# Mercialys (MERY.PA)

Canonical: https://gigainvestors.com/s/MERY.PA

Analysis as of: 2026-10-16T07:43:58.967Z. Financial observations: FY2002–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 9.62 per share; close as of 2026-10-15.

Estimated value: low EUR 11.44 per share, central EUR 12.96 per share, high EUR 14.98 per share. Buy at or below the central value EUR 12.96 per share. Valuation as of 2026-10-16T07:43:58.967Z; scenarios are not confidence intervals.

Expected annual return: 12.7% at the stated quote. About 12.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; FR 10-year bond 4.8% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.80×

- FY2017: 0.67×

- FY2018: 0.66×

- FY2019: 0.53×

- FY2020: 0.71×

- FY2021: 0.50×

- FY2022: 0.60×

- FY2023: 0.48×

- FY2024: 0.46×

- FY2025: 0.33×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 43.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.8%

- ROIC, second-lowest year: 4.8%

- Typical minus recent gross margin: 43.6 pp

- Typical gross margin (annual median): 89.3%

- Recent gross margin (lower of latest and 3-year median): 45.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 23.2%

- ROIC including acquisitions, ten-year median: 3.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.7%

- FY2017: 5.7%

- FY2018: 5.6%

- FY2019: 5.8%

- FY2020: 6.4%

- FY2021: 5.4%

- FY2022: 5.9%

- FY2023: 4.8%

- FY2024: 6.1%

- FY2025: 4.0%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.21×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 297M

- Net income, five-year total: EUR 246M

- Return on incremental invested capital: -26.5%

- Working capital / revenue, annual change: -2.5 pp

- Working capital / revenue, change between three-year averages: -18.0 pp

- Working capital / revenue, final three-year average: 12.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.63×

- FY2022: 1.64×

- FY2023: 1.66×

- FY2024: 1.36×

- FY2025: -1.06×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.7% vs 4.8%

- Per-share earnings: 0.94 to 0.57 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: EUR -741M

- Cumulative retained earnings: EUR -139M

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -6.1%

- Per-share value change: EUR -0.37

- Per-share value, starting three-year median: EUR 0.94

- Per-share value, ending three-year median: EUR 0.57

- Buybacks concentrated in cheaper years (correlation): 0.00

- Average buyback yield: 0.6%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: EUR 25M

- Cumulative net income, 10 years: EUR 700M

- ROIC, first three-year median: 5.7%

- ROIC, last three-year median: 4.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 1.19

- FY2017: EUR 0.94

- FY2018: EUR 0.88

- FY2019: EUR 0.98

- FY2020: EUR 0.94

- FY2021: EUR 0.66

- FY2022: EUR 0.46

- FY2023: EUR 0.57

- FY2024: EUR 0.58

- FY2025: EUR 0.36

### accounting: pass

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 0.85×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.61×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.6%

- FY2017: -2.9%

- FY2018: -3.0%

- FY2019: -2.6%

- FY2020: -1.8%

- FY2021: -3.0%

- FY2022: -4.7%

- FY2023: -3.8%

- FY2024: -5.0%

- FY2025: -3.7%

## Holders

## Price story

Down 23% since Apr 2026 · sales +7%

Story as of 2026-10-16T10:00:12.886Z; price observation 2026-10-15.

Price needs cash profits to shrink 3% a year for ten years

### Sales · FY2024–2025

sales +7%; source https://filings.xbrl.org/969500081CGAXB7YS433/2025-12-31/ESEF/FR/0/mercialys-2025-12-31-1/reports/mercialys-2025-12-31-1-fr.html; observed 2026-03-18.

- FY2016: EUR 190M 

- FY2017: EUR 185M 

- FY2018: EUR 187M 

- FY2019: EUR 234M 

- FY2020: EUR 175M 

- FY2021: EUR 205M 

- FY2022: EUR 177M 

- FY2023: EUR 178M 

- FY2024: EUR 221M 

- FY2025: EUR 237M 

### Gross margin · FY2025

gross margin 45.7%; source https://filings.xbrl.org/969500081CGAXB7YS433/2025-12-31/ESEF/FR/0/mercialys-2025-12-31-1/reports/mercialys-2025-12-31-1-fr.html; observed 2026-03-18.

- FY2016: 93.8% 

- FY2017: 92.9% 

- FY2018: 93.6% 

- FY2019: 76.6% 

- FY2020: 85.7% 

- FY2021: 77.9% 

- FY2022: 93.8% 

- FY2023: 96.0% 

- FY2024: 77.9% 

- FY2025: 45.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are EUR 236.6 million.

- Source: https://filings.xbrl.org/969500081CGAXB7YS433/2025-12-31/ESEF/FR/0/mercialys-2025-12-31-1/reports/mercialys-2025-12-31-1-fr.html (filed 2026-03-18); FY2025: revenue 236591000; grossProfit 108213000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MERY.PA: Mercialys SA is one of France's leading real estate companies. It specializes in the holding, management and transformation of retail spaces, anticipating consumer trends, on its own behalf and for third parties. At June 30, 2026, the Company had a real estate portfolio valued at Euro 3.2 billion including transfer taxes. Mercialys has been listed on the stock market since October 12, 2005 and has (SIIC) real estate investment trust (REIT) tax status. Mercialys SA was established in August, 19, 1999 and was incorporated in France.

### Why customers stay

Margins ranged from 45.7% to 96% during 2023–25; it earns 5.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: grossProfit / revenue = 96%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: grossProfit / revenue = 77.9%.

- Source: https://filings.xbrl.org/969500081CGAXB7YS433/2025-12-31/ESEF/FR/0/mercialys-2025-12-31-1/reports/mercialys-2025-12-31-1-fr.html (filed 2026-03-18); FY2025: grossProfit / revenue = 45.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); 10-year return on capital observations [[2016,0.06652778234730444],[2017,0.057406889178826824],[2018,0.05550956412148345],[2019,0.057780715544623454],[2020,0.06431430094760394],[2021,0.05432139180742072],[2022,0.058943136837775786],[2023,0.04839782123166595],[2024,0.06098185640012859],[2025,0.04025912898951955]]; median 0.057593802361725135. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 29.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2017: growth capex 0; upkeep 102808000; owner earnings 27448000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2018: growth capex 63928.95340503752; upkeep 79230071.04659496; owner earnings 43127928.95340504. Growth capex / owner earnings = 0.0014823098385759654.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2019: growth capex 0; upkeep 26412000; owner earnings 116034200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2020: growth capex 0; upkeep 61593000; owner earnings 63089000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2021: growth capex 0; upkeep 8257999; owner earnings 101297401. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2022: growth capex 0; upkeep 2444000; owner earnings 70693187.95785248. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: growth capex 0; upkeep 1408000; owner earnings 88333000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: growth capex 0; upkeep 15460000; owner earnings 73088000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Dividend observations: [[2016,91760000],[2017,95466000],[2018,108208000],[2019,99986000],[2020,43957000],[2021,22398000],[2022,86025000],[2023,89565000],[2024,92643000],[2025,93462000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/969500081CGAXB7YS433/2025-12-31/ESEF/FR/0/mercialys-2025-12-31-1/reports/mercialys-2025-12-31-1-fr.html (filed 2026-03-18); FY2025: cash repurchases 29561000 EUR.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MERY.PA SharesStats.PercentInsiders = 0.526 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Ten-year compound average after fade. Initial solved rate -0.05494651867463701. Price 9.62; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -4.225721064188907 → FY2025 -0.38392931401531644. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 18.87 per share

- 2016-11: EUR 18.41 per share

- 2016-12: EUR 19.25 per share

- 2017-01: EUR 18.13 per share

- 2017-02: EUR 17.05 per share

- 2017-03: EUR 17.49 per share

- 2017-04: EUR 17.89 per share

- 2017-05: EUR 17.42 per share

- 2017-06: EUR 17.13 per share

- 2017-07: EUR 17.10 per share

- 2017-08: EUR 16.92 per share

- 2017-09: EUR 16.90 per share

- 2017-10: EUR 16.73 per share

- 2017-11: EUR 17.63 per share

- 2017-12: EUR 18.45 per share

- 2018-01: EUR 18.32 per share

- 2018-02: EUR 16.05 per share

- 2018-03: EUR 15.61 per share

- 2018-04: EUR 15.85 per share

- 2018-05: EUR 15.64 per share

- 2018-06: EUR 14.91 per share

- 2018-07: EUR 15.32 per share

- 2018-08: EUR 14.69 per share

- 2018-09: EUR 13.88 per share

- 2018-10: EUR 12.95 per share

- 2018-11: EUR 12.76 per share

- 2018-12: EUR 11.97 per share

- 2019-01: EUR 13.40 per share

- 2019-02: EUR 12.86 per share

- 2019-03: EUR 12.50 per share

- 2019-04: EUR 11.72 per share

- 2019-05: EUR 11.07 per share

- 2019-06: EUR 11.61 per share

- 2019-07: EUR 10.22 per share

- 2019-08: EUR 10.87 per share

- 2019-09: EUR 12.20 per share

- 2019-10: EUR 12.50 per share

- 2019-11: EUR 12.00 per share

- 2019-12: EUR 12.33 per share

- 2020-01: EUR 11.38 per share

- 2020-02: EUR 10.45 per share

- 2020-03: EUR 6.62 per share

- 2020-04: EUR 7.11 per share

- 2020-05: EUR 7.29 per share

- 2020-06: EUR 7.45 per share

- 2020-07: EUR 6.39 per share

- 2020-08: EUR 5.38 per share

- 2020-09: EUR 4.71 per share

- 2020-10: EUR 4.11 per share

- 2020-11: EUR 6.63 per share

- 2020-12: EUR 7.22 per share

- 2021-01: EUR 7.48 per share

- 2021-02: EUR 9.02 per share

- 2021-03: EUR 9.40 per share

- 2021-04: EUR 10.63 per share

- 2021-05: EUR 10.51 per share

- 2021-06: EUR 10.21 per share

- 2021-07: EUR 10.22 per share

- 2021-08: EUR 9.92 per share

- 2021-09: EUR 9.21 per share

- 2021-10: EUR 9.38 per share

- 2021-11: EUR 8.24 per share

- 2021-12: EUR 8.57 per share

- 2022-01: EUR 9.80 per share

- 2022-02: EUR 9.15 per share

- 2022-03: EUR 9.00 per share

- 2022-04: EUR 9.21 per share

- 2022-05: EUR 9.25 per share

- 2022-06: EUR 7.71 per share

- 2022-07: EUR 8.65 per share

- 2022-08: EUR 7.86 per share

- 2022-09: EUR 7.76 per share

- 2022-10: EUR 8.77 per share

- 2022-11: EUR 9.18 per share

- 2022-12: EUR 9.77 per share

- 2023-01: EUR 10.19 per share

- 2023-02: EUR 10.54 per share

- 2023-03: EUR 9.41 per share

- 2023-04: EUR 9.12 per share

- 2023-05: EUR 7.51 per share

- 2023-06: EUR 8.27 per share

- 2023-07: EUR 7.88 per share

- 2023-08: EUR 8.58 per share

- 2023-09: EUR 8.53 per share

- 2023-10: EUR 8.04 per share

- 2023-11: EUR 9.07 per share

- 2023-12: EUR 9.95 per share

- 2024-01: EUR 10.57 per share

- 2024-02: EUR 10.05 per share

- 2024-03: EUR 10.79 per share

- 2024-04: EUR 10.16 per share

- 2024-05: EUR 11.63 per share

- 2024-06: EUR 10.33 per share

- 2024-07: EUR 11.73 per share

- 2024-08: EUR 11.60 per share

- 2024-09: EUR 12.12 per share

- 2024-10: EUR 10.82 per share

- 2024-11: EUR 10.48 per share

- 2024-12: EUR 10.11 per share

- 2025-01: EUR 10.57 per share

- 2025-02: EUR 10.70 per share

- 2025-03: EUR 11.60 per share

- 2025-04: EUR 11.78 per share

- 2025-05: EUR 11.06 per share

- 2025-06: EUR 10.64 per share

- 2025-07: EUR 10.86 per share

- 2025-08: EUR 10.84 per share

- 2025-09: EUR 10.96 per share

- 2025-10: EUR 10.58 per share

- 2025-11: EUR 10.96 per share

- 2025-12: EUR 11.04 per share

- 2026-01: EUR 10.60 per share

- 2026-02: EUR 12.26 per share

- 2026-03: EUR 11.62 per share

- 2026-04: EUR 12.46 per share

- 2026-05: EUR 11.86 per share

- 2026-06: EUR 11.72 per share

- 2026-07: EUR 12.00 per share

- 2026-08: EUR 11.10 per share

- 2026-09: EUR 9.75 per share

- 2026-10: EUR 9.55 per share

## Annual estimated value (EUR per share)

- FY2019: low EUR 5.08 per share, central EUR 5.96 per share, high EUR 6.82 per share

- FY2020: low EUR 9.86 per share, central EUR 10.53 per share, high EUR 11.41 per share

- FY2021: low EUR 11.33 per share, central EUR 12.52 per share, high EUR 14.10 per share

- FY2022: low EUR 10.18 per share, central EUR 11.32 per share, high EUR 12.84 per share

- FY2023: low EUR 11.25 per share, central EUR 12.67 per share, high EUR 14.56 per share

- FY2024: low EUR 12.87 per share, central EUR 14.30 per share, high EUR 16.20 per share

- FY2025: low EUR 15.24 per share, central EUR 16.76 per share, high EUR 18.78 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/969500081CGAXB7YS433/2025-12-31/ESEF/FR/0/mercialys-2025-12-31-1/reports/mercialys-2025-12-31-1-fr.html); period 2025-12-31, filed 2026-03-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.