AIM:MRL

Stock Analysis Report

Executive Summary

Marlowe plc provides fire and security, water treatment, and air hygiene services in the United Kingdom.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

How has Marlowe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.2%

MRL

-1.2%

GB Commercial Services

-0.9%

GB Market


1 Year Return

44.5%

MRL

23.2%

GB Commercial Services

6.2%

GB Market

Return vs Industry: MRL exceeded the UK Commercial Services industry which returned 23.2% over the past year.

Return vs Market: MRL exceeded the UK Market which returned 6.2% over the past year.


Shareholder returns

MRLIndustryMarket
7 Day3.2%-1.2%-0.9%
30 Day3.7%-2.6%-3.1%
90 Day15.9%4.8%3.9%
1 Year44.5%44.5%26.9%23.2%11.9%6.2%
3 Year46.8%46.8%24.4%13.8%17.3%2.4%
5 Year633.8%633.8%32.0%10.6%34.1%3.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Marlowe undervalued compared to its fair value and its price relative to the market?

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRL (£5.1) is trading below our estimate of fair value (£6.31)

Significantly Below Fair Value: MRL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MRL is poor value based on its PE Ratio (267.9x) compared to the Commercial Services industry average (19.7x).

PE vs Market: MRL is poor value based on its PE Ratio (267.9x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MRL is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: MRL is overvalued based on its PB Ratio (2.4x) compared to the GB Commercial Services industry average (2.2x).


Next Steps

Future Growth

How is Marlowe forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

57.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRL's forecast earnings growth (57.5% per year) is above the savings rate (0.5%).

Earnings vs Market: MRL's earnings (57.5% per year) are forecast to grow faster than the UK market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MRL's revenue (7.5% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: MRL's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MRL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Marlowe performed over the past 5 years?

34.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRL has a large one-off loss of £5.9M impacting its September 30 2019 financial results.

Growing Profit Margin: MRL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MRL's earnings have grown significantly by 34.9% per year over the past 5 years.

Accelerating Growth: MRL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MRL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (17.1%).


Return on Equity

High ROE: MRL's Return on Equity (0.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Marlowe's financial position?


Financial Position Analysis

Short Term Liabilities: MRL's short term assets (£60.3M) exceed its short term liabilities (£48.6M).

Long Term Liabilities: MRL's short term assets (£60.3M) exceed its long term liabilities (£42.4M).


Debt to Equity History and Analysis

Debt Level: MRL's debt to equity ratio (25.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MRL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MRL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MRL's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet

Inventory Level: MRL has a low level of unsold assets or inventory.

Debt Coverage by Assets: MRL's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Marlowe's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.8%markettop25%5.1%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average board tenure


CEO

Alex Dacre 0

UK£298,000

Compensation

Mr. Alex Dacre serves as the Chief Executive Officer of Marlowe plc ( also known as Marlowe Holdings Limited). Mr. Dacre has background in the quoted business-to-business services sector and an expertise  ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD388.18K) is below average for companies of similar size in the UK market ($USD836.35K).

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


Board Members

NamePositionTenureCompensationOwnership
Alex Dacre
CEO & Director0yrsUK£298.00k7.69% £18.0m
Mark Adams
Group Finance Director & Director2.1yrsUK£179.00k0.016% £38.2k
Peter Michael Gaze
Non-Executive Director14.1yrsUK£35.00k1.31% £3.1m
Charles Anthony Skinner
Non-Executive Director4.8yrsUK£23.00k1.02% £2.4m
Kevin Quinn
Non-Executive Chairman0.8yrsUK£11.00k0.024% £57.1k

4.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: MRL's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MRL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.8%.


Top Shareholders

Company Information

Marlowe plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Marlowe plc
  • Ticker: MRL
  • Exchange: AIM
  • Founded: 2006
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: UK£233.932m
  • Shares outstanding: 45.87m
  • Website: https://www.marloweplc.com

Number of Employees


Location

  • Marlowe plc
  • 20 Grosvenor Place
  • London
  • Greater London
  • SW1X 7HN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRLAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2007
MRLW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007

Biography

Marlowe plc provides fire and security, water treatment, and air hygiene services in the United Kingdom. It operates through two segments, Fire Protection & Security Systems, and Water Treatment & Air Quality. The company designs, installs, and maintains fire protection and security systems for retailers, banks, and housing associations, as well as leisure, education, retail, local authority customers; and provides integrated water treatment, hygiene, testing, and engineering services. It is also involved in the installation and maintenance of fire suppression systems; and provision of ventilation maintenance, ductwork cleaning and management, kitchen extract cleaning, and contamination remediation services to national hotel and leisure providers, airports, NHS trusts, universities, local authorities, and FTSE Companies. The company was formerly known as Marlowe Holdings Limited. Marlowe plc was incorporated in 2006 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:02
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.