21% | 72.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £322.36M | 9.31 | 12.31% | 2.21% | 2.64% | 43.99% | |
59 Neutral | £171.51M | -88.55 | -0.64% | 1.70% | 12.09% | -112.25% | |
49 Neutral | £172.29M | -5.71 | -4.32% | 4.62% | -8.41% | 58.66% |
* Consumer Cyclical Sector Average
GB:MER
Mears Group Plc
405.50
72.02
21.60%
GB:CRST
Crest Nicholson Holdings
67.10
-100.91
-60.06%
GB:DFS
DFS Furniture
139.50
-21.29
-13.24%
GB:HFD
Halfords
263.50
119.43
82.90%
GB:GLE
MJ Gleeson PLC
294.00
-69.28
-19.07%
GB:WIX
Wickes Group
235.00
20.43
9.52%
Mears Group Plc Corporate Events
Business Operations and StrategyStock Buyback
Mears Continues Share Buyback, Cancels Over 4.6 Million Shares
Positive
Oct 5, 2026
Mears Group Plc has continued to execute its share buyback programme, repurchasing 168,500 ordinary shares between 28 September and 2 October 2026 at weighted average prices ranging from about 409p to 420p per share. The latest tranche of shares, ...
Regulatory Filings and Compliance
Mears Group Confirms Total Voting Rights at 82 Million Shares
Neutral
Oct 1, 2026
Mears Group Plc has confirmed that its issued share capital currently comprises 82,079,471 ordinary shares of 1 penny each, with one voting right attached to every share. The company holds no shares in treasury, meaning all issued shares carry vot...
Business Operations and StrategyStock Buyback
Mears Continues Share Buyback, Cancels Over 4.4 Million Shares
Positive
Sep 28, 2026
Mears Group PLC has continued to execute its previously announced share buyback programme, repurchasing 172,500 ordinary shares between 21 and 25 September 2026 at daily weighted average prices around 416–418 pence. The company will cancel t...
Business Operations and StrategyStock Buyback
Mears Group Cancels Further Shares as Buyback Nears 4 Million Mark
Positive
Sep 25, 2026
Mears Group PLC has continued to execute its previously announced share buyback programme, repurchasing a total of 139,476 ordinary shares between 1 and 4 September 2026 at weighted average prices around 418–422 pence per share. The transact...
Business Operations and StrategyStock Buyback
Mears Group Cancels Additional Shares Under Ongoing Buyback Programme
Positive
Sep 25, 2026
Mears Group PLC has continued executing its share buyback programme, repurchasing a total of 149,000 ordinary shares between 7 and 11 September 2026 through Deutsche Bank AG’s London branch. The trades were conducted at daily weighted averag...
Business Operations and StrategyStock Buyback
Mears Advances Share Buyback, Cancels Over 4.2 Million Shares
Positive
Sep 21, 2026
Mears Group Plc has continued to execute its share buyback programme, repurchasing 155,000 ordinary shares between 14 and 18 September 2026 at daily weighted average prices ranging from about 402p to 416p. The newly acquired shares will be cancell...
Regulatory Filings and Compliance
Mears Group Confirms Total Voting Rights at 82.8 Million Shares
Neutral
Sep 2, 2026
Mears Group PLC has confirmed that its issued share capital currently comprises 82,786,189 ordinary shares of 1 penny each, with one voting right attached to every share. The company holds no shares in treasury, meaning the full issued share capit...
Business Operations and StrategyStock Buyback
Mears advances buyback, cancels 2.8m shares to bolster investor value
Positive
Sep 1, 2026
Mears Group Plc has continued to execute its previously announced share buyback programme, purchasing a total of 244,057 ordinary shares between 24 and 28 August 2026 at weighted average prices around 428-429 pence per share. The company said all ...
Business Operations and StrategyStock Buyback
Mears Group Deepens Share Buyback With Further Share Cancellations
Positive
Aug 24, 2026
Mears Group Plc has continued executing its share buyback programme, purchasing a total of 185,655 ordinary shares between 17 and 21 August 2026 at an average price of around 429 pence per share through Panmure Liberum. The newly repurchased share...
Business Operations and StrategyStock Buyback
Mears Continues Share Buyback, Cancels Over 3.4 Million Shares
Positive
Aug 10, 2026
Mears Group PLC has continued executing its share buyback programme, repurchasing 4,776 ordinary shares on 6 August 2026 at a weighted average price of 430 pence, with all shares to be cancelled. Since the programme began in April, the company has...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Mears lifts dividend as record order book offsets margin pressure in H1 2026
Positive
Aug 6, 2026
Mears Group, a major contractor in the UK social housing maintenance market, reported modest first-half revenue growth as it continues to rebalance toward maintenance-led work and deepen ties with public-sector clients. The company’s focus o...
Regulatory Filings and Compliance
Mears Group Confirms Total Voting Rights at 83.2 Million Shares
Neutral
Aug 3, 2026
Mears Group PLC has confirmed that its issued share capital comprises 83,238,114 ordinary shares of 1 penny each, with one voting right attached to each share and no shares held in treasury. This disclosure clarifies the total number of voting sha...
Business Operations and StrategyStock Buyback
Mears Cancels Further Shares as Buyback Tops 3.4 Million
Positive
Aug 3, 2026
Mears Group Plc has continued executing its previously announced share buyback programme, repurchasing 114,254 ordinary shares between 29 and 30 July 2026 at a weighted average price of around 429 pence per share. The company said all shares bough...
Business Operations and StrategyStock Buyback
Mears Group Cancels Further Shares as Buyback Programme Advances
Positive
Jul 20, 2026
Mears Group Plc has continued to execute its previously announced share buyback programme, purchasing a total of 124,709 ordinary shares between 13 and 15 July 2026 at prices around 428–430 pence per share. The shares, acquired through Panmu...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mears Group Cancels Further Shares as Buyback Programme Passes 3.1 Million Mark
Positive
Jul 13, 2026
Mears Group PLC announced that under its ongoing share buyback programme, it repurchased 45,044 ordinary shares on 8 July and 112,475 shares on 10 July through Panmure Liberum at weighted average prices of 428.81p and 421.47p respectively. All sha...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Mears Group Cancels Over 3 Million Shares Under Ongoing Buyback Programme
Positive
Jul 6, 2026
Mears Group PLC has continued to execute its previously announced share buyback programme, purchasing a total of 137,172 ordinary shares between 29 June and 3 July 2026 at daily weighted average prices ranging from about 404 pence to 428 pence per...
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.