Marston's (MARS) AI Stock Analysis

• Market Cap: £288.32M
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 6.4
• Beta (1Y): 1.67
• Revenue Growth: 0.50%
• EPS Growth: N/A
• Country: UK
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.02
• Shares Outstanding: 634,661,440
• 10 Day Avg. Volume: 1,817,522
• 30 Day Avg. Volume: 1,793,647
• PEG Ratio: -0.15
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 1.63
• 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: £75.00
• Price Target Upside: 74.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 8.81
• Revenue Forecast (FY): £94.31B

• Rating: 73 Outperform
• Price Target: 52.00p ▲(21.07% Upside)

Marston's overall stock score is driven by strong technical analysis and attractive valuation, despite financial performance challenges. The bullish momentum and undervaluation are significant positives, while persistent net losses and high leverage present risks. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

The 3% revenue growth indicates a recovery from COVID-19 disruptions, suggesting resilience and potential for future expansion.

Cash Flow Strength

Improved cash flow from operations enhances liquidity and supports the company's ability to meet financial obligations and invest in growth.

Gross Profit Margin

A strong gross profit margin of 54% underscores efficient cost management and pricing power, supporting long-term profitability.

Negative Factors

High Leverage

High leverage with a debt-to-equity ratio of 1.99 increases financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Net Losses

Persistent net losses and negative profit margins indicate challenges in achieving profitability, which could hinder long-term financial health.

Negative Return on Equity

Negative ROE highlights inefficiencies in generating profits from shareholder investments, impacting investor confidence and future capital raising.

Marston's Business Overview & Revenue Model

Company Description

Marston's PLC is a leading UK-based brewery and pub operator, primarily engaged in the production of beer and the management of a national chain of pubs and bars. The company operates through various segments, including brewing and retail, offering a wide range of products such as ales, lagers, and ciders, alongside food services in their outlets. With a strong portfolio of brands and a focus on community-based pubs, Marston's serves diverse customer preferences across the UK.

How the Company Makes Money

Marston's generates revenue through multiple streams, primarily from the sale of alcoholic beverages and food in its pubs and bars. The company operates a combination of leased, managed, and franchised pubs, which allows it to capture different market segments and optimize profitability. Key revenue sources include direct sales from their extensive range of beers and food offerings, as well as rental income from leased pubs. Additionally, Marston's has established strategic partnerships with various retailers and distributors to expand its market reach and enhance brand visibility, contributing to its overall earnings.

Marston's Financial Statement Overview

Summary

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. 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 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	897.90M	898.60M	872.30M	799.60M	401.70M	515.50M
Gross Profit	166.80M	489.10M	435.70M	335.40M	74.20M	160.20M
EBITDA	202.70M	166.20M	115.30M	296.20M	-20.50M	-250.70M
Net Income	44.30M	-18.50M	-9.30M	137.20M	-127.70M	-359.60M
Balance Sheet
Total Assets	2.21B	2.21B	2.45B	2.52B	2.47B	2.53B
Cash, Cash Equivalents and Short-Term Investments	32.30M	45.50M	29.60M	30.70M	35.40M	42.60M
Total Debt	1.28B	1.30B	1.60B	1.62B	1.64B	1.90B
Total Liabilities	1.53B	1.56B	1.81B	1.87B	2.06B	2.28B
Stockholders Equity	678.40M	654.80M	640.10M	648.10M	406.40M	248.90M
Cash Flow
Free Cash Flow	91.60M	161.20M	75.90M	-14.60M	-107.70M	3.30M
Operating Cash Flow	147.10M	207.40M	141.20M	55.50M	-61.10M	67.00M
Investing Cash Flow	192.60M	211.90M	-9.80M	-29.10M	197.70M	13.90M
Financing Cash Flow	-290.30M	-401.40M	-132.60M	-30.90M	-145.10M	-77.80M

Marston's Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 42.95 is below the 20-day moving average (MA) of 44.97, above the 50-day MA of 41.16, and above the 200-day MA of 40.31, indicating a neutral trend. The MACD of 1.11 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 17.14 is Positive, 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	75 Outperform	£1.43B	8.52	6.90%	―	1.95%	275.56%
MARS	73 Outperform	£288.32M	6.37	10.69%	―	0.50%	―
FSTA	70 Neutral	£331.52M	12.93	6.45%	3.21%	4.79%	223.72%
HVTA	69 Neutral	£8.26M	4.14	10.60%	1.72%	2.76%	40.57%
JDW	64 Neutral	£683.68M	10.69	17.81%	1.75%	4.52%	50.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YNGA	58 Neutral	£440.85M	49.24	1.27%	3.02%	24.95%	-16.86%

Marston's Corporate Events

Marston’s PLC Reports Strong Profit Growth and Exceeds Cash Flow Target

Marston’s PLC has reported strong profit growth and exceeded its £50 million recurring free cash flow target for the fiscal year ending 27 September 2025. The company has achieved significant profit growth for the second consecutive year, driven by its market-leading pub operating model and strategic refurbishments. With plans for accelerated capital expenditure in FY2026, Marston’s aims to build on its momentum, reduce debt, and enhance long-term shareholder value. The appointment of Panmure Liberum as a joint corporate broker is expected to broaden its investor base as it continues its strategic program.

The most recent analyst rating on (GB:MARS) stock is a Hold with a £43.00 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 Following Sharesave Scheme

Marston’s PLC announced an update on its total voting rights, revealing that it has 660,362,194 ordinary shares admitted to trading, with 25,700,782 held in treasury, resulting in 187,225,116 voting rights. This change is due to the exercise of options under the Company’s 2022 Sharesave Scheme, impacting how shareholders calculate their voting rights and potentially influencing their investment decisions.

The most recent analyst rating on (GB:MARS) stock is a Hold with a £44.00 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 an update on its total voting rights as of September 1, 2025. The company, which has a total of 660,362,194 ordinary shares admitted to trading, reports that 25,748,858 of these are held in treasury, with their voting rights suspended. The maximum total voting rights for the company’s issued ordinary shares, excluding treasury shares, is now 187,210,934. This change is due to the exercise of options under the company’s 2022 Sharesave Scheme. Shareholders can use these figures to determine their notification requirements under the Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:MARS) stock is a Hold with a £45.00 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 Following Sharesave Scheme Exercise

Marston’s PLC has announced an update on its total voting rights as of August 1, 2025, indicating a reduction in the number of shares held in treasury due to the exercise of options under its 2022 Sharesave Scheme. This adjustment affects the calculation of voting rights for shareholders, who must now use the updated figures to determine their interest in the company under the Disclosure Guidance and Transparency Rules.

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.