Marston's (MARS) AI Stock Analysis

• Market Cap: £267.29M
• Dividend Yield: N/A
• Average Volume (3M): 759.52K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.40
• Revenue Growth: 0.50%
• EPS Growth: N/A
• Country: UK
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Restaurants
• EPS (TTM): 0.02
• Shares Outstanding: 634,322,200
• 10 Day Avg. Volume: 705,083
• 30 Day Avg. Volume: 759,520
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.45
• 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: £44.00
• Price Target Upside: 4.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: 47.00p ▲(11.24%Upside)

The overall stock score is driven by positive technical trends and an attractive valuation, offset by financial performance concerns due to high leverage and net losses. Corporate events further bolster the outlook with strategic leadership changes and profit growth.

Positive Factors

Debt Management

The sale of the brewery joint venture has led to an increased focus as a pure-play pub operator and material debt reduction.

Financial Performance

Stable revenues and a +250bps EBITDA margin increase driven by improved labour scheduling and procurement should underpin confidence in the full year numbers.

Market Valuation

Valuation is slightly below historicals at 7.4x FY24E EV/EBITDA versus c9x pre-pandemic.

Negative Factors

Debt Levels

The main issue remains the quantum of debt (£881m, 4.9x net debt / EBITDA) and that bond amortisation payments will soak up the majority of the new £50m free cash flow per annum target.

Dividend Limitations

Limited scope for a dividend is expected due to the focus on debt reduction and bond amortisation payments.

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 PLC generates revenue through a combination of its pub and brewing operations. The primary revenue stream is derived from its extensive network of managed, franchised, and leased pubs, where income is earned through the sale of food and beverages. Additionally, Marston's owns and operates several breweries that produce and sell beer to both its own pubs and other third-party establishments. The company benefits from licensing agreements and partnerships with other beverage producers to distribute and market its products. Revenue is also supplemented by rental income from leased pub properties and franchising fees from pub operators. Marston's strategic partnerships and brand recognition contribute significantly to its financial success, allowing it to maintain a strong presence in the competitive UK pub and beer market.

Marston's Financial Statement Overview

Summary

Marston's is showing revenue growth and strong operational cash flows, which are positive indicators for future growth. However, persistent net losses and high leverage pose risks to financial stability. Improving profitability remains crucial to enhancing overall financial health.

Income Statement

Marston's shows a positive trend in revenue growth with a 3% increase from 2023 to 2024, indicating recovery post-COVID-19 disruptions. However, the company struggles with profitability, reflected in consistent net losses and negative net profit margins over recent years. The gross profit margin is healthy at approximately 54% in 2024, but net income remains a concern, affecting bottom-line performance.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 1.99 in 2024, indicating significant reliance on debt financing. Despite this, the company maintains a stable equity base, with an equity ratio of 29.6%. The return on equity is negative due to net losses, suggesting inefficiencies in utilizing shareholder funds for generating profits.

Cash Flow

Cash flow from operations has strengthened significantly, with a notable increase in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is robust, indicating strong cash generation capability relative to reported losses. This positions Marston's well for managing liquidity and funding obligations despite ongoing net losses.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	898.60M	872.30M	799.60M	401.70M	515.50M
Gross Profit	489.10M	435.70M	335.40M	74.20M	160.20M
EBITDA	166.20M	115.30M	296.20M	-34.20M	-250.70M
Net Income	-18.50M	-9.30M	137.20M	-127.70M	-359.60M
Balance Sheet
Total Assets	2.21B	2.45B	2.52B	2.47B	2.53B
Cash, Cash Equivalents and Short-Term Investments	45.50M	29.60M	30.70M	35.40M	42.60M
Total Debt	1.30B	1.60B	1.62B	1.64B	1.68B
Total Liabilities	1.56B	1.81B	1.87B	2.06B	2.28B
Stockholders Equity	654.80M	640.10M	648.10M	406.40M	248.90M
Cash Flow
Free Cash Flow	161.20M	75.90M	-14.60M	-107.70M	3.30M
Operating Cash Flow	207.40M	141.20M	55.50M	-61.10M	67.00M
Investing Cash Flow	211.90M	-9.80M	-29.10M	197.70M	13.90M
Financing Cash Flow	-401.40M	-132.60M	-30.90M	-145.10M	-77.80M

Marston's Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.25
• 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 Positive. The current price of 42.25 is above the 20-day moving average (MA) of 41.46, above the 50-day MA of 40.39, and above the 200-day MA of 40.13, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 72.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MARS.

Marston's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	80 Outperform	£1.73B	10.31	6.90%	―	1.95%	275.56%
FSTA	74 Outperform	£323.85M	12.47	6.45%	2.48%	2.22%	98.79%
MARS	73 Outperform	£267.29M	6.04	10.69%	―	0.50%	―
YNGA	72 Outperform	£510.87M	60.27	1.27%	1.80%	16.73%	-55.22%
JDW	67 Neutral	£849.82M	15.15	16.38%	0.38%	3.70%	57.10%
Sector *	66 Neutral	£1.86B	11.42	6.20%	3.06%	0.61%	-17.57%
HVTA	66 Neutral	£8.11M	4.01	10.60%	3.65%	2.76%	―

Marston's Corporate Events

Marston’s PLC Updates Total Voting Rights Following Sharesave Scheme

Marston’s PLC has announced an update on its total voting rights as of July 1, 2025. The company has 660,362,194 ordinary shares admitted to trading, with 26,040,019 held in treasury, resulting in a maximum of 187,125,042 voting rights available. This update follows a decrease in treasury shares due to the exercise of options under the 2022 Sharesave Scheme. Shareholders can use these figures to calculate their voting rights and determine any changes in their interest in the company.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £78.00 price target. To see the full list of analyst forecasts on Marston’s stock, see the GB:MARS Stock Forecast page.

Marston’s PLC Appoints Stephen Hopson as New CFO

Marston’s PLC has announced the appointment of Stephen Hopson as the new Chief Financial Officer, succeeding Hayleigh Lupino. Stephen brings extensive experience from the leisure and retail sectors, having previously served as CFO at Topps Tiles plc and held senior roles at Molson Coors Beverage Company and Travis Perkins plc. This leadership change is expected to support Marston’s strategic goals as a leading hospitality business, aiming to enhance shareholder returns and sustain growth.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £78.00 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 Profit Growth and Strategic Progress in H1 2025

Marston’s PLC reported strong profit growth and strategic progress in its interim results for the 26 weeks ending March 29, 2025. Despite stable total revenue, the company achieved a 20.1% increase in underlying pub operating profit, driven by operational efficiency and strategic cost-saving measures. The company is on track with its strategic investments and debt reduction, with net debt significantly reduced, providing increased financial flexibility. Marston’s continues to focus on enhancing guest satisfaction and expanding its pub formats, with successful new openings and improved customer engagement through demand-driving events. The company remains confident in its full-year outlook, expecting to meet market expectations and deliver sustainable growth.

The most recent analyst rating on (GB:MARS) stock is a Buy with a £78.00 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 Total Voting Rights Update

Marston’s PLC has announced its total voting rights as of May 1, 2025, in compliance with the Disclosure Guidance and Transparency Rules. The company reported having 660,362,194 issued ordinary shares, with 26,048,294 held in treasury, resulting in 187,122,600 total voting rights for ordinary shares. Additionally, the company has 75,000 preference shares with 300,000 total voting rights. This information is crucial for shareholders to determine their voting power and any changes in their interest in the company.