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Mears Group (MER) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 321M GBX

MG Mears Group MER · LSE
Price£3.96
Fair Value£12.42
Upside+214.0%
Quality95/100
Evidence: High Range £8.48 – £15.68

Fair value as of: Jun 25, 2026

From 26 valuation models · updated 4 days ago

Share price −2.0% over the past month.

Price vs Fair Value (12 months)

£4.11 £3.03 Fair Value £12.42 Jun 2025 Jun 2026

12‑month range £3.03 – £4.11 · fair‑value band £8.48 – £15.68 · the £3.96 price screens below the £12.42 fair value. As of Jun 25, 2026.

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Analysis

Mears Group (MER) currently trades at £3.96, while our model-based Fair Value estimate is £12.42 — implying the stock looks roughly 214.0% undervalued today. We read business quality at 95/100 (high quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high) — always confirm before acting.

Over the trailing twelve months, Mears Group generated revenue of £1.1B at a net margin of 4.1%. Revenue grew 4.3% year over year. It earns a return on equity of 23.4%. Net debt stands at £270M. Fundamentals as of Jun 25, 2026

Key figures & financial health

Revenue (TTM) 1.1B GBX
Revenue growth (YoY) +4.3%
Net margin 4.1%
Return on equity 23.4%
Free cash flow 55.1M GBX FY2025
P/E ratio 7.3
More key figures
Operating margin 6.8%
EPS (TTM) £0.5400
Dividend yield 4.2%
EPS growth (YoY) +1.4%
Net debt 270M GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 25, 2026. TTM = trailing twelve months.

About the company

Mears Group plc, together with its subsidiaries, provides various outsourced services to the public and private sectors in the United Kingdom. The company offers response and planned maintenance services; gas and repair services; and maintenance and repairs, regeneration solutions for public buildings, and social housing retrofitting program, as well as grounds maintenance services. It also provides housing management services, which include tenancy, lease and property management; supply of affordable homes to public and private sectors; emergency and temporary accommodation services; affordable housing/social housing management; housing with care services; private rented sector; mears housing solutions; and housing services to central government departments. In addition, the company offers house building services; and facilities management services that includes asset, project, and lifecycle management, electrical and water compliance, cleaning maintenance, and contract management …

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Mears Group reported revenue of £1.1B in FY2025 versus £878M in FY2021, a compound +6.6%/yr. Reported net income was £46.2M in FY2025, compounding +34.5%/yr from FY2021.

Revenue +6.6%/yr
FY21 £878M
FY22 £960M
FY23 £1.1B
FY24 £1.1B
FY25 £1.1B
Net income +34.5%/yr
FY21 £14.1M
FY22 £28.3M
FY23 £35.2M
FY24 £46.5M
FY25 £46.2M

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Frequently asked questions

Is Mears Group (MER) undervalued?
As of Jun 25, 2026, our model estimates a fair value of £12.42 versus a price of £3.96 — about +214% (undervalued). Model-based estimate, not financial advice.
What is the fair value of MER?
Our 21-model fair value for Mears Group is £12.42 (as of Jun 25, 2026), built from audited fundamentals. The current price is £3.96.
What is the quality score of MER?
Mears Group has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Mears Group (MER)?
Mears Group reported trailing-twelve-month revenue of about £1.1B (latest available figure, as of Jun 25, 2026).
What is the net profit margin of MER?
The net profit margin of Mears Group is about 4.1%, meaning it keeps roughly 4.1% of revenue as net income. Based on the latest reported figures.
Does Mears Group pay a dividend?
Mears Group currently shows a dividend yield of about 4.22% relative to its recent price (as of Jun 25, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.