Mulberry (MUL) AI Stock Analysis

• Market Cap: £77.06M
• Dividend Yield: N/A
• Average Volume (3M): 5.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -15.07%
• EPS Growth: -1078.90%
• Country: UK
• Employees: 1,300
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.61
• Shares Outstanding: 70,469,475
• 10 Day Avg. Volume: 8,688
• 30 Day Avg. Volume: 5,322
• PEG Ratio: -0.27
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.55
• 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: £94.00
• Price Target Upside: -14.55% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: ―

Mulberry's overall stock score reflects significant financial challenges, marked by declining profitability, high leverage, and constrained cash flow. The technical analysis indicates a weak momentum with potential bearish sentiment, and the valuation is unattractive due to negative earnings and lack of dividends. These factors collectively suggest a cautious outlook for the stock.

Mulberry Business Overview & Revenue Model

Company Description

Mulberry Group plc, through its subsidiaries, designs and manufactures fashion accessories and clothing in the United Kingdom, Asia Pacific, and internationally. It provides briefcases, messenger bags, and backpacks; wallets, and purses and pouches; sunglasses, scarves, gloves and hats, belts, cufflinks, keyrings, and shoes; jewelry, organisers, leather care, and care products; gifts; and luggage, holdalls, bag, and other travel accessories for men and women, as well as ready-to-wear and eyewear products. The company sells its products through its retail shops, concessions, and wholesale distribution channels under the Mulberry brand, as well as sells its products online. Mulberry Group plc was founded in 1971 and is based in Bath, the United Kingdom. Mulberry Group plc is a subsidiary of Challice Limited.

How the Company Makes Money

Mulberry generates revenue through the sale of its luxury leather goods and fashion products. The company's primary revenue stream is from its retail operations, which include brick-and-mortar stores and its e-commerce platform. Wholesale operations also contribute significantly, as Mulberry partners with select department stores and luxury retailers globally to distribute its products. Additionally, Mulberry's revenue is supported by its brand's strong heritage and reputation for quality, which allows it to command premium pricing. Strategic partnerships and collaborations with other luxury brands or designers can also enhance its product offerings and market reach, though specific partnerships are not detailed here.

Mulberry Financial Statement Overview

Summary

Mulberry faces a challenging financial landscape characterized by declining profitability and high leverage. While gross profit margins are historically robust, operational inefficiencies and significant debt levels present risks. Cash flow constraints further complicate the financial outlook, necessitating strategic adjustments for improvement.

Income Statement

The income statement reveals significant challenges in profitability, with a negative net income and declining revenue over the recent period. Despite a historically strong gross profit margin, the company has experienced negative operating margins, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, reflecting significant leverage, which poses financial risk. However, the company maintains a moderate equity ratio, suggesting a fair proportion of assets funded by equity. The decreasing stockholders' equity is a concern for financial stability.

Cash Flow

Cash flow analysis indicates pressure on free cash flow, with negative free cash flow and a low operating cash flow to net income ratio. Recent improvements in operating cash flow are overshadowed by significant capital expenditures, leading to cash flow constraints.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
139.25M	152.84M	159.13M	152.41M	114.95M	149.32M
	Gross Profit
81.49M	107.14M	113.25M	109.31M	59.89M	91.12M
	EBIT
-20.77M	-29.14M	16.97M	24.65M	5.39M	-43.02M
	EBITDA
-16.87M	-13.07M	30.93M	36.83M	21.97M	13.46M
	Net Income Common Stockholders
-36.29M	-33.51M	13.24M	19.98M	4.77M	-44.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.76M	7.14M	6.87M	25.67M	11.82M	8.00M
	Total Assets
103.12M	117.72M	159.25M	133.76M	119.88M	133.59M
	Total Debt
78.38M	81.21M	84.16M	68.65M	78.55M	98.12M
	Net Debt
69.62M	74.07M	77.29M	42.98M	66.73M	90.12M
	Total Liabilities
108.09M	106.84M	112.48M	96.01M	101.18M	120.07M
	Stockholders Equity
2.38M	17.41M	53.21M	42.21M	22.27M	17.34M
Cash Flow		Free Cash Flow
6.42M	-9.65M	-10.21M	13.90M	12.45M	11.72M
	Operating Cash Flow
10.02M	133.00K	834.00K	19.21M	16.57M	18.57M
	Investing Cash Flow
-5.66M	-10.02M	-14.17M	8.08M	-4.10M	-6.73M
	Financing Cash Flow
-1.34M	10.35M	-5.70M	-13.43M	-8.32M	-16.39M

Mulberry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 110.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MUL, the sentiment is Positive. The current price of 110 is above the 20-day moving average (MA) of 97.13, above the 50-day MA of 89.21, and above the 200-day MA of 101.75, indicating a bullish trend. The MACD of 6.96 indicates Negative momentum. The RSI at 72.35 is Negative, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MUL.

Mulberry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JD	77 Outperform	£4.11B	8.45	18.22%	1.67%	2.85%	61.98%
WOSG	68 Neutral	£1.00B	24.90	7.71%	―	1.45%	-61.69%
DOCS	67 Neutral	£781.88M	172.45	1.23%	2.10%	-17.55%	-71.22%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
BRBY	61 Neutral	£3.88B	77.34	-7.28%	7.73%	-17.08%	-128.46%
THG	49 Neutral	£364.01M	―	-27.20%	―	-14.37%	-28.78%
MUL	43 Neutral	£77.06M	―	-173.45%	―	-15.07%	-1078.90%

Mulberry Corporate Events

Mulberry Unveils New Strategy and Appoints New CFO Amidst Trading Challenges

Mulberry has announced a new strategy named ‘Back to the Mulberry Spirit,’ aiming to restore profitability through simplification, brand realignment, and enhanced customer connection. Key priorities include focusing on the UK market, accelerating growth in the US, and reducing emphasis in China. The company will also refresh its brand identity and improve customer connections. Alongside these strategic changes, Billie O’Connor has been appointed as the new Chief Financial Officer to help drive the turnaround. Despite a challenging economic environment, Mulberry’s recent trading period saw a decline in revenue, but the company remains optimistic about future growth.