Manchester United (MANU) AI Stock Analysis

• Market Cap: $3.00B
• Dividend Yield: N/A
• Average Volume (3M): 314.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -4.57%
• EPS Growth: 20.00%
• Country: US
• Employees: 1,140
• Sector: Communication Services
• Sector Strength: 78
• Industry: Entertainment
• EPS (TTM): -0.04
• Shares Outstanding: 54,317,000
• 10 Day Avg. Volume: 183,419
• 30 Day Avg. Volume: 314,691
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.98
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 38.44
• 1Y Price Target: $16.50
• Price Target Upside: -6.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $17.50 ▼(-0.40%Downside)

Manchester United's stock is primarily weighed down by significant financial challenges, including high leverage and negative profitability, which are critical concerns. While technical indicators suggest some positive momentum, the negative valuation metrics, such as the P/E ratio, highlight ongoing financial struggles. The absence of earnings call insights and corporate events means these factors do not influence the score.

Manchester United Business Overview & Revenue Model

Company Description

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. The company operates Manchester United Football Club, a professional football club. It develops marketing and sponsorship relationships with international and regional companies to leverage its brand. The company also markets and sells sports apparel, training and leisure wear, and other clothing featuring the Manchester United brand; and sells other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company's partners' wholesale distribution channels. In addition, it distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, the company offers a direct to consumer subscription mobile application; and operates Old Trafford, a sports venue with 74,239 seats, as well as invests in properties. Manchester United plc was founded in 1878 and is based in Manchester, the United Kingdom.

How the Company Makes Money

Manchester United makes money through several key revenue streams. Broadcasting rights are a major source of income, with significant sums generated from domestic and international television contracts for the English Premier League, European competitions, and other matches. Commercial revenue is another substantial component, driven by sponsorship deals with global brands, including partnerships for jerseys, training kits, and stadium naming rights. Matchday revenue, derived from ticket sales, hospitality, and other in-stadium purchases during home games at Old Trafford, also contributes significantly to the company's earnings. Merchandise sales, both online and through physical retail channels, capitalize on the club's global fanbase, further boosting revenue. Additionally, the club engages in strategic partnerships and ventures to expand its brand presence and explore new markets.

Manchester United Financial Statement Overview

Summary

Manchester United faces significant financial challenges, with profitability and cash flow issues being the most pressing. Revenue growth is modest at 2.1%, but high leverage and negative net income undermine financial stability. The company must focus on improving operational efficiency and managing debt to enhance its financial position.

Income Statement

Manchester United's revenue growth is modest, with a 2.1% increase from the previous year. However, the company is struggling with profitability, as evidenced by a negative net profit margin and EBIT margin. The gross profit margin remains strong at 85.8%, but the negative net income indicates significant challenges in managing operating expenses.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.83, indicating significant leverage. The equity ratio is low at 10.8%, suggesting limited financial stability. Return on equity is negative due to net losses, highlighting profitability challenges. The company needs to address its high leverage to improve financial health.

Cash Flow

Free cash flow is negative and has deteriorated compared to the previous year. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite losses. However, the negative free cash flow to net income ratio reflects ongoing cash flow challenges.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	620.67M	661.75M	648.40M	583.20M	494.12M	509.04M
Gross Profit	590.56M	568.02M	547.17M	513.93M	455.08M	449.29M
EBITDA	80.46M	128.74M	157.90M	80.63M	95.30M	142.86M
Net Income	-134.19M	-113.16M	-28.68M	-115.51M	-92.22M	-23.23M
Balance Sheet
Total Assets	1.60B	1.34B	1.32B	1.29B	1.26B	1.38B
Cash, Cash Equivalents and Short-Term Investments	95.54M	73.55M	76.02M	121.22M	110.66M	51.54M
Total Debt	740.15M	555.26M	622.18M	640.55M	534.58M	530.01M
Total Liabilities	1.40B	1.20B	1.21B	1.17B	987.80M	1.03B
Stockholders Equity	196.71M	144.89M	103.95M	127.51M	272.51M	351.23M
Cash Flow
Free Cash Flow	-138.60M	-122.56M	-76.01M	-27.37M	-31.35M	-245.69M
Operating Cash Flow	60.83M	85.67M	95.77M	96.37M	113.08M	-3.82M
Investing Cash Flow	-206.56M	-171.20M	-140.16M	-93.43M	-99.37M	-212.85M
Financing Cash Flow	186.53M	86.23M	-1.95M	5.04M	47.64M	-46.40M

Manchester United Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MANU, the sentiment is Positive. The current price of 17.57 is below the 20-day moving average (MA) of 17.65, above the 50-day MA of 16.87, and above the 200-day MA of 15.83, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 55.02 is Neutral, neither overbought nor oversold. The STOCH value of 51.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MANU.

Manchester United Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FWONK	76 Outperform	$31.72B	―	-1.22%	―	3.60%	-120.30%
FWONA	74 Outperform	$31.72B	―	-1.22%	―	3.60%	-120.30%
BATRA	73 Outperform	$2.77B	―	-4.43%	―	4.04%	82.47%
MSGE	62 Neutral	$1.75B	13.49	1222.83%	―	5.81%	133.05%
Sector *	61 Neutral	$41.44B	-3.01	-11.43%	3.97%	2.71%	-44.19%
MSGS	52 Neutral	$4.79B	1,013.97	-20.85%	―	14.64%	-79.70%
MANU	48 Neutral	$3.00B	―	-34.14%	―	-4.57%	20.00%