Mothercare (MTC) AI Stock Analysis

• Market Cap: £15.76M
• Dividend Yield: N/A
• Average Volume (3M): 206.81K
• Price to Earnings (P/E): 2.3
• Beta (1Y): <0.01
• 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: 140,125
• 30 Day Avg. Volume: 206,814
• 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: £4.50
• Price Target Upside: 60.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: 3.00p ▲(7.14% Upside)

Mothercare's overall stock score is primarily impacted by its financial instability, with significant challenges in revenue, profitability, and cash flow management. While the technical analysis shows mixed signals, the stock's valuation appears attractive due to a low P/E ratio. However, the lack of dividend yield and the absence of positive corporate events or earnings call insights limit the stock's appeal.

Mothercare Business Overview & Revenue Model

Company Description

Mothercare plc, through its subsidiaries, operates as a specialist franchisor of products for mothers-to-be and children under the Mothercare brand. The company provides clothing, footwear, home, and travel products, as well as toys. It operates approximately 700 Mothercare stores and 400 additional stores under the Mothercare brand, as well as websites through a network of franchise partners in 37 countries. The company was founded in 1961 and is headquartered in Hemel Hempstead, the United Kingdom.

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: Negative
• Last Price: 2.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 2.8 is below the 20-day moving average (MA) of 3.05, below the 50-day MA of 3.01, and below the 200-day MA of 3.05, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 26.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	£38.70M	21.12	4.56%	―	17.79%	18.96%
G4M	63 Neutral	£59.99M	74.56	2.14%	―	1.62%	28.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PROC	60 Neutral	£36.72M	36.63	11.06%	―	11.04%	64.29%
WRKS	55 Neutral	£26.69M	3.05	63.08%	―	-1.96%	28.69%
MTC	52 Neutral	£15.76M	2.32	―	―	-30.78%	86.44%
SOS	51 Neutral	£16.42M	-32.95	-3.01%	―	-19.76%	4.35%

Mothercare Corporate Events

Mothercare Secures Pension Contributions Deferral to Focus on Growth

Mothercare plc has announced that its Pension Trustee has agreed to further defer pension contributions amounting to £3.0 million until March 2026, allowing the company to focus on growth opportunities and strategic discussions. Despite breaching a liquidity financial covenant, Mothercare continues to receive support from its lender, ensuring sufficient cash flow to maintain operations and explore options to mitigate the pension scheme deficit.

The most recent analyst rating on (GB:MTC) stock is a Hold with a £3.00 price target. To see the full list of analyst forecasts on Mothercare stock, see the GB:MTC Stock Forecast page.

Mothercare Announces AGM and Releases Annual Report for 2025

Mothercare plc has released its Annual Report and Accounts for the fiscal year ending 29 March 2025, alongside the Notice of its Annual General Meeting (AGM) scheduled for 12 November 2025. Shareholders are encouraged to submit proxy votes and questions in advance, with all relevant documents available on the company’s website. This announcement is part of Mothercare’s ongoing efforts to maintain transparency with its stakeholders and ensure active shareholder engagement.

Mothercare Reports 2025 Full-Year Results Amid Market Challenges

Mothercare plc announced its full-year results for 2025, revealing a decline in worldwide retail sales to £230.6 million, down from £280.8 million in 2024. The company is facing challenges due to uncertainties in the Middle East and a reduction in UK sales, leading to decreased profitability. Despite these challenges, Mothercare is focusing on leveraging its strong brand to return to growth, with efforts to expand its franchise operations and explore new markets. The company has made strategic moves, including a joint venture in India and a new license agreement in Turkey, to improve its financial position and support future growth.