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.

Snowflake

Fundamentals

Undervalued with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

MCB

-1.4%

GB Household Products

-0.3%

GB Market


1 Year Return

-48.1%

MCB

-10.7%

GB Household Products

3.0%

GB Market

Return vs Industry: MCB underperformed the UK Household Products industry which returned -10.7% over the past year.

Return vs Market: MCB underperformed the UK Market which returned 3% over the past year.


Shareholder returns

MCBIndustryMarket
7 Day3.5%-1.4%-0.3%
30 Day36.2%-4.4%-0.9%
90 Day-0.9%-2.3%-2.0%
1 Year-48.1%-48.1%-8.1%-10.7%8.0%3.0%
3 Year-65.0%-65.0%-14.2%-19.6%18.0%3.6%
5 Year-18.6%-18.6%35.1%20.5%35.8%6.4%

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?

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MCB (£0.67) is trading below our estimate of fair value (£1.1)

Significantly Undervalued: MCB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MCB is good value based on its PE Ratio (10.3x) compared to the Household Products industry average (18.7x).

PE vs Market: MCB is good value based on its PE Ratio (10.3x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MCB is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MCB is good value based on its PB Ratio (1.9x) 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 (1.2%).

Earnings vs Market: MCB's earnings (20.9% per year) are forecast to grow faster than the UK market (12.6% 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 (3.9% 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

High 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


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

ROA vs Industry: MCB's Return on Assets is below or equal to the Household Products industry average last year.


Return on Capital Employed

ROCE Improving: MCB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is McBride's financial position?


Financial Position Analysis

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

Long Term Liabilities: MCB's short term assets (258.0M) exceeds 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 1.904050x debt).


Next Steps

Dividend

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

4.90%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.0%markettop25%5.4%industryaverage2.4%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MCB's dividend (4.9%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: MCB's dividend (4.9%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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

Chris Smith (55yo)

0.3yrs

Tenure

UK£366,000

Compensation

Mr. Christopher Ian Charles Smith, also known as Chris, ACA has been Interim Chief Executive Officer and Executive Director of McBride plc since July 22, 2019 and since January 7, 2014 and served as Chief  ...


CEO Compensation Analysis

Compensation vs. Market: Chris has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


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

4.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: MCB's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£11,48008 Oct 19
Jeffrey Nodland
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceUK£0.57
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£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
Chief Executive Officer
Interim CEO & Executive Director
Shares34,314
Max PriceUK£1.03

Ownership Breakdown


Management Team

  • Chris Smith (55yo)

    Interim CEO & Executive Director

    • Tenure: 0.3yrs
    • Compensation: UK£366.00k
  • Matthias Kreysel

    Chief R&D Officer

    • Tenure: 7.2yrs
  • Carol Williams

    General Counsel & Company Secretary

    • Tenure: 1.8yrs
  • David Rattigan

    Interim Director of Finance & Group Financial Controller

    • Tenure: 0.3yrs

Board Members

  • Steve Hannam (69yo)

    Senior Independent Non-Executive Director

    • Tenure: 6yrs
    • Compensation: UK£52.00k
  • John Coleman (67yo)

    Independent Chairman

    • Tenure: 3.3yrs
    • Compensation: UK£150.00k
  • Neil Harrington (56yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: UK£52.00k
  • Igor Kuzniar (41yo)

    Non-Executive Director

    • Tenure: 0.3yrs
    • Compensation: UK£4.00k
  • Chris Smith (55yo)

    Interim CEO & Executive Director

    • Tenure: 0.3yrs
    • Compensation: UK£366.00k
  • Sandra Turner (67yo)

    Independent Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: UK£52.00k
  • Jeff Nodland

    Independent Non-Executive Director

    • Tenure: 0.3yrs
    • 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£123.206m
  • 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 Analysis2019/10/19 20:40
End of Day Share Price2019/10/18 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.