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Mothercare PLC (GB:MTC)
LSE:MTC
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Mothercare (MTC) AI Stock Analysis

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GB:MTC

Mothercare

(LSE:MTC)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
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 (MTC) vs. iShares MSCI United Kingdom ETF (EWC)

Mothercare Business Overview & Revenue Model

Company DescriptionMothercare 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 MoneyMothercare 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
45
Neutral
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
30
Negative
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue38.90M38.90M56.20M73.10M82.50M85.80M
Gross Profit14.80M14.80M19.60M20.90M27.60M22.50M
EBITDA16.40M16.40M7.50M6.90M15.80M-10.50M
Net Income6.20M6.20M3.30M-100.00K12.10M-21.50M
Balance Sheet
Total Assets28.70M28.70M22.40M30.60M36.80M35.60M
Cash, Cash Equivalents and Short-Term Investments4.30M4.30M5.00M7.10M9.20M6.90M
Total Debt8.80M8.80M19.90M20.00M20.20M20.40M
Total Liabilities38.10M38.10M52.50M32.40M35.30M78.60M
Stockholders Equity-9.40M-9.40M-30.10M-1.80M1.50M-43.00M
Cash Flow
Free Cash Flow-3.00M-1.50M2.50M-800.00K2.70M-4.40M
Operating Cash Flow-3.00M-1.50M4.80M1.50M5.60M-4.00M
Investing Cash Flow14.80M14.80M-2.30M-2.30M-2.90M-400.00K
Financing Cash Flow-14.00M-14.00M-4.50M-1.20M-500.00K5.20M

Mothercare Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.80
Price Trends
50DMA
3.01
Negative
100DMA
3.01
Negative
200DMA
3.05
Negative
Market Momentum
MACD
-0.03
Positive
RSI
41.28
Neutral
STOCH
26.15
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
£38.70M21.124.56%17.79%18.96%
63
Neutral
£59.99M74.562.14%1.62%28.06%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
£36.72M36.6311.06%11.04%64.29%
55
Neutral
£26.69M3.0563.08%-1.96%28.69%
52
Neutral
£15.76M2.32-30.78%86.44%
51
Neutral
£16.42M-32.95-3.01%-19.76%4.35%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MTC
Mothercare
2.80
-1.69
-37.64%
GB:G4M
Gear4music (Holdings)
296.00
128.50
76.72%
GB:SOS
Sosandar PLC
7.25
-2.75
-27.50%
GB:ANG
Angling Direct Plc
53.50
18.50
52.86%
GB:WRKS
TheWorks.co.uk plc
43.20
19.95
85.81%
GB:PROC
ProCook Group PLC
31.80
1.80
6.00%

Mothercare Corporate Events

Business Operations and StrategyFinancial Disclosures
Mothercare Secures Pension Contributions Deferral to Focus on Growth
Neutral
Oct 20, 2025

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.

Financial DisclosuresShareholder Meetings
Mothercare Announces AGM and Releases Annual Report for 2025
Neutral
Sep 26, 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.

Business Operations and StrategyFinancial Disclosures
Mothercare Reports 2025 Full-Year Results Amid Market Challenges
Negative
Sep 25, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025