Marston's (MARS) AI Stock Analysis

• Market Cap: £256.22M
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.48
• Revenue Growth: 0.50%
• EPS Growth: N/A
• Country: UK
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Restaurants
• EPS (TTM): 0.02
• Shares Outstanding: 634,313,900
• 10 Day Avg. Volume: 1,787,716
• 30 Day Avg. Volume: 1,505,105
• PEG Ratio: -0.64
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.32
• 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: 8.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ―

Marston's overall score reflects its strengths in revenue growth and operational cash flow, as well as positive technical indicators suggesting upward momentum. However, persistent net losses, high leverage, and a challenging valuation due to a negative P/E ratio weigh down the score. Recent corporate actions show strategic progress and offer optimism for future financial flexibility.

Positive Factors

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.

Strategic Focus

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

Trading Momentum

The upbeat statement shows trading momentum has continued into the current financial year.

Negative Factors

Debt Management

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 Limitation

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 is a leading British pub and brewing company, primarily operating in the hospitality and beverage sectors. Established in 1834, the company manages a vast portfolio of pubs and bars across the United Kingdom. Marston's is also known for its brewery operations, producing a wide range of beers, including well-known brands like Marston's Pedigree and Hobgoblin. The company's operations are centered around providing quality food, drinks, and hospitality services to its customers.

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 signs of recovery in revenue and operational cash flows, which are positive indicators for future growth. However, persistent net losses and high leverage pose risks to financial stability. While the company demonstrates strong cash management, 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
	EBIT
151.70M	100.10M	105.80M	-52.50M	20.90M
	EBITDA
166.20M	115.30M	296.20M	-34.20M	-250.70M
	Net Income Common Stockholders
-18.50M	-9.30M	137.20M	-127.70M	-359.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.50M	29.60M	30.70M	35.40M	42.60M
	Total Assets
2.21B	2.45B	2.52B	2.47B	2.53B
	Total Debt
1.30B	1.60B	1.62B	1.64B	1.68B
	Net Debt
1.26B	1.57B	1.60B	1.61B	1.64B
	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: 40.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 40.6 is above the 20-day moving average (MA) of 39.20, above the 50-day MA of 37.25, and above the 200-day MA of 39.88, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 32.25 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	£1.62B	11.07	6.35%	―	4.27%	―
FSTA	74 Outperform	£339.15M	17.94	4.58%	3.00%	2.22%	98.79%
YNGA	72 Outperform	£518.69M	44.08	1.81%	2.37%	16.73%	-55.22%
MARS	67 Neutral	£256.22M	5.90	10.69%	―	0.50%	―
JDW	66 Neutral	£791.26M	13.82	16.38%	1.63%	3.70%	57.10%
HVTA	66 Neutral	£8.11M	5.69	7.73%	3.94%	2.07%	―
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%

Marston's Corporate Events

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.

Marston’s PLC Announces Total Voting Rights Update

Marston’s PLC has announced its total voting rights as of April 1, 2025, in compliance with the Disclosure Guidance and Transparency Rules. The company has 660,362,194 issued ordinary shares, with 26,086,755 held in treasury, resulting in a maximum of 187,111,255 voting rights. Additionally, it has 75,000 preference shares with 300,000 voting rights. This information is crucial for shareholders to determine their notification requirements under the DTR.

Marston’s PLC Boosts Employee Share Trust with New Purchase

Marston’s PLC has announced the purchase of 506,505 ordinary shares by Computershare Trustees (Jersey) Limited for the Marston’s PLC Employee Benefit Trust. This acquisition, executed over three days in March 2025, is intended to benefit the company’s employees by satisfying share options, including those for Persons Discharging Managerial Responsibility. The transaction increases the EBT’s holdings to 1,681,540 shares, representing 0.265% of Marston’s total issued share capital, potentially enhancing employee engagement and aligning their interests with the company’s performance.

Marston’s PLC Expands Employee Benefit Trust Holdings

Marston’s PLC announced that Computershare Trustees (Jersey) Limited, acting as Trustee of The Marston’s PLC Employee Benefit Trust, purchased 287,566 ordinary shares on 12 and 13 March 2025. These shares, held in a discretionary trust, will be used to satisfy employee share options, including those for Persons Discharging Managerial Responsibility. This purchase brings the total shares held by the EBT to 1,254,101, representing 0.198% of the company’s issued share capital.

Marston’s CFO Hayleigh Lupino to Depart by October 2025

Marston’s PLC announced the departure of its Chief Financial Officer, Hayleigh Lupino, who will remain in her role until October 2025 to ensure a smooth transition. The company is actively seeking her successor, and her departure marks a significant change as she played a crucial role in the company’s transformation into a pure-play hospitality business.

Marston’s PLC Announces Change in Voting Rights Structure

Marston’s PLC has announced a change in its voting rights structure following an acquisition or disposal by Sona Asset Management (UK) LLP, which now holds 5.08% of the voting rights through financial instruments. This development may impact Marston’s governance and strategic decisions, reflecting a significant stake held by a single asset management firm, potentially influencing the company’s future direction.