LSE:MCB

Stock Analysis Report

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Executive Summary

McBride plc, together with its subsidiaries, manufactures and sells private label household and personal care products to retailers and brand owners in the United Kingdom, the Asia Pacific, rest of Europe, and internationally. More Details


Snowflake Analysis

Very undervalued with adequate balance sheet.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

MCB

-3.8%

GB Household Products

-2.0%

GB Market


1 Year Return

-9.0%

MCB

6.0%

GB Household Products

-17.2%

GB Market

Return vs Industry: MCB underperformed the UK Household Products industry which returned 6.2% over the past year.

Return vs Market: MCB exceeded the UK Market which returned -16.4% over the past year.


Shareholder returns

MCBIndustryMarket
7 Day-1.6%-3.8%-2.0%
30 Day1.0%-4.3%-0.5%
90 Day2.0%-6.3%-4.4%
1 Year-9.0%-9.0%8.1%6.0%-14.1%-17.2%
3 Year-72.4%-72.4%-2.2%-8.6%-10.3%-21.4%
5 Year-61.9%-61.9%12.2%0.7%13.4%-12.1%

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?

42.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCB (£0.64) is trading below our estimate of fair value (£1.08)

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 (17.5x) compared to the XE Household Products industry average (21.8x).

PE vs Market: MCB is good value based on its PE Ratio (17.5x) compared to the UK market (18x).


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 good value based on its PB Ratio (1.7x) 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 5 analysts?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCB's forecast earnings growth (30.1% per year) is above the savings rate (1.2%).

Earnings vs Market: MCB's earnings (30.1% per year) are forecast to grow faster than the UK market (24.1% per year).

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

Revenue vs Market: MCB's revenue (1.2% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: MCB's revenue (1.2% 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 low in 3 years time (19.6%).


Next Steps

Past Performance

How has McBride performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCB has a large one-off loss of £10.8M impacting its June 30 2020 financial results.

Growing Profit Margin: MCB's current net profit margins (0.9%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: MCB has become profitable over the past 5 years, growing earnings by 5.8% 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 (-44%) over the past year, making it difficult to compare to the Household Products industry average (22.1%).


Return on Equity

High ROE: MCB's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is McBride's financial position?


Financial Position Analysis

Short Term Liabilities: MCB's short term assets (£287.6M) exceed its short term liabilities (£253.9M).

Long Term Liabilities: MCB's short term assets (£287.6M) exceed its long term liabilities (£151.0M).


Debt to Equity History and Analysis

Debt Level: MCB's debt to equity ratio (204.8%) is considered high.

Reducing Debt: MCB's debt to equity ratio has increased from 199.7% to 204.8% over the past 5 years.

Debt Coverage: MCB's debt is well covered by operating cash flow (37.7%).

Interest Coverage: MCB's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCB's dividend (1.72%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.84%).

High Dividend: MCB's dividend (1.72%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


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 reasonably low payout ratio (30%), MCB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCB's dividends in 3 years are forecast to be well covered by earnings (18.8% payout ratio).


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Chris Smith (56 yo)

0.33

Tenure

UK£493,000

Compensation

Mr. Christopher Ian Charles Smith, also known as Chris, ACA is the Chief Executive Officer at McBride plc since June 11, 2020. He had been the been Chief Financial Officer of McBride plc since November 1, ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD644.50K) is about average for companies of similar size in the UK market ($USD672.96K).

Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Ian Smith
CEO & Executive Director0.33yrUK£493.00k0.22%
£ 240.1k
Clive Jennings
Interim Chief Financial Officer0.25yrno datano data
Glenda MacGeekie
General Counsel & Company Secretary0.75yrno datano data
Matthias Kreysel
Chief R&D Officer8.17yrsno datano data
David Rattigan
Interim Director of Finance & Group Financial Controllerno datano datano data

0.5yrs

Average Tenure

56yo

Average Age

Experienced Management: MCB's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Ian Smith
CEO & Executive Director0.33yrUK£493.00k0.22%
£ 240.1k
Stephen Hannam
Senior Independent Non-Executive Director7yrsUK£52.00k0.041%
£ 45.8k
Elizabeth McMeikan
Independent Non-Executive Director0.92yrUK£29.00k0.0086%
£ 9.6k
Neil Harrington
Independent Non-Executive Director8.75yrsUK£52.00k0.026%
£ 28.9k
Igor Kuzniar
Non-Executive Director1.33yrsUK£45.00kno data
Sandra Turner
Independent Non-Executive Director9.17yrsUK£52.00k0.0055%
£ 6.1k
Jeffrey Nodland
Independent Non-Executive Chairman of the Board1yrUK£123.00k0.21%
£ 232.2k

5.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: MCB's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MCB 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: 1927
  • Industry: Household Products
  • Sector: Household
  • Market Cap: UK£111.507m
  • 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
10WDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1995

Biography

McBride plc, together with its subsidiaries, manufactures and sells private label household and personal care products to retailers and brand owners in the United Kingdom, the Asia Pacific, rest of Europe, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 21:26
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.