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 Analysis

Very 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

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


Market Performance


7 Day Return

-0.6%

MCB

0.3%

GB Household Products

0.3%

GB Market


1 Year Return

-29.8%

MCB

8.8%

GB Household Products

6.5%

GB Market

Return vs Industry: MCB underperformed the UK Household Products industry which returned 8.8% over the past year.

Return vs Market: MCB underperformed the UK Market which returned 6.5% over the past year.


Shareholder returns

MCBIndustryMarket
7 Day-0.6%0.3%0.3%
30 Day2.3%1.0%-1.4%
90 Day-20.5%3.6%2.9%
1 Year-29.8%-29.8%11.5%8.8%12.0%6.5%
3 Year-64.9%-64.9%-11.7%-17.3%18.7%3.8%
5 Year-32.7%-32.7%8.6%-1.8%35.0%4.1%

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?

38.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCB (£0.66) is trading below our estimate of fair value (£1.07)

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


Price To Earnings Ratio

PE vs Industry: MCB is good value based on its PE Ratio (18.6x) compared to the Household Products industry average (21x).

PE vs Market: MCB is good value based on its PE Ratio (18.6x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

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 (2x) compared to the XE Household Products industry average (2x).


Next Steps

Future Growth

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

40.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCB's forecast earnings growth (40.9% per year) is above the savings rate (0.5%).

Earnings vs Market: MCB's earnings (40.9% per year) are forecast to grow faster than the UK market (12.9% per year).

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

Revenue vs Market: MCB's revenue (0.2% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: MCB's revenue (0.2% 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 (20.3%)


Next Steps

Past Performance

How has McBride performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCB has high quality earnings.

Growing Profit Margin: MCB's current net profit margins (0.9%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: MCB has become profitable over the past 5 years, growing earnings by 30.4% 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 (-66.3%) over the past year, making it difficult to compare to the Household Products industry average (-11.6%).


Return on Equity

High ROE: MCB's Return on Equity (10.7%) 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 (£244.7M) exceed its short term liabilities (£218.0M).

Long Term Liabilities: MCB's short term assets (£244.7M) exceed its long term liabilities (£142.2M).


Debt to Equity History and Analysis

Debt Level: MCB's debt to equity ratio (209%) is considered high.

Reducing Debt: MCB's debt to equity ratio has increased from 169.3% to 209% over the past 5 years.

Debt Coverage: MCB's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MCB's interest payments on its debt are well covered by EBIT (8x 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?

5.00%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.8%markettop25%5.1%industryaverage2.3%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: MCB's dividend (5%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: MCB's dividend (5%) is low compared to the top 25% of dividend payers in the UK market (5.07%).


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 (73.1%), 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 (37.9% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Ludwig De Mot 0

0.3yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Ian Smith
CFO & Executive Director5.1yrsUK£366.00k0.19% £232.9k
Ludwig De Mot
CEO & Director0.3yrsno datano data
Glenda MacGeekie
General Counsel & Company Secretary0.08yrsno datano data
Matthias Kreysel
Chief R&D Officer7.5yrsno datano data
David Rattigan
Interim Director of Finance & Group Financial Controller0yrsno datano data

0.3yrs

Average Tenure

Experienced Management: MCB's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Ian Smith
CFO & Executive Director5.1yrsUK£366.00k0.19% £232.9k
Ludwig De Mot
CEO & Director0.3yrsno datano data
Stephen Hannam
Senior Independent Non-Executive Director6.3yrsUK£52.00k0.0066% £7.9k
Elizabeth McMeikan
Independent Non-Executive Director0.3yrsno datano data
Neil Harrington
Independent Non-Executive Director8.1yrsUK£52.00k0.026% £31.3k
Igor Kuzniar
Non-Executive Director0.7yrsUK£4.00kno data
Sandra Turner
Independent Non-Executive Director8.5yrsUK£52.00k0.0055% £6.6k
Jeffrey Nodland
Independent Non- Executive Chairman of the Board0.3yrsUK£1.00k0.071% £85.8k

2.9yrs

Average Tenure

56.5yo

Average Age

Experienced Board: MCB's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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£120.647m
  • 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 offers various household products, such as laundry products, including laundry powder tablets, liquid gels, and laundry liquid sachets; dishwashing products comprising washing up liquids and machine dishwashing powders, tablets, and gels; household cleaners consisting of bathroom, kitchen, glass, ceramic hobs, antibacterial, and multisurface cleaners; toilet cleaners and descaling products; and air freshener products, such as time release sprays, gel air fresheners, plug-in fresheners, sprays, diffusers, and candles. It also provides personal care products, which include bath and shower products comprising bath foams, shower gels, mousses, and liquid soaps; skin care products, such as day and night creams, serums, lotions, and cleansers, as well as general body, hand and foot care, and self-tanning creams; and hair care products, including shampoos, conditioners, and hair styling solutions. In addition, the company offers body care products, including roll-on deodorants, aerosol based anti-perspirant deodorants, and fragranced body sprays for men, women, and teens; men's grooming products, such as shaving gels and foams, deodorant's and body sprays, and shower products; oral care products, such as toothpastes and mouthwash formulations; and baby care products. Further, it provides contract manufacturing services of household and personal care products to brand owners and contract customers. McBride plc was founded in 1860 and is headquartered in Manchester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 20:55
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.