Marston's (MARS) AI Stock Analysis

• Market Cap: £377.63M
• Dividend Yield: N/A
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.73
• Revenue Growth: -0.08%
• EPS Growth: N/A
• Country: UK
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.06
• Shares Outstanding: 635,010,800
• 10 Day Avg. Volume: 958,509
• 30 Day Avg. Volume: 1,897,056
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 4.64
• 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: £80.00
• Price Target Upside: 86.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 64.00p ▲(49.01% Upside)

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

EBITDA growth and margin expansion

A 7% rise in EBITDA to GBP 205m and a 140bp margin expansion to 22.8% indicate durable operational improvement. Sustained margin gains reflect better cost control and pricing power, which enhance long-term cash generation, reinvestment capacity and resilience to sector cycles.

Recurring free cash flow above target

Achieving recurring free cash flow of GBP 53m (above the GBP 50m target) and doing so early demonstrates reliable cash generation. Persistent FCF supports deleveraging, format rollouts and capex without external financing, improving strategic flexibility over the medium term.

Scalable new pub formats with strong returns

31 new pub formats producing ~23% revenue uplifts and >30% EBITDA returns suggest a repeatable, high-return growth engine. If rollouts scale, this provides structural revenue and margin expansion, supporting long-term competitiveness and higher returns on incremental capital.

Negative Factors

Elevated net leverage despite progress

Net debt of ~4.6x EBITDA, while an improvement, remains high and constrains financial flexibility. Elevated leverage increases interest and refinancing risk, limits capacity for aggressive rollouts or cyclical buffers, and makes performance more sensitive to cost shocks or slower cash conversion.

Weaker operating cash flow and conversion

A decline in operating cash flow and suboptimal free-cash-flow-to-net-income conversion weaken the balance between reported profits and real cash generation. This hampers sustainable debt reduction, caps reinvestment, and raises reliance on financial flexibility if margins or revenues slip.

Rising tax and labor cost uncertainty

Expected higher cash tax payments and potential increases in National Living Wage and business rates represent structural cost pressure. Persistent wage and tax inflation can compress margins, reduce free cash flow available for debt paydown, and make margin improvements harder to sustain.

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. It is also involved in the property management; telecommunications; and insurance businesses. The company was formerly known as The Wolverhampton & Dudley Breweries PLC and changed its name to Marston's PLC in January 2007. The company was founded in 1834 and is based in Wolverhampton, the United Kingdom.

How the Company Makes Money

Marston's generates revenue primarily through the operation of its pubs and restaurants, which provide food and beverages to customers. This includes both wet sales (alcoholic and non-alcoholic drinks) and dry sales (food). Additionally, the company profits from its brewing segment, selling its beer brands to various outlets, including its own pubs and third-party retailers. Key revenue streams include sales from managed and leased pubs, franchise agreements, and wholesale beer distribution. Marston's also benefits from strategic partnerships and collaborations with suppliers and retailers, enhancing its market reach and profitability. Seasonal promotions and events held at its venues further contribute to revenue generation.

Marston's Financial Statement Overview

Summary

Improving profitability and operating efficiency (net income turning positive; stronger EBIT/EBITDA margins) support the score, but high leverage remains a key risk and operating cash flow has declined, limiting financial flexibility.

Income Statement

Marston's has shown stable revenue with a slight decline in the most recent year. The gross profit margin has decreased significantly from previous years, indicating potential cost pressures. However, the company has managed to turn around its net income from a loss to a profit, improving its net profit margin. The EBIT and EBITDA margins have also improved, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved but remains relatively high, indicating significant leverage. Return on equity has turned positive, showing improved profitability. The equity ratio is stable, suggesting a balanced asset structure, but the high debt level poses a risk.

Cash Flow

Operating cash flow has decreased, but the company maintains a positive free cash flow, despite a decline in growth. The operating cash flow to net income ratio indicates that cash generation is aligned with profitability. However, the free cash flow to net income ratio suggests room for improvement in cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	897.90M	897.90M	898.60M	872.30M	799.60M	401.70M
Gross Profit	159.90M	159.90M	489.10M	435.70M	335.40M	74.20M
EBITDA	223.50M	223.50M	166.20M	115.30M	296.20M	-20.50M
Net Income	71.60M	71.60M	-18.50M	-9.30M	137.20M	-127.70M
Balance Sheet
Total Assets	2.32B	2.32B	2.21B	2.45B	2.52B	2.47B
Cash, Cash Equivalents and Short-Term Investments	35.90M	35.90M	45.50M	29.60M	30.70M	35.40M
Total Debt	1.24B	1.24B	1.30B	1.60B	1.62B	1.64B
Total Liabilities	1.53B	1.53B	1.56B	1.81B	1.87B	2.06B
Stockholders Equity	790.70M	790.70M	654.80M	640.10M	648.10M	406.40M
Cash Flow
Free Cash Flow	97.00M	53.60M	161.20M	75.90M	-14.60M	-107.70M
Operating Cash Flow	158.20M	114.80M	207.40M	141.20M	55.50M	-61.10M
Investing Cash Flow	-56.40M	-56.40M	211.90M	-9.80M	-29.10M	197.70M
Financing Cash Flow	-68.00M	-68.00M	-401.40M	-132.60M	-30.90M	-145.10M

Marston's Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 64.50, below the 50-day MA of 60.12, and below the 200-day MA of 45.87, indicating a neutral trend. The MACD of 1.13 indicates Positive momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 47.57 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSTA	79 Outperform	£369.96M	18.21	4.82%	2.81%	6.94%	9.99%
HVT	72 Outperform	£8.34M	5.69	10.60%	1.25%	2.76%	40.57%
JDW	69 Neutral	£703.46M	11.34	17.81%	1.50%	4.52%	50.39%
YNGA	67 Neutral	£466.04M	45.79	1.46%	3.20%	12.91%	-13.62%
MARS	66 Neutral	£377.63M	5.35	9.91%	―	-0.08%	―
MAB	66 Neutral	£1.57B	8.86	6.58%	―	3.87%	18.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Marston's Corporate Events

Marston’s Wins Strong Shareholder Backing for All AGM Resolutions

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 report, and the re-election or election of all board members standing, alongside the reappointment of RSM UK Audit LLP as auditor. Shareholders also backed key capital authorities, such as permission to allot shares, disapply pre-emption rights and undertake market purchases of the company’s own shares, with voting participation representing just over 43% of issued share capital; the broad support provides the board with continued financial and governance flexibility, reinforcing management’s mandate and strategic room to manoeuvre on funding, capital returns and corporate actions.

The most recent analyst rating on (GB:MARS) stock is a Hold with a £71.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s Delivers Strong Festive Trading and Reaffirms FY2026 Outlook

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 resilience and appeal of its community pub estate. Like-for-like sales for the full period tracked in line with the prior year and continued to outperform the wider market, while the accelerated rollout of its new pub formats, with 23 sites launched in the first quarter and more than 50 planned for the year, is driving further momentum and margin improvement through its operating model and cost discipline. Supported by a programme of demand-driving events and promotions, including sports and entertainment partnerships and the upcoming FIFA World Cup, the board reaffirmed confidence in meeting full-year market expectations for FY2026 and delivering against previously stated strategic and shareholder return targets.

The most recent analyst rating on (GB:MARS) stock is a Hold with a £71.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s Boosts Employee Benefit Trust with New Share Purchase

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 consideration of £148,955.41. The shares will be held in the EBT, a discretionary trust used to satisfy employee share options, including awards to senior management and Persons Discharging Managerial Responsibility, bringing the trust’s total holding to 2,461,975 shares, equivalent to 0.39% of Marston’s issued share capital, a move that underscores the company’s ongoing use of equity-based incentives to align employees’ interests with those of shareholders.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £64.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s Updates Market on Total Voting Rights After Sharesave Option Exercises

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 treasury holdings are excluded. The reduction in treasury shares since the last disclosure, driven by the exercise of options under the company’s 2022 Sharesave Scheme, slightly increases the total voting rights in the market and provides updated share capital information that investors must use as the basis for calculating and disclosing their ownership interests under UK transparency rules.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £64.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s Awards Deferred Bonus Buyout Shares to New CFO

Marston’s has disclosed that its Chief Financial Officer, Stephen Hopson, has been granted 56,151 free ordinary shares in the company as a deferred bonus buyout, compensating him for forfeited deferred bonus awards from his previous employer, Topps Tiles. The award, structured as nil-cost shares, is partly already out of its holding period, with 47,978 shares becoming unrestricted on 13 December 2025 and the remainder locked in until 19 December 2026, underlining the company’s use of equity-based incentives to secure and retain senior financial leadership and align executive interests with shareholders.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £64.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s CEO Defers Bonus into Shares Under Long-Term Incentive Plan

Marston’s PLC has disclosed that Chief Executive Officer and director Justin Platt purchased 158,309 ordinary shares in the company on 24 December 2025, in line with the remuneration policy requiring one-third of his FY2025 annual bonus to be deferred into shares. The acquired shares are locked into a three-year holding period during which they cannot ordinarily be sold, underscoring the alignment of executive incentives with shareholder interests and signalling management’s longer-term commitment to the business.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £64.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s PLC Publishes 2025 Annual Report and Announces 2026 AGM

Marston’s PLC has released its Annual Report and Accounts for the financial year ending 27 September 2025, along with the Notice of its 2026 Annual General Meeting. The AGM is scheduled for 28 January 2026, and relevant documents have been made available online and submitted to the National Storage Mechanism. This announcement provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting investor decisions and market perceptions.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £52.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s Enhances Employee Incentives with Share Purchase

Marston’s PLC has announced the acquisition of 830,783 ordinary shares by its Employee Benefit Trust (EBT) to support employee share options. This purchase increases the EBT’s holdings to 2,228,761 shares, representing 0.35% of the company’s issued share capital, highlighting Marston’s commitment to employee incentives and potentially enhancing employee engagement and retention.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £52.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s PLC Updates Total Voting Rights

Marston’s PLC has announced a change in its total voting rights, revealing that the company has 660,362,194 ordinary shares, with 25,617,706 held in treasury, resulting in a maximum total of 187,249,624 voting rights. This adjustment follows the exercise of options under the 2022 Sharesave Scheme, impacting the number of shares held in treasury and providing shareholders with updated figures for calculating their voting rights.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £52.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s PLC Grants LTIP Awards to CFO Stephen Hopson

Marston’s PLC, a company involved in the hospitality industry, has announced that its Chief Financial Officer, Stephen Hopson, has been granted awards over ordinary shares under the company’s Long Term Incentive Plan. These awards, known as Buyout LTIP Awards, were given to compensate Mr. Hopson for forfeited shares from his previous employer, Topps Tiles plc. The awards are structured as nil-cost options and are aligned with the company’s remuneration policy. This move reflects Marston’s commitment to retaining key talent and aligning executive incentives with company performance, potentially impacting the company’s operational strategy and stakeholder interests.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £52.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s PLC Announces Director Share Awards Under Long Term Incentive Plan

Marston’s PLC has announced the granting of awards over ordinary shares to its directors under the Long Term Incentive Plan. These awards, based on performance metrics like Underlying Profit Before Tax, Operating Margin, and Relative Total Shareholder Return, will vest on the third anniversary of the grant date, potentially impacting the company’s financial performance and shareholder value.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £52.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s PLC Reports Robust FY2025 Results with Significant Profit Growth

Marston’s PLC reported strong financial results for the fiscal year ending September 27, 2025, with significant profit growth and margin expansion. The company achieved a 71.3% increase in underlying profit before tax and a 22% rise in recurring free cash flow, surpassing targets. The reduction in net debt and enhancement of guest satisfaction reflect the success of strategic initiatives, including new pub formats and operational efficiencies. Marston’s is well-positioned for continued growth, with plans to accelerate pub format roll-outs and manage cost pressures effectively.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £52.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s PLC Reports Strong Financial Performance and Strategic Growth

Marston’s PLC reported strong financial results for the 52 weeks ending 27 September 2025, with significant profit growth, margin expansion, and record guest satisfaction. The company’s underlying profit before tax increased by 71.3%, and recurring free cash flow exceeded targets, reflecting strategic cost management and successful pub format conversions. The company reduced its net debt and improved its leverage ratio, positioning itself for future growth and shareholder returns. With strong Christmas bookings and plans for further pub format rollouts, Marston’s is well-positioned for continued success in FY2026.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £52.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.