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Dr. Martens Plc (GB:DOCS)
:DOCS

Dr. Martens Plc (DOCS) AI Stock Analysis

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Dr. Martens Plc

(LSE:DOCS)

Rating:67Neutral
Price Target:
Dr. Martens Plc scores a 67, reflecting a balance of mixed financial performance, challenging technical indicators, and reasonable valuation. The company’s strong cash flow and strategic corporate events provide optimism, though declining revenue and weak technical signals pose concerns. The recent corporate events bolster stakeholder confidence, contributing to a moderately positive outlook.

Dr. Martens Plc (DOCS) vs. iShares MSCI United Kingdom ETF (EWC)

Dr. Martens Plc Business Overview & Revenue Model

Company DescriptionDr. Martens plc designs, develops, procures, markets, sells, and distributes footwear in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. Its product segments include originals, fusion, kids, and casual, as well as accessories. The company offers its products under the Dr. Martens brand name. Dr. Martens plc was founded in 1945 and is based in London, the United Kingdom.
How the Company Makes MoneyDr. Martens makes money primarily through the sale of its footwear and apparel products. The company generates revenue via multiple channels, including direct-to-consumer sales through its own retail stores and e-commerce platforms, as well as wholesale distribution to third-party retailers globally. Key revenue streams include sales from its core product lines, such as classic boots and shoes, along with seasonal and limited-edition collections. Additionally, Dr. Martens benefits from strategic partnerships and collaborations with other brands and designers, which help to enhance its market presence and attract new customer segments. The company also focuses on expanding its digital presence and optimizing its supply chain to drive growth and profitability.

Dr. Martens Plc Earnings Call Summary

Earnings Call Date:Jun 05, 2025
(Q4-2025)
|
% Change Since: 27.61%|
Next Earnings Date:Nov 27, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with notable achievements in inventory and debt reduction, cost savings, and growth in the Americas D2C and APAC regions. However, significant challenges remain, including overall revenue decline, reduced wholesale revenue, and underperformance in the EMEA D2C market.
Q4-2025 Updates
Positive Updates
Americas D2C Return to Growth
The company's Americas Direct-to-Consumer (D2C) segment returned to growth in the second half of FY '25, indicating a positive turnaround in this market.
Significant Inventory and Debt Reduction
The company reduced inventory by GBP 67 million, surpassing the original target of GBP 40 million, and decreased net debt by GBP 95 million, strengthening the balance sheet significantly.
Cost Savings Achieved
Through a cost action plan, the company achieved GBP 25 million in annualized cost savings, which will be fully realized in FY '26.
Strong Performance in APAC Region
D2C sales in the APAC region showed strong year-on-year growth in Japan, South Korea, and China, with South Korea particularly noted for its performance in Q4.
New Financing Arrangements Secured
The company secured refinancing as announced at the half-year mark, contributing to the stabilization efforts.
Negative Updates
Revenue Decline
Total pairs sold were down 9%, and revenue decreased by 8% to GBP 805 million on a constant currency basis.
Decline in Wholesale Revenue
Wholesale revenue declined significantly, with notable decreases in both the Americas and EMEA regions, impacting overall financial performance.
EMEA D2C Performance
The EMEA D2C segment continued to struggle due to a highly promotional market environment and weaker consumer confidence, particularly in the UK.
Decrease in EBIT
Adjusted EBIT dropped from GBP 126.4 million last year to GBP 67.1 million this year, reflecting challenges in maintaining operational profitability.
Company Guidance
In the recent call, the company provided detailed guidance on their financial performance and strategic objectives for FY '25. They successfully met their four key goals: returning the Americas Direct-to-Consumer (D2C) segment to growth in the second half, achieving GBP 25 million in annualized cost savings, significantly reducing inventory by GBP 67 million (exceeding the GBP 40 million target), and decreasing net debt by GBP 95 million. Revenue for the year was down 8% to GBP 805 million on a constant currency basis. Despite a 9% drop in total pairs sold, the D2C mix improved slightly. Gross margins declined slightly due to changes in product mix, with an emphasis on shoes and sandals over higher-margin boots. Operating costs increased by 2% due to investment in demand generation. Adjusted EBIT stood at GBP 67.1 million, with adjusted PBT at GBP 40.3 million, both slightly surpassing consensus. The company also reported GBP 25.3 million in adjusting items, primarily from exceptional costs associated with a cost action plan. The strategy moving forward focuses on stabilizing the business and setting a foundation for future growth.

Dr. Martens Plc Financial Statement Overview

Summary
Dr. Martens Plc exhibits a mixed financial profile. Income statement shows declining revenue and profitability margins, the balance sheet remains stable with moderate leverage. Cash flow has significantly improved, indicating strong operational cash generation. Overall, the company faces challenges in profitability and equity returns but demonstrates solid cash flow performance.
Income Statement
65
Positive
The company has seen fluctuating revenue with a recent decline from 1.00 billion to 877 million. Gross profit margin is healthy at approximately 57.3%, but net profit margin has decreased to 7.9% from 12.9% year-over-year. EBIT and EBITDA margins are at 14.4% and 22.5% respectively, indicating decent operational efficiency despite declining EBIT. This reflects a mixed performance with some profitability concerns.
Balance Sheet
70
Positive
Dr. Martens shows a Debt-to-Equity ratio of 1.27, indicating moderate leverage. The Equity Ratio is 38.7%, which signifies a sound balance between debt and equity. ROE has decreased from 31.9% to 18.8%, reflecting a drop in shareholder returns. The balance sheet displays reasonable stability, though there are concerns over declining equity returns.
Cash Flow
75
Positive
Operating cash flow has seen significant growth, reaching 167.9 million from 71.7 million. Free cash flow has also improved to 139.5 million, showing strong cash generation capacity. The operating cash flow to net income ratio is robust at 2.43, indicating efficient cash management. However, the reliance on cash flow for net income indicates potential volatility.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
805.90M877.10M1.00B908.30M773.00M672.20M
Gross Profit
528.00M502.90M563.90M542.10M436.70M372.60M
EBIT
142.10M126.40M190.80M232.70M196.70M154.60M
EBITDA
84.40M197.50M204.40M266.00M145.10M183.50M
Net Income Common Stockholders
29.40M69.20M128.90M181.20M34.70M74.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
94.90M111.10M157.50M228.00M113.60M117.20M
Total Assets
932.40M952.40M992.60M859.10M651.80M656.50M
Total Debt
449.70M468.60M445.80M393.80M366.40M495.60M
Net Debt
354.80M357.50M288.30M165.80M252.80M378.40M
Total Liabilities
597.90M584.20M588.40M530.90M502.10M586.00M
Stockholders Equity
334.50M368.20M404.20M328.20M149.70M70.50M
Cash FlowFree Cash Flow
216.10M139.50M20.30M148.60M128.80M94.10M
Operating Cash Flow
226.70M167.90M71.70M173.60M146.10M116.00M
Investing Cash Flow
-21.50M-25.50M-52.20M-25.00M-17.30M-21.90M
Financing Cash Flow
-142.10M-185.90M-92.30M-36.20M-120.10M-38.60M

Dr. Martens Plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price76.50
Price Trends
50DMA
57.93
Positive
100DMA
60.77
Positive
200DMA
61.50
Positive
Market Momentum
MACD
5.85
Negative
RSI
62.77
Neutral
STOCH
75.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DOCS, the sentiment is Positive. The current price of 76.5 is above the 20-day moving average (MA) of 64.77, above the 50-day MA of 57.93, and above the 200-day MA of 61.50, indicating a bullish trend. The MACD of 5.85 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 75.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DOCS.

Dr. Martens Plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
£1.35B7.002.95%-10.46%396.13%
GBMKS
71
Outperform
£7.41B25.1310.25%1.40%6.87%22.36%
67
Neutral
£737.99M157.871.23%2.22%-17.55%-71.22%
62
Neutral
$6.90B11.052.80%4.27%2.67%-24.92%
GBASC
55
Neutral
£366.40M-62.59%-15.86%-18.46%
GBTHG
49
Neutral
£386.22M-27.20%-14.37%-28.78%
48
Neutral
£283.19M-96.36%-16.32%-202.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DOCS
Dr. Martens Plc
74.20
-4.73
-5.99%
GB:ASC
ASOS plc
307.50
-48.70
-13.67%
GB:MKS
Marks and Spencer
374.30
81.18
27.70%
GB:DEBS
boohoo group Plc
21.80
-12.16
-35.81%
GB:CURY
Currys plc
123.70
47.30
61.91%
GB:THG
THG
25.46
-39.24
-60.65%

Dr. Martens Plc Corporate Events

Regulatory Filings and Compliance
Dr. Martens Announces Total Voting Rights Update
Neutral
May 1, 2025

Dr. Martens Plc has announced its total voting rights, with an issued ordinary share capital consisting of 965,190,393 shares, each carrying one voting right. This disclosure is in line with FCA’s rules and helps shareholders determine their notification requirements regarding their interests in the company, impacting transparency and stakeholder engagement.

Spark’s Take on GB:DOCS Stock

According to Spark, TipRanks’ AI Analyst, GB:DOCS is a Neutral.

Dr. Martens scores a 66, reflecting a mixed financial performance with strong cash flow and moderate leverage. Technical indicators present a bearish view, and valuation appears fair. Positive corporate events provide optimism, but the overall outlook is tempered by declining revenues and profitability margins.

To see Spark’s full report on GB:DOCS stock, click here.

Executive/Board Changes
Dr. Martens CEO Engages in RSU Transaction to Cover Tax Liabilities
Neutral
Apr 16, 2025

Dr. Martens Plc has announced a transaction involving its Chief Executive Officer, Ije Nwokorie, related to the vesting of restricted stock units (RSUs) under the company’s Long Term Incentive Plan. The RSUs were granted to Nwokorie as part of a buyout arrangement when he joined the company, and a portion of these shares were sold to cover his tax and national insurance liabilities. This transaction reflects the company’s adherence to its Remuneration Policy and highlights its commitment to transparent executive compensation practices.

Spark’s Take on GB:DOCS Stock

According to Spark, TipRanks’ AI Analyst, GB:DOCS is a Neutral.

Dr. Martens Plc scores a 66, reflecting a mixed financial performance with strong cash flow but declining revenue and profitability. Technical indicators suggest bearish trends, while valuation remains reasonable with a solid dividend yield. Positive corporate events provide some optimism, though challenges in profitability and technical performance are significant.

To see Spark’s full report on GB:DOCS stock, click here.

Business Operations and StrategyRegulatory Filings and Compliance
Dr. Martens Directors Participate in Share Incentive Plan
Positive
Apr 14, 2025

Dr. Martens plc has announced transactions involving its directors under the company’s Share Incentive Plan (SIP). On April 11, 2025, CEO Ije Nwokorie and CFO Giles Wilson acquired Partnership Shares and were granted Matching Shares, reflecting the company’s commitment to employee investment and engagement. These transactions, conducted on the London Stock Exchange, highlight Dr. Martens’ efforts to align management interests with shareholder value, potentially impacting stakeholder confidence positively.

Spark’s Take on GB:DOCS Stock

According to Spark, TipRanks’ AI Analyst, GB:DOCS is a Neutral.

Dr. Martens Plc scores a 65, reflecting a balance of mixed financial performance, challenging technical indicators, and reasonable valuation. The company’s strong cash flow and strategic corporate events provide optimism, though declining revenue and weak technical signals pose concerns.

To see Spark’s full report on GB:DOCS stock, click here.

Business Operations and Strategy
Dr. Martens Announces Director Share Transactions Under Employee Incentive Plan
Positive
Apr 9, 2025

Dr. Martens plc announced transactions involving its Share Incentive Plan (SIP), where directors and persons discharging managerial responsibilities acquired shares. The SIP allows employees to purchase shares from their salary and receive matching shares from the company, demonstrating Dr. Martens’ commitment to employee investment and engagement. This initiative reflects the company’s strategy to align employee interests with corporate performance, potentially enhancing stakeholder value.

Spark’s Take on GB:DOCS Stock

According to Spark, TipRanks’ AI Analyst, GB:DOCS is a Neutral.

Dr. Martens Plc receives an overall score of 64, reflecting a balance of mixed financial performance, weak technical indicators, reasonable valuation, and positive corporate developments. While the company shows strong cash flow and stable leverage, the decline in revenue and profitability margins remains a concern. Positive corporate events and a solid dividend yield offer some optimism for future performance.

To see Spark’s full report on GB:DOCS stock, click here.

Regulatory Filings and Compliance
Dr. Martens Announces Total Voting Rights
Neutral
Mar 31, 2025

Dr. Martens Plc has announced its total voting rights, with the company’s issued ordinary share capital consisting of 964,537,323 shares, each with one voting right. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

Executive/Board ChangesRegulatory Filings and Compliance
Dr. Martens CFO Engages in Share Purchase as Part of Remuneration Policy
Neutral
Mar 26, 2025

Dr. Martens plc announced a transaction involving its Chief Financial Officer, Giles Wilson, who received a cash payment as part of his buyout arrangements. In accordance with the company’s remuneration policy, a portion of this payment was used to purchase shares, which Wilson is required to hold for a minimum of two years. This transaction aligns with the company’s commitment to ensuring managerial responsibility and adherence to market regulations, potentially reinforcing investor confidence.

Business Operations and Strategy
Dr. Martens Directors Participate in Share Incentive Plan
Neutral
Mar 12, 2025

Dr. Martens Plc announced that its directors and persons discharging managerial responsibility have participated in the company’s Share Incentive Plan (SIP), purchasing Partnership Shares and receiving Matching Shares. This initiative, approved by HMRC, allows employees to buy shares from their monthly salary and receive additional shares from the company, aligning employee interests with company performance.

Regulatory Filings and Compliance
Dr. Martens Announces Total Voting Rights Update
Neutral
Feb 28, 2025

Dr. Martens Plc has announced that its total voting rights stand at 964,498,789 ordinary shares, each with a voting right, as per the FCA’s Disclosure Guidance and Transparency Rule. This information is crucial for shareholders to determine their interests and any changes in their stakes in the company, impacting their decision-making and compliance with regulatory requirements.

Business Operations and Strategy
Dr. Martens Announces Director Participation in Share Incentive Plan
Positive
Feb 12, 2025

Dr. Martens plc has announced a series of share transactions involving its directors under the company’s Share Incentive Plan (SIP). These transactions allow employees to purchase shares from their salary and receive matching shares from the company. On February 11, 2025, both the CEO, Ije Nwokorie, and CFO, Giles Wilson, participated in this plan, acquiring 207 Partnership Shares each and receiving 207 Matching Shares. This initiative reinforces the company’s commitment to employee investment in its growth and aligns the interests of its leadership with those of its shareholders.

Executive/Board Changes
Dr. Martens Strengthens Board with New Non-Executive Directors
Positive
Feb 12, 2025

Dr. Martens plc has announced the appointment of Robert Hanson and Benoit Vauchy as Non-Executive Directors, effective from March 26, 2025. Robert Hanson brings extensive experience in consumer brand growth, having held senior roles at John Hardy and American Eagle Outfitters, among others, while Benoit Vauchy is a seasoned financial leader from Permira, the company’s largest investor. These appointments are expected to enhance the board’s expertise, with a focus on navigating the next phase of the company’s evolution under its current leadership.

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.