Manchester United (MANU) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 254.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -4.57%
• EPS Growth: 20.00%
• Country: US
• Employees: 1,140
• Sector: Communication Services
• Sector Strength: 86
• Industry: Entertainment
• EPS (TTM): -0.04
• Shares Outstanding: 54,317,000
• 10 Day Avg. Volume: 269,915
• 30 Day Avg. Volume: 254,126
• PEG Ratio: 0.29
• Price to Book (P/B): 10.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.45
• 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: $21.75
• Price Target Upside: 27.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• 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 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 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

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

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

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
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
	EBIT
-102.58M	-69.35M	-11.18M	-87.38M	-36.93M	5.22M
	EBITDA
80.46M	128.74M	157.90M	80.63M	95.30M	142.86M
	Net Income Common Stockholders
-134.19M	-113.16M	-28.68M	-115.51M	-92.22M	-23.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.81M	73.55M	76.02M	121.22M	110.66M	51.54M
	Total Assets
1.47B	1.34B	1.32B	1.29B	1.26B	1.38B
	Total Debt
781.87M	555.26M	622.18M	640.55M	534.58M	530.01M
	Net Debt
719.06M	481.71M	546.16M	519.33M	423.92M	478.47M
	Total Liabilities
1.38B	1.20B	1.21B	1.17B	987.80M	1.03B
	Stockholders Equity
96.02M	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: 17.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FWONK	76 Outperform	$31.35B	―	-1.22%	―	3.60%	-120.30%
FWONA	74 Outperform	$30.90B	―	-1.22%	―	3.60%	-120.30%
BATRA	64 Neutral	$2.55B	―	-4.43%	―	4.04%	82.47%
MSGE	63 Neutral	$1.79B	13.95	1222.83%	―	5.81%	133.05%
Sector *	61 Neutral	$14.60B	5.88	-4.32%	3.68%	2.75%	-30.55%
MSGS	52 Neutral	$4.59B	965.35	-20.85%	―	14.64%	-79.70%
MANU	49 Neutral	$2.80B	―	-34.14%	―	-4.57%	20.00%