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MAB

Mitchells & Butlers LSE:MAB Stock Report

Last Price

UK£1.91

Market Cap

UK£1.1b

7D

1.8%

1Y

-34.0%

Updated

14 Aug, 2022

Data

Company Financials +
MAB fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance1/6
Financial Health2/6
Dividends0/6

MAB Stock Overview

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

Mitchells & Butlers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mitchells & Butlers
Historical stock prices
Current Share PriceUK£1.91
52 Week HighUK£3.03
52 Week LowUK£1.59
Beta1.44
1 Month Change16.14%
3 Month Change-10.05%
1 Year Change-34.01%
3 Year Change-37.78%
5 Year Change-20.44%
Change since IPO-50.39%

Recent News & Updates

Aug 05
These 4 Measures Indicate That Mitchells & Butlers (LON:MAB) Is Using Debt Extensively

These 4 Measures Indicate That Mitchells & Butlers (LON:MAB) Is Using Debt Extensively

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Jun 23
Why Mitchells & Butlers plc (LON:MAB) Could Be Worth Watching

Why Mitchells & Butlers plc (LON:MAB) Could Be Worth Watching

Mitchells & Butlers plc ( LON:MAB ), is not the largest company out there, but it saw significant share price movement...

May 31
The Returns On Capital At Mitchells & Butlers (LON:MAB) Don't Inspire Confidence

The Returns On Capital At Mitchells & Butlers (LON:MAB) Don't Inspire Confidence

If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time? When we...

Shareholder Returns

MABGB HospitalityGB Market
7D1.8%6.3%0.4%
1Y-34.0%-9.2%-9.0%

Return vs Industry: MAB underperformed the UK Hospitality industry which returned -9.2% over the past year.

Return vs Market: MAB underperformed the UK Market which returned -9% over the past year.

Price Volatility

Is MAB's price volatile compared to industry and market?
MAB volatility
MAB Average Weekly Movement5.4%
Hospitality Industry Average Movement5.5%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: MAB is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MAB's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189843,354Phil Urbanhttps://www.mbplc.com

Mitchells & Butlers plc manages pubs, bars, and restaurants in the United Kingdom and Germany. The company operates its pubs and restaurants under the Alex, All Bar One, Browns, Castle, Ember Inns, Harvester, Innkeeper’s Lodge, Miller & Carter, Nicholson’s, O’Neill’s, Premium Country Pubs, Sizzling Pubs, Stonehouse Pizza & Carvery, Toby Carvery, and Vintage Inns brands and formats. It also engages in the leisure retailing; property leasing, property management, and development; and financing activities, as well as operates as a healthcare trustee.

Mitchells & Butlers Fundamentals Summary

How do Mitchells & Butlers's earnings and revenue compare to its market cap?
MAB fundamental statistics
Market CapUK£1.13b
Earnings (TTM)UK£146.00m
Revenue (TTM)UK£2.01b

7.8x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAB income statement (TTM)
RevenueUK£2.01b
Cost of RevenueUK£1.79b
Gross ProfitUK£212.00m
Other ExpensesUK£66.00m
EarningsUK£146.00m

Last Reported Earnings

Apr 09, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.25
Gross Margin10.57%
Net Profit Margin7.28%
Debt/Equity Ratio73.8%

How did MAB perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MAB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MAB?

Other financial metrics that can be useful for relative valuation.

MAB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA18x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does MAB's PE Ratio compare to its peers?

MAB PE Ratio vs Peers
The above table shows the PE ratio for MAB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.8x
DOM Domino's Pizza Group
14.1x5.3%UK£1.2b
YNGA Young's Brewery
29.6x12.7%UK£609.7m
FSTA Fuller Smith & Turner
53.9x30.8%UK£382.7m
GRG Greggs
17.8x7.4%UK£2.1b
MAB Mitchells & Butlers
7.8x16.6%UK£1.1b

Price-To-Earnings vs Peers: MAB is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (28.8x).


Price to Earnings Ratio vs Industry

How does MAB's PE Ratio compare vs other companies in the GB Hospitality Industry?

Price-To-Earnings vs Industry: MAB is good value based on its Price-To-Earnings Ratio (7.8x) compared to the UK Hospitality industry average (12.2x)


Price to Earnings Ratio vs Fair Ratio

What is MAB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MAB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.8x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: MAB is good value based on its Price-To-Earnings Ratio (7.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).


Share Price vs Fair Value

What is the Fair Price of MAB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MAB (£1.91) is trading below our estimate of fair value (£3.08)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAB's forecast earnings growth (16.6% per year) is above the savings rate (0.9%).

Earnings vs Market: MAB's earnings (16.6% per year) are forecast to grow faster than the UK market (9.9% per year).

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

Revenue vs Market: MAB's revenue (3.4% per year) is forecast to grow slower than the UK market (4.4% per year).

High Growth Revenue: MAB's revenue (3.4% 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 (6.6%).


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Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-33.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MAB has a large one-off gain of £254.0M impacting its April 9 2022 financial results.

Growing Profit Margin: MAB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MAB's earnings have declined by 33.6% per year over the past 5 years.

Accelerating Growth: MAB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MAB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (34.8%).


Return on Equity

High ROE: MAB's Return on Equity (6.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Mitchells & Butlers's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MAB's short term assets (£306.0M) do not cover its short term liabilities (£616.0M).

Long Term Liabilities: MAB's short term assets (£306.0M) do not cover its long term liabilities (£2.4B).


Debt to Equity History and Analysis

Debt Level: MAB's net debt to equity ratio (63.8%) is considered high.

Reducing Debt: MAB's debt to equity ratio has reduced from 163.1% to 73.8% over the past 5 years.

Debt Coverage: MAB's debt is well covered by operating cash flow (21.1%).

Interest Coverage: MAB's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.24%

Forecast Dividend Yield

Dividend Yield vs Market

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MAB has not reported any payouts.


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Management

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

9.5yrs

Average management tenure


CEO

Phil Urban (59 yo)

6.92yrs

Tenure

UK£627,000

Compensation

Mr. Philip Urban also known as Phil 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...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD760.11K) is below average for companies of similar size in the UK market ($USD1.98M).

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


Leadership Team

Experienced Management: MAB's management team is seasoned and experienced (9.5 years average tenure).


Board Members

Experienced Board: MAB's board of directors are considered experienced (6.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Mitchells & Butlers plc
  • Ticker: MAB
  • Exchange: LSE
  • Founded: 1898
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: UK£1.134b
  • Shares outstanding: 594.72m
  • Website: https://www.mbplc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/04/09
Annual Earnings2021/09/25


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.