LSE:MSLH

Stock Analysis Report

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Executive Summary

Marshalls plc manufactures and supplies hard landscaping products in the United Kingdom and internationally.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MSLH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.2%

MSLH

10.9%

GB Basic Materials

2.2%

GB Market


1 Year Return

8.2%

MSLH

-12.1%

GB Basic Materials

-10.0%

GB Market

Return vs Industry: MSLH exceeded the UK Basic Materials industry which returned -15.8% over the past year.

Return vs Market: MSLH exceeded the UK Market which returned -9.5% over the past year.


Shareholder returns

MSLHIndustryMarket
7 Day7.2%10.9%2.2%
30 Day13.5%10.8%9.6%
90 Day-2.6%-4.3%-2.6%
1 Year8.9%8.2%-9.8%-12.1%-5.7%-10.0%
3 Year84.1%68.5%5.0%-2.1%-1.8%-13.8%
5 Year151.6%121.5%65.4%52.3%15.5%-10.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MSLH (£6.89) is trading below our estimate of fair value (£8.66)

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


Price To Earnings Ratio

PE vs Industry: MSLH is poor value based on its PE Ratio (23.5x) compared to the Basic Materials industry average (10.6x).

PE vs Market: MSLH is poor value based on its PE Ratio (23.5x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: MSLH is poor value based on its PEG Ratio (51.5x)


Price to Book Ratio

PB vs Industry: MSLH is overvalued based on its PB Ratio (4.6x) compared to the GB Basic Materials industry average (1.5x).


Next Steps

Future Growth

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

0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSLH's forecast earnings growth (0.5% per year) is below the savings rate (1.2%).

Earnings vs Market: MSLH's earnings (0.5% per year) are forecast to grow slower than the UK market (20.9% per year).

High Growth Earnings: MSLH's earnings are forecast to grow, but not significantly.

Revenue vs Market: MSLH's revenue (0.9% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: MSLH's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSLH's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Marshalls performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSLH has high quality earnings.

Growing Profit Margin: MSLH's current net profit margins (10.7%) are higher than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: MSLH's earnings have grown by 19.2% per year over the past 5 years.

Accelerating Growth: MSLH's earnings growth over the past year (12.1%) is below its 5-year average (19.2% per year).

Earnings vs Industry: MSLH earnings growth over the past year (12.1%) underperformed the Basic Materials industry 12.1%.


Return on Equity

High ROE: MSLH's Return on Equity (19.6%) is considered low.


Next Steps

Financial Health

How is Marshalls's financial position?


Financial Position Analysis

Short Term Liabilities: MSLH's short term assets (£212.5M) exceed its short term liabilities (£162.3M).

Long Term Liabilities: MSLH's short term assets (£212.5M) exceed its long term liabilities (£104.5M).


Debt to Equity History and Analysis

Debt Level: MSLH's debt to equity ratio (24.1%) is considered satisfactory.

Reducing Debt: MSLH's debt to equity ratio has reduced from 29.4% to 24.1% over the past 5 years.

Debt Coverage: MSLH's debt is well covered by operating cash flow (123.6%).

Interest Coverage: MSLH's interest payments on its debt are well covered by EBIT (22.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.06%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MSLH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MSLH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MSLH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MSLH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MSLH is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MSLH's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Martyn Coffey (57yo)

6.67yrs

Tenure

UK£2,213,000

Compensation

Mr. Martyn Coffey has been the Chief Executive Officer of Marshalls plc since October 10, 2013. Mr. Coffey is an Officer of the Construction Products Association. He served as the Group Chief Executive Off ...


CEO Compensation Analysis

Compensation vs Market: Martyn's total compensation ($USD2.79M) is above average for companies of similar size in the UK market ($USD1.70M).

Compensation vs Earnings: Martyn's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Martyn Coffey
CEO & Executive Director6.67yrsUK£2.21m0.14% £1.9m
Jack Clarke
Group Finance Director & Director5.67yrsUK£1.44m0.082% £1.1m
Chris Harrop
Group Marketing Directorno datano datano data
Cathy Baxandall
Group Company Secretary11.92yrsno datano data

6.7yrs

Average Tenure

Experienced Management: MSLH's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martyn Coffey
CEO & Executive Director6.67yrsUK£2.21m0.14% £1.9m
Jack Clarke
Group Finance Director & Director5.67yrsUK£1.44m0.082% £1.1m
Vanda Murray
Independent Chairman of the Board2.08yrsUK£176.00k0.011% £151.6k
Graham Prothero
Independent Non-Executive Director3.08yrsUK£58.00k0.0012% £16.7k
Tim Pile
Independent Non-Executive Director9.67yrsUK£50.00k0.022% £297.3k
Janet Ashdown
Senior Independent Non-Executive Director4.08yrsUK£64.00k0.0056% £77.2k
Angela Bromfield
Independent Non-Executive Director0.67yrUK£12.00kno data

4.1yrs

Average Tenure

58yo

Average Age

Experienced Board: MSLH's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MSLH 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

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


Key Information

  • Name: Marshalls plc
  • Ticker: MSLH
  • Exchange: LSE
  • Founded: 1890
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: UK£1.367b
  • Shares outstanding: 198.36m
  • Website: https://www.marshalls.co.uk

Number of Employees


Location

  • Marshalls plc
  • Landscape House
  • Premier Way
  • Halifax
  • West Yorkshire
  • HX5 9HT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSLHLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2004
MSLHlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2004

Biography

Marshalls plc manufactures and supplies hard landscaping products in the United Kingdom and internationally. It operates through Landscape Products and Others segments. The company offers interior, garden, and driveways products, including garden paving, driveways, garden paths, kerbs and edging products, and garden walling products; and interior tiles and stones. It also provides landscaping solutions for the commercial construction sector, such as paving, kerb, linear drainage, walling, landscape protection, landscape furniture, mortar and screed, aggregate, sand and block stone, masonry and façade, and traffic calming products. In addition, the company engages in the property management activities; supply of street furniture; sourcing and distribution of natural stone products; and operation of a quarry, as well as supply of various paving products. The company provides its products to local authorities, commercial architects, specifiers, contractors, house builders, DIY enthusiasts, professional landscapers, driveway installers, and garden designers. Marshalls plc was founded in 1890 and is headquartered in Halifax, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 08:12
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.