Mortgage Advice Bureau (Holdings) (MAB1) AI Stock Analysis

• Market Cap: £385.99M
• Dividend Yield: 2.77%
• Average Volume (3M): 114.97K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 1.39
• Revenue Growth: 18.14%
• EPS Growth: 74.71%
• Country: UK
• Employees: 936
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.18
• Shares Outstanding: 57,956,787
• 10 Day Avg. Volume: 110,227
• 30 Day Avg. Volume: 114,968
• PEG Ratio: 1.33
• Price to Book (P/B): 4.77
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 13.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,150.00
• Price Target Upside: 72.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 759.00p ▲(13.96% Upside)

Mortgage Advice Bureau (Holdings) has a solid financial foundation with strong revenue growth and profitability. Positive corporate events, such as increased shareholdings by directors, boost confidence in the company's future. However, technical indicators suggest a bearish trend, and the valuation appears high, which could limit upside potential.

Positive Factors

Revenue Growth

The company has shown strong revenue growth, indicating successful market penetration and increasing demand for its services, which is fundamental for long-term business sustainability.

Profitability Improvements

Improved profitability margins suggest better cost management and operational efficiency, which can lead to sustained financial health and competitive advantage over time.

Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns, supporting long-term stability.

Negative Factors

Cost Management

Challenges in cost management could impact profitability and limit the company's ability to invest in growth, potentially affecting long-term competitiveness and market position.

Liability Monitoring

Increasing liabilities, if not managed properly, could strain financial resources and affect the company's ability to maintain a healthy balance sheet, impacting long-term financial stability.

Moderate Net Income Growth

Moderate net income growth may indicate challenges in scaling profitability, which could hinder the company's ability to reinvest in business expansion and innovation over the long term.

Mortgage Advice Bureau (Holdings) Business Overview & Revenue Model

Company Description

Mortgage Advice Bureau (Holdings) (MAB1) is a leading mortgage intermediary in the UK, specializing in providing independent mortgage advice to consumers and businesses. The company operates within the financial services sector, primarily focusing on the mortgage and protection markets. MAB1 offers a range of services, including personalized mortgage advice, access to a wide array of mortgage products from various lenders, and additional services such as insurance and protection advice, helping clients navigate the complexities of securing financing for property purchases.

How the Company Makes Money

Mortgage Advice Bureau generates revenue primarily through commission and fees earned from lenders and insurers for arranging mortgage deals and insurance policies on behalf of clients. When a client secures a mortgage through MAB1, the company receives a commission from the lender, which can vary based on the mortgage product and the volume of business generated. Additionally, MAB1 may charge fees to clients for its advisory services, enhancing its revenue streams. The company has established partnerships with a large number of mortgage lenders and insurers, allowing it to offer a diverse range of products to clients, which contributes significantly to its earnings. Furthermore, the company's extensive network of advisers and franchise operations helps to expand its market reach and increase transaction volumes, thereby boosting revenue.

Mortgage Advice Bureau (Holdings) Financial Statement Overview

Summary

Mortgage Advice Bureau (Holdings) demonstrates a strong financial position with impressive revenue growth and profitability improvements. The balance sheet is stable with a good equity buffer, and cash flow generation is robust. Areas for improvement include cost management and liability monitoring.

Income Statement

The company has shown strong revenue growth, with a notable increase from the previous period. The gross profit margin and EBIT margin have both improved, indicating enhanced operational efficiency. The net profit margin has also increased, showcasing better profitability. However, the growth rate of net income is moderate, suggesting room for improvement in cost management.

Balance Sheet

The balance sheet reflects a healthy equity ratio, indicating a solid capital structure. The debt-to-equity ratio is manageable, suggesting the company is not overly reliant on debt financing. Return on equity has improved, signaling effective use of shareholder funds. However, there is a slight increase in liabilities, which needs monitoring to ensure continued financial stability.

Cash Flow

Cash flow analysis reveals a robust growth in free cash flow, demonstrating the company's strong cash generation capabilities. The operating cash flow to net income ratio indicates effective conversion of earnings into cash. However, the free cash flow to net income ratio suggests potential reinvestment opportunities that could be explored further.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	290.23M	266.54M	239.53M	230.88M	188.97M	148.30M
Gross Profit	187.98M	81.90M	70.16M	58.98M	49.95M	38.48M
EBITDA	34.02M	32.34M	24.31M	21.25M	23.66M	16.42M
Net Income	19.02M	15.90M	13.47M	12.24M	18.72M	12.38M
Balance Sheet
Total Assets	167.69M	160.83M	158.38M	169.79M	82.28M	69.02M
Cash, Cash Equivalents and Short-Term Investments	22.75M	4.19M	21.94M	25.46M	34.41M	32.98M
Total Debt	6.92M	18.06M	20.99M	27.35M	2.60M	2.69M
Total Liabilities	93.95M	85.73M	83.97M	94.35M	41.30M	31.58M
Stockholders Equity	72.71M	73.66M	70.20M	67.90M	38.78M	35.54M
Cash Flow
Free Cash Flow	33.32M	26.99M	21.68M	20.50M	26.55M	17.28M
Operating Cash Flow	33.80M	30.03M	23.74M	24.34M	26.75M	17.58M
Investing Cash Flow	-10.35M	-5.04M	-2.52M	-54.21M	-7.38M	-2.65M
Financing Cash Flow	-24.57M	-23.26M	-24.74M	20.92M	-17.94M	-3.05M

Mortgage Advice Bureau (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 666.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MAB1, the sentiment is Negative. The current price of 666 is below the 20-day moving average (MA) of 687.40, below the 50-day MA of 690.12, and below the 200-day MA of 752.76, indicating a bearish trend. The MACD of -8.41 indicates Positive momentum. The RSI at 36.86 is Neutral, neither overbought nor oversold. The STOCH value of 9.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MAB1.

Mortgage Advice Bureau (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB1	72 Outperform	£385.99M	20.30	26.66%	2.77%	18.14%	74.71%
STB	71 Outperform	£190.32M	8.19	6.47%	2.77%	9.09%	-9.36%
CBG	68 Neutral	£694.72M	-7.02	-9.28%	―	-15.79%	-211.91%
MTRO	68 Neutral	£774.29M	7.26	9.14%	―	-29.12%	964.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VANQ	61 Neutral	£282.55M	-3.75	-16.30%	―	-3.77%	-147.20%
LINV	39 Underperform	£52.62M	97.22	0.77%	―	29.70%	―

Mortgage Advice Bureau (Holdings) Corporate Events

Mortgage Advice Bureau Directors Increase Shareholdings

Mortgage Advice Bureau (Holdings) plc announced that certain directors or their connected parties have purchased ordinary shares of the company. This transaction, involving Non-Executive Director Nathan Imlach, aligns with the UK Market Abuse Regulation’s requirements for transparency in managerial dealings. The purchase reflects confidence in the company’s market position and future prospects, potentially influencing stakeholder perceptions positively.

Mortgage Advice Bureau Executives Increase Shareholdings

Mortgage Advice Bureau (Holdings) plc announced that Ben Thompson, Deputy CEO, and Paul Gill, Group Chief Risk Officer, have purchased shares under the company’s Share Incentive Plan. This move signifies a commitment from senior management to invest in the company, potentially boosting stakeholder confidence and aligning leadership interests with shareholder value.

Mortgage Advice Bureau to Host Virtual Capital Markets Day

Mortgage Advice Bureau (Holdings) plc announced a virtual Capital Markets Day update scheduled for 28 January 2026, where it will discuss its strategic priorities, including the use of AI to enhance adviser performance and group efficiency. The event aims to demonstrate MAB’s platform capabilities and discuss leveraging scale for profitability, potentially impacting its operations and industry positioning.

Directors Increase Stake in Mortgage Advice Bureau

Mortgage Advice Bureau (Holdings) plc announced that certain directors or their connected parties have purchased ordinary shares of the company. This transaction, conducted on the London Stock Exchange, reflects the directors’ confidence in the company’s market position and future prospects, potentially impacting stakeholder perceptions positively.

Mortgage Advice Bureau Grants Share Options to COO

Mortgage Advice Bureau (Holdings) plc announced the grant of 77,509 options over ordinary shares to Yaiza Luengo, the Chief Operating Officer, under its Executive Share Option Plan. These options are contingent upon meeting a performance condition tied to growth in adjusted diluted earnings per share from 2025 to 2027, becoming exercisable in 2028. This move reflects MAB’s strategic efforts to align managerial incentives with company performance, potentially impacting shareholder value and market positioning.

Mortgage Advice Bureau Directors Increase Shareholdings

Mortgage Advice Bureau (Holdings) plc announced that certain directors, including Deputy CEO Ben Thompson and Group Chief Risk Officer Paul Gill, have purchased ordinary shares in the company. This transaction, conducted under the company’s Share Incentive Plan, reflects a strategic move to align the interests of the management with those of the shareholders, potentially reinforcing stakeholder confidence and signaling a positive outlook for the company’s future performance.

Mortgage Advice Bureau Directors Increase Shareholdings

Mortgage Advice Bureau (Holdings) plc announced that certain directors, including Nathan Imlach, have purchased additional shares in the company. This transaction, conducted on the London Stock Exchange, reflects a continued commitment from the company’s leadership, potentially strengthening stakeholder confidence and signaling positive internal assessments of the company’s future prospects.

Mortgage Advice Bureau Directors Increase Shareholdings

Mortgage Advice Bureau (Holdings) plc announced that certain directors, including Chief Financial Officer Emilie McCarthy, have purchased additional ordinary shares of the company. This transaction, conducted in accordance with the UK Market Abuse Regulation, reflects confidence in the company’s future performance and may positively influence stakeholder perception and market positioning.

Mortgage Advice Bureau Reports Strong Interim Results and Strategic Growth Plans

Mortgage Advice Bureau (Holdings) plc reported strong interim results for the first half of 2025, with a 19.6% increase in revenue to £148.2 million and a 54.8% rise in statutory profit before tax. The company has expanded its market share in new mortgage lending and product transfers, and has made strategic acquisitions to strengthen its regional presence and adviser capabilities. MAB’s investments in technology and AI-driven innovation are expected to enhance lead flow and conversion rates, positioning the company for future growth. The company plans to move to the Main Market of the London Stock Exchange in 2026, aiming to broaden its investor base and enhance its market profile.

Mortgage Advice Bureau Directors Increase Shareholdings

Mortgage Advice Bureau (Holdings) plc announced that certain directors, including Deputy CEO Ben Thompson and Group Chief Risk Officer Paul Gill, have purchased ordinary shares in the company. This transaction, conducted under the company’s Share Incentive Plan, demonstrates confidence in the company’s future performance and aligns the interests of the management with those of shareholders, potentially impacting the company’s market perception positively.