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Marston's
(LSE:MARS)
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Rating:64Neutral
Price Target:
64.00 p
▲(22.37% Upside)
Action:Reiterated
Date:10/14/26
The score is led by improving financial performance (profitability and operating efficiency recovering) but held back by high leverage and only moderate cash-flow quality. Technicals are supportive due to price strength versus key moving averages, though overbought RSI and a slightly negative MACD temper momentum. Valuation is a positive contributor given the very low P/E.
Positive Factors
Profitability Recovery
Net income's move from loss to profit, alongside improved EBIT and EBITDA margins, indicates a meaningful operational recovery. If sustained, stronger profitability can improve internal funding capacity and provide greater resilience against the cost pressures already noted in the income statement.
Negative Factors
High Leverage
Relatively high leverage remains a durable constraint on Marston's financial flexibility. Debt obligations can absorb cash that might otherwise fund refurbishment, growth, or shareholder returns, while also increasing sensitivity to weaker trading and making balance-sheet repair more important.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
Net income's move from loss to profit, alongside improved EBIT and EBITDA margins, indicates a meaningful operational recovery. If sustained, stronger profitability can improve internal funding capacity and provide greater resilience against the cost pressures already noted in the income statement.
Read all positive factors
Marston's (MARS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£364.90M
Dividend Yield6.05%
Average Volume (3M)1.89M
Price to Earnings (P/E)5.0
Beta (1Y)1.51
Revenue Growth-0.52%
EPS Growth68.53%
CountryUK
Employees9,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.11
Shares Outstanding639,282,800
10 Day Avg. Volume2,096,908
30 Day Avg. Volume1,886,916
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.31
Price to Sales (P/S)0.28
P/FCF Ratio4.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.1
Revenue Forecast (FY)£903.22M
Marston's Business Overview & Revenue Model
Company Description
Marston's PLC operates managed, franchised, tenanted, partnership, and leased pubs in the United Kingdom. The company is involved in the property management, telecommunications, and insurance related businesses. Marston's PLC was formerly known as...
How the Company Makes Money
Marston’s primarily makes money by operating pubs directly and selling food and beverages to customers on-site. Revenue is generated from (1) drink sales (e.g., beer, cider, spirits, soft drinks) and (2) food sales (meals served in its pubs), with...
Marston's Earnings Call Summary
Earnings Call Date:Nov 25, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong profit growth, improved cash flow, successful new pub formats, and ongoing deleveraging, suggesting a positive outlook. However, challenges such as flat reported revenue and increased tax payments present some concerns.Positive Updates
Significant Profit Growth
Profit before tax increased to GBP 72 million, marking a year-on-year growth of 71%.
Negative Updates
Flat Reported Revenue
Reported revenue remained flat, impacted by a GBP 40 million negative movement due to the disposal of pubs.
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Profit Growth
Profit before tax increased to GBP 72 million, marking a year-on-year growth of 71%.
Read all positive updates
Company Guidance
In the recent call discussing Marston's financial results for fiscal year 2025, the company reported a strong performance, highlighting significant year-on-year growth. Profit before tax rose to GBP 72 million, marking a 71% increase, while EBITDA improved by 7% to GBP 205 million with a margin expansion of 140 basis points to 22.8%. Total revenue reached GBP 898 million, with a like-for-like growth of 1.6%, despite a flat overall revenue due to pub disposals. The recurring free cash flow exceeded expectations, hitting GBP 53 million, surpassing the target of GBP 50 million. Marston's continued to deleverage, reducing net debt from 5.2x to 4.6x EBITDA. The company also launched 31 new pub formats, achieving a 23% revenue uplift and over 30% EBITDA returns, positioning these formats as future growth engines. Additionally, Marston's achieved a record reputation score of 816, reflecting enhanced guest satisfaction. Looking ahead, the company plans to accelerate the rollout of its successful formats in FY 2026, with a focus on maintaining and further improving margins, while also targeting a recurring free cash flow of GBP 50 million.Marston's Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 893.20M | 897.90M | 898.60M | 872.30M | 799.60M | 401.70M |
| Gross Profit | 161.00M | 159.90M | 489.10M | 435.70M | 335.40M | 74.20M |
| EBITDA | 223.50M | 223.50M | 166.20M | 115.30M | 296.20M | -20.50M |
| Net Income | 74.60M | 71.60M | -18.50M | -9.30M | 137.20M | -127.70M |
Balance Sheet | ||||||
| Total Assets | 2.34B | 2.32B | 2.21B | 2.45B | 2.52B | 2.47B |
| Cash, Cash Equivalents and Short-Term Investments | 28.70M | 35.90M | 45.50M | 29.60M | 30.70M | 35.40M |
| Total Debt | 1.26B | 1.24B | 1.30B | 1.60B | 1.62B | 1.64B |
| Total Liabilities | 1.53B | 1.53B | 1.56B | 1.81B | 1.87B | 2.06B |
| Stockholders Equity | 812.90M | 790.70M | 654.80M | 640.10M | 648.10M | 406.40M |
Cash Flow | ||||||
| Free Cash Flow | 31.10M | 53.60M | 161.20M | 75.90M | -14.60M | -107.70M |
| Operating Cash Flow | 100.30M | 114.80M | 207.40M | 141.20M | 55.50M | -61.10M |
| Investing Cash Flow | -64.90M | -56.40M | 211.90M | -9.80M | -29.10M | 197.70M |
| Financing Cash Flow | -39.00M | -68.00M | -401.40M | -132.60M | -30.90M | -145.10M |
Marston's Technical Analysis
Positive
52.30
Price Trends
50.28
Positive
51.08
Positive
52.96
Positive
Market Momentum
2.64
Negative
67.80
Neutral
37.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MARS, the sentiment is Positive. The current price of 52.3 is below the 20-day moving average (MA) of 53.31, above the 50-day MA of 50.28, and below the 200-day MA of 52.96, indicating a bullish trend. The MACD of 2.64 indicates Negative momentum. The RSI at 67.80 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MARS.
Marston's Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £10.60M | 5.12 | 9.40% | 2.28% | -0.62% | -0.62% | |
69 Neutral | £1.89B | 10.24 | 6.41% | 2.89% | 2.96% | 9.30% | |
67 Neutral | £615.09M | 26.18 | 3.55% | 2.07% | 4.61% | 186.38% | |
64 Neutral | £364.90M | 4.99 | 9.30% | 6.05% | -0.52% | 68.53% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £1.02B | 18.42 | 17.99% | 1.14% | 5.19% | -3.45% | |
59 Neutral | £421.00M | 20.72 | 5.14% | 2.62% | 5.71% | -19.77% |
* Consumer Cyclical Sector Average
GB:MARS
Marston's
57.30
11.20
24.30%
GB:FSTA
Fuller Smith & Turner
808.00
212.25
35.63%
GB:HVT
Heavitree Brewery
290.00
80.91
38.70%
GB:MAB
Mitchells & Butlers
317.50
73.00
29.86%
GB:JDW
J D Wetherspoon
1,050.00
412.78
64.78%
GB:YNGA
Young & Co'S Brewery
1,178.00
438.48
59.29%
Marston's Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Marston’s lifts profits above forecasts and accelerates pub format rollout
Positive
Oct 13, 2026
Marston’s reported that underlying profit before tax for the 52 weeks to 26 September 2026 is set to come in above the top end of market expectations, marking a third consecutive year of significant profit growth and an EBITDA margin increas...
Business Operations and StrategyRegulatory Filings and Compliance
Marston’s Updates Total Voting Rights After Sharesave Option Exercises
Neutral
Oct 1, 2026
Marston’s PLC has confirmed that it has 660,362,194 ordinary shares admitted to trading, with 21,079,416 held in treasury, leaving 188,588,419 shares carrying voting rights. The reduction in treasury shares stems from the exercise of options...
Executive/Board Changes
Marston’s CEO Justin Platt to Join Saga Board as Non-Executive Director
Positive
Sep 18, 2026
Marston’s PLC has announced that its Chief Executive Officer, Justin Platt, will join the board of Saga plc as a Non-Executive Director, effective 11 January 2027. The additional role underscores Platt’s growing profile in U.K. corpora...
Financial DisclosuresRegulatory Filings and Compliance
Marston’s Updates Market on Voting Rights After Sharesave Option Exercises
Neutral
Sep 1, 2026
Marston’s PLC has updated the market on its total voting rights as of 1 September 2026, reporting 660,362,194 ordinary shares in issue, of which 22,467,149 are held in treasury with their voting rights suspended. This leaves 188,179,038 voti...
Business Operations and StrategyRegulatory Filings and Compliance
Marston’s Updates Market on Reduced Treasury Shares and Voting Rights
Neutral
Aug 3, 2026
Marston’s PLC has updated the market on its total voting rights as of 3 August 2026, confirming it has 660,362,194 ordinary shares in issue, of which 24,907,807 are held in treasury with suspended voting rights. This results in maximum total...
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.