LSE:MCB

Stock Analysis Report

Executive Summary

McBride plc, together with its subsidiaries, manufactures and sells private label household and personal care products to retailers in the United Kingdom, other regions in Europe, and Asia.

Rewards

PE ratio (12.2x) is below the UK market (17.2x)

Earnings are forecast to grow 20.94% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (1.7%) are lower than last year (2.8%)



Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has McBride's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.1%

MCB

0.3%

GB Household Products

0.9%

GB Market


1 Year Return

-38.5%

MCB

-0.9%

GB Household Products

8.7%

GB Market

Return vs Industry: MCB underperformed the UK Household Products industry which returned -0.9% over the past year.

Return vs Market: MCB underperformed the UK Market which returned 8.7% over the past year.


Shareholder returns

MCBIndustryMarket
7 Day-1.1%0.3%0.9%
30 Day4.4%-0.6%-0.5%
90 Day51.2%-3.1%0.9%
1 Year-38.5%-38.5%1.6%-0.9%14.3%8.7%
3 Year-54.0%-54.0%-7.1%-13.0%18.8%3.6%
5 Year2.6%2.6%26.4%12.9%42.6%9.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is McBride undervalued compared to its fair value and its price relative to the market?

12.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCB (£0.8) is trading above our estimate of fair value (£0.67)

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


Price To Earnings Ratio

PE vs Industry: MCB is good value based on its PE Ratio (12.2x) compared to the Household Products industry average (18.6x).

PE vs Market: MCB is good value based on its PE Ratio (12.2x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: MCB is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MCB is overvalued based on its PB Ratio (2.3x) compared to the XE Household Products industry average (2.1x).


Next Steps

Future Growth

How is McBride forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCB's forecast earnings growth (20.9% per year) is above the savings rate (0.5%).

Earnings vs Market: MCB's earnings (20.9% per year) are forecast to grow faster than the UK market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MCB's revenue (0.4% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: MCB's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCB's Return on Equity is forecast to be high in 3 years time (24.1%)


Next Steps

Past Performance

How has McBride performed over the past 5 years?

51.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCB has high quality earnings.

Growing Profit Margin: MCB's current net profit margins (1.7%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: MCB has become profitable over the past 5 years, growing earnings by 51.3% per year.

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

Earnings vs Industry: MCB had negative earnings growth (-36.8%) over the past year, making it difficult to compare to the Household Products industry average (-34.3%).


Return on Equity

High ROE: MCB's Return on Equity (18.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is McBride's financial position?


Financial Position Analysis

Short Term Liabilities: MCB's short term assets (£258.0M) exceed its short term liabilities (£237.2M).

Long Term Liabilities: MCB's short term assets (£258.0M) exceed its long term liabilities (£133.7M).


Debt to Equity History and Analysis

Debt Level: MCB's debt to equity ratio (211.1%) is considered high.

Reducing Debt: MCB's debt to equity ratio has increased from 174.4% to 211.1% over the past 5 years.

Debt Coverage: MCB's debt is not well covered by operating cash flow (5.4%).

Interest Coverage: MCB's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: MCB's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

4.13%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.0%markettop25%5.2%industryaverage2.4%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: MCB's dividend (4.13%) is higher than the bottom 25% of dividend payers in the UK market (1.95%).

High Dividend: MCB's dividend (4.13%) is low compared to the top 25% of dividend payers in the UK market (5.19%).


Stability and Growth of Payments

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

Growing Dividend: MCB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.3%), MCB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCB's dividends in 3 years are forecast to be well covered by earnings (32.6% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Ludwig De Mot 0

0.08yrs

Tenure

0

Mr. Ludwig De Mot has been Chief Executive Officer and Director of McBride plc since November 1, 2019. He served as President and Chief Executive Officer of Canadian mining operations at ArcelorMittal. Pri ...


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: MCB's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: MCB's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MCB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£77,95706 Nov 19
Jeffrey Nodland
EntityIndividual
Role
Chairman of the Board
Independent Non- Executive Chairman of the Board
Shares110,000
Max PriceUK£0.71
BuyUK£551,72025 Oct 19
Teleios Capital Partners GmbH
EntityCompany
Shares800,943
Max PriceUK£0.69
BuyUK£9,93808 Oct 19
Neil Harrington
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares17,463
Max PriceUK£0.57
BuyUK£11,48008 Oct 19
Jeffrey Nodland
EntityIndividual
Role
Chairman of the Board
Independent Non- Executive Chairman of the Board
Shares20,000
Max PriceUK£0.57
BuyUK£167,52308 Oct 19
Teleios Capital Partners GmbH
EntityCompany
Shares293,900
Max PriceUK£0.57
BuyUK£34,99705 Apr 19
Christopher Ian Smith
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares34,314
Max PriceUK£1.03

Ownership Breakdown

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


Management Team

  • Chris Smith (55yo)

    CFO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: UK£366.00k
  • Matthias Kreysel

    Chief R&D Officer

    • Tenure: 7.3yrs
  • Ludwig De Mot

    CEO & Director

    • Tenure: 0.08yrs
  • Carol Williams

    General Counsel & Company Secretary

    • Tenure: 1.9yrs
  • David Rattigan (50yo)

    Interim Director of Finance & Group Financial Controller

    • Tenure: 0yrs

Board Members

  • Steve Hannam (69yo)

    Senior Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: UK£52.00k
  • Liz McMeikan (57yo)

    Independent Non-Executive Director

    • Tenure: 0.08yrs
  • Neil Harrington (56yo)

    Independent Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: UK£52.00k
  • Igor Kuzniar (41yo)

    Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: UK£4.00k
  • Chris Smith (55yo)

    CFO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: UK£366.00k
  • Sandra Turner (67yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: UK£52.00k
  • Ludwig De Mot

    CEO & Director

    • Tenure: 0.08yrs
  • Jeff Nodland

    Independent Non- Executive Chairman of the Board

    • Tenure: 0.2yrs
    • Compensation: UK£1.00k

Company Information

McBride plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: McBride plc
  • Ticker: MCB
  • Exchange: LSE
  • Founded: 1860
  • Industry: Household Products
  • Sector: Household
  • Market Cap: UK£146.239m
  • Shares outstanding: 182.80m
  • Website: https://www.mcbride.co.uk

Number of Employees


Location

  • McBride plc
  • Middleton Way
  • Middleton
  • Manchester
  • Greater Manchester
  • M24 4DP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCBLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 1995
MCBR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1995
MCBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 1995

Biography

McBride plc, together with its subsidiaries, manufactures and sells private label household and personal care products to retailers in the United Kingdom, other regions in Europe, and Asia. The company off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 20:42
End of Day Share Price2019/12/10 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.