MARS

Marston'sLSE:MARS Stock Report

Market Cap

UK£491.3m

7D

-3.3%

1Y

88.4%

Updated

21 Sep, 2021

Data

Company Financials +
MARS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth6/6
Past Performance0/6
Financial Health2/6
Dividends0/6

MARS Overview

Marston's PLC operates managed, franchised, tenanted, and leased pubs, bars, restaurants, and accommodations in the United Kingdom and internationally.

Rewards

Trading at 31.8% below our estimate of its fair value

Earnings are forecast to grow 71.32% per year

Risk Analysis

No risks detected for MARS from our risk checks.

Marston's Competitors

SSP Group

LSE:SSPG

UK£2.2b

Mitchells & Butlers

LSE:MAB

UK£1.5b

J D Wetherspoon

LSE:JDW

UK£1.3b

Restaurant Group

LSE:RTN

UK£862.9m

Price History & Performance

Summary of all time highs, changes and price drops for Marston's
Historical stock prices
Current Share PriceUK£0.78
52 Week HighUK£0.37
52 Week LowUK£1.06
Beta1.7
1 Month Change-6.33%
3 Month Change-16.33%
1 Year Change88.38%
3 Year Change-21.65%
5 Year Change-45.59%
Change since IPO-52.40%

Recent News & Updates

Shareholder Returns

MARSGB HospitalityGB Market
7D-3.3%3.9%-1.2%
1Y88.4%56.3%22.6%

Return vs Industry: MARS exceeded the UK Hospitality industry which returned 51.2% over the past year.

Return vs Market: MARS exceeded the UK Market which returned 22% over the past year.

Price Volatility

Is MARS's price volatile compared to industry and market?
MARS volatility
MARS Beta1.7
Industry Beta1.21
Market Beta1

Stable Share Price: MARS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MARS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
183413,095Ralph Findlayhttps://www.marstons.co.uk

Marston's PLC operates managed, franchised, tenanted, and leased pubs, bars, restaurants, and accommodations in the United Kingdom and internationally. The company operates through Pubs and Bars, and Brewing segments. It provides cask, kegs, and packaged beers through its six breweries under the Pedigree, Hobgoblin, Wainwright, and Shipyard brands, as well as under the licensed brands, including Estrella Damm.

Valuation

Is Marston's undervalued compared to its fair value and its price relative to the market?

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MARS (£0.78) is trading below our estimate of fair value (£1.14)

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


Price To Earnings Ratio

PE vs Industry: MARS is unprofitable, so we can't compare its PE Ratio to the UK Hospitality industry average.

PE vs Market: MARS 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 MARS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MARS is good value based on its PB Ratio (1x) compared to the GB Hospitality industry average (2.7x).


Future Growth

How is Marston's forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

71.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MARS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: MARS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MARS's is expected to become profitable in the next 3 years.

Revenue vs Market: MARS's revenue (24% per year) is forecast to grow faster than the UK market (5% per year).

High Growth Revenue: MARS's revenue (24% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MARS's Return on Equity is forecast to be high in 3 years time (24.2%)


Past Performance

How has Marston's performed over the past 5 years?

-76.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MARS is currently unprofitable.

Growing Profit Margin: MARS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MARS is unprofitable, and losses have increased over the past 5 years at a rate of 76.8% per year.

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

Earnings vs Industry: MARS is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (13.7%).


Return on Equity

High ROE: MARS has a negative Return on Equity (-86.58%), as it is currently unprofitable.


Financial Health

How is Marston's's financial position?


Financial Position Analysis

Short Term Liabilities: MARS's short term assets (£75.6M) do not cover its short term liabilities (£267.8M).

Long Term Liabilities: MARS's short term assets (£75.6M) do not cover its long term liabilities (£1.8B).


Debt to Equity History and Analysis

Debt Level: MARS's debt to equity ratio (297.1%) is considered high.

Reducing Debt: MARS's debt to equity ratio has increased from 223.7% to 297.1% over the past 5 years.


Balance Sheet


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: Whilst unprofitable MARS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MARS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.1% per year.


Dividend

What is Marston's current dividend yield, its reliability and sustainability?

2.64%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

7.5yrs

Average management tenure


CEO

Ralph Findlay (60 yo)

20.67yrs

Tenure

UK£592,423

Compensation

Mr. Ralph Graham Findlay, FCA, serves as Chief Executive Officer at Marston's Plc since 2001. Mr. Findlay serves as the Managing Director at Marston's Pub Company. He served as a Finance Director at Marsto...


CEO Compensation Analysis

Compensation vs Market: Ralph's total compensation ($USD808.33K) is about average for companies of similar size in the UK market ($USD974.32K).

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


Leadership Team

Experienced Management: MARS's management team is seasoned and experienced (7.5 years average tenure).


Board Members

Experienced Board: MARS's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MARS 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

Marston's PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Marston's PLC
  • Ticker: MARS
  • Exchange: LSE
  • Founded: 1834
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£491.329m
  • Shares outstanding: 632.75m
  • Website: https://www.marstons.co.uk

Number of Employees


Location

  • Marston's PLC
  • Marston's House
  • Brewery Road
  • Wolverhampton
  • West Midlands
  • WV1 4JT
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/21 22:31
End of Day Share Price2021/09/21 00:00
Earnings2021/04/03
Annual Earnings2020/10/03


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.