Michelmersh Brick Holdings (MBH) AI Stock Analysis

• Market Cap: £90.08M
• Dividend Yield: 4.28%
• Average Volume (3M): 345.84K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.46
• Revenue Growth: -0.29%
• EPS Growth: -33.41%
• Country: UK
• Employees: 445
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Construction Materials
• EPS (TTM): 0.03
• Shares Outstanding: 92,997,400
• 10 Day Avg. Volume: 815,156
• 30 Day Avg. Volume: 345,844
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £138.00
• Price Target Upside: 40.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: 114.00p ▲(16.33% Upside)

Michelmersh Brick Holdings demonstrates strong financial stability and strategic corporate actions, such as share buybacks and a new CFO appointment, which bolster its market position. However, technical indicators show bearish momentum, which could pose short-term risks. The stock's reasonable valuation and attractive dividend yield provide a balanced investment opportunity.

Positive Factors

Financial Stability

Michelmersh Brick Holdings' strong equity base and low leverage provide a solid foundation for financial stability, enabling resilience against market fluctuations and supporting long-term growth.

Operational Efficiency

Consistent EBIT and EBITDA margins indicate Michelmersh Brick Holdings' operational efficiency, allowing the company to maintain profitability even amid revenue fluctuations, supporting sustainable business operations.

Strategic Corporate Actions

Share buybacks and strategic resolutions demonstrate Michelmersh Brick Holdings' commitment to enhancing shareholder value and positioning for long-term growth, reinforcing its market position.

Negative Factors

Revenue Decline

The decline in revenue and net income could impact Michelmersh Brick Holdings' ability to fund growth initiatives and maintain margins, posing a challenge to sustaining long-term profitability.

Free Cash Flow Decline

A decline in free cash flow may limit Michelmersh Brick Holdings' capacity to invest in capital expenditures and growth, potentially affecting future expansion and operational flexibility.

Revenue Growth Challenges

Negative revenue growth indicates challenges in market expansion or product demand, which could hinder Michelmersh Brick Holdings' ability to capture market share and sustain long-term growth.

Michelmersh Brick Holdings Business Overview & Revenue Model

Company Description

Michelmersh Brick Holdings (MBH) is a prominent manufacturer and supplier of high-quality bricks and building materials in the UK. The company operates primarily within the construction materials sector and is known for its diverse range of products, including traditional and contemporary bricks, as well as paving and other related materials. With a commitment to sustainability and innovation, MBH serves various markets, including residential, commercial, and industrial sectors, catering to the needs of builders, architects, and developers.

How the Company Makes Money

Michelmersh Brick Holdings generates revenue primarily through the sale of its brick products and associated building materials. The company has multiple revenue streams, including direct sales to construction firms, partnerships with distributors, and supply contracts for large construction projects. Additionally, MBH benefits from its strong brand reputation and customer loyalty, which allow it to command premium pricing for its products. The company also engages in strategic collaborations and partnerships with industry stakeholders, enhancing its market reach and creating opportunities for bulk sales. Factors contributing to its earnings include the demand for sustainable building practices, the growth of the construction industry, and the company's ongoing investment in innovation and product development.

Michelmersh Brick Holdings Financial Statement Overview

Summary

Michelmersh Brick Holdings exhibits strong financial health with consistent operational efficiency and a robust balance sheet. While revenue and net income have faced recent declines, the company maintains a strong equity base with low leverage, contributing to its financial stability. Cash flow management remains effective, though recent free cash flow decline suggests areas for improvement in managing capital expenditures.

Income Statement

The income statement shows a stable performance with a decent gross profit margin and consistent EBIT and EBITDA margins over the years. However, the company experienced a decline in revenue and net income in the most recent year, affecting net profit margins. Despite these fluctuations, the company maintains a strong operational efficiency, reflected in its EBIT and EBITDA margins.

Balance Sheet

The balance sheet reveals a strong equity position with a low debt-to-equity ratio, suggesting financial stability and low leverage. The equity ratio is healthy, indicating that the majority of the company's assets are financed through shareholders' equity. The return on equity has shown slight variations but remains solid, supporting the company's profitability.

Cash Flow

The cash flow statement shows a decrease in free cash flow in the latest year, although operating cash flow remains positive and strong. The company has successfully maintained a good operating cash flow to net income ratio, reflecting efficient cash generation relative to earnings. However, free cash flow has declined, highlighting potential challenges in sustaining capital expenditures and growth investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.11M	77.34M	68.38M	59.52M	52.04M
Gross Profit	25.13M	30.06M	25.78M	22.96M	20.35M
EBITDA	13.71M	18.06M	16.67M	14.71M	12.26M
Net Income	6.10M	9.66M	8.88M	6.13M	4.93M
Balance Sheet
Total Assets	126.96M	123.98M	123.31M	112.69M	115.85M
Cash, Cash Equivalents and Short-Term Investments	6.00M	10.96M	10.60M	8.47M	12.24M
Total Debt	2.26M	1.44M	1.28M	1.39M	12.24M
Total Liabilities	31.03M	31.13M	34.34M	27.57M	36.20M
Stockholders Equity	95.93M	92.84M	88.97M	85.12M	79.65M
Cash Flow
Free Cash Flow	2.25M	7.71M	14.75M	9.12M	8.43M
Operating Cash Flow	7.86M	10.83M	17.78M	13.35M	9.67M
Investing Cash Flow	-5.60M	-2.01M	-9.10M	-4.23M	-1.24M
Financing Cash Flow	-7.16M	-8.50M	-6.29M	-12.68M	-11.32M

Michelmersh Brick Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 98.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MBH, the sentiment is Negative. The current price of 98 is below the 20-day moving average (MA) of 100.13, below the 50-day MA of 105.65, and below the 200-day MA of 103.51, indicating a bearish trend. The MACD of -2.73 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 71.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MBH.

Michelmersh Brick Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRC	76 Outperform	£1.36B	30.47	6.07%	―	32.27%	―
MBH	70 Outperform	£90.08M	17.19	5.71%	4.28%	-0.29%	-33.41%
BREE	70 Outperform	£1.28B	14.21	7.90%	3.94%	7.83%	-7.40%
MSLH	67 Neutral	£436.92M	18.26	3.57%	4.24%	1.31%	10.19%
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
FORT	60 Neutral	£403.54M	25.72	7.03%	1.57%	15.99%	96.05%
IBST	59 Neutral	£534.37M	43.12	3.10%	2.47%	5.58%	66.49%

Michelmersh Brick Holdings Corporate Events

Michelmersh Brick Holdings Executes Share Buyback

Michelmersh Brick Holdings PLC has repurchased 10,538 of its ordinary shares at a price of 103 pence each as part of its ongoing Share Buyback Programme. This transaction, executed through Canaccord Genuity Limited on the London Stock Exchange, reduces the number of shares in circulation and may impact shareholder calculations under the Financial Conduct Authority’s rules.

Michelmersh Brick Holdings Executes Share Buyback on London Stock Exchange

Michelmersh Brick Holdings PLC has executed a share buyback, purchasing 15,080 ordinary shares at a price of 103.50 pence each on the London Stock Exchange. This move is part of the company’s ongoing Share Buyback Programme, which aims to manage the company’s capital structure and provide value to shareholders. The repurchased shares will be held in treasury, affecting the number of shares in circulation and potentially impacting shareholder calculations under financial regulations.

Michelmersh Brick Holdings Enhances Shareholder Value with Share Buyback

Michelmersh Brick Holdings PLC announced the repurchase of 30,000 ordinary shares at a price of 103 pence each as part of its ongoing Share Buyback Programme. This transaction, conducted on the London Stock Exchange, reduces the number of shares in circulation and is intended to enhance shareholder value. The company now holds 2,624,561 shares in treasury, with 93,279,018 shares remaining in issue. This move reflects Michelmersh’s strategic focus on optimizing its capital structure and potentially increasing earnings per share, thereby reinforcing its market position.

Michelmersh Brick Holdings Advances Share Buyback Programme

Michelmersh Brick Holdings PLC has repurchased 25,000 ordinary shares as part of its Share Buyback Programme, with each share bought at a consistent price of 104 pence. This move reduces the number of shares in circulation to 93,309,018, potentially impacting shareholder calculations under financial regulations. The company continues to strengthen its market position by managing its share capital effectively.

Michelmersh Brick Holdings Executes Share Buyback

Michelmersh Brick Holdings PLC has executed a share buyback, purchasing 7,061 ordinary shares at a price of 104.02 pence each on the London Stock Exchange. This transaction is part of a previously announced Share Buyback Programme, and the repurchased shares will be held in treasury. Following this purchase, the total number of shares in issue stands at 93,334,018, excluding treasury shares. This move may impact shareholder calculations regarding their interest in the company, as per Financial Conduct Authority rules.

Michelmersh Brick Holdings to Announce Half-Year Results

Michelmersh Brick Holdings PLC announced that it will release its half-year results for the period ending 30 June 2025 on 2 September 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

Michelmersh Brick Holdings Announces Total Voting Rights Update

Michelmersh Brick Holdings PLC announced its total voting rights as of May 31, 2025, with 93,341,079 voting rights available for shareholders. This information is crucial for shareholders to determine their notification requirements regarding changes in their shareholding interests under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

Michelmersh Brick Holdings Advances Share Buyback Programme

Michelmersh Brick Holdings PLC announced the purchase of 27,000 ordinary shares as part of its Share Buyback Programme, executed on the London Stock Exchange. This transaction reduces the number of shares in circulation, potentially impacting shareholder calculations regarding their interests in the company. The company will hold these shares in treasury, maintaining 93,341,079 shares in issue. This strategic move may influence the company’s market positioning and shareholder value.