LSE:MTC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MTC is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: MTC's weekly volatility has decreased from 16% to 9% over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

5.3%

MTC

-1.7%

GB Multiline Retail

-0.8%

GB Market


1 Year Return

9.4%

MTC

22.1%

GB Multiline Retail

-3.7%

GB Market

Return vs Industry: MTC underperformed the UK Multiline Retail industry which returned 22.1% over the past year.

Return vs Market: MTC exceeded the UK Market which returned -3.7% over the past year.


Shareholder returns

MTCIndustryMarket
7 Day5.3%-1.7%-0.8%
30 Day14.8%1.3%0.9%
90 Day10.5%16.3%6.6%
1 Year9.4%9.4%26.4%22.1%2.1%-3.7%
3 Year-43.7%-43.7%31.9%15.8%9.6%-3.5%
5 Year-92.7%-92.7%15.2%-8.2%41.7%14.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

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 (£0.14) is trading below our estimate of fair value (£0.31)

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 XE 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.


Next Steps

Future Growth

How is Mothercare forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.8%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mothercare has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Mothercare performed over the past 5 years?

-16.3%

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, and losses have increased over the past 5 years at a rate of 16.3% 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 (47.7%).


Return on Equity

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


Next Steps

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: Whilst unprofitable MTC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MTC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21% per year.


Next Steps

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?

1.1yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Cook
CFO & Director1.08yrsUK£52.00k0.23%
£ 120.7k
Kevin Rusling
Chief Operating Officerno datano datano data
Karen Tyler
Chief Product Officer0.58yrno datano data
Lynne Medini
Group Company Secretary2.75yrsno datano data

1.1yrs

Average Tenure

Experienced Management: MTC's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Cook
CFO & Director1.08yrsUK£52.00k0.23%
£ 120.7k
Brian Small
Independent Non Executive Director1.17yrsUK£15.00kno data
Clive Whiley
Non-Executive Chairman2.83yrsUK£481.00k0.33%
£ 171.6k
Gillian D. Kent
Independent Non-Executive Director3.92yrsUK£47.50kno data
Mark Newton-Jones
Non-Executive Director2.75yrsUK£551.00k0.75%
£ 391.5k

2.8yrs

Average Tenure

57yo

Average Age

Experienced Board: MTC's board of directors are not considered experienced ( 2.8 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

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


Key Information

  • Name: Mothercare plc
  • Ticker: MTC
  • Exchange: LSE
  • Founded: 1961
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: UK£52.257m
  • Shares outstanding: 373.27m
  • Website: https://www.mothercareplc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTCLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1986
MTRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1986
MTCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1986

Biography

Mothercare plc, through its subsidiaries, operates as a specialist franchisor of products for mothers-to-be and children under the Mothercare brand. The company offers clothing, footwear, home, and travel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/25 18:36
End of Day Share Price2021/02/25 00:00
Earnings2020/10/10
Annual Earnings2020/03/28


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.