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Dr. Martens Plc (GB:DOCS)
:DOCS
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Dr. Martens Plc (DOCS) AI Stock Analysis

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GB:DOCS

Dr. Martens Plc

(LSE:DOCS)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
102.00p
▲(14.22% Upside)
Dr. Martens Plc's overall stock score reflects a mix of financial challenges and technical strengths. The company's financial performance is hindered by declining revenue and profitability, though cash flow remains strong. Technical indicators suggest positive momentum, but the high P/E ratio raises valuation concerns. The earnings call provided a balanced view of progress and challenges, contributing to a moderate overall score.

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

Dr. Martens Plc Business Overview & Revenue Model

Company DescriptionDr. Martens Plc (DOCS) is a British footwear and clothing company known for its iconic boots and shoes, characterized by their distinctive air-cushioned soles and unique design. Established in the 1960s, the brand has become a symbol of individuality and self-expression, appealing to diverse consumer segments across various lifestyle sectors. In addition to footwear, Dr. Martens offers a range of apparel and accessories, catering to both men and women.
How the Company Makes MoneyDr. Martens generates revenue primarily through the sale of its footwear products, which include classic styles such as the 1460 boot and various other shoe models. The company sells its products through multiple channels, including direct-to-consumer sales via its branded retail stores and e-commerce platform, as well as through third-party retailers and distributors. This diversified distribution strategy allows Dr. Martens to reach a wide audience globally. Additionally, the brand benefits from a strong online presence and marketing initiatives that resonate with its target demographic. The company also explores collaborations and limited-edition releases with artists and designers, further enhancing brand visibility and driving sales. Partnerships with retailers and distributors across various geographic markets contribute to a steady revenue stream, allowing Dr. Martens to capitalize on its strong brand equity and consumer loyalty.

Dr. Martens Plc Earnings Call Summary

Earnings Call Date:Jun 05, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 27, 2025
Earnings Call Sentiment Neutral
The earnings call provided a mix of stabilization achievements and challenges. While the company successfully reduced debt and inventory and saw growth in the Americas D2C market, overall revenue and gross margins declined, particularly in the EMEA region. The sentiment is balanced with significant progress on strategic objectives but offset by declines in key areas.
Q4-2025 Updates
Positive Updates
Americas D2C Growth
The Americas Direct-to-Consumer (D2C) market returned to growth in the second half of FY '25, setting momentum for FY '26 despite smaller D2C months.
Significant Debt and Inventory Reduction
The company reduced net debt by GBP 95 million and inventory by GBP 67 million, surpassing the original goal of GBP 40 million.
Cost Savings and Balance Sheet Strengthening
Implemented a cost action plan resulting in GBP 25 million of annualized savings and a stronger balance sheet.
Positive APAC Performance
Continued strong year-on-year growth in Direct-to-Consumer sales in Japan, South Korea, and China, with South Korea noted for particular strength in Q4.
Negative Updates
Overall Revenue and Gross Margin Decline
Total pairs sold were down 9%, and revenue decreased by 8% at GBP 805 million on a constant currency basis. Gross margin declined slightly due to product mix changes.
Disappointing EMEA D2C Performance
EMEA Direct-to-Consumer sales were impacted by a highly promotional market and weaker consumer confidence, particularly in the U.K., leading to a GBP 16 million shortfall.
Wholesale Revenue Decline
Wholesale revenue saw significant declines, with GBP 27 million in the Americas and GBP 25 million in EMEA, aligning with inventory rightsizing efforts by wholesale partners.
One-off Exceptional Costs
Incurred GBP 25.3 million in adjusting items, including GBP 17.9 million in exceptional costs related to the cost action plan and other strategic initiatives.
Company Guidance
In the FY '25 results presentation, the company emphasized its successful stabilization efforts, reporting on several key metrics and achievements. The Americas D2C segment returned to growth in the second half, while overall revenue was down 8% to GBP 805 million on a constant currency basis, driven by a 9% decrease in total pairs sold. The company achieved GBP 25 million in annualized cost savings and reduced inventory by GBP 67 million, surpassing their target of GBP 40 million, leading to a GBP 95 million reduction in net debt. Despite gross margin rates declining due to product mix changes, the adjusted EBIT was GBP 67.1 million, and adjusted PBT was GBP 40.3 million, both slightly ahead of consensus. The balance sheet was strengthened with net bank debt reduced by GBP 83.4 million to GBP 94.1 million, and cash flow was bolstered by GBP 108 million from operations. The results reflect disciplined cost management and strategic inventory reductions, setting the stage for future growth and stability.

Dr. Martens Plc Financial Statement Overview

Summary
Dr. Martens Plc is facing challenges with declining revenue and profitability, affecting income statement scores. The balance sheet remains stable with manageable debt levels, though return on equity has declined. Cash flow performance is strong, with substantial free cash flow generation, but attention is needed to maintain operational improvements. The company should focus on reversing revenue declines and improving profitability to enhance overall financial health.
Income Statement
62
Positive
Dr. Martens Plc has experienced a decline in both revenue and profitability in recent years. The revenue growth rate has been negative, with revenue decreasing from 2023 to 2025. The gross profit margin remains healthy at 64.95% for 2025, but the net profit margin has dropped significantly to 0.57% in the same period, indicating reduced profitability. The EBIT and EBITDA margins have also decreased, reflecting operational challenges.
Balance Sheet
68
Positive
The balance sheet shows a stable equity position with a debt-to-equity ratio of 1.10 in 2025, which suggests manageable leverage. Return on equity has decreased significantly from 31.9% in 2022 to 1.23% in 2025, highlighting declining returns for shareholders. However, the equity ratio has improved, indicating a better asset-to-equity balance.
Cash Flow
75
Positive
Cash flow analysis reveals strong free cash flow generation with a significant increase in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is robust, indicating good cash conversion efficiency despite lower net income. However, focus on sustaining operating cash flow growth is essential given the recent fluctuations in net income.
BreakdownTTMDec 2024Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue805.90M877.10M787.60M1.00B908.30M773.00M
Gross Profit528.00M575.20M511.70M618.10M578.80M470.50M
EBITDA84.40M196.30M110.50M235.00M265.10M143.30M
Net Income29.40M69.20M4.50M128.90M181.20M34.70M
Balance Sheet
Total Assets932.40M952.40M889.80M992.60M859.10M652.80M
Cash, Cash Equivalents and Short-Term Investments94.90M111.10M155.90M157.50M228.00M113.60M
Total Debt449.70M468.60M404.10M451.80M393.80M366.40M
Total Liabilities597.90M584.20M523.40M588.40M530.90M502.10M
Stockholders Equity334.50M368.20M366.40M404.20M328.20M150.70M
Cash Flow
Free Cash Flow216.10M139.50M177.60M25.90M159.40M99.50M
Operating Cash Flow226.70M167.90M196.30M77.30M184.40M121.40M
Investing Cash Flow-20.40M-25.50M-15.30M-50.60M-25.00M-21.90M
Financing Cash Flow-152.90M-185.90M-134.20M-99.50M-47.00M-44.00M

Dr. Martens Plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price89.30
Price Trends
50DMA
91.60
Negative
100DMA
84.95
Negative
200DMA
72.36
Positive
Market Momentum
MACD
-1.06
Positive
RSI
30.86
Neutral
STOCH
10.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DOCS, the sentiment is Negative. The current price of 89.3 is below the 20-day moving average (MA) of 90.92, below the 50-day MA of 91.60, and above the 200-day MA of 72.36, indicating a neutral trend. The MACD of -1.06 indicates Positive momentum. The RSI at 30.86 is Neutral, neither overbought nor oversold. The STOCH value of 10.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DOCS.

Dr. Martens Plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
£7.75B26.300.68%0.94%14.13%-96.12%
67
Neutral
£839.26M184.791.23%2.94%-10.20%-93.32%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
£1.39B13.215.01%1.15%2.71%-34.19%
55
Neutral
£700.25M-4.54-18.75%-20.36%44.33%
46
Neutral
£274.50M-0.93-62.59%-15.86%-18.46%
38
Underperform
£154.49M-0.46-185.68%-45.91%-120.22%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DOCS
Dr. Martens Plc
83.85
29.52
54.33%
GB:ASC
ASOS plc
223.00
-139.60
-38.50%
GB:MKS
Marks and Spencer
382.40
11.42
3.08%
GB:DEBS
boohoo group Plc
12.65
-17.83
-58.50%
GB:CURY
Currys plc
128.60
48.64
60.83%
GB:THG
THG
43.10
0.42
0.98%

Dr. Martens Plc Corporate Events

Business Operations and StrategyExecutive/Board Changes
Dr. Martens CEO Sells Shares to Cover Tax Liabilities
Neutral
Oct 16, 2025

Dr. Martens plc announced a transaction involving its Chief Executive Officer, Ije Nwokorie, who sold shares to cover tax and national insurance liabilities following the vesting of restricted stock units. This transaction is part of a buyout arrangement to secure Nwokorie’s recruitment, reflecting the company’s adherence to its remuneration policy and potentially impacting its executive compensation strategy.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £90.00 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

Business Operations and Strategy
Dr. Martens Directors Participate in Share Incentive Plan
Positive
Oct 14, 2025

Dr. Martens Plc has announced transactions involving its directors under the company’s Share Incentive Plan (SIP). On October 13, 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. This move underlines Dr. Martens’ strategic focus on aligning management interests with shareholder value, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £90.00 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Dr. Martens Executives Acquire Shares Under Incentive Plan
Positive
Oct 9, 2025

Dr. Martens Plc announced transactions involving the acquisition of ordinary shares by key executives under its Share Incentive Plan (SIP). The plan allows employees to purchase shares and receive matching shares, promoting employee ownership and aligning interests with company performance. This move reflects the company’s commitment to involving its leadership in its financial growth, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £90.00 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

Regulatory Filings and Compliance
Dr. Martens Announces Total Voting Rights Update
Neutral
Oct 2, 2025

Dr. Martens Plc announced that its total issued ordinary share capital consists of 966,407,209 shares, each carrying one voting right. This information is crucial for shareholders to determine their notification requirements under the FCA’s rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £86.00 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

Business Operations and Strategy
Dr. Martens Expands into UAE and Latin America with New Partnerships
Positive
Oct 2, 2025

Dr. Martens has announced a new distribution partnership with Beside Group in the UAE, marking its entry into the UAE market, and with Crosby in Latin America, expanding its presence in the region with new stores in Santiago, Chile, and Buenos Aires, Argentina. These partnerships align with Dr. Martens’ strategy to enter new growth markets with a capital-light approach, aiming to increase its consumer reach and strengthen its market position in these regions.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £86.00 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

Business Operations and Strategy
Dr. Martens Enhances Employee Engagement with Share Incentive Plan
Positive
Sep 16, 2025

Dr. Martens Plc announced that its directors and persons discharging managerial responsibility acquired shares under the company’s Share Incentive Plan (SIP). The SIP allows employees to purchase shares and receive matching shares, enhancing employee engagement and aligning interests with shareholders. This move reflects the company’s commitment to employee participation in its growth and may positively impact its market positioning by fostering a sense of ownership among its workforce.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £86.00 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

Business Operations and Strategy
Dr. Martens CFO Engages in Strategic Share Transactions
Neutral
Sep 2, 2025

Dr. Martens plc announced recent share transactions involving Giles Wilson, the Chief Financial Officer, and Katie Wilson, a person closely associated with him. On September 1, 2025, Giles Wilson purchased 105,838 shares and sold 105,785 shares, while Katie Wilson purchased 30,019 shares and sold 30,000 shares. These transactions, conducted on the London Stock Exchange, reflect strategic movements into ISAs, indicating a potential focus on tax-efficient investment strategies. The transactions are significant for stakeholders as they highlight the financial maneuvers of key company figures, potentially impacting market perceptions and investor confidence.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £86.00 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

Regulatory Filings and Compliance
Dr. Martens Plc Updates Total Voting Rights
Neutral
Aug 29, 2025

Dr. Martens Plc announced that its issued ordinary share capital consists of 966,401,835 shares, each with one voting right, and no shares are held in Treasury. This figure is crucial for shareholders to determine their notification requirements under the FCA’s rules, impacting their stake disclosures and transparency obligations.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £86.00 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

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

Dr. Martens Plc announced that its directors and persons discharging managerial responsibility (PDMRs) have participated in the company’s Share Incentive Plan (SIP). Under this plan, employees can purchase shares from their monthly salary and receive matching shares from the company at no additional cost. On August 11, 2025, CEO Ije Nwokorie and CFO Giles Wilson acquired 194 partnership shares each at 77.45 pence per share and were awarded an equal number of matching shares. This initiative reflects the company’s commitment to employee engagement and aligns the interests of management with shareholders, potentially strengthening the company’s market position.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £0.85 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

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

Dr. Martens Plc has announced that its total issued ordinary share capital consists of 966,370,412 shares, each with one voting right, and none held in treasury. This information is crucial for shareholders to determine their notification requirements under FCA rules, impacting their stake management and transparency obligations.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £80.00 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Dr. Martens Executives Invest in Company Shares Under Bonus Scheme
Positive
Jul 28, 2025

Dr. Martens Plc has announced transactions involving the purchase of ordinary shares by its CEO and CFO under the Global Bonus Scheme. These transactions are part of the company’s remuneration policy, which requires executive directors to invest a portion of their annual bonuses into company shares, holding them for a minimum of two years. This move is likely to align the interests of the executives with those of the shareholders, potentially impacting the company’s market perception positively.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £0.85 price target. To see the full list of analyst forecasts on Dr. Martens Plc stock, see the GB:DOCS Stock Forecast page.

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.Date of analysis: Oct 23, 2025