LSE:MAB

Stock Analysis Report

Executive Summary

Mitchells & Butlers plc manages pubs, bars, and restaurants in the United Kingdom and Germany.

Snowflake

Fundamentals

Acceptable track record and slightly overvalued.


Similar Companies

Share Price & News

How has Mitchells & Butlers's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.8%

MAB

-0.6%

GB Hospitality

-0.4%

GB Market


1 Year Return

75.8%

MAB

17.0%

GB Hospitality

4.0%

GB Market

Return vs Industry: MAB exceeded the UK Hospitality industry which returned 17% over the past year.

Return vs Market: MAB exceeded the UK Market which returned 4% over the past year.


Shareholder returns

MABIndustryMarket
7 Day4.8%-0.6%-0.4%
30 Day9.9%1.7%1.5%
90 Day38.4%3.5%3.7%
1 Year75.8%75.8%21.1%17.0%9.4%4.0%
3 Year93.2%83.6%39.3%24.7%21.4%6.0%
5 Year39.5%29.4%64.7%38.6%33.0%2.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mitchells & Butlers undervalued compared to its fair value and its price relative to the market?

18.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAB (£4.71) is trading above our estimate of fair value (£2.32)

Significantly Below Fair Value: MAB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MAB is good value based on its PE Ratio (18.3x) compared to the Hospitality industry average (27.1x).

PE vs Market: MAB is poor value based on its PE Ratio (18.3x) compared to the UK market (17x).


Price to Earnings Growth Ratio

PEG Ratio: MAB is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: MAB is good value based on its PB Ratio (1.1x) compared to the GB Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Mitchells & Butlers forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAB's forecast earnings growth (8.7% per year) is above the savings rate (1.2%).

Earnings vs Market: MAB's earnings (8.7% per year) are forecast to grow slower than the UK market (12.5% per year).

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

Revenue vs Market: MAB's revenue (2.4% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: MAB's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAB's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Mitchells & Butlers performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAB has large one-off items impacting its financial results.

Growing Profit Margin: MAB's current net profit margins (5%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: MAB's earnings have declined by -5.7% per year over the past 5 years.

Accelerating Growth: MAB's earnings growth over the past year (80.3%) exceeds its 5-year average (-5.7% per year).

Earnings vs Industry: MAB earnings growth over the past year (80.3%) exceeded the Hospitality industry 2.3%.


Return on Equity

High ROE: MAB's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mitchells & Butlers's financial position?


Financial Position Analysis

Short Term Liabilities: MAB's short term assets (£366.0M) do not cover its short term liabilities (£673.0M)

Long Term Liabilities: MAB's short term assets (£366.0M) do not cover its long term liabilities (2.4B)


Debt to Equity History and Analysis

Debt Level: MAB's debt to equity ratio (119.2%) is considered high.

Reducing Debt: MAB's debt to equity ratio has reduced from 194% to 119.2% over the past 5 years.

Debt Coverage: MAB's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: MAB's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: MAB's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Mitchells & Butlers's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Phil Urban (56yo)

4.2yrs

Tenure

UK£819,000

Compensation

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 S ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD1.06M) is below average for companies of similar size in the UK market ($USD2.17M).

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


Management Age and Tenure

6.9yrs

Average Tenure

56yo

Average Age

Experienced Management: MAB's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

56yo

Average Age

Experienced Board: MAB's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Tim Jones (56yo)

    Finance Director & Director

    • Tenure: 9.1yrs
    • Compensation: UK£688.00k
  • Phil Urban (56yo)

    CEO & Director

    • Tenure: 4.2yrs
    • Compensation: UK£819.00k
  • Greg McMahon (59yo)

    General Counsel & Company Secretary

    • Tenure: 6.8yrs
  • Susan Martindale (58yo)

    Group HR Director

    • Tenure: 7yrs
  • Chris Hopkins (53yo)

    Commercial & Marketing Director

    • Tenure: 0yrs
  • Amy De Marsac

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Susan Murray (61yo)

    Senior Independent Director

    • Tenure: 0.7yrs
  • Colin Rutherford (60yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£64.50k
  • Bob Ivell (67yo)

    Non-Executive Chairman

    • Tenure: 8.3yrs
    • Compensation: UK£287.00k
  • Tim Jones (56yo)

    Finance Director & Director

    • Tenure: 9.1yrs
    • Compensation: UK£688.00k
  • Imelda Walsh (55yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£62.00k
  • Phil Urban (56yo)

    CEO & Director

    • Tenure: 4.2yrs
    • Compensation: UK£819.00k
  • Ron Robson (56yo)

    Deputy Chairman of the Board

    • Tenure: 8.3yrs
    • Compensation: UK£52.00k
  • Eddie Irwin (60yo)

    Non-Executive Director

    • Tenure: 7.7yrs
    • Compensation: UK£52.00k
  • Josh Levy (29yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: UK£52.00k
  • Dave Coplin (49yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£53.00k

Company Information

Mitchells & Butlers plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mitchells & Butlers plc
  • Ticker: MAB
  • Exchange: LSE
  • Founded: 1898
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£2.011b
  • Shares outstanding: 427.51m
  • Website: https://www.mbplc.com

Number of Employees


Location

  • Mitchells & Butlers plc
  • 27 Fleet Street
  • Birmingham
  • West Midlands
  • B3 1JP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MBPF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2003
MABLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2003
MABBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2003
MABLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2003

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 21:03
End of Day Share Price2019/11/20 00:00
Earnings2019/04/13
Annual Earnings2018/09/29


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.