Mothercare (MTC) AI Stock Analysis

• Market Cap: £18.01M
• Dividend Yield: N/A
• Average Volume (3M): 134.35K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.09
• Revenue Growth: -30.78%
• EPS Growth: 86.44%
• Country: UK
• Employees: 149
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.01
• Shares Outstanding: 563,836,600
• 10 Day Avg. Volume: 174,099
• 30 Day Avg. Volume: 134,347
• PEG Ratio: 0.03
• Price to Book (P/B): -1.71
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -10.71
• 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: £4.00
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: 3.50p ▲(9.37% Upside)

Mothercare's overall stock score reflects significant financial challenges, with declining revenue and financial instability being major concerns. While technical analysis shows some short-term bullish momentum, caution is advised due to potential overbought signals. The stock appears undervalued based on its P/E ratio, but the lack of a dividend yield may deter income investors.

Mothercare Business Overview & Revenue Model

Company Description

Mothercare (MTC) is a retail company specializing in products for mothers, babies, and young children. Established in the UK, it focuses on providing a wide range of products including maternity wear, nursery furniture, baby clothing, toys, and other essential items for childcare. The company operates both physical stores and an online platform, catering to the needs of parents and caregivers.

How the Company Makes Money

Mothercare generates revenue primarily through the sale of its diverse product range in both physical retail locations and through its e-commerce platform. The company's key revenue streams include direct sales of maternity and baby products, which encompass clothing, accessories, and nursery essentials. In addition, Mothercare may engage in licensing agreements and partnerships with other brands, allowing it to expand its product offerings and reach a broader customer base. Seasonal promotions, loyalty programs, and strategic marketing efforts also contribute to driving sales and enhancing customer retention, ultimately supporting its financial performance.

Mothercare Financial Statement Overview

Summary

Mothercare faces significant financial challenges. The income statement shows declining revenue and inconsistent profitability. The balance sheet indicates financial instability with negative equity and high debt levels. Cash flow management is problematic, with negative operating and free cash flows.

Income Statement

Mothercare's income statement reveals significant challenges. The company has experienced a notable decline in revenue over the years, with a revenue growth rate of -19.3% in the most recent year. Despite a positive net profit margin of 15% in 2021, the company has struggled with profitability, as evidenced by negative net income in previous years. The gross profit margin has been relatively stable, but the declining revenue and inconsistent profitability are concerning.

Balance Sheet

The balance sheet shows a precarious financial position. The company has negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is not meaningful due to negative equity, but the high level of debt relative to assets suggests financial risk. The equity ratio is also negative, reflecting the company's reliance on debt financing. Overall, the balance sheet indicates financial instability.

Cash Flow

Cash flow analysis shows mixed results. Operating cash flow has been negative in recent periods, and free cash flow has also been negative, indicating cash flow challenges. The free cash flow growth rate is highly volatile, and the operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income to cash. The company needs to improve its cash flow management to ensure sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	38.90M	38.90M	56.20M	73.10M	82.50M	85.80M
Gross Profit	14.80M	14.80M	19.60M	20.90M	27.60M	22.50M
EBITDA	16.40M	16.40M	7.50M	6.90M	15.80M	-10.50M
Net Income	6.20M	6.20M	3.30M	-100.00K	12.10M	-21.50M
Balance Sheet
Total Assets	28.70M	28.70M	22.40M	30.60M	36.80M	35.60M
Cash, Cash Equivalents and Short-Term Investments	4.30M	4.30M	5.00M	7.10M	9.20M	6.90M
Total Debt	8.80M	8.80M	19.90M	20.00M	20.20M	20.40M
Total Liabilities	38.10M	38.10M	52.50M	32.40M	35.30M	78.60M
Stockholders Equity	-9.40M	-9.40M	-30.10M	-1.80M	1.50M	-43.00M
Cash Flow
Free Cash Flow	-3.00M	-1.50M	2.50M	-800.00K	2.70M	-4.40M
Operating Cash Flow	-3.00M	-1.50M	4.80M	1.50M	5.60M	-4.00M
Investing Cash Flow	14.80M	14.80M	-2.30M	-2.30M	-2.90M	-400.00K
Financing Cash Flow	-14.00M	-14.00M	-4.50M	-1.20M	-500.00K	5.20M

Mothercare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.20
• 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:MTC, the sentiment is Positive. The current price of 3.2 is above the 20-day moving average (MA) of 2.98, above the 50-day MA of 3.05, and above the 200-day MA of 3.12, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 79.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MTC.

Mothercare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANG	66 Neutral	£37.24M	27.72	3.62%	―	11.86%	16.46%
G4M	63 Neutral	£62.30M	74.81	2.12%	―	1.62%	28.06%
PROC	60 Neutral	£39.77M	39.67	10.34%	―	11.04%	64.29%
MTC	58 Neutral	£18.01M	2.91	-10.96%	―	-30.78%	86.44%
WRKS	55 Neutral	£29.50M	3.43	51.62%	―	-1.96%	28.69%
SOS	45 Neutral	£13.16M	-25.00	-3.03%	―	-19.76%	4.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Mothercare Corporate Events

Mothercare Announces Change of Auditor

Mothercare plc has announced the appointment of RPG Crouch Chapman LLP as its new auditor, replacing Gravita Audit Limited. This change is effective immediately and will be subject to shareholder approval at the next Annual General Meeting. The transition is expected to have no adverse effects on the company’s operations or stakeholders, as confirmed by Gravita.

Spark’s Take on GB:MTC Stock

According to Spark, TipRanks’ AI Analyst, GB:MTC is a Underperform.

Mothercare’s overall stock score is low, driven by significant financial distress and weak valuation. While there are signs of potential stabilization in profitability and cash flow, the high leverage and bearish technical indicators highlight ongoing risks. The stock’s unattractive valuation further underscores the need for cautious consideration.

To see Spark’s full report on GB:MTC stock, click here.