tiprankstipranks
Trending News
More News >
Dr. Martens Plc (GB:DOCS)
LSE:DOCS
Advertisement

Dr. Martens Plc (DOCS) AI Stock Analysis

Compare
143 Followers

Top Page

GB:DOCS

Dr. Martens Plc

(LSE:DOCS)

Rating:68Neutral
Price Target:
87.00p
▲(5.33%Upside)
Dr. Martens Plc's stock score is influenced by strong technical indicators and positive corporate events. However, high valuation and mixed financial performance, along with challenges highlighted in the earnings call, temper the overall score. The company needs to address profitability and revenue declines to improve its market position.

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: 37.78%|
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 faces 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, requiring focus on operational improvements.
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue787.60M877.10M1.00B908.30M773.00M
Gross Profit511.70M502.90M563.90M542.10M436.70M
EBITDA110.50M197.50M204.40M266.00M145.10M
Net Income4.50M69.20M128.90M181.20M34.70M
Balance Sheet
Total Assets889.80M952.40M992.60M859.10M651.80M
Cash, Cash Equivalents and Short-Term Investments155.90M111.10M157.50M228.00M113.60M
Total Debt404.10M468.60M445.80M393.80M366.40M
Total Liabilities523.40M584.20M588.40M530.90M502.10M
Stockholders Equity366.40M368.20M404.20M328.20M149.70M
Cash Flow
Free Cash Flow177.60M139.50M20.30M148.60M128.80M
Operating Cash Flow196.30M167.90M71.70M173.60M146.10M
Investing Cash Flow-15.30M-25.50M-52.20M-25.00M-17.30M
Financing Cash Flow-134.20M-185.90M-92.30M-36.20M-120.10M

Dr. Martens Plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price82.60
Price Trends
50DMA
71.75
Positive
100DMA
62.96
Positive
200DMA
63.88
Positive
Market Momentum
MACD
2.46
Positive
RSI
70.37
Negative
STOCH
91.54
Negative
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 82.6 is above the 20-day moving average (MA) of 78.36, above the 50-day MA of 71.75, and above the 200-day MA of 63.88, indicating a bullish trend. The MACD of 2.46 indicates Positive momentum. The RSI at 70.37 is Negative, neither overbought nor oversold. The STOCH value of 91.54 is Negative, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
£1.27B12.225.01%-10.46%396.13%
68
Neutral
£797.73M172.871.23%222.76%-10.20%-93.32%
66
Neutral
£7.14B24.0410.25%101.58%5.96%-33.04%
63
Neutral
$17.10B10.79-8.01%2.94%1.62%-25.73%
61
Neutral
£435.02M-62.59%-15.86%-18.46%
55
Neutral
£482.15M-27.20%-14.37%-28.78%
48
Neutral
£261.33M-96.36%-16.32%-202.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DOCS
Dr. Martens Plc
82.60
12.87
18.46%
GB:ASC
ASOS plc
364.50
-0.70
-0.19%
GB:MKS
Marks and Spencer
354.40
31.76
9.84%
GB:DEBS
boohoo group Plc
19.76
-14.74
-42.72%
GB:CURY
Currys plc
116.10
33.95
41.33%
GB:THG
THG
31.70
-32.70
-50.78%

Dr. Martens Plc Corporate Events

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.

Business Operations and Strategy
Dr. Martens Executives Participate in Share Incentive Plan
Neutral
May 14, 2025

Dr. Martens Plc announced that directors and persons discharging managerial responsibilities, including CEO Ije Nwokorie and CFO Giles Wilson, have participated in the company’s Share Incentive Plan (SIP). Under this scheme, they purchased Partnership Shares at 57.45 pence each and received an equal number of Matching Shares at no cost. This move aligns with the company’s strategy to engage employees through equity participation, potentially enhancing stakeholder alignment and motivation.

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
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.

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: Jul 15, 2025