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McCarthy & Stone

LSE:MCS
Snowflake Description

Flawless balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCS
LSE
£670M
Market Cap
  1. Home
  2. GB
  3. Consumer Durables
Company description

McCarthy & Stone plc, together with its subsidiaries, operates as a retirement housing market in the United Kingdom. The last earnings update was 93 days ago. More info.


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MCS Share Price and Events
7 Day Returns
-4.2%
LSE:MCS
-3.1%
GB Consumer Durables
2.1%
GB Market
1 Year Returns
-14.4%
LSE:MCS
-3.3%
GB Consumer Durables
3.1%
GB Market
MCS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
McCarthy & Stone (MCS) -4.2% -2.5% -11.4% -14.4% -48.7% -
GB Consumer Durables -3.1% 0.8% 18.8% -3.3% 7.6% 54.7%
GB Market 2.1% 2.6% 9.7% 3.1% 17.2% 4.4%
1 Year Return vs Industry and Market
  • MCS underperformed the Consumer Durables industry which returned -3.3% over the past year.
  • MCS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 3.1% over the past year.
Price Volatility
MCS
Industry
5yr Volatility vs Market

MCS Value

 Is McCarthy & Stone undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of McCarthy & Stone to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for McCarthy & Stone.

LSE:MCS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:MCS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.909 (1 + (1- 19%) (7.67%))
0.977
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.977 * 6.65%)
7.73%

Discounted Cash Flow Calculation for LSE:MCS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for McCarthy & Stone is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:MCS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.73%)
2019 184.00 Analyst x1 170.80
2020 93.00 Analyst x1 80.14
2021 50.66 Est @ -45.53% 40.52
2022 34.70 Est @ -31.5% 25.77
2023 27.18 Est @ -21.68% 18.73
2024 23.15 Est @ -14.81% 14.81
2025 20.84 Est @ -10% 12.38
2026 19.45 Est @ -6.63% 10.73
2027 18.62 Est @ -4.27% 9.53
2028 18.13 Est @ -2.62% 8.62
Present value of next 10 years cash flows £392.03
LSE:MCS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £18.13 × (1 + 1.23%) ÷ (7.73% – 1.23%)
£282.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £282.48 ÷ (1 + 7.73%)10
£134.22
LSE:MCS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £392.03 + £134.22
£526.24
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £526.24 / 537.33
£0.98
LSE:MCS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.98
Current discount Discount to share price of £1.25
= -1 x (£1.25 - £0.98) / £0.98
-27.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of McCarthy & Stone is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for McCarthy & Stone's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are McCarthy & Stone's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:MCS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-08-31) in GBP £0.09
LSE:MCS Share Price ** LSE (2019-03-22) in GBP £1.25
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry PE Ratio Median Figure of 26 Publicly-Listed Consumer Durables Companies 9.91x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 805 Publicly-Listed Companies 15.82x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of McCarthy & Stone.

LSE:MCS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:MCS Share Price ÷ EPS (both in GBP)

= 1.25 ÷ 0.09

14.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCarthy & Stone is overvalued based on earnings compared to the GB Consumer Durables industry average.
  • McCarthy & Stone is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does McCarthy & Stone's expected growth come at a high price?
Raw Data
LSE:MCS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.5x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
5.1%per year
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry PEG Ratio Median Figure of 23 Publicly-Listed Consumer Durables Companies 1.14x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

LSE:MCS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.5x ÷ 5.1%

2.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCarthy & Stone is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on McCarthy & Stone's assets?
Raw Data
LSE:MCS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-08-31) in GBP £1.42
LSE:MCS Share Price * LSE (2019-03-22) in GBP £1.25
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry PB Ratio Median Figure of 28 Publicly-Listed Consumer Durables Companies 1.63x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,360 Publicly-Listed Companies 1.5x
LSE:MCS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:MCS Share Price ÷ Book Value per Share (both in GBP)

= 1.25 ÷ 1.42

0.88x

* Primary Listing of McCarthy & Stone.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCarthy & Stone is good value based on assets compared to the GB Consumer Durables industry average.
X
Value checks
We assess McCarthy & Stone's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. McCarthy & Stone has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MCS Future Performance

 How is McCarthy & Stone expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is McCarthy & Stone expected to grow at an attractive rate?
  • McCarthy & Stone's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • McCarthy & Stone's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • McCarthy & Stone's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:MCS Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:MCS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 5.1%
LSE:MCS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -2.9%
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 3.1%
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 2.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.1%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:MCS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:MCS Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-08-31 629 22 55 4
2020-08-31 638 90 52 5
2019-08-31 713 181 59 5
LSE:MCS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-08-31 672 15 46
2018-05-31 667 0 55
2018-02-28 662 -26 65
2017-11-30 662 -15 69
2017-08-31 661 8 74
2017-05-31 642 13 72
2017-02-28 624 19 69
2016-11-30 630 19 71
2016-08-31 636 18 73
2016-05-31 592 1 68
2016-02-29 547 -16 63
2015-11-30 517 2 63

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • McCarthy & Stone's earnings are expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
  • McCarthy & Stone's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:MCS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from McCarthy & Stone Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MCS Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-08-31 0.08 0.10 0.06 2.00
2020-08-31 0.08 0.11 0.03 3.00
2019-08-31 0.07 0.11 0.01 3.00
LSE:MCS Past Financials Data
Date (Data in GBP Millions) EPS *
2018-08-31 0.09
2018-05-31 0.10
2018-02-28 0.12
2017-11-30 0.13
2017-08-31 0.14
2017-05-31 0.13
2017-02-28 0.13
2016-11-30 0.13
2016-08-31 0.14
2016-05-31 0.13
2016-02-29 0.13
2015-11-30 0.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • McCarthy & Stone is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess McCarthy & Stone's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
McCarthy & Stone has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MCS Past Performance

  How has McCarthy & Stone performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare McCarthy & Stone's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • McCarthy & Stone's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • McCarthy & Stone's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • McCarthy & Stone's 1-year earnings growth is negative, it can't be compared to the GB Consumer Durables industry average.
Earnings and Revenue History
McCarthy & Stone's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from McCarthy & Stone Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MCS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-08-31 671.60 46.20 42.00
2018-05-31 666.95 55.35 41.30
2018-02-28 662.30 64.50 40.60
2017-11-30 661.60 69.35 39.70
2017-08-31 660.90 74.20 38.80
2017-05-31 642.40 71.65 36.65
2017-02-28 623.90 69.10 34.50
2016-11-30 629.90 71.10 34.60
2016-08-31 635.90 73.10 34.70
2016-05-31 591.65 67.90 34.85
2016-02-29 547.40 62.70 35.00
2015-11-30 516.55 63.40 34.75
2015-08-31 485.70 64.10 34.50
2015-05-31 456.15 59.70 36.80
2015-02-28 426.60 55.30 39.10
2014-11-30 407.20 49.80 37.55
2014-08-31 387.80 44.30 36.00
2013-08-31 310.80 4.40 26.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • McCarthy & Stone has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • McCarthy & Stone used its assets less efficiently than the GB Consumer Durables industry average last year based on Return on Assets.
  • McCarthy & Stone's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess McCarthy & Stone's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
McCarthy & Stone has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MCS Health

 How is McCarthy & Stone's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up McCarthy & Stone's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • McCarthy & Stone is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • McCarthy & Stone's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of McCarthy & Stone's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 17.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from McCarthy & Stone Company Filings, last reported 6 months ago.

LSE:MCS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-08-31 763.40 51.40 57.00
2018-05-31 763.40 51.40 57.00
2018-02-28 735.40 115.10 41.10
2017-11-30 735.40 115.10 41.10
2017-08-31 745.70 8.00 40.70
2017-05-31 745.70 8.00 40.70
2017-02-28 697.10 52.70 24.60
2016-11-30 697.10 52.70 24.60
2016-08-31 698.10 63.80 119.00
2016-05-31 698.10 63.80 119.00
2016-02-29 650.80 108.50 86.40
2015-11-30 650.80 108.50 86.40
2015-08-31 542.50 99.20 56.90
2015-05-31 542.50 99.20 56.90
2015-02-28 497.40 124.70 45.00
2014-11-30 497.40 124.70 45.00
2014-08-31 477.20 160.00 111.10
2013-08-31 432.40 158.10 96.90
  • McCarthy & Stone's level of debt (6.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (36.6% vs 6.7% today).
  • Debt is well covered by operating cash flow (28.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.2x coverage).
X
Financial health checks
We assess McCarthy & Stone's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. McCarthy & Stone has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MCS Dividends

 What is McCarthy & Stone's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.33%
Current annual income from McCarthy & Stone dividends. Estimated to be 4.78% next year.
If you bought £2,000 of McCarthy & Stone shares you are expected to receive £87 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • McCarthy & Stone's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.05%).
  • McCarthy & Stone's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.22%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:MCS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 6.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:MCS Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-08-31 0.06 5.00
2020-08-31 0.06 5.00
2019-08-31 0.06 5.00
LSE:MCS Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-12-19 0.054 4.077
2018-11-13 0.054 3.961
2017-12-12 0.054 4.196
2017-11-14 0.054 3.285
2016-12-13 0.070 4.119
2016-11-15 0.070 4.199
2016-04-19 0.020 1.077

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCarthy & Stone has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but McCarthy & Stone only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of McCarthy & Stone's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess McCarthy & Stone's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can McCarthy & Stone afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. McCarthy & Stone has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MCS Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Tonkiss
COMPENSATION £509,897
AGE 50
TENURE AS CEO 0.5 years
CEO Bio

Mr. John M. Tonkiss had served as Interim Chief Executive Officer of McCarthy & Stone Plc from September 1, 2018 to September 25, 2018. He has been the Chief Executive Officer at McCarthy & Stone Plc since September 25, 2018 and also serves as its Executive Director since November 05, 2015. Mr. Tonkiss served as Group National Operations Director at McCarthy & Stone Plc since September 01, 2016 until June 1, 2017 and Chief Operating Officer since June 1, 2017 until September 1, 2018. Previously, Mr. Tonkiss served as Operations Director of North & Business Transformation at McCarthy & Stone Plc since until September 01, 2016. Mr. Tonkiss served as an Operations Director of North & Business Transformation at McCarthy & Stone Retirement Lifestyles Limited from October 16, 2015 to September 1, 2016. Mr. Tonkiss served as Business Transformation Director of McCarthy & Stone Limited. He was responsible for leading the improvement change programme to accelerate business growth, enhance customer experience and improve operating performance. He served as Business Transformation Director of McCarthy & Stone Retirement Lifestyles Limited. He served as Chief Executive Officer of Human Recognition Systems Limited since August 30, 2012. He served as the Chief Operating Officer and Member of Operations Board at Unite Group plc until January 1, 2012. Mr. Tonkiss served as Managing Director of Student Hospitality UK Business at Unite Group plc since January 2007. Mr. Tonkiss was responsible for managing and growing UNITE's student business across the UK, with the important exception of London. He held number of engineering roles at Lucas Electrical. He served as a Manufacturing Director and Group Development Director of Unite Group PLC. since October 2004. He was responsible managing UNITE's acquisition and development business, Product Development and Group Procurement. He joined UNITE in September 2001 to deliver new Manufacturing facility. He served as General Manager of manufacturing business of Unite Group plc, where he set up its pioneering off-site manufacturing facility since September 2001. He worked as a software/electronics engineer on car fuelling systems prior to taking up Operational and Plant management roles with the Mercian automotive group TRW. He served as a Director of Unite Group plc from January 25, 2007 to January 1, 2012. An alumnus of The London Business School and Harvard, Mr. Tonkiss holds an MSc in Manufacturing Systems and Logistics from Birmingham City University.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year.
  • John's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the McCarthy & Stone management team in years:

0.5
Average Tenure
50
Average Age
  • The average tenure for the McCarthy & Stone management team is less than 2 years, this suggests a new team.
Management Team

John Tonkiss

TITLE
CEO & Executive Director
COMPENSATION
£510K
AGE
50
TENURE
0.5 yrs

Rowan Baker

TITLE
CFO & Executive Director
COMPENSATION
£449K
TENURE
2.2 yrs

Mark Riddington

TITLE
Managing Director – Management Services & Member of Executive Board
TENURE
0.5 yrs

Tracey McDermott

TITLE
Chief Information Officer & Member of Executive Board
TENURE
0.5 yrs

Marina Calero

TITLE
Director of Investor Relations

Patrick Hole

TITLE
Group General Counsel & Company Secretary
TENURE
4.7 yrs

Paul Teverson

TITLE
Director of Communications

Paula Jordan

TITLE
Human Resources Director

Nigel Turner

TITLE
COO of Build & Director
AGE
52
TENURE
0.2 yrs

Mike Lloyd

TITLE
COO of Services & Customers and Director
AGE
40
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the McCarthy & Stone board of directors in years:

1.3
Average Tenure
55
Average Age
  • The average tenure for the McCarthy & Stone board of directors is less than 3 years, this suggests a new board.
Board of Directors

Paul Lester

TITLE
Group Non-Executive Chairman
COMPENSATION
£142K
AGE
68
TENURE
1.2 yrs

John Tonkiss

TITLE
CEO & Executive Director
COMPENSATION
£510K
AGE
50
TENURE
3.3 yrs

Rowan Baker

TITLE
CFO & Executive Director
COMPENSATION
£449K

Nigel Turner

TITLE
COO of Build & Director
AGE
52
TENURE
0.2 yrs

Mike Lloyd

TITLE
COO of Services & Customers and Director
AGE
40
TENURE
0.2 yrs

Frank Nelson

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£74K
AGE
67

Mike Parsons

TITLE
Independent Non-Executive Director
COMPENSATION
£64K
AGE
68
TENURE
5.3 yrs

Geeta Nanda

TITLE
Independent Non-Executive Director
COMPENSATION
£54K
AGE
53
TENURE
3.9 yrs

John Carter

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
AGE
57
TENURE
1.5 yrs

Arun Nagwaney

TITLE
Non-Executive Director
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess McCarthy & Stone's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. McCarthy & Stone has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MCS News

Simply Wall St News

McCarthy & Stone plc (LON:MCS): What Can We Expect From This High Growth Stock?

McCarthy & Stone plc's (LON:MCS) most recent earnings update in August 2018a … confirmed

Simply Wall St -

A Holistic Look At McCarthy & Stone plc (LON:MCS)

McCarthy & Stone plc (LON:MCS) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … is a company that has been able to sustain great financial health, trading at an attractive share price

Simply Wall St -

An Intrinsic Calculation For McCarthy & Stone plc (LON:MCS) Shows It's 30.53% Undervalued

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of McCarthy & Stone plc (LON:MCS) as an investment opportunity. … by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF).

Simply Wall St -

Should You Be Concerned About McCarthy & Stone plc's (LON:MCS) ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows McCarthy & Stone has a return on equity of 6.1% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What To Know Before Buying McCarthy & Stone plc (LON:MCS) For Its Dividend

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … McCarthy & Stone plc (LON:MCS) has recently paid dividends to shareholders, and currently yields 4.0%. … Let's dig deeper into whether McCarthy & Stone should have a place in your portfolio.

Simply Wall St -

McCarthy & Stone plc (LON:MCS): Will The Growth Last?

As McCarthy & Stone plc (LON:MCS) released its earnings announcement on 31 August 2018,. … conservative, with earnings growth rate expected to be 11% next year, which is within range of the past five-year average earnings growth of 11%

Simply Wall St -

What Should Investors Know About McCarthy & Stone plc's (LON:MCS) Capital Returns?

and want to begin learning the link between McCarthy & Stone plc (LON:MCS)’s return fundamentals and stock market performance. … McCarthy & Stone stock represents an ownership share in the company. … Thus, to understand how your money can grow by investing in McCarthy & Stone, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Did McCarthy & Stone plc (LON:MCS) Create Value For Investors Over The Past Year?

and want to learn about Return on Equity using a real-life example. … McCarthy & Stone plc (LON:MCS) generated a below-average return on equity of 8.8% in the past 12 months, while its industry returned 16.3%. … Breaking down Return on Equity

Simply Wall St -

What To Know Before Buying McCarthy & Stone plc (LON:MCS) For Its Dividend

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … McCarthy & Stone plc (LON:MCS) has returned to shareholders over the past 2 years, an average dividend yield of 4.00% annually. … Does McCarthy & Stone tick all the boxes of a great dividend stock?

Simply Wall St -

Is McCarthy & Stone plc's (LON:MCS) CEO Pay Justified?

Clive Fenton took the reins as CEO of McCarthy & Stone plc's (LON:MCS) and grew market cap to UK£558.82m recently. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders.

Simply Wall St -

MCS Company Info

Description

McCarthy & Stone plc, together with its subsidiaries, operates as a retirement housing market in the United Kingdom. The company builds, sells, and manages retirement developments. It offers retirement living developments, which provide apartments for customers aged 60 and over; retirement living plus developments, which are designed for customers aged 70 and over, as well as offers retirement properties with management services, domestic assistance, personal care, and additional support; and lifestyle living developments for customers aged 55 and over. The company was founded in 1977 and is headquartered in Bournemouth, the United Kingdom.

Details
Name: McCarthy & Stone plc
MCS
Exchange: LSE
Founded: 1977
£670,049,804
537,329,434
Website: http://www.mccarthyandstonegroup.co.uk
Address: McCarthy & Stone plc
100 Holdenhurst Road,
4th Floor,
Bournemouth,
Dorset, BH8 8AQ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE MCS Ordinary Shares London Stock Exchange GB GBP 06. Nov 2015
DB MCM Ordinary Shares Deutsche Boerse AG DE EUR 06. Nov 2015
BATS-CHIXE MCSL Ordinary Shares BATS 'Chi-X Europe' GB GBP 06. Nov 2015
Number of employees
Current staff
Staff numbers
2,512
McCarthy & Stone employees.
Industry
Homebuilding
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/22 21:49
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/21
Last earnings filing: 2018/12/19
Last earnings reported: 2018/08/31
Last annual earnings reported: 2018/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.