MERLIN Properties SOCIMI, S.A. (MRL.MC) stock analysis

In our weekly check, MERLIN Properties SOCIMI, S.A. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 5.

About MERLIN Properties SOCIMI, S.A.

MERLIN Properties SOCIMI, S.A. is a Real Estate company (REIT - Diversified) based in Spain, listed on BME as MRL.MC.

What our checks show for MRL.MC

Red flags

• Profits not backed by cash
• Analysts expect the net margin to shrink by 97.6 points from today's 147%.
• Recovering from its deepest fall took about 4.9 years.
• The share count grew by 20.2% in 2 years: each shareholder owns a smaller slice.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 3.4x a year of EBITDA (debt/equity 0.54). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 2.6 points, to 85.3%: costs are rising faster than prices.
• Analysts expect earnings per share to shrink about 27.1% a year.
• Free cash flow is only 0% of revenue.
• The stock has fallen as much as 57% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 6.4%.

Strengths

• Operating profit covers interest 8.3 times over.
• The net margin rose by 13.2 points over 5 years, to 147%.
• Analysts expect revenue to grow about 17.4% a year over the next years.
• Earnings per share grew 142% a year over the last 3 years.
• Net profit grew 48% a year over the last 3 years.
• The company keeps 147% of its revenue as net profit.

Next earnings report: 2026-11-12

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Questions

What grade does MERLIN Properties SOCIMI, S.A. (MRL.MC) have?

In our weekly check, MERLIN Properties SOCIMI, S.A. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of MRL.MC stock?

This week's biggest flags for MERLIN Properties SOCIMI, S.A.: Profits not backed by cash, Margins expected to shrink, Slow recovery after falls. In total 11 of 24 checks show a warning or a red flag.

What does MERLIN Properties SOCIMI, S.A. do?

MERLIN Properties SOCIMI, S.A. is a Real Estate company (REIT - Diversified) based in Spain, listed on BME as MRL.MC.

When does MERLIN Properties SOCIMI, S.A. report earnings next?

The next earnings report is expected on 2026-11-12. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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