The Mission Group (TMG) AI Stock Analysis

• Market Cap: £15.85M
• Dividend Yield: N/A
• Average Volume (3M): 146.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -25.20%
• EPS Growth: 78.55%
• Country: UK
• Employees: 900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): <0.01
• Shares Outstanding: 90,921,120
• 10 Day Avg. Volume: 37,835
• 30 Day Avg. Volume: 146,750
• PEG Ratio: -0.19
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 7.68
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: 18.00p ▼(-2.70% Downside)

The overall stock score is primarily influenced by weak financial performance and technical analysis, with the stock showing bearish trends and low profitability. However, recent corporate events, including the CEO's share purchase and operational improvements, provide a positive outlook, slightly offsetting the negative aspects.

Positive Factors

Cash Flow Improvement

Improved operating cash flow indicates enhanced operational efficiency, providing the company with more flexibility for investments and debt management.

Free Cash Flow Recovery

The recovery in free cash flow suggests stronger cash generation capabilities, which can support future growth initiatives and stabilize financial health.

Gross Profit Margin Stability

A stable gross profit margin despite revenue fluctuations indicates the company's ability to maintain core profitability, crucial for long-term sustainability.

Negative Factors

Revenue Decline

Declining revenue poses a risk to growth and market position, potentially impacting the company's ability to invest in new projects and maintain competitive advantages.

Low Net Profit Margin

A low net profit margin indicates challenges in controlling costs, which can hinder profitability and limit resources for reinvestment into business expansion.

Weak Return on Equity

Weak ROE reflects limited profitability relative to shareholder investments, which can deter investors and affect the company's ability to raise capital.

The Mission Group Business Overview & Revenue Model

Company Description

The Mission Group plc provides marketing and advertising related services in the United Kingdom, rest of Europe, Asia, and the United States. The company offers marketing communications services specializing in the technology, medical, property, and automotive sector; public relations services; and advertising, media buying, digital marketing, events, and training services. It also provides sales promotion services; sports, fitness, and entertainment marketing services; and pricing and market access services for the healthcare sector. The company was formerly known as The Mission Marketing Group plc and changed its name to The Mission Group plc in September 2019. The Mission Group plc was incorporated in 2006 and is based in London, the United Kingdom.

How the Company Makes Money

TMG generates revenue primarily through its service offerings, which include consulting fees for strategic marketing projects, retainers for ongoing public relations and communications services, and commissions from advertising placements. Additionally, the agency may earn income from performance-based contracts that tie compensation to the success of campaigns. Significant partnerships with media outlets, technology providers, and other agencies also contribute to its earnings, facilitating access to broader markets and enhancing service delivery.

The Mission Group Financial Statement Overview

Summary

The Mission Group shows challenges in revenue growth and profitability, with fluctuating revenues and low profit margins. The balance sheet indicates moderate leverage, but profitability metrics like ROE are weak. Improved cash flows are a positive sign, indicating better operational efficiency in cash management.

Income Statement

The Mission Group's revenue has seen fluctuations over the years, with a recent decline from 2023 to 2024. The gross profit margin stands at approximately 47.8% in 2024, showing a consistent ability to maintain profitability despite revenue drops. However, the net profit margin was only 0.66% in 2024, indicating challenges in controlling operating expenses. The EBIT and EBITDA margins are relatively low, reflecting operational inefficiencies, especially compared to past years where EBIT margins were higher.

Balance Sheet

The company's debt-to-equity ratio is 0.46, suggesting a moderate reliance on debt financing. The equity ratio is 50.94%, indicating a sound capital structure with a decent amount of assets financed by equity. However, the return on equity is low at 1.34% in 2024, reflecting limited profitability relative to shareholder investments.

Cash Flow

Operating cash flow improved in 2024, demonstrating better cash management from operations. Free cash flow recovered significantly from a negative figure in 2023 to a positive one in 2024, indicating improved cash generation capabilities. The free cash flow to net income ratio suggests that cash flow is healthier than net profits alone indicate, given the operational cash flow to net income ratio of approximately 3.34.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.63M	158.66M	195.45M	182.69M	153.29M	121.93M
Gross Profit	66.95M	75.92M	74.34M	78.96M	71.56M	60.54M
EBITDA	4.60M	9.15M	-3.37M	8.47M	11.31M	3.54M
Net Income	-2.62M	1.05M	-12.03M	9.00K	5.42M	-2.03M
Balance Sheet
Total Assets	151.39M	154.64M	163.59M	161.40M	159.46M	147.94M
Cash, Cash Equivalents and Short-Term Investments	1.19M	10.38M	4.63M	6.15M	6.07M	3.81M
Total Debt	28.48M	36.28M	37.74M	27.58M	26.07M	16.24M
Total Liabilities	76.75M	75.69M	87.14M	71.22M	65.99M	57.71M
Stockholders Equity	74.60M	78.79M	76.27M	89.99M	93.20M	89.86M
Cash Flow
Free Cash Flow	5.71M	2.85M	-396.00K	6.78M	1.68M	8.92M
Operating Cash Flow	6.22M	3.52M	2.06M	9.73M	3.58M	10.04M
Investing Cash Flow	3.09M	4.84M	-2.31M	-5.29M	-8.78M	-3.32M
Financing Cash Flow	-7.96M	-2.11M	-997.00K	-3.66M	7.38M	-7.77M

The Mission Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TMG, the sentiment is Negative. The current price of 18.5 is below the 20-day moving average (MA) of 18.68, below the 50-day MA of 18.76, and below the 200-day MA of 22.93, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 29.80 is Positive, neither overbought nor oversold. The STOCH value of 40.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TMG.

The Mission Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOU	75 Outperform	£285.82M	21.16	7.16%	3.68%	15.99%	―
SAA	65 Neutral	£150.30M	19.62	18.23%	1.09%	-21.19%	-29.54%
NFG	63 Neutral	£356.63M	22.43	9.53%	4.98%	-5.98%	-74.21%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NAH	53 Neutral	£17.02M	-0.44	-96.35%	―	-4.96%	-4798.26%
TMG	49 Neutral	£15.85M	-6.03	-3.81%	―	-25.20%	78.55%
EBQ	48 Neutral	£17.93M	-1.43	-37.24%	―	-0.79%	-100.22%

The Mission Group Corporate Events

MISSION Group Announces Departure of Chief Creative Officer

The MISSION Group Plc announced the resignation of Dylan Bogg as Chief Creative Officer and Board member, effective immediately. Bogg, who joined the company in 2006 and became CCO in 2023, has been a significant contributor to the company’s development. His departure marks a notable change in the leadership team, potentially impacting the company’s strategic direction and stakeholder relations.

The most recent analyst rating on (GB:TMG) stock is a Hold with a £24.50 price target. To see the full list of analyst forecasts on The Mission Group stock, see the GB:TMG Stock Forecast page.