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Manchester United (MANU)
NYSE:MANU

Manchester United (MANU) AI Stock Analysis

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Manchester United

(NYSE:MANU)

Rating:49Neutral
Price Target:
$16.50
▼(-3.00%Downside)
The primary factor driving the score is the financial performance, which is challenged by declining revenues and persistent losses. Technical analysis shows positive momentum, but the stock may be overbought. Valuation is poor due to negative profitability and no dividend yield, further weighing down the overall score.

Manchester United (MANU) vs. SPDR S&P 500 ETF (SPY)

Manchester United Business Overview & Revenue Model

Company DescriptionManchester 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 MoneyManchester United generates revenue through multiple streams. Key revenue sources include matchday revenue from ticket sales, hospitality, and other in-stadium purchases during home games. Broadcasting rights form a significant portion of income, with substantial deals in place for domestic and international television coverage of matches. The club also benefits from commercial revenue through sponsorship deals with global brands, merchandise sales, and licensing agreements. Additionally, partnerships with digital platforms and social media engagement help expand Manchester United's global brand presence, contributing to its financial success.

Manchester United Financial Statement Overview

Summary
Manchester United faces financial challenges with declining revenue, persistent net losses, and negative free cash flow. Although the balance sheet shows reasonable leverage, profitability and cash flow efficiency are concerning. The company needs to address revenue growth and cost management to improve financial health.
Income Statement
45
Neutral
Manchester United's income statement reveals declining revenues from the annual report to the TTM period and consistently negative net income. The gross profit margin remains healthy but net profit margin is negative, indicating financial challenges. The EBIT and EBITDA margins show that operational efficiency is under pressure, with EBIT particularly concerning due to its negative value.
Balance Sheet
55
Neutral
The balance sheet shows a moderate debt-to-equity ratio, indicating leverage but not excessively high for the industry. The return on equity is negative due to net losses, which is concerning for potential investors. However, the equity ratio suggests that the company maintains a reasonable proportion of equity in its asset base, which provides some stability.
Cash Flow
50
Neutral
Cash flows are challenged by negative free cash flow, with recent declines in operating cash flow and significant capital expenditures. The operating cash flow to net income ratio highlights some ability to generate cash despite losses, yet the free cash flow to net income ratio remains negative, indicating cash management issues.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
620.67M661.75M648.40M583.20M494.12M509.04M
Gross Profit
590.56M568.02M547.17M513.93M455.08M449.29M
EBIT
-102.58M-69.35M-11.18M-87.38M-36.93M5.22M
EBITDA
80.46M128.74M157.90M80.63M95.30M142.86M
Net Income Common Stockholders
-134.19M-113.16M-28.68M-115.51M-92.22M-23.23M
Balance SheetCash, Cash Equivalents and Short-Term Investments
62.81M73.55M76.02M121.22M110.66M51.54M
Total Assets
1.47B1.34B1.32B1.29B1.26B1.38B
Total Debt
781.87M555.26M622.18M640.55M534.58M530.01M
Net Debt
719.06M481.71M546.16M519.33M423.92M478.47M
Total Liabilities
1.38B1.20B1.21B1.17B987.80M1.03B
Stockholders Equity
96.02M144.89M103.95M127.51M272.51M351.23M
Cash FlowFree Cash Flow
-138.60M-122.56M-76.01M-27.37M-31.35M-245.69M
Operating Cash Flow
60.83M85.67M95.77M96.37M113.08M-3.82M
Investing Cash Flow
-206.56M-171.20M-140.16M-93.43M-99.37M-212.85M
Financing Cash Flow
186.53M86.23M-1.95M5.04M47.64M-46.40M

Manchester United Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.01
Price Trends
50DMA
14.00
Positive
100DMA
14.45
Positive
200DMA
15.61
Positive
Market Momentum
MACD
0.54
Negative
RSI
74.85
Negative
STOCH
95.24
Negative
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 17.01 is above the 20-day moving average (MA) of 14.45, above the 50-day MA of 14.00, and above the 200-day MA of 15.61, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 74.85 is Negative, neither overbought nor oversold. The STOCH value of 95.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MANU.

Manchester United Risk Analysis

Manchester United disclosed 55 risk factors in its most recent earnings report. Manchester United reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
If we repurchase shares of our stock including our Class A ordinary shares, we may be subject to a 1% U.S. federal excise tax. Q2, 2023

Manchester United Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$31.35B-1.22%3.60%-120.30%
74
Outperform
$30.90B-1.22%3.60%-120.30%
64
Neutral
$2.55B-4.43%4.04%82.47%
63
Neutral
$1.79B13.951222.83%5.81%133.05%
61
Neutral
$14.60B5.88-4.32%3.68%2.75%-30.55%
52
Neutral
$4.59B965.35-20.85%14.64%-79.70%
49
Neutral
$2.80B-34.14%-4.57%20.00%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MANU
Manchester United
17.01
-0.02
-0.12%
FWONA
Liberty Media Liberty Formula One
88.58
23.45
36.00%
MSGS
Madison Square Garden Sports
192.27
6.17
3.32%
FWONK
Liberty Media Liberty Formula One
97.76
26.03
36.29%
MSGE
Madison Square Garden Entertainment Corp.
37.70
3.24
9.40%
BATRA
Atlanta Braves Holdings Inc Class A
45.18
3.11
7.39%
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.