Marston's (92IP) AI Stock Analysis

• Market Cap: £283.57M
• Dividend Yield: N/A
• Average Volume (3M): 553.00
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 10,362
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: N/A
• 10 Day Avg. Volume: 553
• 30 Day Avg. Volume: 553
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00670
• P/FCF Ratio: 0.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: ―

Marston's overall stock score is weighed down significantly by stagnant technical indicators and poor valuation metrics, compounded by ongoing net losses. While there is some operational recovery and strong cash flow management, these positives are overshadowed by high leverage and lack of profitability.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective strategies in attracting customers, which supports long-term business sustainability.

Cash Flow Management

Effective cash flow management enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt more efficiently.

Margin Improvement

Improved margins reflect operational efficiency and cost control, which are critical for enhancing profitability and competitiveness in the long term.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to withstand economic downturns and potentially impacting future growth and stability.

Negative Profitability

Ongoing net losses and negative profitability hinder the company's ability to generate shareholder value and may restrict reinvestment in business growth.

Return on Equity

Negative return on equity indicates challenges in efficiently using shareholder funds to generate profits, which can affect investor confidence and long-term growth prospects.

Marston's Business Overview & Revenue Model

Company Description

Marston's PLC is a beer brewer and pub operator. It operates more than 1,500 pubs across the United Kingdom under brand names including Marston's Two For One, Milestone Rotisserie, Pitcher & Piano, and Revere. It also licenses and franchises more than 500 other taverns, and it has some locations that offer lodging. The company has five breweries that distribute its beer brands for sale to both out-of-home and at-home customers. Its key beer brands include Hobgoblin, Marston's Pedigree, Wainwright, Ringwood, Brakspear, and Banks's. Roughly 20% of the company's revenue comes from the brewing business; the rest comes from its pub businesses. Virtually all revenue is generated in the United Kingdom.

How the Company Makes Money

Marston's generates revenue primarily through its extensive estate of pubs and restaurants, which provide food and drink services to consumers. The company earns money from the sale of alcoholic beverages, particularly its own brewed beers, as well as food sales in its establishments. Additionally, Marston's benefits from rental income from leased pubs and contributes to its income through the sale of packaged beers and ales in retail settings. Significant partnerships with retailers and wholesalers enhance its distribution capabilities, allowing for expanded reach and sales. The company's revenue model is bolstered by seasonal promotions, special events, and loyalty programs that attract customers and encourage repeat business.

Marston's Financial Statement Overview

Summary

Marston's financial health displays a mix of strengths and weaknesses. Revenue growth and improved margins suggest operational recovery, while high leverage and ongoing net losses raise concerns. The cash flow profile is strong, indicating effective cash management strategies. To enhance financial stability, reducing leverage and achieving net profitability are crucial.

Income Statement

Marston's has shown a commendable recovery in revenue over recent years, with a notable revenue growth rate of 3.02% from 2023 to 2024. The gross profit margin improved to 54.43% in 2024, indicating effective cost management. However, the company faces challenges in profitability, evidenced by a negative net profit margin of -2.06% in 2024, and persistent net losses since 2020. While the EBIT margin improved to 16.89% in 2024, the negative net income remains a concern.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 1.99 in 2024, highlighting significant leverage that could pose risks in adverse market conditions. The equity ratio improved slightly to 29.58% in 2024, suggesting a moderately stable capital structure. However, the return on equity is negative due to ongoing net losses, signaling challenges in generating shareholder value.

Cash Flow

Marston's shows strong cash flow management, with a notable free cash flow growth rate of 112.36% from 2023 to 2024. The operating cash flow to net income ratio is substantially positive, indicating robust operational efficiency despite net losses. The free cash flow to net income ratio also reflects a positive cash position relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	898.60M	898.60M	872.30M	799.60M	401.70M	515.50M
Gross Profit	172.20M	489.10M	435.70M	335.40M	74.20M	160.20M
EBITDA	208.30M	166.20M	115.30M	296.20M	-34.20M	-250.70M
Net Income	-6.60M	-18.50M	-9.30M	137.20M	-127.70M	-359.60M
Balance Sheet
Total Assets	2.21B	2.21B	2.45B	2.52B	2.47B	2.53B
Cash, Cash Equivalents and Short-Term Investments	45.50M	45.50M	29.60M	30.70M	35.40M	42.60M
Total Debt	1.30B	1.30B	1.60B	1.62B	1.64B	1.68B
Total Liabilities	1.56B	1.56B	1.81B	1.87B	2.06B	2.28B
Stockholders Equity	654.80M	654.80M	640.10M	648.10M	406.40M	248.90M
Cash Flow
Free Cash Flow	110.40M	161.20M	75.90M	-14.60M	-107.70M	3.30M
Operating Cash Flow	156.60M	207.40M	141.20M	55.50M	-61.10M	67.00M
Investing Cash Flow	211.00M	211.90M	-9.80M	-29.10M	197.70M	13.90M
Financing Cash Flow	-349.70M	-401.40M	-132.60M	-30.90M	-145.10M	-77.80M

Marston's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	75 Outperform	£1.43B	8.52	6.58%	―	3.87%	18.31%
HVT	72 Outperform	£8.34M	5.69	10.60%	1.25%	2.76%	40.57%
FSTA	69 Neutral	£331.52M	12.93	4.82%	3.11%	6.94%	9.99%
JDW	64 Neutral	£683.68M	10.69	17.81%	1.56%	4.52%	50.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YNGA	58 Neutral	£425.07M	39.96	1.46%	3.21%	12.91%	-13.62%
92IP	50 Neutral	£283.57M	―	―	―	―	―