Marston's (92IP) AI Stock Analysis

• Market Cap: £271.09M
• Dividend Yield: N/A
• Average Volume (3M): 553.00
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 10,362
• Sector: Consumer Cyclical
• Sector Strength: 66
• 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): 0.00
• P/FCF Ratio: 0.10
• 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

• 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.

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 PLC primarily generates revenue through its pub operations, which include both managed and franchised establishments. The company earns money from the sale of food and beverages, including its own brews produced from its brewery operations. A significant portion of its income also comes from rental and franchise fees from its leased and franchised pubs. Additionally, Marston's hotels and inns contribute to its earnings through room bookings and associated services. Partnerships with other beverage and food brands, as well as strategic property management, further bolster its financial performance.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	893.40M	898.60M	872.30M	799.60M	401.70M	515.50M
Gross Profit	444.40M	489.10M	435.70M	379.60M	115.10M	202.10M
EBITDA	166.95M	166.20M	125.20M	164.30M	-34.20M	-87.10M
Net Income	-17.10M	-18.50M	-9.30M	137.20M	-128.30M	-348.50M
Balance Sheet
Total Assets	2.41B	2.21B	2.45B	2.52B	2.47B	2.53B
Cash, Cash Equivalents and Short-Term Investments	25.20M	45.50M	27.60M	30.70M	35.40M	42.60M
Total Debt	1.56B	1.30B	1.60B	1.62B	1.64B	1.68B
Total Liabilities	1.81B	1.56B	1.81B	1.87B	2.06B	2.28B
Stockholders Equity	601.50M	654.80M	640.10M	648.10M	406.40M	248.90M
Cash Flow
Free Cash Flow	116.10M	161.20M	75.90M	63.90M	-11.90M	92.80M
Operating Cash Flow	162.20M	207.40M	141.20M	134.00M	34.70M	156.50M
Investing Cash Flow	-5.00M	211.90M	-9.80M	-28.20M	198.20M	15.40M
Financing Cash Flow	-151.40M	-401.40M	-132.60M	-110.30M	-241.40M	-168.80M

Marston's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	79 Outperform	£1.64B	9.78	6.90%	―	1.95%	275.56%
FSTA	79 Outperform	£322.38M	12.42	6.45%	3.35%	4.79%	223.72%
HVT	72 Outperform	£8.11M	5.56	10.60%	1.28%	2.76%	―
YNGA	67 Neutral	£492.61M	57.22	1.27%	2.55%	24.95%	-153.58%
JDW	66 Neutral	£802.51M	14.43	16.38%	1.99%	3.70%	57.10%
Sector *	62 Neutral	$16.51B	10.46	-8.28%	3.32%	1.44%	-22.58%
92IP	50 Neutral	£271.09M	―		―	―	―