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Macfarlane Group PLC (GB:MACF)
LSE:MACF

Macfarlane (MACF) AI Stock Analysis

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GB

Macfarlane

(LSE:MACF)

Rating:82Outperform
Price Target:
136.00p
▲(13.81%Upside)
Macfarlane Group's strong financial performance and technical indicators highlight its robust market position and operational efficiency. The strategic share buyback program and positive corporate events bolster its attractiveness. However, the need to address revenue growth remains a critical challenge.
Positive Factors
Acquisition Benefits
The acquisition of Pitreavie provides geographic, product, end-market and customer synergies, and drives a c.5% adj. EPS upgrade in FY26E.
Growth Strategy
The group anticipates performance to improve as it completes the East Midlands site consolidation and builds on organic growth momentum in Distribution.
Sustainability
Macfarlane is ideally placed to expand its sustainable packaging range, enabling it to play a central role in the sustainability shift across the protective packaging market.
Negative Factors
Cost Challenges
Duplicate costs related to the consolidation of the East Midlands operations and increased property costs have impacted profit.
Financial Performance
Profit was down year-over-year due to lower gross margins, duplicate costs related to the consolidation of the East Midlands operations, and increased property costs and acquisition related costs.

Macfarlane (MACF) vs. iShares MSCI United Kingdom ETF (EWC)

Macfarlane Business Overview & Revenue Model

Company DescriptionMacfarlane Group PLC, through its subsidiaries, designs, manufactures, and distributes protective packaging products to businesses. The company operates through Packaging Distribution and Manufacturing Operations segments. The Packaging Distribution segment distributes packaging materials; and supplies storage and warehousing services in the United Kingdom, Ireland, and Europe. The Manufacturing Operations segment designs, manufactures, and assembles timber, corrugated, and foam-based packaging materials in the United Kingdom. The company also distributes and supplies packaging equipment; and recovers waste papers and corrugated boards for recycling. In addition, it serves e-commerce retail, logistics, medical, automotive, aerospace, electronics, high street retail, household essentials, and food and hospitality industries. The company was incorporated in 1899 and is headquartered in Glasgow, the United Kingdom.
How the Company Makes MoneyMacfarlane generates revenue through the sale of its packaging products and services to a diverse range of industries, including e-commerce, manufacturing, and retail. Its revenue model is largely based on providing custom packaging solutions that cater to the specific demands of its clients, ensuring product safety and cost efficiency. Additionally, the company earns money through its packaging machinery sales and leasing services. Key revenue streams include contracts with large-scale industrial clients, ongoing supply agreements with repeat customers, and partnerships with major e-commerce platforms seeking efficient and sustainable packaging solutions. Macfarlane's focus on innovation and customer service supports its strong market position and profitability.

Macfarlane Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
268.70M280.71M290.43M264.46M210.23M225.25M
Gross Profit
105.82M105.68M98.06M89.47M69.83M71.99M
EBIT
21.87M22.29M21.68M20.27M13.68M13.58M
EBITDA
32.56M36.19M34.30M25.35M17.81M17.24M
Net Income Common Stockholders
14.70M14.97M15.64M12.60M10.17M9.73M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.61M7.69M5.71M12.31M7.23M5.58M
Total Assets
142.10M221.23M216.16M216.17M172.71M172.83M
Total Debt
17.87M43.34M43.71M44.78M36.46M44.22M
Net Debt
13.26M35.65M38.01M32.47M29.23M38.64M
Total Liabilities
79.57M106.65M110.14M121.27M92.93M104.10M
Stockholders Equity
62.53M114.58M106.02M94.89M79.78M68.74M
Cash FlowFree Cash Flow
25.05M31.33M14.71M21.67M22.52M16.85M
Operating Cash Flow
27.27M33.51M18.00M23.80M23.32M19.50M
Investing Cash Flow
-8.87M-16.55M-11.59M-8.96M-3.36M-8.63M
Financing Cash Flow
-16.13M-15.32M-13.18M-7.94M-18.05M-12.17M

Macfarlane Technical Analysis

Technical Analysis Sentiment
Positive
Last Price119.50
Price Trends
50DMA
102.38
Positive
100DMA
102.49
Positive
200DMA
105.42
Positive
Market Momentum
MACD
4.78
Negative
RSI
71.06
Negative
STOCH
69.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MACF, the sentiment is Positive. The current price of 119.5 is above the 20-day moving average (MA) of 108.62, above the 50-day MA of 102.38, and above the 200-day MA of 105.42, indicating a bullish trend. The MACD of 4.78 indicates Negative momentum. The RSI at 71.06 is Negative, neither overbought nor oversold. The STOCH value of 69.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MACF.

Macfarlane Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
£183.54M11.7813.06%3.18%-3.66%3.28%
GBCRU
65
Neutral
£8.46M-21.69%5.26%-14.90%-329.10%
62
Neutral
$6.90B11.242.93%3.89%2.68%-24.71%
62
Neutral
£56.03M
GBPMP
58
Neutral
£21.03M61.000.62%2.30%-11.22%
GBRBN
55
Neutral
£21.36M36.38-13.52%4.31%13.57%-304.69%
GBSYM
£15.84M-290.14%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MACF
Macfarlane
119.50
1.64
1.39%
GB:CRU
Coral Products
9.50
-1.88
-16.52%
GB:PMP
Portmeirion
151.50
-79.45
-34.40%
GB:RBN
Robinson
127.50
20.00
18.60%
GB:ROAD
The Barkby Group PLC
39.80
28.05
238.72%
GB:SYM
Symphony Environmental Technologies
6.75
4.00
145.45%

Macfarlane Corporate Events

Stock BuybackBusiness Operations and Strategy
Macfarlane Group Advances Share Buyback Program with Recent Share Cancellation
Positive
Jun 4, 2025

Macfarlane Group PLC announced the purchase and cancellation of 11,650 ordinary shares as part of its ongoing share buyback program. This transaction adjusts the company’s issued share capital to 159,576,850 ordinary shares, impacting the total voting rights available to shareholders. The move is part of Macfarlane’s strategy to manage its capital structure and enhance shareholder value, reflecting its strong market position and commitment to operational efficiency.

The most recent analyst rating on (GB:MACF) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Macfarlane stock, see the GB:MACF Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Macfarlane Group Executes Share Buyback to Optimize Capital Structure
Positive
Jun 3, 2025

Macfarlane Group PLC has announced the purchase and cancellation of 11,500 ordinary shares as part of its share buyback program. This move reduces the company’s issued share capital to 159,588,500 ordinary shares, aligning with its strategy to manage capital efficiently and potentially enhance shareholder value. The transaction reflects Macfarlane’s commitment to optimizing its capital structure and may impact shareholder voting rights calculations under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:MACF) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Macfarlane stock, see the GB:MACF Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Macfarlane Group Launches £4 Million Share Buyback Program
Positive
May 15, 2025

Macfarlane Group PLC has announced a share buyback program valued at up to £4 million, to be executed over 12 months in four quarterly tranches. This strategic move aims to optimize the company’s capital allocation and potentially enhance shareholder value by reducing the number of outstanding shares, which could positively impact the company’s stock price and market perception.

The most recent analyst rating on (GB:MACF) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Macfarlane stock, see the GB:MACF Stock Forecast page.

Shareholder MeetingsStock BuybackBusiness Operations and Strategy
Macfarlane Group PLC Successfully Passes All AGM Resolutions
Positive
May 13, 2025

Macfarlane Group PLC announced that all resolutions proposed at their Annual General Meeting were passed, with significant shareholder participation. This includes ordinary and special resolutions, such as the adoption of accounts, approval of remuneration policies, and authority to repurchase shares. The successful passing of these resolutions reflects strong shareholder support and positions the company to continue its strategic initiatives, potentially impacting its operational efficiency and market competitiveness.

The most recent analyst rating on (GB:MACF) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Macfarlane stock, see the GB:MACF Stock Forecast page.

Shareholder MeetingsStock BuybackBusiness Operations and StrategyFinancial Disclosures
Macfarlane Group Maintains Full-Year Outlook and Announces Share Buyback
Neutral
May 13, 2025

Macfarlane Group PLC announced at its Annual General Meeting that its full-year expectations remain unchanged despite a challenging market environment. The company reported a 14.2% increase in Q1 2025 sales compared to the same period in 2024, driven by acquisitions and organic growth in its Distribution division. However, profits were down due to lower gross margins and increased costs. The acquisition of The Pitreavie Group Limited is expected to bring synergies that will benefit the Group. Macfarlane plans to improve performance in the second half of 2025 and will initiate a share buyback program of up to £4 million, reflecting its strategy of capital allocation and shareholder returns.

The most recent analyst rating on (GB:MACF) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Macfarlane stock, see the GB:MACF Stock Forecast page.

Shareholder Meetings
Macfarlane Group Announces In-Person AGM for May 2025
Neutral
Apr 17, 2025

Macfarlane Group PLC has announced that its Annual General Meeting (AGM) will be held in person on 13 May 2025 at the DoubleTree by Hilton Hotel Glasgow Central. Shareholders have been invited to submit questions in advance, and the Notice of AGM has been made available on the company’s website and submitted to the National Storage Mechanism. This announcement underscores Macfarlane’s commitment to maintaining transparent communication with its stakeholders and may influence shareholder engagement and company operations.

Executive/Board ChangesBusiness Operations and Strategy
Macfarlane Group Executives Acquire Shares Under Deferred Bonus Plan
Neutral
Mar 28, 2025

Macfarlane Group PLC announced that its executives, Peter Atkinson and Ivor Gray, acquired shares under the company’s Deferred Bonus Share Plan, with some shares sold to cover tax liabilities. Additionally, the company’s employee benefit trust purchased shares to satisfy future share option exercises, reflecting a strategic move to manage executive compensation and shareholder interests effectively.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.