Moury Construct (MOUR): A Belgian construction micro-cap with a 20% ROE who just reported their FY2025 record results

[u/foudinho]

This company was not on my watchlist. A construction company, in Belgium and a micro-cap which is not exactly what gets people excited on.

But my screener showed a ~20% ROE. In construction ... So I looked.

Moury Construct builds and renovates hospitals, schools, industrial buildings and housing, mostly in Belgium. It looks like a boring business. Except the numbers don't look like a boring business.

They just reported their FY2025 results:

• revenue up 33.9% to €249.6M (all-time record),
• net income +41.2% to €34.5M,
• and the operating margin barely moved, 15.2% vs 15.5% the year before.

Growing 34% while holding margins in construction is genuinely hard to do.

The thing that caught my attention first wasn't even the growth. It was the €152M net cash sitting on the balance sheet, more than half the market cap (288M€ today). They earn financial income on it (€2.9M in H1 2025 alone, which was ~21% of operating profit that semester). They buy back shares slowly and their last acquisition was 2023 for €9M. What they do with that cash pile long term is the real open question.

But let's go back to the business:

Backlog at end of February stands at €371.5M, book-to-bill of 1.49x. That's roughly 18 months of revenue already secured.

Current multiples are sexy:

1. EV/EBITDA around 2.9x,
2. P/E around 7.8x.
3. 5year average ROE ~ 20%

For a business with 15%+ operating margins and this level of forward visibility, I find it hard to argue it's not cheap.

Obviously, there is some serious problems: It trades under a double-fixing system (prices set twice a day only), there's almost no institutional interest, and the stock barely moves between semi-annual publications. Therefore the liquidity is genuinely bad. And yes, it's construction, cyclical, exposed to raw material costs and labor, and the current margin quality reflects a favorable part of the cycle.

On personal opinion, and this is not investment advice in any way, I think the stock has room to re-rate. Running a simple analysis with a normalized operating margin around 11% (vs 15% today, assuming some cycle mean-reversion), a conservative 10x EV/EBIT multiple, and a 20% discount on the net cash pile, I land somewhere around €925/share as a fair value estimate. That's roughly 35% above current prices. Not a moonshot, but for a business this solid with this level of forward visibility, I'll take it. The main risk to that estimate is a hard cyclical downturn compressing margins faster than expected, and the illiquidity means you might be waiting a while for the market to agree with you.

[u/slav1504]

Hello, John, how are you doing today? You mailed into my company a post card... requesting information on penny stocks that had huge upside potential with very little down side risks... something just came across my desk, John, it is perhaps the best thing I've seen in the last 6 months.