Membership Collective Group Inc. Fundamental Analysis
Membership Collective Group Inc. (MCG) shows weak financial fundamentals with a PE ratio of 94.00, profit margin of 3.87%, and ROE of -11.06%. The company generates $0.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MCG's fundamental strength across five key dimensions:
Efficiency Score
WeakMCG struggles to generate sufficient returns from assets.
Valuation Score
ModerateMCG shows balanced valuation metrics.
Growth Score
WeakMCG faces weak or negative growth trends.
Financial Health Score
ModerateMCG shows balanced financial health with some risks.
Profitability Score
WeakMCG struggles to sustain strong margins.
Key Financial Metrics
Is MCG Expensive or Cheap?
P/E Ratio
MCG trades at 94.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MCG's PEG of 0.71 indicates potential undervaluation.
Price to Book
The market values Membership Collective Group Inc. at -3.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -18.57 times EBITDA. This is generally considered low.
How Well Does MCG Make Money?
Net Profit Margin
For every $100 in sales, Membership Collective Group Inc. keeps $3.87 as profit after all expenses.
Operating Margin
Core operations generate 9.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-11.06 in profit for every $100 of shareholder equity.
ROA
Membership Collective Group Inc. generates $1.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Membership Collective Group Inc. generates limited operating cash flow of $22.86M, signaling weaker underlying cash strength.
Free Cash Flow
Membership Collective Group Inc. generates weak or negative free cash flow of $7.54M, restricting financial flexibility.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
MCG converts 0.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
94.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
-3.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-4.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How MCG Stacks Against Its Sector Peers
| Metric | MCG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 94.00 | 24.95 | Worse (Expensive) |
| ROE | -7.14% | 864.00% | Weak |
| Net Margin | 3.87% | -2733.00% (disorted) | Weak |
| Debt/Equity | -4.56 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 0.72 | 2.43 | Weak Liquidity |
| ROA | 1.42% | 287.00% | Weak |
MCG outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Membership Collective Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary