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Michelmersh Brick Holdings
(LSE:MBH)
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Rating:66Neutral
Price Target:
85.00 p
▲(14.09% Upside)
Action:Reiterated
Date:08/06/26
The score is driven mainly by strong balance-sheet quality and an attractive dividend yield, which provide resilience and income appeal. Offsetting this, operating performance has weakened with contracting revenue, materially lower margins, and sharply reduced free cash flow, while technical indicators show limited positive momentum.
Positive Factors
Very low leverage / strong balance sheet
Debt-to-equity of ~0.05 gives the group pronounced financial flexibility to absorb construction-cycle swings, fund maintenance or targeted capex, and preserve dividend policy. Low leverage materially lowers refinancing risk and supports strategic optionality over the next 2–6 months and beyond.
Negative Factors
Revenue decline and margin compression
A sustained revenue downshift and sharp margin compression materially reduce operating leverage and earnings power. If these trends persist, they will weaken free cash generation, constrain reinvestment capacity and may require structural cost or pricing responses to restore historic profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Debt-to-equity of ~0.05 gives the group pronounced financial flexibility to absorb construction-cycle swings, fund maintenance or targeted capex, and preserve dividend policy. Low leverage materially lowers refinancing risk and supports strategic optionality over the next 2–6 months and beyond.
Read all positive factors
Michelmersh Brick Holdings (MBH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£67.54M
Dividend Yield6.3%
Average Volume (3M)179.70K
Price to Earnings (P/E)18.0
Beta (1Y)0.55
Revenue Growth-7.01%
EPS Growth-28.77%
CountryUK
Employees427
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.04
Shares Outstanding91,903,580
10 Day Avg. Volume141,581
30 Day Avg. Volume179,699
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)0.83
Price to Sales (P/S)1.12
P/FCF Ratio99.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£120.00Price Target Upside61.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)£66.70M
Michelmersh Brick Holdings Business Overview & Revenue Model
Company Description
Michelmersh Brick Holdings plc operates through its subsidiaries, focusing on the production and distribution of bricks, tiles, and a range of construction materials throughout the United Kingdom and Europe. The company offers an extensive product...
How the Company Makes Money
MBH makes money primarily by manufacturing and selling clay bricks and related clay building products to customers in the UK construction supply chain. Its core revenue stream is product sales: it extracts and processes clay, manufactures bricks (...
Michelmersh Brick Holdings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 65.55M | 68.89M | 70.11M | 77.34M | 68.38M | 59.52M |
| Gross Profit | 22.36M | 22.38M | 25.13M | 30.06M | 25.78M | 22.96M |
| EBITDA | 10.20M | 9.90M | 13.71M | 18.06M | 16.67M | 14.71M |
| Net Income | 3.71M | 3.65M | 6.10M | 9.66M | 8.88M | 6.13M |
Balance Sheet | ||||||
| Total Assets | 129.14M | 125.02M | 126.96M | 123.98M | 123.31M | 112.69M |
| Cash, Cash Equivalents and Short-Term Investments | 1.04M | 1.29M | 6.00M | 10.96M | 10.60M | 8.47M |
| Total Debt | 8.48M | 4.49M | 2.26M | 1.44M | 1.28M | 1.39M |
| Total Liabilities | 39.30M | 31.98M | 31.03M | 31.13M | 34.34M | 27.57M |
| Stockholders Equity | 89.84M | 93.04M | 95.93M | 92.84M | 88.97M | 85.12M |
Cash Flow | ||||||
| Free Cash Flow | 1.73M | 771.00K | 2.25M | 7.71M | 14.75M | 9.12M |
| Operating Cash Flow | 5.01M | 6.32M | 7.86M | 10.83M | 17.78M | 13.35M |
| Investing Cash Flow | -3.08M | -5.42M | -5.60M | -2.01M | -9.10M | -4.23M |
| Financing Cash Flow | -2.06M | -5.33M | -7.16M | -8.50M | -6.29M | -12.68M |
Michelmersh Brick Holdings Technical Analysis
Negative
74.50
Price Trends
77.39
Negative
75.74
Negative
77.81
Negative
Market Momentum
-0.91
Positive
34.97
Neutral
12.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MBH, the sentiment is Negative. The current price of 74.5 is below the 20-day moving average (MA) of 75.47, below the 50-day MA of 77.39, and below the 200-day MA of 77.81, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 34.97 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MBH.
Michelmersh Brick Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £1.14B | 13.83 | 6.73% | 4.68% | 7.88% | -9.34% | |
70 Outperform | £273.20M | 15.72 | 7.98% | 4.38% | -4.66% | 16.91% | |
69 Neutral | £1.43B | 15.44 | 10.54% | ― | 4.46% | 100.00% | |
66 Neutral | £67.54M | 18.02 | 4.06% | 6.23% | -7.01% | -28.77% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | £386.33M | 18.46 | 3.79% | 4.58% | -0.25% | -12.96% | |
49 Neutral | £309.89M | -13.42 | -6.19% | 2.57% | -10.12% | -287.99% |
* Basic Materials Sector Average
GB:MBH
Michelmersh Brick Holdings
73.00
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Michelmersh Brick Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Michelmersh shareholders back all AGM resolutions, approve dividend and capital authorities
Positive
May 21, 2026
Specialist brick manufacturer Michelmersh Brick Holdings, which operates several leading UK premium brick brands and produces over 120 million clay bricks and pavers a year, has evolved into an asset-rich, sustainability-focused group with integra...
Executive/Board Changes
Michelmersh awards CEO performance‑linked share options under 2026 LTIP
Positive
May 7, 2026
Michelmersh Brick Holdings, the AIM‑quoted specialist brick manufacturer, has awarded its chief executive Ryan Mahoney options over 443,704 ordinary shares under its 2026 Long Term Incentive Plan grant. The nil‑cost options are structu...
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.