Mears Group plc — Cyborg Score 7/10

Solid
Outsourced Housing and Facilities Management Services

Strategic Profile

Mears manages and maintains around 450,000 homes across the UK and works predominantly with Central Government and Local Government through long-term contracts. 2023 revenue reached £1.09 billion (+13.52% YoY) with earnings of £35.20 million (+24.36%). The company benefits from stable, contract-based revenue and exposure to growing social housing and maintenance sectors.

Cyborg Score Rationale

Strong ROE of 21.06% demonstrates efficient capital deployment in a contracted services model. Positive free cash flow of £121.51 million in trailing 12 months supports dividend payments and reinvestment. However, elevated leverage (Debt/Equity ratio of 1.37) and current ratio of 0.87 present some balance sheet concerns.

Top Insights

  • Currently trading at undervalued levels according to Wall Street analyst consensus.
  • Dividend yield increased to 7.53% in 2024 from 4.19% prior year, signaling shareholder-friendly capital allocation.
  • Stock price up +30.22% over 52 weeks, reflecting market recognition of operational improvements.
  • Manages approximately 450,000 homes in UK, providing significant revenue stability through long-term government contracts.

Named Competitors

  • Facilities Management Services — Diversified public services contractor
  • Housing and Social Care Services — Specialist housing and care provider
  • Maintenance and Repair Services — Infrastructure and facilities services

Recent Developments

  • (August 2025) Delivered Q2 2025 results with earnings beat on £0.277 EPS
  • (November 2024) Released financial results showing revenue and earnings growth trajectory
  • (2023) Achieved £1.09B revenue (+13.5% YoY) demonstrating strong operational momentum

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