LSE:MCLS

Stock Analysis Report

Executive Summary

McColl's Retail Group plc operates as a neighborhood retailer in the United Kingdom.


Snowflake Analysis

Fair value with worrying balance sheet.

Share Price & News

How has McColl's Retail Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCLS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

27.5%

MCLS

4.5%

GB Consumer Retailing

5.9%

GB Market


1 Year Return

-64.2%

MCLS

-6.4%

GB Consumer Retailing

-22.7%

GB Market

Return vs Industry: MCLS underperformed the UK Consumer Retailing industry which returned -5.2% over the past year.

Return vs Market: MCLS underperformed the UK Market which returned -18.8% over the past year.


Shareholder returns

MCLSIndustryMarket
7 Day27.5%4.5%5.9%
30 Day-28.8%-7.0%-23.1%
90 Day-31.6%-13.7%-28.1%
1 Year-63.2%-64.2%-2.8%-6.4%-18.6%-22.7%
3 Year-84.8%-86.7%0.7%-6.7%-13.4%-24.7%
5 Year-80.2%-84.7%-0.2%-9.1%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is McColl's Retail Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCLS (£0.26) is trading below our estimate of fair value (£2.39)

Significantly Below Fair Value: MCLS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MCLS is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: MCLS is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MCLS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MCLS is good value based on its PB Ratio (0.8x) compared to the GB Consumer Retailing industry average (1x).


Next Steps

Future Growth

How is McColl's Retail Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

0.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MCLS's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if MCLS's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: MCLS's revenue (0.7% per year) is forecast to grow slower than the UK market (2.7% per year).

High Growth Revenue: MCLS's revenue (0.7% 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 MCLS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has McColl's Retail Group performed over the past 5 years?

-53.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCLS is currently unprofitable.

Growing Profit Margin: MCLS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCLS is unprofitable, and losses have increased over the past 5 years at a rate of -53.2% per year.

Accelerating Growth: Unable to compare MCLS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MCLS is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (26%).


Return on Equity

High ROE: MCLS has a negative Return on Equity (-248.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is McColl's Retail Group's financial position?


Financial Position Analysis

Short Term Liabilities: MCLS's short term assets (£163.4M) do not cover its short term liabilities (£229.3M).

Long Term Liabilities: MCLS's short term assets (£163.4M) exceed its long term liabilities (£142.3M).


Debt to Equity History and Analysis

Debt Level: MCLS's debt to equity ratio (332.4%) is considered high.

Reducing Debt: MCLS's debt to equity ratio has increased from 38.3% to 332.4% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: MCLS's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MCLS has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: MCLS has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is McColl's Retail Group's current dividend yield, its reliability and sustainability?

9.01%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MCLS'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 MCLS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: MCLS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCLS'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?

1.2yrs

Average management tenure


CEO

Jonathan Miller

3.92s

Tenure

UK£590,000

Compensation

Mr. Jonathan Miller, FCA, has been the Chief Executive Officer at McColl's Retail Group plc since April 01, 2016 and was its Secretary. Mr. Miller served as the Chief Financial Officer at McColl's Retail G ...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD732.34K) is above average for companies of similar size in the UK market ($USD330.32K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Miller
CEO & Executive Director3.92yrsUK£590.00k10.11% £3.0m
Robbie Bell
CFO & Executive Director1.17yrsUK£361.41kno data
David Thomas
Consultant0.17yrUK£356.00k1.03% £307.8k
Karen Bird
Colleague & Operations Director0.17yrno datano data
Naomi Kissman
Head of Investor Relationsno datano datano data
Richard Crampton
Chief Commercial Officer1.17yrsno datano data
Rachel Peat
Company Secretary1.33yrsno datano data

1.2yrs

Average Tenure

Experienced Management: MCLS's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jonathan Miller
CEO & Executive Director3.92yrsUK£590.00k10.11% £3.0m
Robbie Bell
CFO & Executive Director1.17yrsUK£361.41kno data
Sharon Brown
Independent Non-Executive Director6.08yrsUK£58.00k0.015% £4.5k
Angus Porter
Independent Non-Executive Chairman2.92yrsUK£146.00k0.0050% £1.5k
Georgina Harvey
Senior Independent Director3.83yrsUK£58.00k0.0091% £2.7k
Jens Hofma
Independent Non-Executive Director2.67yrsUK£46.00kno data

3.4yrs

Average Tenure

52.5yo

Average Age

Experienced Board: MCLS's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

McColl's Retail Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: McColl's Retail Group plc
  • Ticker: MCLS
  • Exchange: LSE
  • Founded: 1973
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: UK£29.950m
  • Shares outstanding: 115.19m
  • Website: https://www.mccollsplc.co.uk

Number of Employees


Location

  • McColl's Retail Group plc
  • McColl's House
  • Ashwells Road
  • Brentwood
  • Essex
  • CM15 9ST
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCLSLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2014
MCLSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPFeb 2014
2M2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2014

Biography

McColl's Retail Group plc operates as a neighborhood retailer in the United Kingdom. The company operates convenience and newsagent stores that offer fruits and vegetables, milk, chilled foods, alcohol, confectionery, tobacco and e-cigarettes, canned and packaged grocery, soft-drinks, non-food, household, hot food-to-go, and newspapers, as well as provides post office and ATM services. As of November 26, 2017, it operated 1,611 neighborhood stores, including 1,279 McColl's branded convenience stores and 332 Martin’s branded newsagents stores in England, Scotland, and Wales. The company was founded in 1973 and is headquartered in Brentwood, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 23:00
End of Day Share Price2020/03/27 00:00
Earnings2019/11/24
Annual Earnings2019/11/24


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.