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MTC

MothercareAIM:MTC Stock Report

Market Cap

UK£107.5m

7D

2.1%

1Y

53.3%

Updated

29 Nov, 2021

Data

Company Financials +
MTC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends0/6

MTC Stock Overview

Mothercare plc, through its subsidiaries, operates as a specialist franchisor of products for mothers-to-be and children under the Mothercare brand.

Mothercare Competitors

Marks and Spencer Group

LSE:MKS

UK£4.7b

Burberry Group

LSE:BRBY

UK£7.2b

J Sainsbury

LSE:SBRY

UK£6.8b

B&M European Value Retail

LSE:BME

UK£6.3b

Price History & Performance

Summary of all time highs, changes and price drops for Mothercare
Historical stock prices
Current Share PriceUK£0.19
52 Week HighUK£0.20
52 Week LowUK£0.10
Beta0.79
1 Month Change4.38%
3 Month Change25.33%
1 Year Change53.32%
3 Year Change17.74%
5 Year Change-82.84%
Change since IPO-96.47%

Recent News & Updates

Shareholder Returns

MTCGB Multiline RetailGB Market
7D2.1%-1.2%-1.9%
1Y53.3%34.9%13.8%

Return vs Industry: MTC exceeded the UK Multiline Retail industry which returned 34.3% over the past year.

Return vs Market: MTC exceeded the UK Market which returned 11.6% over the past year.

Price Volatility

Is MTC's price volatile compared to industry and market?
MTC volatility
MTC Average Weekly Movement4.8%
Multiline Retail Industry Average Movement3.9%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.6%

Stable Share Price: MTC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MTC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1961436n/ahttps://www.mothercareplc.com

Mothercare plc, through its subsidiaries, operates as a specialist franchisor of products for mothers-to-be and children under the Mothercare brand. The company provides clothing, footwear, home, and travel products, as well as toys. It operates approximately 700 Mothercare stores and 400 additional stores under the Mothercare brand, as well as websites through a network of franchise partners in 37 countries.

Mothercare Fundamentals Summary

How do Mothercare's earnings and revenue compare to its market cap?
MTC fundamental statistics
Market CapUK£107.52m
Earnings (TTM)-UK£4.70m
Revenue (TTM)UK£83.10m

1.3x

P/S Ratio

-22.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTC income statement (TTM)
RevenueUK£83.10m
Cost of RevenueUK£55.70m
Gross ProfitUK£27.40m
ExpensesUK£32.10m
Earnings-UK£4.70m

Last Reported Earnings

Sep 25, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0083
Gross Margin32.97%
Net Profit Margin-5.66%
Debt/Equity Ratio-51.1%

How did MTC perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTC (£0.19) is trading below our estimate of fair value (£0.45)

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


Price To Earnings Ratio

PE vs Industry: MTC is unprofitable, so we can't compare its PE Ratio to the European Multiline Retail industry average.

PE vs Market: MTC is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MTC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MTC has negative assets, so we can't compare its PB Ratio to the XE Multiline Retail industry average.


Future Growth

How is Mothercare forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

64.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: MTC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MTC's is expected to become profitable in the next 3 years.

Revenue vs Market: MTC's revenue is expected to decline over the next 3 years (-4.7% per year).

High Growth Revenue: MTC's revenue is forecast to decline over the next 3 years (-4.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MTC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Mothercare performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTC is currently unprofitable.

Growing Profit Margin: MTC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTC is unprofitable, but has reduced losses over the past 5 years at a rate of 4.1% per year.

Accelerating Growth: Unable to compare MTC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTC is unprofitable, making it difficult to compare its past year earnings growth to the Multiline Retail industry (28.6%).


Return on Equity

High ROE: MTC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Mothercare's financial position?


Financial Position Analysis

Short Term Liabilities: MTC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MTC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MTC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MTC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MTC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MTC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MTC'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 MTC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTC'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?

1.5yrs

Average management tenure


CEO

Mothercare has no CEO, or we have no data on them.


Leadership Team

Experienced Management: MTC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: MTC's board of directors are considered experienced (3.5 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 50.8%.


Top Shareholders

Company Information

Mothercare plc's employee growth, exchange listings and data sources


Key Information

  • Name: Mothercare plc
  • Ticker: MTC
  • Exchange: AIM
  • Founded: 1961
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: UK£107.516m
  • Shares outstanding: 562.91m
  • Website: https://www.mothercareplc.com

Number of Employees


Location

  • Mothercare plc
  • Westside 1
  • London Road
  • Hemel Hempstead
  • Hertfordshire
  • HP3 9TD
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/29 22:55
End of Day Share Price2021/11/29 00:00
Earnings2021/09/25
Annual Earnings2021/03/27


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.