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Marston's
(LSE:MARS)
Select Model
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Rating:60Neutral
Price Target:
50.00 p
▼(-4.40% Downside)
Action:Reiterated
Date:09/11/26
The score is primarily driven by improving profitability and operational margins, but constrained by high leverage and softer cash-flow trends. Technically, the stock remains in a downtrend with bearish momentum, partially offset by an oversold reading. A low P/E supports the score on valuation.
Positive Factors
Profitability turnaround
The return to positive net income demonstrates that Marston’s operating model has regained profitability after prior losses. If maintained, this improves internal funding capacity, supports resilience through normal trading volatility, and provides a stronger base for future estate investment.
Negative Factors
High financial leverage
Although leverage has improved, the remaining high debt burden can constrain Marston’s financial flexibility and leave less capacity to absorb weaker pub trading. Significant leverage also increases the importance of consistent cash generation and limits options for funding future investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround
The return to positive net income demonstrates that Marston’s operating model has regained profitability after prior losses. If maintained, this improves internal funding capacity, supports resilience through normal trading volatility, and provides a stronger base for future estate investment.
Read all positive factors
Marston's (MARS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£306.28M
Dividend Yield6.05%
Average Volume (3M)1.01M
Price to Earnings (P/E)4.2
Beta (1Y)1.30
Revenue Growth-0.52%
EPS Growth68.53%
CountryUK
Employees9,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.11
Shares Outstanding637,895,000
10 Day Avg. Volume1,356,026
30 Day Avg. Volume1,011,359
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 Target
£90.00Price Target Upside72.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.09
Revenue Forecast (FY)£894.24M
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 makes money primarily from operating and monetising its pub estate. Its main revenue streams are: (1) On-trade sales in its pubs: revenue generated from selling food and drinks (including alcoholic beverages) to customers in pubs it oper...
Marston's Earnings Call Summary
Earnings Call Date:Nov 25, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Dec 08, 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
Negative
52.30
Price Trends
52.24
Negative
50.55
Negative
54.78
Negative
Market Momentum
-0.88
Positive
28.04
Positive
18.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MARS, the sentiment is Negative. The current price of 52.3 is above the 20-day moving average (MA) of 51.12, above the 50-day MA of 52.24, and below the 200-day MA of 54.78, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 28.04 is Positive, neither overbought nor oversold. The STOCH value of 18.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | £11.00M | 5.25 | 9.40% | 2.16% | -0.62% | -0.62% | |
77 Outperform | £375.09M | 17.95 | 5.14% | 3.03% | 5.71% | -19.77% | |
69 Neutral | £1.61B | 8.76 | 6.41% | 2.89% | 2.96% | 9.30% | |
69 Neutral | £779.90M | 16.36 | 15.81% | 1.50% | 5.39% | -3.64% | |
62 Neutral | £460.41M | 17.96 | 3.55% | 3.02% | 4.61% | 186.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £306.28M | 4.18 | 9.30% | 6.05% | -0.52% | 68.53% |
* Consumer Cyclical Sector Average
GB:MARS
Marston's
47.95
10.15
26.85%
GB:FSTA
Fuller Smith & Turner
700.00
145.00
26.13%
GB:HVT
Heavitree Brewery
305.00
95.91
45.87%
GB:MAB
Mitchells & Butlers
271.50
10.50
4.02%
GB:JDW
J D Wetherspoon
801.50
126.45
18.73%
GB:YNGA
Young & Co'S Brewery
808.00
19.12
2.42%
Marston's Corporate Events
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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Marston’s boosts margins on World Cup surge and plans Grandstand-led growth
Positive
Jul 21, 2026
Marston’s reported a strong World Cup trading performance, with England matchdays driving like-for-like sales growth of 22% and Grandstand pubs delivering sales up about 170% year-on-year on those days. New pub formats continue to outperform...
Executive/Board ChangesRegulatory Filings and Compliance
Marston’s Grants Sharesave Options to CFO Stephen Hopson
Positive
Jul 3, 2026
Marston’s PLC has granted share options under its Sharesave Scheme to Chief Financial Officer Stephen Hopson, who is also a director and person discharging managerial responsibilities. The options cover 49,189 ordinary shares at an exercise ...
Business Operations and StrategyRegulatory Filings and Compliance
Marston’s updates total voting rights after Sharesave option exercises
Neutral
Jul 1, 2026
Marston’s PLC has confirmed that as of 1 July 2026 it has 660,362,194 ordinary shares of 7.375p in issue, with 24,946,100 held in treasury, whose voting rights are suspended. This leaves a maximum of 187,447,747 voting rights attached to its...
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.