NYSE:MANU

Stock Analysis Report

Executive Summary

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom.


Snowflake Analysis

Acceptable track record with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MANU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

MANU

2.7%

US Entertainment

7.2%

US Market


1 Year Return

-20.1%

MANU

-2.1%

US Entertainment

-10.4%

US Market

Return vs Industry: MANU underperformed the US Entertainment industry which returned -3.8% over the past year.

Return vs Market: MANU underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

MANUIndustryMarket
7 Day4.8%2.7%7.2%
30 Day-10.1%-7.5%-12.6%
90 Day-21.1%-11.8%-19.4%
1 Year-19.3%-20.1%-1.5%-2.1%-8.5%-10.4%
3 Year-4.6%-7.3%29.5%25.4%15.8%8.3%
5 Year3.6%-0.9%65.4%55.3%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

96.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MANU ($15.58) is trading above our estimate of fair value ($5.32)

Significantly Below Fair Value: MANU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MANU is poor value based on its PE Ratio (95.6x) compared to the Entertainment industry average (17.1x).

PE vs Market: MANU is poor value based on its PE Ratio (95.6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: MANU is poor value based on its PEG Ratio (11.2x)


Price to Book Ratio

PB vs Industry: MANU is overvalued based on its PB Ratio (4.5x) compared to the US Entertainment industry average (1.9x).


Next Steps

Future Growth

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

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MANU's forecast earnings growth (8.5% per year) is above the savings rate (1.7%).

Earnings vs Market: MANU's earnings (8.5% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: MANU's revenue (5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MANU's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MANU's Return on Equity is forecast to be low in 3 years time (4.2%).


Next Steps

Past Performance

How has Manchester United performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MANU has a large one-off gain of £17.9M impacting its December 31 2019 financial results.

Growing Profit Margin: MANU's current net profit margins (3.7%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: MANU's earnings have declined by -7.6% per year over the past 5 years.

Accelerating Growth: MANU's earnings growth over the past year (265.2%) exceeds its 5-year average (-7.6% per year).

Earnings vs Industry: MANU earnings growth over the past year (265.2%) exceeded the Entertainment industry 10.3%.


Return on Equity

High ROE: MANU's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is Manchester United's financial position?


Financial Position Analysis

Short Term Liabilities: MANU's short term assets (£222.2M) do not cover its short term liabilities (£312.2M).

Long Term Liabilities: MANU's short term assets (£222.2M) do not cover its long term liabilities (£585.4M).


Debt to Equity History and Analysis

Debt Level: MANU's debt to equity ratio (107.3%) is considered high.

Reducing Debt: MANU's debt to equity ratio has increased from 78.1% to 107.3% over the past 5 years.

Debt Coverage: MANU's debt is well covered by operating cash flow (28.9%).

Interest Coverage: MANU's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet

Inventory Level: MANU has a low level of unsold assets or inventory.

Debt Coverage by Assets: MANU's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

1.08%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MANU's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: MANU's dividend (1.09%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: MANU is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MANU is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MANU is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Joel Glazer (52yo)

no data

Tenure

Mr. Joel M. Glazer has been Executive Co-Chairman of Manchester United plc (alternate name, Manchester United Limited) since June 6, 2005 and also serves as its Principal Executive Officer. Mr. Glazer has  ...


Leadership Team

NamePositionTenureCompensationOwnership
Joel Glazer
Executive Co-Chairman & Principal Executive Officerno datano data14.34% £371.1m
Avram Glazer
Executive Co-Chairmanno datano data13.13% £339.7m
Edward Woodward
Executive Vice Chairmanno datano data0.33% £8.5m
John Baty
CFO & Directorno datano datano data
Corinna Freedman
Head of Investor Relationsno datano datano data
Charlie Brooks
Director of Communicationsno datano datano data
Richard Arnold
Group MD & Directorno datano datano data
Phil Rainford
Head of Stadium Safety & Securityno datano datano data
John Alexander
Secretaryno datano datano data
Philip Lynch
Chief Executive Officer of Media3yrsno datano data

4.0yrs

Average Tenure

48yo

Average Age

Experienced Management: MANU's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joel Glazer
Executive Co-Chairman & Principal Executive Officerno datano data14.34% £371.1m
Avram Glazer
Executive Co-Chairmanno datano data13.13% £339.7m
Edward Woodward
Executive Vice Chairmanno datano data0.33% £8.5m
John Baty
CFO & Directorno datano datano data
Richard Arnold
Group MD & Directorno datano datano data
Edward Glazer
Director7.25yrsno data11.85% £306.6m
Bryan Glazer
Director14.67yrsno data12.09% £312.8m
Kevin Glazer
Directorno datano data12.7% £328.5m
Manu Sawhney
Independent Director7.42yrsno datano data
Robert Leitão
Independent Directorno datano datano data

7.4yrs

Average Tenure

52yo

Average Age

Experienced Board: MANU's board of directors are considered experienced (7.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Manchester United plc
  • Ticker: MANU
  • Exchange: NYSE
  • Founded: 1878
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$2.587b
  • Shares outstanding: 164.57m
  • Website: https://www.manutd.com

Number of Employees


Location

  • Manchester United plc
  • Sir Matt Busby Way
  • Old Trafford
  • Manchester
  • Greater Manchester
  • M16 0RA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MANUNYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDAug 2012
MANU NBMV (Bolsa Mexicana de Valores)YesClass A Ordinary SharesMXMXNAug 2012
0Z1QLSE (London Stock Exchange)YesClass A Ordinary SharesGBUSDAug 2012

Biography

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. The company operates Manchester United Football Club, a professional football club. It develops marketing and sponsorship relationships with international and regional companies to leverage its brand. The company also markets and sells sports apparel, training and leisure wear, and other clothing featuring the Manchester United brand; and sells other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, it distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, the company offers a direct to consumer subscription mobile application in 167 territories; and operates Old Trafford, a sports venue with 74,989 seats. Manchester United plc was founded in 1878 and is based in Manchester, the United Kingdom. Manchester United plc is a subsidiary of Red Football LLC. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 04:03
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.