Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Mears Group plc is a UK-based provider of outsourced services to the public and private sectors, specializing in social housing repairs and maintenance. The company delivers rapid-response and planned maintenance, gas repair services, capital works, energy investment, regeneration solutions, and grounds maintenance for local authorities and public buildings. It also offers comprehensive housing management, including affordable and social housing supply, emergency accommodation, housing with care, private rented sector management, and services to central government departments. Additionally, Mears Group plc provides house building, facilities management for defense, education, healthcare, public buildings, and commercial offices, alongside housing technology, insurance, and property acquisition services. Founded in 1988 and headquartered in Gloucester, Mears Group plc plays a vital role in supporting UK social housing and public sector infrastructure, employing over 5,000 people and operating in growing markets with a focus on energy efficiency and home improvements.
£4.33
+£0.09 (+2.25%)
EOD Jul 3, 2026
Operating margin is thin at 6.61%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 0.3%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 33% versus the prior year, cash generation momentum has weakened. Net debt of £270M represents 4.1x FCF, leverage limits flexibility.
8.0x earnings, 5.5x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£1.14B
▲ +0.3% YoY
Net Income (TTM)
£46M
▼ -2.1% YoY
Op. Margin
6.61%
▲ +0.3pp YoY
ROIC
10.77%
Cash Flow & Balance Sheet
FCF (TTM)
£66M
▼ -32.6% YoY
Op. Cash Flow (TTM)
£111M
▼ -13.0% YoY
Net Debt
£270M
Cash & Equiv.
£48M
3Y CAGR: +5.8%
3Y CAGR: -13.5%
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At a P/E of 8.0 and a price-to-free-cash-flow of 5.5, Mears Group (MER.XLON) trades below a two-stage DCF intrinsic value of about £14.76 per share, so at £4.33 the stock looks undervalued (241.3% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Mears Group scores 65/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 3.9%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £14.76 per share for MER.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £11.07. At today's £4.33, that puts the stock about 241.3% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Mears Group scores 65 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 6.6% operating margin and a 10.8% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Mears Group pays a regular dividend of about £0.17 per share per year (typically in quarterly installments), a yield of roughly 3.9% at the current price. That is a payout ratio of about 30.2% of earnings, so the dividend is amply covered by earnings. Mears Group has grown the dividend at roughly 49.6% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For MER.XLON's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. MER.XLON currently trades below its estimated intrinsic value and scores 65/100 on quality (solid). It also yields about 3.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.