LSE:MRW

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Executive Summary

Wm Morrison Supermarkets PLC operates retail supermarket stores under the Morrisons brand name in the United Kingdom. More Details


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Wm Morrison Supermarkets's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRW is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MRW's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

MRW

-1.9%

GB Consumer Retailing

0.0002%

GB Market


1 Year Return

-8.1%

MRW

-2.3%

GB Consumer Retailing

-10.0%

GB Market

Return vs Industry: MRW underperformed the UK Consumer Retailing industry which returned -1.9% over the past year.

Return vs Market: MRW matched the UK Market which returned -9.1% over the past year.


Shareholder returns

MRWIndustryMarket
7 Day1.9%-1.9%0.0002%
30 Day7.5%3.6%10.0%
90 Day-5.3%1.5%7.0%
1 Year-4.6%-8.1%2.0%-2.3%-6.4%-10.0%
3 Year-2.0%-15.5%9.7%-1.4%1.3%-11.1%
5 Year48.8%22.2%35.2%19.3%25.7%-2.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wm Morrison Supermarkets undervalued compared to its fair value and its price relative to the market?

14.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRW (£1.84) is trading below our estimate of fair value (£2.15)

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


Price To Earnings Ratio

PE vs Industry: MRW is good value based on its PE Ratio (16.8x) compared to the GB Consumer Retailing industry average (21.5x).

PE vs Market: MRW is good value based on its PE Ratio (16.8x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: MRW is poor value based on its PEG Ratio (6.5x)


Price to Book Ratio

PB vs Industry: MRW is good value based on its PB Ratio (1x) compared to the GB Consumer Retailing industry average (1.3x).


Next Steps

Future Growth

How is Wm Morrison Supermarkets forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRW's forecast earnings growth (2.6% per year) is above the savings rate (1.2%).

Earnings vs Market: MRW's earnings (2.6% per year) are forecast to grow slower than the UK market (27% per year).

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

Revenue vs Market: MRW's revenue (1.8% per year) is forecast to grow slower than the UK market (6.8% per year).

High Growth Revenue: MRW's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRW's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Wm Morrison Supermarkets performed over the past 5 years?

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRW has high quality earnings.

Growing Profit Margin: MRW's current net profit margins (1.5%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: MRW has become profitable over the past 5 years, growing earnings by 29.8% per year.

Accelerating Growth: MRW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MRW had negative earnings growth (-12.6%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-3.3%).


Return on Equity

High ROE: MRW's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is Wm Morrison Supermarkets's financial position?


Financial Position Analysis

Short Term Liabilities: MRW's short term assets (£1.3B) do not cover its short term liabilities (£2.9B).

Long Term Liabilities: MRW's short term assets (£1.3B) do not cover its long term liabilities (£3.5B).


Debt to Equity History and Analysis

Debt Level: MRW's debt to equity ratio (37.1%) is considered satisfactory.

Reducing Debt: MRW's debt to equity ratio has reduced from 63.7% to 37.1% over the past 5 years.

Debt Coverage: MRW's debt is well covered by operating cash flow (22.1%).

Interest Coverage: MRW's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Wm Morrison Supermarkets's current dividend yield, its reliability and sustainability?

4.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRW's dividend (4.75%) is higher than the bottom 25% of dividend payers in the UK market (1.71%).

High Dividend: MRW's dividend (4.75%) is low compared to the top 25% of dividend payers in the UK market (4.9%).


Stability and Growth of Payments

Stable Dividend: MRW's dividend payments have been volatile in the past 10 years.

Growing Dividend: MRW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.2%), MRW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRW's dividends in 3 years are forecast to be covered by earnings (62.1% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

David Potts (63 yo)

5.67yrs

Tenure

UK£4,189,000

Compensation

Mr. David T. Potts has been the Chief Executive and Executive Director of Wm Morrison Supermarkets plc since joining in March 16, 2015. Mr. Potts served as the Chief Executive of the Asian Business at Tes...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD5.61M) is above average for companies of similar size in the UK market ($USD3.06M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Potts
Chief Executive & Executive Director5.67yrsUK£4.19m0.13%
£ 5.6m
Trevor Strain
COO & Executive Director7.58yrsUK£3.08m0.043%
£ 1.9m
Michael Gleeson
Executive Director & CFO0.75yrno data0.010%
£ 459.7k
Andrew Kasoulis
Investor Relations Directorno datano datano data
Andy Atkinson
Group Commercial Director4.83yrsno datano data
Clare Grainger
Group People Director5.17yrsno datano data
Jonathan Burke
Company Secretary3.75yrsno datano data
Andrew Clappen
Group Corporate Services Directorno datano datano data
David Lepley
Group Retail Director0.75yrno datano data

3.8yrs

Average Tenure

Experienced Management: MRW's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Potts
Chief Executive & Executive Director5.67yrsUK£4.19m0.13%
£ 5.6m
Trevor Strain
COO & Executive Director7.58yrsUK£3.08m0.043%
£ 1.9m
Michael Gleeson
Executive Director & CFO0.75yrno data0.010%
£ 459.7k
Andrew Higginson
Independent Chairman5.83yrsUK£504.00k0.0053%
£ 232.9k
Rooney Anand
Senior Independent Non Executive Director4.83yrsUK£109.00k0.00094%
£ 41.6k
Paula Vennells
Independent Non-Executive Director4.83yrsUK£89.00k0.00053%
£ 23.5k
Jeremy Townsend
Non-Executive Director0.33yrno data0.0010%
£ 46.1k
Kevin Havelock
Independent Non-Executive Director2.75yrsUK£89.00k0.0042%
£ 184.2k
Susanne Given
Non-Executive Director0.25yrno datano data
Lyssa McGowan
Non-Executive Director0.25yrno datano data

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: MRW's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MRW 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

Wm Morrison Supermarkets PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wm Morrison Supermarkets PLC
  • Ticker: MRW
  • Exchange: LSE
  • Founded: 1899
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: UK£4.429b
  • Shares outstanding: 2.40b
  • Website: https://www.morrisons.co.uk

Number of Employees


Location

  • Wm Morrison Supermarkets PLC
  • Hilmore House
  • Gain Lane
  • Bradford
  • West Yorkshire
  • BD3 7DL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRWS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
MRWLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
MZPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
MRWLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
MRW NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
MRWSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
MRWS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Wm Morrison Supermarkets PLC operates retail supermarket stores under the Morrisons brand name in the United Kingdom. The company engages in the in-store and online grocery retailing activities. It also su...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 21:39
End of Day Share Price2020/11/25 00:00
Earnings2020/08/02
Annual Earnings2020/02/02


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.