Mothercare
Market Cap
UK£52.3m
Last Updated
2021/02/25 18:36 UTC
Data Sources
Company Financials
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
Rewards
Risk Analysis
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
| MTC | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.3% | -1.7% | -0.8% |
| 30 Day | 14.8% | 1.3% | 0.9% |
| 90 Day | 10.5% | 16.3% | 6.6% |
| 1 Year | 9.4%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
8 months ago | Simply Wall St
Investors Who Bought Mothercare (LON:MTC) Shares Five Years Ago Are Now Down 97%10 months ago | Simply Wall St
Could The Mothercare plc (LON:MTC) Ownership Structure Tell Us Something Useful?11 months ago | Simply Wall St
Did Changing Sentiment Drive Mothercare's (LON:MTC) Share Price Down A Painful 93%?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
- Take a look at our analysis of MTC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Mothercare competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Retail industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CFO & Director | 1.08yrs | UK£52.00k | 0.23% £ 120.7k | |
| Chief Operating Officer | no data | no data | no data | |
| Chief Product Officer | 0.58yr | no data | no data | |
| Group Company Secretary | 2.75yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CFO & Director | 1.08yrs | UK£52.00k | 0.23% £ 120.7k | |
| Independent Non Executive Director | 1.17yrs | UK£15.00k | no data | |
| Non-Executive Chairman | 2.83yrs | UK£481.00k | 0.33% £ 171.6k | |
| Independent Non-Executive Director | 3.92yrs | UK£47.50k | no data | |
| Non-Executive Director | 2.75yrs | UK£551.00k | 0.75% £ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MTC | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1986 |
| MTR | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1986 |
| MTCL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/25 18:36 |
| End of Day Share Price | 2021/02/25 00:00 |
| Earnings | 2020/10/10 |
| Annual Earnings | 2020/03/28 |
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.