Marston's PLC (GB:92IP)
LSE:92IP
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Marston's
(LSE:92IP)
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Rating:64Neutral
Price Target:
96.00 p
▲(6.67% Upside)
Action:Reiterated
Date:05/11/26
The score is driven mainly by improving profitability and strong cash generation that support continued deleveraging, reinforced by a positive earnings-call outlook and execution evidence on refurbishments. Offsetting this, leverage remains a meaningful constraint and technicals show limited momentum; valuation support cannot be assessed due to missing P/E and dividend yield.
Positive Factors
Strong cash generation
Consistent and material cash generation provides durable financial flexibility: it funds refurbishments, services debt and supports deleveraging. Over 2024–25 cash flow recovery reduces refinancing pressure and underpins the firm's ability to invest in high‑return formats while stabilising operations.
Negative Factors
Elevated leverage
A debt‑heavy balance sheet constrains strategic optionality and raises refinancing and interest‑rate sensitivity. Until net‑debt/EBITDA is pushed below target levels, management must prioritise deleveraging over shareholder returns, leaving less capacity for expansion or buffering slower trading periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent and material cash generation provides durable financial flexibility: it funds refurbishments, services debt and supports deleveraging. Over 2024–25 cash flow recovery reduces refinancing pressure and underpins the firm's ability to invest in high‑return formats while stabilising operations.
Read all positive factors
Marston's (92IP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£303.77M
Dividend YieldN/A
Average Volume (3M)553.00
Price to Earnings (P/E)4.1
Beta (1Y)0.00
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees10,362
SectorGeneral
Sector StrengthN/A
IndustryRestaurants
Share Statistics
EPS (TTM)0.11
Shares OutstandingN/A
10 Day Avg. Volume553
30 Day Avg. Volume553
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00720
P/FCF Ratio0.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 ...
How the Company Makes Money
Marston's makes money primarily by operating pubs and earning revenue from customer spend in its venues. Key revenue streams include (1) drink sales (beer, cider, spirits, wine, and soft drinks) and (2) food sales (meals and other catering items) ...
Marston's Earnings Call Summary
Earnings Call Date:Nov 25, 2025
(Q4-2025)
| Next Earnings Date:Dec 08, 2026
Earnings Call Sentiment Positive
The call presents a clearly positive operational and financial story: strong profit growth (PBT +71%), margin expansion (+140bps), exceeded recurring free cash flow targets (GBP 53.2m), successful format tests (31 launches, +23% revenue uplift, >30% EBITDA returns) and tangible deleveraging (net debt-to-EBITDA down to 4.6x). Key risks noted include reported revenue being flat after disposals, elevated leverage that remains above the sub-4x target, higher ongoing CapEx, cash tax stepping up in FY26, and limited headroom as free cash is absorbed by scheduled debt repayments. On balance, the positive delivery on targets, strong cash generation and credible growth initiatives outweigh the near-term constraints and execution risks.Positive Updates
Strong Profit Growth
Underlying profit before tax of GBP 72m, up 71% year-on-year (nearly 3x the level two years prior), driven by higher EBITDA and lower finance costs.
Negative Updates
Reported Revenue Flat and Disposal Impact
Reported revenue broadly flat at GBP 898m; FY24/25 disposal program reduced revenue by ~GBP 40m (c. GBP 50m of assets sold), masking headline growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Profit Growth
Underlying profit before tax of GBP 72m, up 71% year-on-year (nearly 3x the level two years prior), driven by higher EBITDA and lower finance costs.
Read all positive updates
Company Guidance
Management guided that FY26 trading is broadly in line with FY25 — like‑for‑like sales are tracking flat with Christmas bookings up 11% — and they expect further margin progress toward the CMD target of a 200–300bps uplift versus FY24 (i.e., aiming toward a 23.4–24.4% EBITDA margin) after delivering a 140bps increase to 22.8% in FY25 (EBITDA £205m); they will accelerate formats with at least ~50 refurbishments in 2026 (after 31 in FY25 that drove ~23% revenue uplifts and >30% EBITDA returns at ~£260k per site), run Group CapEx around 7–8% of revenue, expect recurring free cash flow of c.£50m again, see cash tax rising to ~£10m in FY26 (normalising by 2028), and continue to delever from current c.4.6x net‑debt/EBITDA toward a sub‑4x (pre‑IFRS16) threshold before restarting shareholder returns.Marston's Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
52
Neutral
Cash Flow
78
Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 897.90M | 898.60M | 872.30M | 799.60M | 401.70M |
| Gross Profit | 509.90M | 489.10M | 435.70M | 335.40M | 74.20M |
| EBITDA | 223.50M | 166.20M | 115.30M | 296.20M | -34.20M |
| Net Income | 71.60M | -18.50M | -9.30M | 137.20M | -127.70M |
Balance Sheet | |||||
| Total Assets | 2.32B | 2.21B | 2.45B | 2.52B | 2.47B |
| Cash, Cash Equivalents and Short-Term Investments | 35.90M | 45.50M | 29.60M | 30.70M | 35.40M |
| Total Debt | 1.24B | 1.30B | 1.60B | 1.62B | 1.64B |
| Total Liabilities | 1.53B | 1.56B | 1.81B | 1.87B | 2.06B |
| Stockholders Equity | 790.70M | 654.80M | 640.10M | 648.10M | 406.40M |
Cash Flow | |||||
| Free Cash Flow | 138.00M | 161.20M | 75.90M | -14.60M | -107.70M |
| Operating Cash Flow | 199.20M | 207.40M | 141.20M | 55.50M | -61.10M |
| Investing Cash Flow | -54.20M | 211.90M | -9.80M | -29.10M | 197.70M |
| Financing Cash Flow | -154.60M | -401.40M | -132.60M | -30.90M | -145.10M |
Marston's Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £356.19M | 17.87 | 4.99% | 2.81% | 6.94% | 9.13% | |
66 Neutral | £303.77M | 4.07 | 9.30% | ― | -0.52% | 68.53% | |
65 Neutral | £1.39B | 7.62 | 6.41% | ― | 2.96% | 9.30% | |
64 Neutral | £303.77M | 4.07 | 9.75% | ― | ― | ― | |
63 Neutral | £455.31M | 17.37 | 3.55% | 3.20% | 4.61% | 186.76% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | £634.88M | 11.98 | 15.81% | 1.50% | 5.39% | -3.64% |
* General Sector Average
GB:92IP
Marston's
90.00
-5.00
-5.26%
GB:FSTA
Fuller Smith & Turner
674.00
68.24
11.27%
GB:MARS
Marston's
48.00
6.65
16.08%
GB:MAB
Mitchells & Butlers
235.00
-52.50
-18.26%
GB:JDW
J D Wetherspoon
635.50
-85.17
-11.82%
GB:YNGA
Young & Co'S Brewery
795.00
-164.40
-17.14%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.