Mitchells & Butlers plc
Mitchells & Butlers plc Fundamental Analysis
Mitchells & Butlers plc (MBPFF) shows moderate financial fundamentals with a PE ratio of 8.49, profit margin of 6.53%, and ROE of 6.46%. The company generates $2.7B in annual revenue with moderate year-over-year growth of 4.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MBPFF's fundamental strength across five key dimensions:
Efficiency Score
WeakMBPFF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMBPFF trades at attractive valuation levels.
Growth Score
ModerateMBPFF shows steady but slowing expansion.
Financial Health Score
ModerateMBPFF shows balanced financial health with some risks.
Profitability Score
WeakMBPFF struggles to sustain strong margins.
Key Financial Metrics
Is MBPFF Expensive or Cheap?
P/E Ratio
MBPFF trades at 8.49 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MBPFF's PEG of 1.61 indicates fair valuation.
Price to Book
The market values Mitchells & Butlers plc at 0.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.46 times EBITDA. This is generally considered low.
How Well Does MBPFF Make Money?
Net Profit Margin
For every $100 in sales, Mitchells & Butlers plc keeps $6.53 as profit after all expenses.
Operating Margin
Core operations generate 12.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.46 in profit for every $100 of shareholder equity.
ROA
Mitchells & Butlers plc generates $3.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mitchells & Butlers plc produces operating cash flow of $366.98M, showing steady but balanced cash generation.
Free Cash Flow
Mitchells & Butlers plc produces free cash flow of $198.46M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
MBPFF converts 13.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How MBPFF Stacks Against Its Sector Peers
| Metric | MBPFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.49 | 24.93 | Better (Cheaper) |
| ROE | 6.46% | 1149.00% | Weak |
| Net Margin | 6.53% | 749.00% | Weak |
| Debt/Equity | 0.54 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 0.47 | 9.21 | Weak Liquidity |
| ROA | 3.28% | 1274.00% | Weak |
MBPFF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mitchells & Butlers plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.18%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-17.10%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
15.45%
Industry Style: Cyclical, Growth, Discretionary
High Growth