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Mitchells & Butlers

LSE:MAB
Snowflake Description

Good value with limited growth.

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

Mitchells & Butlers plc manages pubs, bars, and restaurants in the United Kingdom and Germany. The last earnings update was 176 days ago. More info.


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MAB Share Price and Events
7 Day Returns
7.8%
LSE:MAB
0.3%
GB Hospitality
0.5%
GB Market
1 Year Returns
-1.9%
LSE:MAB
-8.7%
GB Hospitality
-5.4%
GB Market
MAB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mitchells & Butlers (MAB) 7.8% 2.3% -9% -1.9% -9.2% -36.3%
GB Hospitality 0.3% -0.1% -2.9% -8.7% 9.7% 28.7%
GB Market 0.5% -1.7% 2.1% -5.4% 13.8% 1.8%
1 Year Return vs Industry and Market
  • MAB outperformed the Hospitality industry which returned -8.7% over the past year.
  • MAB outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.4% over the past year.
Price Volatility
MAB
Industry
5yr Volatility vs Market

MAB Value

 Is Mitchells & Butlers 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 Mitchells & Butlers 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 Mitchells & Butlers.

LSE:MAB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.2%
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:MAB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.927 (1 + (1- 19%) (197.29%))
1.944
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.944 * 6.65%)
14.15%

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

The calculations below outline how an intrinsic value for Mitchells & Butlers 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:MAB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 14.15%)
2019 111.19 Analyst x7 97.40
2020 109.61 Analyst x7 84.11
2021 125.41 Analyst x5 84.31
2022 131.27 Est @ 4.68% 77.31
2023 136.05 Est @ 3.64% 70.19
2024 140.02 Est @ 2.92% 63.28
2025 143.39 Est @ 2.41% 56.77
2026 146.34 Est @ 2.05% 50.75
2027 148.98 Est @ 1.81% 45.26
2028 151.42 Est @ 1.63% 40.30
Present value of next 10 years cash flows £669.69
LSE:MAB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £151.42 × (1 + 1.23%) ÷ (14.15% – 1.23%)
£1,185.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,185.79 ÷ (1 + 14.15%)10
£315.60
LSE:MAB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £669.69 + £315.60
£985.29
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £985.29 / 426.43
£2.31
LSE:MAB Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.31
Current discount Discount to share price of £2.64
= -1 x (£2.64 - £2.31) / £2.31
-14.3%

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

  • The current share price of Mitchells & Butlers 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 Mitchells & Butlers's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mitchells & Butlers's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:MAB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-29) in GBP £0.24
LSE:MAB Share Price ** LSE (2019-05-23) in GBP £2.64
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 18.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.47x

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

** Primary Listing of Mitchells & Butlers.

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

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

= 2.64 ÷ 0.24

10.79x

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

  • Mitchells & Butlers is good value based on earnings compared to the GB Hospitality industry average.
  • Mitchells & Butlers is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Mitchells & Butlers's expected growth come at a high price?
Raw Data
LSE:MAB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
11.6%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.05x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.79x ÷ 11.6%

0.93x

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

  • Mitchells & Butlers is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Mitchells & Butlers's assets?
Raw Data
LSE:MAB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-29) in GBP £4.15
LSE:MAB Share Price * LSE (2019-05-23) in GBP £2.64
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.38x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.5x
LSE:MAB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 2.64 ÷ 4.15

0.64x

* Primary Listing of Mitchells & Butlers.

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

  • Mitchells & Butlers is good value based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Mitchells & Butlers'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 Hospitality 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 Hospitality industry average (and greater than 0)? (1 check)
  5. Mitchells & Butlers has a total score of 4/6, 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.

MAB Future Performance

 How is Mitchells & Butlers expected to perform in the next 1 to 3 years based on estimates from 13 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
11.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mitchells & Butlers expected to grow at an attractive rate?
  • Mitchells & Butlers's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Mitchells & Butlers's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Mitchells & Butlers's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:MAB Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:MAB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 11.6%
LSE:MAB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 2.4%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 12%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
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:MAB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:MAB Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 2,368 1
2021-09-30 2,320 321 160 13
2020-09-30 2,268 253 156 13
2019-09-30 2,213 250 152 13
2018-09-30 2,164 233 142 10
LSE:MAB Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-29 2,152 240 104
2018-06-29 2,170 247 83
2018-04-14 2,187 254 61
2018-01-14 2,184 240 62
2017-09-30 2,180 226 63
2017-06-30 2,147 222 67
2017-04-08 2,113 217 70
2017-01-08 2,100 220 80
2016-09-24 2,086 222 89
2016-06-24 2,085 224 105
2016-04-09 2,084 226 120
2016-01-09 2,093 235 112

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mitchells & Butlers's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
  • Mitchells & Butlers's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
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:MAB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Mitchells & Butlers Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MAB Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30
2021-09-30 0.37 0.41 0.34 5.00
2020-09-30 0.37 0.38 0.35 6.00
2019-09-30 0.35 0.36 0.34 6.00
2018-09-30 0.32 0.33 0.30 3.00
LSE:MAB Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-29 0.24
2018-06-29 0.19
2018-04-14 0.14
2018-01-14 0.15
2017-09-30 0.15
2017-06-30 0.16
2017-04-08 0.17
2017-01-08 0.19
2016-09-24 0.22
2016-06-24 0.25
2016-04-09 0.29
2016-01-09 0.27

*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.
  • Mitchells & Butlers is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Mitchells & Butlers'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.
Mitchells & Butlers has a total score of 2/6, 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.

MAB Past Performance

  How has Mitchells & Butlers 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 Mitchells & Butlers's growth in the last year to its industry (Hospitality).
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.
  • Mitchells & Butlers's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Mitchells & Butlers's 1-year earnings growth exceeds its 5-year average (65% vs -11.1%)
  • Mitchells & Butlers's earnings growth has exceeded the GB Hospitality industry average in the past year (65% vs 12.8%).
Earnings and Revenue History
Mitchells & Butlers'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 Mitchells & Butlers Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MAB Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-29 2,152.00 104.00 7.00
2018-06-29 2,169.50 82.50 7.00
2018-04-14 2,187.00 61.00 7.00
2018-01-14 2,183.50 62.00 7.00
2017-09-30 2,180.00 63.00 7.00
2017-06-30 2,146.50 66.50 8.50
2017-04-08 2,113.00 70.00 10.00
2017-01-08 2,099.50 79.50 11.00
2016-09-24 2,086.00 89.00 12.00
2016-06-24 2,085.00 104.50 12.50
2016-04-09 2,084.00 120.00 13.00
2016-01-09 2,092.50 111.50 14.00
2015-09-26 2,101.00 103.00 15.00
2015-06-26 2,084.00 101.00 14.00
2015-04-11 2,067.00 99.00 13.00
2015-01-11 2,018.50 96.00 11.50
2014-09-27 1,970.00 93.00 10.00
2014-06-27 1,945.00 109.50 10.00
2014-04-12 1,920.00 126.00 10.00
2014-01-12 1,907.50 127.00 10.50
2013-09-28 1,895.00 128.00 11.00
2013-06-28 1,903.00 108.50 11.00
2013-04-13 1,911.00 89.00 11.00
2013-01-13 1,900.00 79.50 11.00
2012-09-29 1,889.00 70.00 11.00
2012-06-29 1,854.00 97.00 9.00

*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.
  • Mitchells & Butlers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mitchells & Butlers used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • Mitchells & Butlers's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Mitchells & Butlers'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 Hospitality 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.
Mitchells & Butlers has a total score of 2/6, 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.

MAB Health

 How is Mitchells & Butlers'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 Mitchells & Butlers's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mitchells & Butlers's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Mitchells & Butlers's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Mitchells & Butlers'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 not covered by short term assets, assets are 0.1x 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 Mitchells & Butlers Company Filings, last reported 7 months ago.

LSE:MAB Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-29 1,769.00 2,221.00 242.00
2018-06-29 1,769.00 2,221.00 242.00
2018-04-14 1,705.00 2,271.00 258.00
2018-01-14 1,705.00 2,271.00 258.00
2017-09-30 1,626.00 2,354.00 267.00
2017-06-30 1,626.00 2,354.00 267.00
2017-04-08 1,525.00 2,494.00 266.00
2017-01-08 1,525.00 2,494.00 266.00
2016-09-24 1,408.00 2,577.00 278.00
2016-06-24 1,408.00 2,577.00 278.00
2016-04-09 1,282.00 2,515.00 272.00
2016-01-09 1,282.00 2,515.00 272.00
2015-09-26 1,271.00 2,470.00 283.00
2015-06-26 1,271.00 2,470.00 283.00
2015-04-11 1,168.00 2,552.00 272.00
2015-01-11 1,168.00 2,552.00 272.00
2014-09-27 1,185.00 2,461.00 255.00
2014-06-27 1,185.00 2,461.00 255.00
2014-04-12 1,278.00 2,475.00 528.00
2014-01-12 1,278.00 2,475.00 528.00
2013-09-28 1,219.00 2,360.00 365.00
2013-06-28 1,219.00 2,360.00 365.00
2013-04-13 1,133.00 2,499.00 379.00
2013-01-13 1,133.00 2,499.00 379.00
2012-09-29 943.00 2,511.00 336.00
2012-06-29 1,088.00 2,511.00 336.00
  • Mitchells & Butlers's level of debt (125.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (193.6% vs 125.6% today).
  • Debt is not well covered by operating cash flow (10.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Mitchells & Butlers'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. Mitchells & Butlers has a total score of 1/6, 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.

MAB Dividends

 What is Mitchells & Butlers'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
0%
Current annual income from Mitchells & Butlers dividends. Estimated to be 0% next year.
If you bought £2,000 of Mitchells & Butlers shares you are expected to receive £0 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?
  • Unable to evaluate Mitchells & Butlers's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Mitchells & Butlers's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:MAB 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 13 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 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 5.3%

Industry and Market average data is calculated daily.

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

LSE:MAB Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.00 1.00
2021-09-30 0.00 9.00
2020-09-30 0.00 10.00
2019-09-30 0.00 10.00
2018-09-30 0.02 9.00
LSE:MAB Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-11-28 0.000 0.000
2018-11-22 0.000 0.000
2018-05-16 0.000 0.000
2017-12-14 0.075 2.912
2017-11-23 0.075 2.903
2016-12-16 0.075 3.030
2016-11-22 0.075 3.174
2016-05-19 0.075 2.844
2015-11-23 0.075 2.610
2009-11-30 0.000 0.000
2009-11-26 0.000 0.000

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

  • Unable to perform a dividend volatility check as Mitchells & Butlers has not reported any payouts.
  • Unable to verify if Mitchells & Butlers's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Mitchells & Butlers's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Mitchells & Butlers has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Mitchells & Butlers's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Mitchells & Butlers's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 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 Mitchells & Butlers afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mitchells & Butlers has a total score of 0/6, see the detailed checks below.


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

MAB Management

 What is the CEO of Mitchells & Butlers'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
Phil Urban
COMPENSATION £819,000
AGE 55
TENURE AS CEO 3.7 years
CEO Bio

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 September 27, 2015. He joined Mitchells & Butlers in January 2015. Mr. Urban served as the Chief Executive Officer and Managing Director at Grosvenor Casinos Limited. He served as Managing Director of Grosvenor Casinos at The Rank Group Plc until October 2014 and served as its Managing Director of Casinos Business and Grosvenor Casinos since June 2, 2008. He served as Managing Director of Pub Restaurants of Whitbread Plc since October 2004. Mr. Urban serves as a Director of Mitchells & Butlers plc. Mr. Urban joined Whitbread from Spirit Group, having previously spent ten years at Scottish and Newcastle Retail. He served as Managing Director of Restaurants and Accommodation Division at Scottish and Newcastle. He served as Chairman of the National Casino Forum. Mr. Urban has an MBA and is a qualified management accountant (CIMA).

CEO Compensation
  • Phil's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Phil'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 Mitchells & Butlers management team in years:

6.4
Average Tenure
55
Average Age
  • The average tenure for the Mitchells & Butlers management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Phil Urban

TITLE
CEO & Director
COMPENSATION
£819K
AGE
55
TENURE
3.7 yrs

Tim Jones

TITLE
Finance Director & Director
COMPENSATION
£688K
AGE
55
TENURE
8.6 yrs

Amy De Marsac

TITLE
Head of Investor Relations

Greg McMahon

TITLE
General Counsel & Company Secretary
AGE
58
TENURE
6.3 yrs

Chris Hopkins

TITLE
Commercial & Marketing Director
AGE
52

Susan Martindale

TITLE
Group HR Director
AGE
57
TENURE
6.5 yrs
Board of Directors Tenure

Average tenure and age of the Mitchells & Butlers board of directors in years:

6.1
Average Tenure
55
Average Age
  • The tenure for the Mitchells & Butlers board of directors is about average.
Board of Directors

Bob Ivell

TITLE
Non-Executive Chairman
COMPENSATION
£287K
AGE
66
TENURE
7.8 yrs

Phil Urban

TITLE
CEO & Director
COMPENSATION
£819K
AGE
55
TENURE
3.7 yrs

Ron Robson

TITLE
Deputy Chairman of the Board
COMPENSATION
£52K
AGE
55
TENURE
7.8 yrs

Tim Jones

TITLE
Finance Director & Director
COMPENSATION
£688K
AGE
55
TENURE
8.6 yrs

Imelda Walsh

TITLE
Independent Non-Executive Director
COMPENSATION
£62K
AGE
54
TENURE
6.1 yrs

Colin Rutherford

TITLE
Independent Non-Executive Director
COMPENSATION
£65K
AGE
59
TENURE
6.1 yrs

Susan Murray

TITLE
Senior Independent Director
AGE
60
TENURE
0.2 yrs

Eddie Irwin

TITLE
Non-Executive Director
COMPENSATION
£52K
AGE
59
TENURE
7.2 yrs

Josh Levy

TITLE
Non-Executive Director
COMPENSATION
£52K
AGE
28
TENURE
3.5 yrs

Dave Coplin

TITLE
Independent Non-Executive Director
COMPENSATION
£53K
AGE
48
TENURE
3.3 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 (£)
02. Aug 18 Buy Philip Urban Individual 02. Aug 18 02. Aug 18 16,094 £2.47 £39,786
X
Management checks
We assess Mitchells & Butlers'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. Mitchells & Butlers 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.

MAB News

Simply Wall St News

Is Mitchells & Butlers plc's (LON:MAB) CEO Overpaid Relative To Its Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … View our latest analysis for Mitchells & Butlers … How Does Phil Urban's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Will Mitchells & Butlers plc's (LON:MAB) Earnings Grow In The Years Ahead?

The latest earnings announcement Mitchells & Butlers plc (LON:MAB) released in September 2018a … signalled

Simply Wall St -

What Should We Expect From Mitchells & Butlers plc's (LON:MAB) Earnings In The Next 12 Months?

In September 2018, Mitchells & Butlers plc (LON:MAB) released its earnings update. … with earnings expected to grow by 42% in the upcoming year … the past 5-year average growth rate of -11%

Simply Wall St -

What You Should Know About Mitchells & Butlers plc's (LON:MAB) Financial Strength

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … We'll look at some basic checks that can form a snapshot the company’s financial strength.

Simply Wall St -

How Does Mitchells & Butlers plc (LON:MAB) Affect Your Portfolio Volatility?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Read This Before You Buy Mitchells & Butlers plc (LON:MAB) Because Of Its P/E Ratio

To keep it practical, we'll show how Mitchells & Butlers plc's (LON:MAB) P/E ratio could help you assess the value on offer. … Mitchells & Butlers has a P/E ratio of 11.61, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Mitchells & Butlers plc (LON:MAB) Potentially Undervalued?

Mitchells & Butlers plc (LON:MAB), which is in the hospitality business, and is based in United Kingdom,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Mitchells & Butlers’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

Should Mitchells & Butlers plc’s (LON:MAB) Weak Investment Returns Worry You?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

How Do Analysts See Mitchells & Butlers plc (LON:MAB) Performing In The Next Couple Of Years?

In September 2018, Mitchells & Butlers plc (LON:MAB) released its most recent earnings announcement, whicha … confirmed

Simply Wall St -

Mitchells & Butlers plc (LON:MAB): What We Can Expect From This Growth Stock

As Mitchells & Butlers plc (LON:MAB) released its earnings announcement on 29 September 2018, … it seems that analyst forecasts are fairly optimistic, … the past 5-year average growth rate of -11%.

Simply Wall St -

MAB Company Info

Description

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 Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson’s, O’Neill’s, Innkeeper's Lodge, Alex, and Ember Inns brands and formats. The company is also involved in the leisure retailing; property leasing, management, and development; and financing activities, as well as operates as a healthcare trustee. In addition, it owns various trademarks. As of September 29, 2018, the company operated 1,750 pubs, bars, and restaurants. Mitchells & Butlers plc was founded in 1898 and is based in Birmingham, the United Kingdom.

Details
Name: Mitchells & Butlers plc
MAB
Exchange: LSE
Founded: 1898
£1,125,772,715
426,429,059
Website: http://www.mbplc.com
Address: Mitchells & Butlers plc
27 Fleet Street,
Birmingham,
West Midlands, B3 1JP,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE MAB Ordinary Shares London Stock Exchange GB GBP 31. Mar 2003
OTCPK MBPF.F Ordinary Shares Pink Sheets LLC US USD 31. Mar 2003
DB MABB Ordinary Shares Deutsche Boerse AG DE EUR 31. Mar 2003
BATS-CHIXE MABL Ordinary Shares BATS 'Chi-X Europe' GB GBP 31. Mar 2003
Number of employees
Current staff
Staff numbers
44,686
Mitchells & Butlers employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 21:09
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/23
Last earnings filing: 2018/11/28
Last earnings reported: 2018/09/29
Last annual earnings reported: 2018/09/29


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.