Macfarlane Group PLC (GB:MACF)
LSE:MACF
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Macfarlane
(LSE:MACF)
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Rating:55Neutral
Price Target:
65.00 p
â–¼(-9.72% Downside)
Action:DowngradedDate:02/28/26
The score is held back primarily by the sharp 2025 profitability decline and higher leverage, which increase risk despite positive free cash flow. Technicals are also weak-to-neutral with the price below key moving averages. These are partially offset by an attractive dividend yield and a moderate P/E.
Positive Factors
Revenue Recovery
A top-line rebound to £300.8m (+4.7% in 2025) indicates resilient end-market demand and effective distribution channels. Durable revenue supports fixed-cost absorption and procurement scale, providing a reliable base to fund investments and pursue margin recovery if operating costs are addressed.
Negative Factors
Profitability Decline
Net income collapsing to £6.3m with net margin near 2.1% materially reduces internal capital generation. Persistently weak profitability limits reinvestment, heightens sensitivity to cost shocks, and undermines the company's ability to steadily rebuild equity or fund strategic initiatives without external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
A top-line rebound to £300.8m (+4.7% in 2025) indicates resilient end-market demand and effective distribution channels. Durable revenue supports fixed-cost absorption and procurement scale, providing a reliable base to fund investments and pursue margin recovery if operating costs are addressed.
Read all positive factors
Macfarlane (MACF) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£109.90M
Dividend Yield5.24%
Average Volume (3M)265.92K
Price to Earnings (P/E)18.1
Beta (1Y)0.46
Revenue Growth6.97%
EPS Growth-18.59%
CountryUK
Employees1,165
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)0.02
Shares Outstanding156,383,480
10 Day Avg. Volume227,431
30 Day Avg. Volume265,920
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)0.95
Price to Sales (P/S)0.38
P/FCF Ratio5.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£82.00Price Target Upside13.89% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.08
Revenue Forecast (FY)£308.33M
Macfarlane Business Overview & Revenue Model
Company Description
Macfarlane 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 Distributi...
How the Company Makes Money
Macfarlane makes money mainly by selling packaging products and solutions to business customers. Its core revenue stream is the distribution of protective packaging materials: it purchases packaging products from manufacturers and sells them on to...
Macfarlane Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
44
Neutral
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 300.81M | 270.44M | 280.71M | 290.43M | 264.46M |
| Gross Profit | 112.17M | 105.37M | 105.68M | 98.06M | 89.47M |
| EBITDA | 30.56M | 38.96M | 36.19M | 34.30M | 31.73M |
| Net Income | 6.32M | 15.53M | 14.97M | 15.64M | 12.60M |
Balance Sheet | |||||
| Total Assets | 277.79M | 246.93M | 221.23M | 216.16M | 216.17M |
| Cash, Cash Equivalents and Short-Term Investments | 14.38M | 12.93M | 7.69M | 5.71M | 12.31M |
| Total Debt | 138.28M | 57.72M | 43.34M | 43.71M | 44.78M |
| Total Liabilities | 157.23M | 123.66M | 106.65M | 110.14M | 121.27M |
| Stockholders Equity | 120.56M | 123.27M | 114.58M | 106.02M | 94.89M |
Cash Flow | |||||
| Free Cash Flow | 20.21M | 22.50M | 31.33M | 14.71M | 21.67M |
| Operating Cash Flow | 24.78M | 25.43M | 33.51M | 18.00M | 23.80M |
| Investing Cash Flow | -17.36M | -13.48M | -16.55M | -11.59M | -8.96M |
| Financing Cash Flow | -5.96M | -6.01M | -15.32M | -13.18M | -7.94M |
Macfarlane Technical Analysis
Positive
72.00
Price Trends
69.04
Positive
69.60
Positive
80.63
Negative
Market Momentum
0.05
Negative
61.17
Neutral
84.25
Negative
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 72 is above the 20-day moving average (MA) of 65.56, above the 50-day MA of 69.04, and below the 200-day MA of 80.63, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.17 is Neutral, neither overbought nor oversold. The STOCH value of 84.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MACF.
Macfarlane Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | £38.55M | 6.55 | 8.41% | 11.65% | -3.45% | -44.02% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | £109.90M | 18.07 | 5.20% | 5.24% | 6.97% | -18.59% | |
52 Neutral | £50.98M | -3.03 | -43.73% | ― | -38.64% | -792.57% | |
49 Neutral | £32.82M | 29.31 | -17.36% | ― | -7.27% | ― | |
48 Neutral | £12.06M | -1.63 | 0.16% | ― | -3.72% | ― | |
42 Neutral | £24.80M | -0.46 | -61.90% | ― | -11.65% | -273.57% |
* Consumer Cyclical Sector Average
GB:MACF
Macfarlane
70.40
-26.97
-27.70%
GB:CAR
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44.70
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GB:HEAD
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30.90
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-63.13%
GB:IGR
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53.50
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4.90%
GB:PMP
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87.50
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GB:ULTP
Ultimate Products plc
46.00
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-23.86%
Macfarlane Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Macfarlane tightens share base with latest buyback and cancellation
Positive
Mar 30, 2026
Macfarlane Group PLC has continued to execute its share buyback programme, repurchasing 93,000 ordinary shares at 64.10 pence each on 27 March 2026 for cancellation. The transaction forms part of the packaging group’s ongoing capital managem...
Business Operations and StrategyExecutive/Board Changes
Macfarlane Grants Long-Term Performance Share Awards to Senior Executives
Positive
Mar 27, 2026
Macfarlane Group PLC has granted new conditional share awards under its Performance Share Plan to senior executives, including the chief executive, group finance director and other key managers, over ordinary shares of 25p that are subject to perf...
Business Operations and StrategyStock Buyback
Macfarlane Tightens Capital Base With Further Share Buyback and Cancellation
Positive
Mar 23, 2026
Macfarlane Group PLC has continued its previously announced share buyback programme, repurchasing 125,000 ordinary shares at 64.648 pence each for cancellation. The move reduces the company’s share count and leaves its issued share capital a...
Stock BuybackRegulatory Filings and Compliance
Macfarlane Reduces Share Count with Latest Buyback Transaction
Positive
Mar 16, 2026
Macfarlane Group PLC has repurchased 100,000 of its own ordinary shares at 66.616 pence each as part of its ongoing share buyback programme, and these shares will be cancelled. Following this transaction, the company’s issued share capital a...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Macfarlane cancels 75,000 shares as buyback trims share capital
Positive
Mar 9, 2026
Macfarlane Group PLC has executed a further tranche of its ongoing share buyback programme, purchasing 75,000 ordinary shares at 69.08 pence each for cancellation on 6 March 2026. The move continues the company’s capital management strategy ...
Regulatory Filings and Compliance
Macfarlane Directors Increase and Restructure Holdings in Routine Share Deals
Positive
Mar 3, 2026
Macfarlane Group PLC has disclosed a series of share transactions by senior figures, including share purchases by chair Aleen Gulvanessian and non-executive director David Stirling, alongside ISA-related transfers by non-executive director Laura W...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Macfarlane trims share count as buyback reduces voting share capital
Positive
Mar 2, 2026
Macfarlane Group PLC is a long-established participant in the UK packaging industry, listed on the main market of the London Stock Exchange since 1973. Through its Packaging Distribution and Manufacturing Operations divisions, the Glasgow-headquar...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Macfarlane profit drops despite higher sales as Pitreavie setback and costs bite
Negative
Feb 26, 2026
Macfarlane Group reported 2025 results showing revenue up 11% to £300.8m but a sharp decline in operating profit and earnings, hit by weaker Packaging Distribution demand, rising costs and the operational impact of a fatal incident at newly a...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Macfarlane profit drops despite higher sales as Pitreavie setback and costs bite
Negative
Feb 26, 2026
Macfarlane Group reported 2025 results showing revenue up 11% to £300.8m but a sharp decline in operating profit and earnings, hit by weaker Packaging Distribution demand, rising costs and the operational impact of a fatal incident at newly a...
Stock BuybackRegulatory Filings and Compliance
Macfarlane tightens share base with latest buyback as it updates voting rights
Positive
Feb 23, 2026
Macfarlane Group PLC, a long-established UK and European protective packaging specialist listed on the London Stock Exchange, operates through distribution and manufacturing divisions serving more than 20,000 customers. Headquartered in Glasgow, i...
Stock BuybackRegulatory Filings and Compliance
Macfarlane cancels 55,000 shares under ongoing buyback programme
Positive
Feb 16, 2026
Macfarlane Group PLC, headquartered in Glasgow and employing over 1,000 people at 43 sites in the UK and continental Europe, is a leading distributor and manufacturer of protective packaging. Working with around 1,700 suppliers and handling over 6...
Business Operations and StrategyFinancial Disclosures
Macfarlane sets date for 2025 results and investor presentation
Neutral
Feb 9, 2026
Macfarlane Group PLC, a London-listed specialist in protective packaging, operates two main divisions: Packaging Distribution, the leading UK distributor of protective packaging products, and Manufacturing Operations, which designs and produces so...
Business Operations and StrategyStock Buyback
Macfarlane Trims Share Count With Latest Buyback Tranche
Positive
Feb 9, 2026
Macfarlane Group PLC has executed another tranche of its ongoing share buyback programme, repurchasing 50,000 ordinary shares at 71.84 pence each for cancellation. The move slightly reduces the company’s equity base while reaffirming managem...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Macfarlane Cancels 40,000 Shares as Buyback Programme Progresses
Neutral
Feb 2, 2026
Macfarlane Group PLC has continued its previously announced share buyback programme with the purchase and cancellation of 40,000 ordinary shares on 30 January 2026 at a price of 71.705 pence per share, executed via Shore Capital Stockbrokers. Foll...
Stock BuybackRegulatory Filings and Compliance
Macfarlane Reduces Share Capital with Further Buyback of 40,000 Shares
Neutral
Jan 26, 2026
Macfarlane Group PLC has continued its previously announced share buyback programme with the purchase and cancellation of 40,000 ordinary shares at 71.47 pence each on 23 January 2026. Following this latest transaction, the company’s issued ...
Stock Buyback
Macfarlane Cancels 30,000 Shares Under Ongoing Buyback Programme
Neutral
Jan 19, 2026
Macfarlane Group has continued its previously announced share buyback programme with the repurchase and cancellation of 30,000 ordinary shares on 16 January 2026 at a volume-weighted average price of 71.817 pence, executed through Shore Capital St...
Stock BuybackRegulatory Filings and Compliance
Macfarlane Cancels 30,000 Shares Under Ongoing Buyback Programme
Neutral
Jan 12, 2026
Macfarlane Group PLC has bought back and cancelled 30,000 of its own ordinary shares at 72 pence per share as part of its ongoing share buyback programme, executed via Shore Capital Stockbrokers. Following this transaction, the company’s iss...
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.