LSE:MNZS

Stock Analysis Report

Executive Summary

John Menzies plc provides distribution and aviation services in the United Kingdom, the United States, and internationally.

Snowflake

Fundamentals

Reasonable growth potential second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

MNZS

-4.9%

GB Infrastructure

-0.4%

GB Market


1 Year Return

-22.6%

MNZS

6.0%

GB Infrastructure

2.9%

GB Market

Return vs Industry: MNZS underperformed the UK Infrastructure industry which returned 6% over the past year.

Return vs Market: MNZS underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

MNZSIndustryMarket
7 Day0.6%-4.9%-0.4%
30 Day5.5%-4.9%-1.4%
90 Day-3.2%-1.8%-2.1%
1 Year-19.0%-22.6%9.9%6.0%8.0%2.9%
3 Year-9.7%-18.8%19.3%9.0%18.0%3.6%
5 Year9.6%-18.2%22.0%-12.2%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

31.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNZS (£4.03) is trading below our estimate of fair value (£5.86)

Significantly Below Fair Value: MNZS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MNZS is poor value based on its PE Ratio (198.8x) compared to the Infrastructure industry average (22.3x).

PE vs Market: MNZS is poor value based on its PE Ratio (198.8x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: MNZS is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: MNZS is overvalued based on its PB Ratio (3.8x) compared to the GB Infrastructure industry average (1.8x).


Next Steps

Future Growth

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

38.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNZS's forecast earnings growth (38.2% per year) is above the savings rate (1.2%).

Earnings vs Market: MNZS's earnings (38.2% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MNZS's revenue (4.5% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: MNZS's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has John Menzies performed over the past 5 years?

-24.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MNZS's earnings have declined by -24.3% per year over the past 5 years.

Accelerating Growth: MNZS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MNZS had negative earnings growth (-85.8%) over the past year, making it difficult to compare to the Infrastructure industry average (9.8%).


Return on Equity

High ROE: MNZS's Return on Equity (2.5%) is considered low.


Return on Assets

ROA vs Industry: MNZS's Return on Assets is below or equal to the Infrastructure industry average last year.


Return on Capital Employed

ROCE Improving: MNZS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is John Menzies's financial position?


Financial Position Analysis

Short Term Liabilities: MNZS's short term assets (£365.7M) do not cover its short term liabilities (£391.5M)

Long Term Liabilities: MNZS's short term assets (365.7M) do not cover its long term liabilities (433.9M)


Debt to Equity History and Analysis

Debt Level: MNZS's debt to equity ratio (358.6%) is considered high

Reducing Debt: MNZS's debt to equity ratio has increased from 169.5% to 358.6% over the past 5 years.

Debt Coverage: MNZS's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: MNZS's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: MNZS has a high level of physical assets or inventory.

Debt Coverage by Assets: MNZS's debt is covered by short term assets (assets are 1.192750x debt).


Next Steps

Dividend

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

5.09%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.0%markettop25%5.4%industryaverage3.9%forecastin3Years5.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MNZS's dividend (5.09%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: MNZS's dividend (5.09%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: MNZS's dividend payments have been volatile in the past 10 years.

Growing Dividend: MNZS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1012.3%), MNZS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MNZS's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

What is the CEO of John Menzies's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Giles Wilson (46yo)

0.6yrs

Tenure

UK£1,921,000

Compensation

Mr. Giles Wilson has been the Executive Director at John Menzies since June 6, 2016 respectively. Mr. Wilson has been Chief Executive Officer of John Menzies plc since June 6, 2019 served as its Interim Ch ...


CEO Compensation Analysis

Compensation vs. Market: Giles has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Giles's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

Experienced Management: MNZS's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

56.5yo

Average Age

Experienced Board: MNZS's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MNZS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£4,683,60024 Sep 19
Philipp Joeinig
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares1,200,000
Max PriceUK£3.90
BuyUK£227,40008 Jul 19
Lakestreet Capital Partners AG
EntityCompany
Shares60,000
Max PriceUK£3.79
BuyUK£9,94408 Jul 19
Giles Wilson
EntityIndividual
Role
Chief Executive Officer
CEO, CFO & Executive Director
Shares2,553.86
Max PriceUK£4.08
BuyUK£50,00508 Jul 19
David N. Garman
EntityIndividual
Role
Vice Chairman
Deputy Chairman & Senior Independent Director
Shares13,700
Max PriceUK£3.65
BuyUK£19,23308 Jul 19
John F. Geddes
EntityIndividual
Role
Member of the Board of Directors
Corporate Affairs Director
Shares4,869
Max PriceUK£3.95
BuyUK£102,92008 Nov 18
Dermot Smurfit
EntityIndividual
Shares20,000
Max PriceUK£5.15

Ownership Breakdown


Management Team

  • Giles Wilson (46yo)

    CEO, CFO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£1.92m
  • Philip Harnden (54yo)

    Executive Vice President of Commercial - Menzies Aviation

    • Tenure: 0yrs
  • John F. Geddes (50yo)

    Corporate Affairs Director

    • Tenure: 2.9yrs
    • Compensation: UK£1.54m
  • Andy Lord

    Executive Vice President of Europe

    • Tenure: 2.9yrs
  • Terry Trainor

    Senior Vice-President of US Operations - Menzies Aviation

    • Tenure: 0yrs
  • Mervyn Walker (58yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • Greg Michael

    Managing Director of Menzies Distribution

    • Tenure: 2.8yrs
  • Claire Hall

    Group Executive Vice President of People

    • Tenure: 0yrs
  • Paul Walton

    Senior Vice President of Sales & Commercial Operations – Americas

    • Tenure: 0yrs

Board Members

  • Paul Baines (63yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£46.00k
  • David N. Garman (67yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 0.3yrs
    • Compensation: UK£52.00k
  • Giles Wilson (46yo)

    CEO, CFO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£1.92m
  • John F. Geddes (50yo)

    Corporate Affairs Director

    • Tenure: 2.9yrs
    • Compensation: UK£1.54m
  • Philipp Joeinig

    Independent Chairman

    • Tenure: 0.3yrs
    • Compensation: UK£43.00k
  • Silla Maizey

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£46.00k
  • Christian Kappelhoff-Wulff

    Non-Executive Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: John Menzies plc
  • Ticker: MNZS
  • Exchange: LSE
  • Founded: 1833
  • Industry: Airport Services
  • Sector: Transportation
  • Market Cap: UK£334.984m
  • Shares outstanding: 83.23m
  • Website: https://www.johnmenziesplc.com

Number of Employees


Location

  • John Menzies plc
  • 2 Lochside Avenue
  • Edinburgh Park
  • Edinburgh
  • EH12 9DJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNZSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
MZTL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
MNZSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
B3NDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

John Menzies plc provides distribution and aviation services in the United Kingdom, the United States, and internationally. The Distribution segment offers newspaper and magazine distribution services. Thi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:39
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.