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

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GB:DOCS

Dr. Martens Plc

(LSE:DOCS)

Rating:62Neutral
Price Target:
86.00p
▼(-6.57% Downside)
Dr. Martens Plc's overall stock score is driven by stable financial performance with strong cash flow but declining revenue and profitability. Technical indicators show mixed momentum, while the high P/E ratio suggests overvaluation. The earnings call provided a balanced view with significant achievements in debt reduction and cost savings, but challenges remain in revenue growth and margin improvement.

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 Plc generates revenue primarily through the sale of its footwear products, which account for the majority of its earnings. The company operates a multi-channel retail strategy that includes direct-to-consumer sales via its own branded stores and e-commerce platforms, as well as wholesale partnerships with third-party retailers and distributors. Dr. Martens focuses on building brand loyalty and expanding its customer base by continuously innovating its product lines and engaging in targeted marketing campaigns. Additionally, the company benefits from strategic collaborations and limited edition releases that create exclusive offerings, driving both sales and brand prestige.

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 experiencing challenges with declining revenue and profitability, impacting the income statement. The balance sheet is stable with manageable debt, though return on equity has decreased. Cash flow is strong with significant free cash flow generation, but sustaining operational improvements is crucial.
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
Positive
Last Price92.05
Price Trends
50DMA
80.10
Positive
100DMA
70.59
Positive
200DMA
66.94
Positive
Market Momentum
MACD
3.89
Negative
RSI
73.06
Negative
STOCH
62.11
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 92.05 is above the 20-day moving average (MA) of 84.24, above the 50-day MA of 80.10, and above the 200-day MA of 66.94, indicating a bullish trend. The MACD of 3.89 indicates Negative momentum. The RSI at 73.06 is Negative, neither overbought nor oversold. The STOCH value of 62.11 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
£6.90B23.4110.25%1.05%5.96%-33.04%
69
Neutral
£1.40B12.885.01%1.17%2.71%-34.19%
62
Neutral
£889.08M195.851.23%2.77%-10.20%-93.32%
61
Neutral
$17.99B12.87-3.56%2.97%1.27%-14.28%
46
Neutral
£338.35M-62.59%-15.86%-18.46%
45
Neutral
£426.94M-27.20%-14.37%-28.78%
38
Underperform
£180.24M-185.68%-45.91%-120.22%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DOCS
Dr. Martens Plc
92.05
26.87
41.22%
GB:ASC
ASOS plc
283.50
-151.90
-34.89%
GB:MKS
Marks and Spencer
342.20
-7.28
-2.08%
GB:DEBS
boohoo group Plc
14.00
-15.70
-52.86%
GB:CURY
Currys plc
128.70
52.29
68.43%
GB:THG
THG
27.68
-31.57
-53.28%

Dr. Martens Plc Corporate Events

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.

Executive/Board ChangesBusiness Operations and Strategy
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.

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

Dr. Martens Plc announced transactions involving its directors and persons discharging managerial responsibility under the company’s Share Incentive Plan (SIP). On July 11, 2025, CEO Ije Nwokorie and CFO Giles Wilson each acquired 194 Partnership Shares at 77.45 pence per share and were awarded an equal number of Matching Shares. This initiative reflects the company’s commitment to employee investment and aligns managerial interests with shareholder value, potentially strengthening stakeholder confidence.

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.

Shareholder MeetingsBusiness Operations and Strategy
Dr. Martens PLC Successfully Passes All Resolutions at AGM
Positive
Jul 10, 2025

Dr. Martens PLC announced the successful passing of all resolutions at its Annual General Meeting, including both Ordinary and Special Resolutions. The approval of these resolutions, such as the re-election of directors and the authorization for share allotment, reflects strong shareholder support and positions the company for continued strategic initiatives. This outcome is likely to reinforce Dr. Martens’ operational stability and strategic direction, potentially impacting its market positioning positively.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £0.90 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 StrategyFinancial Disclosures
Dr. Martens Reports Steady Trading and Unveils Growth Strategy
Positive
Jul 10, 2025

Dr. Martens plc announced that trading since the beginning of the financial year has met expectations, with no changes to FY26 guidance. The company reported strong performance in the Americas Direct to Consumer channel, particularly in retail, while the EMEA region faced challenges, especially in the UK. The APAC region showed good growth, notably in South Korea. The company is optimistic about its Autumn/Winter order books and is focusing on its new consumer-first Levers for Growth strategy to engage more consumers and expand into new markets.

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 Announces Total Voting Rights Update
Neutral
Jul 4, 2025

Dr. Martens plc has announced that its total issued ordinary share capital consists of 966,315,401 shares, each with a voting right, and none held in Treasury. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

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.

Executive/Board ChangesBusiness Operations and Strategy
Dr. Martens Aligns Executive Incentives with Performance Goals
Positive
Jun 17, 2025

Dr. Martens plc announced the granting of Performance Share Awards to key directors under its Long Term Incentive Plan, aligning executive compensation with company performance over the next three years. This strategic move aims to enhance shareholder value and strengthen the company’s market position by focusing on targets such as cumulative earnings per share, total shareholder return, and operating cash flow conversion.

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.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Dr. Martens Releases 2025 Annual Report and AGM Notice
Neutral
Jun 17, 2025

Dr. Martens plc has released its 2025 Annual Report and Notice of Annual General Meeting, which are available for inspection at the National Storage Mechanism and on the company’s website. This announcement is part of the company’s compliance with UK Listing Rules, and it includes details about the upcoming Annual General Meeting scheduled for July 10, 2025. The release of these documents is a routine part of Dr. Martens’ corporate governance, providing transparency and information to stakeholders about the company’s financial performance and strategic plans.

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.

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

Dr. Martens plc announced that its directors and persons discharging managerial responsibilities (PDMRs) have participated in the company’s Share Incentive Plan (SIP), acquiring Partnership Shares and receiving Matching Shares. This initiative, approved by HMRC, allows employees to purchase shares from their monthly salary and receive additional shares at no cost, potentially enhancing employee engagement and aligning interests with shareholders.

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.

Business Operations and StrategyFinancial Disclosures
Dr. Martens Unveils Strategic Shift for Growth Amidst Challenging Market
Positive
Jun 5, 2025

Dr. Martens PLC has announced its preliminary results for the fiscal year ending March 2025, highlighting a strategic shift to a consumer-first approach to drive growth. Despite a challenging economic environment, the company achieved its FY25 objectives, including returning its Americas direct-to-consumer channel to growth and delivering significant cost savings. The strategic update, ‘Levers For Growth,’ aims to expand market reach by engaging more consumers and optimizing distribution. With a strong balance sheet and cash generation, Dr. Martens is poised for sustainable, profitable growth, targeting new markets and leveraging its iconic brand and high-quality products.

The most recent analyst rating on (GB:DOCS) stock is a Hold with a £60.00 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
May 30, 2025

Dr. Martens Plc has announced that its total issued ordinary share capital consists of 965,229,918 shares, each with one voting right, and no shares are held in Treasury. This information is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

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: Aug 19, 2025