DB:MABB

Stock Analysis Report

Executive Summary

Mitchells & Butlers plc manages pubs, bars, and restaurants in the United Kingdom and Germany.

Snowflake

Fundamentals

Fair value with acceptable track record.


Similar Companies

Share Price & News

How has Mitchells & Butlers's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

10.7%

MABB

3.7%

DE Hospitality

1.4%

DE Market


1 Year Return

71.2%

MABB

-16.3%

DE Hospitality

3.7%

DE Market

Return vs Industry: MABB exceeded the German Hospitality industry which returned -16.3% over the past year.

Return vs Market: MABB exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

MABBIndustryMarket
7 Day10.7%3.7%1.4%
30 Day19.4%21.6%1.3%
90 Day49.5%26.1%3.4%
1 Year71.2%71.2%-10.6%-16.3%7.0%3.7%
3 Year67.6%59.1%16.0%0.5%18.5%8.3%
5 Year19.0%10.3%35.7%8.7%42.2%22.9%

Price Volatility Vs. Market

How volatile is Mitchells & Butlers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mitchells & Butlers undervalued compared to its fair value and its price relative to the market?

16.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MABB (€4.96) is trading above our estimate of fair value (€2.75)

Significantly Undervalued: MABB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MABB is good value based on its PE Ratio (16.8x) compared to the Hospitality industry average (32.3x).

PE vs Market: MABB is good value based on its PE Ratio (16.8x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: MABB is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: MABB is good value based on its PB Ratio (1x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is Mitchells & Butlers forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MABB's forecast earnings growth (8.9% per year) is above the savings rate (0.2%).

Earnings vs Market: MABB's earnings (8.9% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: MABB's earnings are forecast to grow, but not significantly.

Revenue vs Market: MABB's revenue (2.4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: MABB's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MABB's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Mitchells & Butlers performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MABB's earnings have declined by -5.7% per year over the past 5 years.

Accelerating Growth: MABB's earnings growth over the past year (80.3%) exceeds its 5-year average (-5.7% per year).

Earnings vs Industry: MABB earnings growth over the past year (80.3%) exceeded the Hospitality industry -28.4%.


Return on Equity

High ROE: MABB's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: MABB has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: MABB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Mitchells & Butlers's financial position?


Financial Position Analysis

Short Term Liabilities: MABB's short term assets (£366.0M) do not cover its short term liabilities (£673.0M)

Long Term Liabilities: MABB's short term assets (366.0M) do not cover its long term liabilities (2.4B)


Debt to Equity History and Analysis

Debt Level: MABB's debt to equity ratio (119.2%) is considered high

Reducing Debt: MABB's debt to equity ratio has reduced from 194% to 119.2% over the past 5 years.

Debt Coverage: MABB's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: MABB's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: MABB has a high level of physical assets or inventory.

Debt Coverage by Assets: MABB's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Mitchells & Butlers's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate MABB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MABB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if MABB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MABB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MABB is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MABB's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Mitchells & Butlers's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Phil Urban (56yo)

4.1yrs

Tenure

UK£819,000

Compensation

Mr. Phil Urban has been the Chief Executive Officer of Mitchells & Butlers plc since September 27, 2015. Mr. Urban served as the Chief Operating Officer of Mitchells & Butlers plc from January 5, 2015 to S ...


CEO Compensation Analysis

Compensation vs. Market: Phil's total compensation ($USD1.05M) is about average for companies of similar size in the German market ($USD1.61M).

Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.8yrs

Average Tenure

56yo

Average Age

Experienced Management: MABB's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

56yo

Average Age

Experienced Board: MABB's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Tim Jones (56yo)

    Finance Director & Director

    • Tenure: 9yrs
    • Compensation: UK£688.00k
  • Phil Urban (56yo)

    CEO & Director

    • Tenure: 4.1yrs
    • Compensation: UK£819.00k
  • Greg McMahon (59yo)

    General Counsel & Company Secretary

    • Tenure: 6.7yrs
  • Susan Martindale (58yo)

    Group HR Director

    • Tenure: 6.9yrs
  • Chris Hopkins (53yo)

    Commercial & Marketing Director

    • Tenure: 0yrs
  • Amy De Marsac

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Susan Murray (61yo)

    Senior Independent Director

    • Tenure: 0.6yrs
  • Colin Rutherford (60yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: UK£64.50k
  • Bob Ivell (67yo)

    Non-Executive Chairman

    • Tenure: 8.3yrs
    • Compensation: UK£287.00k
  • Tim Jones (56yo)

    Finance Director & Director

    • Tenure: 9yrs
    • Compensation: UK£688.00k
  • Imelda Walsh (55yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: UK£62.00k
  • Phil Urban (56yo)

    CEO & Director

    • Tenure: 4.1yrs
    • Compensation: UK£819.00k
  • Ron Robson (56yo)

    Deputy Chairman of the Board

    • Tenure: 8.3yrs
    • Compensation: UK£52.00k
  • Eddie Irwin (60yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: UK£52.00k
  • Josh Levy (29yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£52.00k
  • Dave Coplin (49yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£53.00k

Company Information

Mitchells & Butlers plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mitchells & Butlers plc
  • Ticker: MABB
  • Exchange: DB
  • Founded: 1898
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£1.844b
  • Listing Market Cap: UK£2.131b
  • Shares outstanding: 426.95m
  • Website: https://www.mbplc.com

Number of Employees


Location

  • Mitchells & Butlers plc
  • 27 Fleet Street
  • Birmingham
  • West Midlands
  • B3 1JP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MBPF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2003
MABLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2003
MABBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2003
MABLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2003

Biography

Mitchells & Butlers plc manages pubs, bars, and restaurants in the United Kingdom and Germany. It operates its pubs and restaurants under the Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:49
End of Day Share Price2019/10/18 00:00
Earnings2019/04/13
Annual Earnings2018/09/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.