Michelmersh Brick Holdings plc

AIM:MBH Stock Report

Market Cap: UK£97.7m

Michelmersh Brick Holdings Valuation

Is MBH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MBH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MBH (£1.06) is trading below our estimate of fair value (£1.38)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MBH?

Key metric: As MBH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MBH. This is calculated by dividing MBH's market cap by their current earnings.
What is MBH's PE Ratio?
PE Ratio12.1x
EarningsUK£8.10m
Market CapUK£97.69m

Price to Earnings Ratio vs Peers

How does MBH's PE Ratio compare to its peers?

The above table shows the PE ratio for MBH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.6x
BRCK Brickability Group
12.7x24.6%UK£194.7m
STCM Steppe Cement
45.3xn/aUK£35.0m
FORT Forterra
46.6x32.4%UK£372.4m
MSLH Marshalls
38x28.1%UK£820.0m
MBH Michelmersh Brick Holdings
12.1x6.9%UK£97.7m

Price-To-Earnings vs Peers: MBH is good value based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (35.6x).

Price to Earnings Ratio vs Industry

How does MBH's PE Ratio compare vs other companies in the European Basic Materials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MBH 12.1xIndustry Avg. 12.7xNo. of Companies9PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MBH is good value based on its Price-To-Earnings Ratio (12.1x) compared to the European Basic Materials industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is MBH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MBH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.1x
Fair PE Ratio9.7x

Price-To-Earnings vs Fair Ratio: MBH is expensive based on its Price-To-Earnings Ratio (12.1x) compared to the estimated Fair Price-To-Earnings Ratio (9.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MBH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.06
UK£1.55
+46.9%
13.7%UK£1.70UK£1.25n/a3
Nov ’25UK£1.04
UK£1.55
+49.8%
13.7%UK£1.70UK£1.25n/a3
Oct ’25UK£0.95
UK£1.55
+63.2%
13.7%UK£1.70UK£1.25n/a3
Sep ’25UK£1.05
UK£1.55
+47.9%
18.1%UK£1.80UK£1.16n/a3
Aug ’25UK£0.98
UK£1.55
+57.7%
18.1%UK£1.80UK£1.16n/a3
Jul ’25UK£0.95
UK£1.55
+62.7%
18.1%UK£1.80UK£1.16n/a3
Jun ’25UK£1.01
UK£1.55
+54.6%
18.1%UK£1.80UK£1.16n/a3
May ’25UK£0.98
UK£1.55
+57.7%
18.1%UK£1.80UK£1.16n/a3
Apr ’25UK£0.99
UK£1.55
+56.1%
18.1%UK£1.80UK£1.16n/a3
Mar ’25UK£0.93
UK£1.55
+67.0%
18.4%UK£1.80UK£1.15n/a3
Feb ’25UK£1.03
UK£1.55
+51.2%
18.4%UK£1.80UK£1.15n/a3
Jan ’25UK£0.94
UK£1.55
+64.9%
18.4%UK£1.80UK£1.15n/a3
Dec ’24UK£0.83
UK£1.55
+85.6%
18.4%UK£1.80UK£1.15n/a3
Nov ’24UK£0.81
UK£1.62
+100.8%
11.9%UK£1.80UK£1.35UK£1.043
Oct ’24UK£0.90
UK£1.62
+80.6%
11.9%UK£1.80UK£1.35UK£0.953
Sep ’24UK£0.88
UK£1.62
+84.8%
11.9%UK£1.80UK£1.35UK£1.053
Aug ’24UK£0.92
UK£1.62
+75.7%
11.9%UK£1.80UK£1.35UK£0.983
Jul ’24UK£0.96
UK£1.62
+68.4%
11.9%UK£1.80UK£1.35UK£0.953
Jun ’24UK£0.93
UK£1.75
+89.2%
2.9%UK£1.80UK£1.70UK£1.012
May ’24UK£0.93
UK£1.75
+89.2%
2.9%UK£1.80UK£1.70UK£0.982
Apr ’24UK£0.93
UK£1.75
+89.2%
2.9%UK£1.80UK£1.70UK£0.992
Mar ’24UK£0.99
UK£1.70
+71.7%
5.9%UK£1.80UK£1.60UK£0.932
Feb ’24UK£0.91
UK£1.70
+86.8%
5.9%UK£1.80UK£1.60UK£1.032
Jan ’24UK£0.96
UK£1.70
+77.1%
5.9%UK£1.80UK£1.60UK£0.942
Dec ’23UK£0.98
UK£1.70
+72.6%
5.9%UK£1.80UK£1.60UK£0.832
Nov ’23UK£0.78
UK£1.61
+106.4%
0.6%UK£1.62UK£1.60UK£0.812

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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