Marston's PLC (GB:MARS)
LSE:MARS
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Marston's
(LSE:MARS)
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Rating:66Neutral
Price Target:
56.00 p
▲(30.38% Upside)
Action:DowngradedDate:01/29/26
The score is driven mainly by a recovering financial profile (profitability improving but leverage still elevated) and a strong, upbeat earnings call highlighting profit, cash flow, and deleveraging progress. Valuation is supportive due to a low P/E, while mixed technical signals and below-short-term-trend pricing temper the overall rating.
Positive Factors
Profitability Turnaround
A large year-on-year profit rebound (PBT +71%) and net income turning positive indicate lasting operational improvements. Stronger profitability supports sustainable cash generation, funds reinvestment in the estate and formats, and underpins durable deleveraging and shareholder optionality over the next 2–6 months.
Negative Factors
Elevated Leverage
Although net debt is falling, leverage remains elevated versus typical industry comfort levels. High debt keeps interest and refinancing risk elevated, constraining capital allocation and leaving less room to absorb shocks or accelerate rollouts without further deleveraging over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
A large year-on-year profit rebound (PBT +71%) and net income turning positive indicate lasting operational improvements. Stronger profitability supports sustainable cash generation, funds reinvestment in the estate and formats, and underpins durable deleveraging and shareholder optionality over the next 2–6 months.
Read all positive factors
Marston's (MARS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£341.74M
Dividend YieldN/A
Average Volume (3M)1.90M
Price to Earnings (P/E)3.5
Beta (1Y)1.53
Revenue Growth-0.08%
EPS GrowthN/A
CountryUK
Employees10,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.06
Shares Outstanding635,319,640
10 Day Avg. Volume958,509
30 Day Avg. Volume1,897,056
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.31
Price to Sales (P/S)0.28
P/FCF Ratio4.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.09
Revenue Forecast (FY)£916.93M
Marston's Business Overview & Revenue Model
Company Description
Marston's PLC operates managed, franchised, tenanted, and leased pubs, bars, restaurants, and accommodations in the United Kingdom and internationally. The company operates through approximately 1,500 bars and pubs; and approximately 1,836 rooms. ...
How the Company Makes Money
Marston's primarily makes money by operating pubs and selling food and beverages directly to customers. Its core revenue stream is on-trade sales within its managed pub estate, where income is generated from (1) alcoholic drinks (e.g., beer, cider...
Marston's Earnings Call Summary
Earnings Call Date:Nov 25, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong profit growth, improved cash flow, successful new pub formats, and ongoing deleveraging, suggesting a positive outlook. However, challenges such as flat reported revenue and increased tax payments present some concerns.Positive Updates
Significant Profit Growth
Profit before tax increased to GBP 72 million, marking a year-on-year growth of 71%.
Negative Updates
Flat Reported Revenue
Reported revenue remained flat, impacted by a GBP 40 million negative movement due to the disposal of pubs.
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Profit Growth
Profit before tax increased to GBP 72 million, marking a year-on-year growth of 71%.
Read all positive updates
Company Guidance
In the recent call discussing Marston's financial results for fiscal year 2025, the company reported a strong performance, highlighting significant year-on-year growth. Profit before tax rose to GBP 72 million, marking a 71% increase, while EBITDA improved by 7% to GBP 205 million with a margin expansion of 140 basis points to 22.8%. Total revenue reached GBP 898 million, with a like-for-like growth of 1.6%, despite a flat overall revenue due to pub disposals. The recurring free cash flow exceeded expectations, hitting GBP 53 million, surpassing the target of GBP 50 million. Marston's continued to deleverage, reducing net debt from 5.2x to 4.6x EBITDA. The company also launched 31 new pub formats, achieving a 23% revenue uplift and over 30% EBITDA returns, positioning these formats as future growth engines. Additionally, Marston's achieved a record reputation score of 816, reflecting enhanced guest satisfaction. Looking ahead, the company plans to accelerate the rollout of its successful formats in FY 2026, with a focus on maintaining and further improving margins, while also targeting a recurring free cash flow of GBP 50 million.Marston's Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 897.90M | 898.60M | 872.30M | 799.60M | 401.70M |
| Gross Profit | 159.90M | 489.10M | 435.70M | 335.40M | 74.20M |
| EBITDA | 223.50M | 166.20M | 115.30M | 296.20M | -20.50M |
| Net Income | 71.60M | -18.50M | -9.30M | 137.20M | -127.70M |
Balance Sheet | |||||
| Total Assets | 2.32B | 2.21B | 2.45B | 2.52B | 2.47B |
| Cash, Cash Equivalents and Short-Term Investments | 35.90M | 45.50M | 29.60M | 30.70M | 35.40M |
| Total Debt | 1.24B | 1.30B | 1.60B | 1.62B | 1.64B |
| Total Liabilities | 1.53B | 1.56B | 1.81B | 1.87B | 2.06B |
| Stockholders Equity | 790.70M | 654.80M | 640.10M | 648.10M | 406.40M |
Cash Flow | |||||
| Free Cash Flow | 53.60M | 161.20M | 75.90M | -14.60M | -107.70M |
| Operating Cash Flow | 114.80M | 207.40M | 141.20M | 55.50M | -61.10M |
| Investing Cash Flow | -56.40M | 211.90M | -9.80M | -29.10M | 197.70M |
| Financing Cash Flow | -68.00M | -401.40M | -132.60M | -30.90M | -145.10M |
Marston's Technical Analysis
Neutral
42.95
Price Trends
58.37
Negative
58.12
Negative
49.75
Positive
Market Momentum
-1.63
Negative
46.04
Neutral
41.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MARS, the sentiment is Neutral. The current price of 42.95 is below the 20-day moving average (MA) of 53.98, below the 50-day MA of 58.37, and below the 200-day MA of 49.75, indicating a neutral trend. The MACD of -1.63 indicates Negative momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 41.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:MARS.
Marston's Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £358.83M | 5.12 | 4.99% | 2.81% | 6.94% | 9.99% | |
76 Outperform | £8.78M | 2.95 | 10.75% | 1.25% | 2.76% | 40.57% | |
67 Neutral | £439.34M | 5.72 | 1.48% | 3.20% | 12.91% | -13.62% | |
66 Neutral | £341.74M | 3.47 | 9.91% | ― | -0.08% | ― | |
66 Neutral | £1.54B | 8.30 | 6.46% | ― | 3.87% | 18.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | £621.25M | 8.99 | 15.81% | 1.50% | 4.52% | 50.39% |
* Consumer Cyclical Sector Average
GB:MARS
Marston's
54.00
20.30
60.24%
GB:FSTA
Fuller Smith & Turner
674.00
176.62
35.51%
GB:HVT
Heavitree Brewery
220.00
11.47
5.50%
GB:MAB
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259.00
48.00
22.75%
GB:JDW
J D Wetherspoon
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44.33
7.95%
GB:YNGA
Young & Co'S Brewery
765.00
32.08
4.38%
Marston's Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Marston’s Updates Market on Share Capital and Voting Rights
Neutral
Apr 1, 2026
Marston’s PLC has updated the market on its share capital and voting rights position as of 1 April 2026, confirming that it has 660,362,194 ordinary shares in issue, of which 25,042,545 are held in treasury without voting rights. This struct...
Business Operations and StrategyRegulatory Filings and Compliance
Marston’s Updates Market on Total Voting Rights After Sharesave Option Exercises
Neutral
Mar 2, 2026
Marston’s PLC has updated the market on its total voting rights, confirming it has 660,362,194 ordinary shares admitted to trading, of which 25,080,588 are held in treasury without voting rights. As a result, the maximum total voting rights ...
Executive/Board ChangesRegulatory Filings and Compliance
Marston’s Awards Share-Based Bonus Buyout to New CFO
Positive
Feb 11, 2026
Marston’s has granted Chief Financial Officer Stephen Hopson 40,352 free ordinary shares to compensate him for the deferred portion of his 2025 bonus forfeited when he left Topps Tiles to join the pub operator. The award, structured as a def...
Regulatory Filings and Compliance
Marston’s Updates Market on Total Voting Rights After Sharesave Option Exercise
Neutral
Feb 2, 2026
Marston’s PLC has updated the market on its total voting rights, confirming that it has 660,362,194 ordinary shares admitted to trading, of which 25,195,946 are held in treasury with their voting rights suspended. As a result, the maximum to...
Business Operations and StrategyStock BuybackShareholder Meetings
Marston’s Wins Strong Shareholder Backing for All AGM Resolutions
Positive
Jan 28, 2026
Marston’s PLC reported that all resolutions put to shareholders at its 28 January 2026 Annual General Meeting were approved on a poll, including the receipt of the annual report and accounts, the directors’ remuneration policy and repo...
Business Operations and StrategyFinancial Disclosures
Marston’s Delivers Strong Festive Trading and Reaffirms FY2026 Outlook
Positive
Jan 28, 2026
Marston’s reported a strong festive trading performance for the 17 weeks to 24 January 2026, with like-for-like sales up 4.0% over the key Christmas and New Year period and 5.6% growth on the five main festive dates, underscoring the resilie...
Business Operations and StrategyRegulatory Filings and Compliance
Marston’s Boosts Employee Benefit Trust with New Share Purchase
Neutral
Jan 9, 2026
Marston’s PLC has disclosed that its Employee Benefit Trust (EBT), administered by Computershare Trustees (Jersey) Limited, has purchased 233,214 ordinary shares on 7 January 2026 at an average price of £0.638707 per share, for a total ...
Regulatory Filings and Compliance
Marston’s Updates Market on Total Voting Rights After Sharesave Option Exercises
Neutral
Jan 2, 2026
Marston’s PLC has confirmed that as of 2 January 2026 it has 660,362,194 ordinary shares of 7.375p in issue, of which 25,500,710 are held in treasury, resulting in a maximum of 187,284,137 voting rights attached to its ordinary shares once t...
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.