Marston's PLC (GB:MARS)
LSE:MARS
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Marston's
(LSE:MARS)
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Rating:66Neutral
Price Target:
51.00 p
▲(18.74% Upside)
Action:Downgraded
Date: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 Recovery
A large year-on-year jump in profit before tax and improved EBIT/EBITDA margins signal a durable operational turnaround. Sustained profitability strengthens internal capital for reinvestment, supports margin resilience through cycles, and underpins ongoing deleveraging efforts.
Negative Factors
Elevated Leverage
Although improving, leverage at multiple-times EBITDA remains elevated for a cyclical hospitality operator. High net debt raises refinancing and interest-rate sensitivity, limits strategic optionality and increases risk if trading weakens or cash flow falls short of targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
A large year-on-year jump in profit before tax and improved EBIT/EBITDA margins signal a durable operational turnaround. Sustained profitability strengthens internal capital for reinvestment, supports margin resilience through cycles, and underpins ongoing deleveraging efforts.
Read all positive factors
Marston's (MARS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£301.87M
Dividend YieldN/A
Average Volume (3M)1.90M
Price to Earnings (P/E)4.8
Beta (1Y)1.40
Revenue Growth-0.52%
EPS Growth68.53%
CountryUK
Employees10,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.12
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 Target
£81.00Price Target Upside88.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.09
Revenue Forecast (FY)£911.59M
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:Dec 08, 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 | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 893.20M | 897.90M | 898.60M | 872.30M | 799.60M | 401.70M |
| Gross Profit | 161.00M | 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 | 74.60M | 71.60M | -18.50M | -9.30M | 137.20M | -127.70M |
Balance Sheet | ||||||
| Total Assets | 2.34B | 2.32B | 2.21B | 2.45B | 2.52B | 2.47B |
| Cash, Cash Equivalents and Short-Term Investments | 28.70M | 35.90M | 45.50M | 29.60M | 30.70M | 35.40M |
| Total Debt | 1.26B | 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 | 812.90M | 790.70M | 654.80M | 640.10M | 648.10M | 406.40M |
Cash Flow | ||||||
| Free Cash Flow | 31.10M | 53.60M | 161.20M | 75.90M | -14.60M | -107.70M |
| Operating Cash Flow | 100.30M | 114.80M | 207.40M | 141.20M | 55.50M | -61.10M |
| Investing Cash Flow | -64.90M | -56.40M | 211.90M | -9.80M | -29.10M | 197.70M |
| Financing Cash Flow | -39.00M | -68.00M | -401.40M | -132.60M | -30.90M | -145.10M |
Marston's Technical Analysis
Negative
42.95
Price Trends
52.30
Negative
57.08
Negative
51.19
Negative
Market Momentum
-1.90
Positive
41.04
Neutral
35.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MARS, the sentiment is Negative. The current price of 42.95 is below the 20-day moving average (MA) of 49.42, below the 50-day MA of 52.30, and below the 200-day MA of 51.19, indicating a bearish trend. The MACD of -1.90 indicates Positive momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 35.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | £338.38M | 5.12 | 4.99% | 2.81% | 6.94% | 9.13% | |
76 Outperform | £10.24M | 1.29 | 10.75% | 1.25% | 1.73% | 99.56% | |
67 Neutral | £420.71M | 5.72 | 1.48% | 3.20% | 12.91% | -13.62% | |
66 Neutral | £301.87M | 4.77 | 9.30% | ― | -0.52% | 68.53% | |
66 Neutral | £1.50B | 4.77 | 6.46% | ― | 3.87% | 18.87% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | £606.91M | 8.99 | 15.81% | 1.50% | 5.39% | -3.64% |
* Consumer Cyclical Sector Average
GB:MARS
Marston's
47.70
7.10
17.49%
GB:FSTA
Fuller Smith & Turner
640.00
51.66
8.78%
GB:HVT
Heavitree Brewery
220.00
11.47
5.50%
GB:MAB
Mitchells & Butlers
252.50
-23.50
-8.51%
GB:JDW
J D Wetherspoon
607.50
-103.36
-14.54%
GB:YNGA
Young & Co'S Brewery
728.00
-192.52
-20.91%
Marston's Corporate Events
Executive/Board Changes
Marston’s Senior Independent Director to Join Wickes Board
Positive
May 19, 2026
Marston’s has announced that its Senior Independent Director, Octavia Morley, will join the board of home improvement retailer Wickes Group as a non-executive director from 1 June 2026, also becoming its Senior Independent Director. She will...
Business Operations and StrategyFinancial Disclosures
Marston’s lifts margins and profits as new pub formats drive returns
Positive
May 12, 2026
Marston’s reported resilient interim results for the 26 weeks to 28 March 2026, maintaining underlying EBITDA at £85.9 million despite a 1.1% dip in revenue to £422.7 million, and expanding margins through tight cost control and la...
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 ...
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.