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Mothercare
(LSE:MTC)
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Rating:39Underperform
Price Target:
0.18 p
▼(-78.35% Downside)
Action:Reiterated
Date:10/24/26
The score is driven primarily by weak financial performance—sharp multi-year revenue decline, a return to losses, negative equity, and recent negative operating cash flow. Technicals add pressure with a clear downtrend and negative momentum, while valuation provides limited support due to a negative P/E and no dividend yield data.
Positive Factors
Gross Margin Improvement
The higher gross margin indicates improved merchandise economics despite the difficult trading backdrop. If maintained, stronger product margins can provide greater contribution per sale, support investment in the brand, and help the company rebuild profitability as revenue stabilises.
Negative Factors
Structural Revenue Contraction
The prolonged revenue decline points to a substantial deterioration in business scale rather than a single weak reporting period. A smaller sales base reduces operating leverage, limits reinvestment capacity, and makes it harder for improved margins to translate into sustainable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross Margin Improvement
The higher gross margin indicates improved merchandise economics despite the difficult trading backdrop. If maintained, stronger product margins can provide greater contribution per sale, support investment in the brand, and help the company rebuild profitability as revenue stabilises.
Read all positive factors
Mothercare (MTC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.14M
Dividend Yield8.69%
Average Volume (3M)26.47M
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth-42.42%
EPS Growth-180.91%
CountryUK
Employees106
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding572,807,600
10 Day Avg. Volume5,804,604
30 Day Avg. Volume26,472,785
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.65
Price to Sales (P/S)0.31
P/FCF Ratio0.00
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)>-0.01
Revenue Forecast (FY)£30.40M
Mothercare Business Overview & Revenue Model
Company Description
Mothercare plc primarily functions as a franchisor, specializing in a range of products for expectant parents and young children, all marketed under its well-known Mothercare brand. Its extensive merchandise offering includes apparel, footwear, ho...
How the Company Makes Money
Mothercare primarily makes money by selling mother, baby, and children’s products through retail channels. Key revenue streams generally include: (1) Direct product sales across core categories such as apparel (maternity, baby, and kids), nursery ...
Mothercare Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
22
Negative
Cash Flow
30
Negative
| Breakdown | Mar 2026 | Mar 2025 | Sep 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.40M | 38.90M | 56.20M | 73.10M | 82.50M |
| Gross Profit | 9.60M | 14.80M | 19.60M | 20.90M | 27.60M |
| EBITDA | 1.10M | 17.80M | 7.50M | 6.90M | 15.80M |
| Net Income | -5.00M | 6.20M | 3.30M | -100.00K | 12.10M |
Balance Sheet | |||||
| Total Assets | 25.10M | 28.70M | 22.40M | 30.60M | 36.80M |
| Cash, Cash Equivalents and Short-Term Investments | 2.80M | 4.30M | 5.00M | 7.10M | 9.20M |
| Total Debt | 9.20M | 8.80M | 19.90M | 20.00M | 20.20M |
| Total Liabilities | 36.00M | 38.10M | 52.50M | 32.40M | 35.30M |
| Stockholders Equity | -10.90M | -9.40M | -30.10M | -1.80M | 1.50M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | -1.50M | 2.50M | -800.00K | 2.70M |
| Operating Cash Flow | -700.00K | -1.50M | 4.80M | 1.50M | 5.60M |
| Investing Cash Flow | -200.00K | 14.80M | -2.30M | -2.30M | -2.90M |
| Financing Cash Flow | -600.00K | -14.00M | -4.50M | -1.20M | -500.00K |
Mothercare Technical Analysis
Negative
0.85
Price Trends
0.48
Negative
0.68
Negative
1.07
Negative
Market Momentum
-0.07
Negative
38.25
Neutral
28.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MTC, the sentiment is Negative. The current price of 0.85 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.48, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 38.25 is Neutral, neither overbought nor oversold. The STOCH value of 28.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MTC.
Mothercare Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | £511.64M | 14.53 | 21.65% | 0.02% | 11.35% | 247.54% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £835.91M | 17.83 | -99.49% | 1.31% | 6.54% | ― | |
56 Neutral | £61.12M | 52.58 | 9.46% | 0.04% | -6.13% | -82.79% | |
54 Neutral | £22.02M | 48.81 | 2.09% | ― | 13.86% | ― | |
51 Neutral | £719.30M | -9.94 | -16.03% | ― | 10.14% | 57.54% | |
39 Underperform | £1.14M | -0.23 | 47.62% | 8.69% | -42.42% | -180.91% |
* Consumer Cyclical Sector Average
GB:MTC
Mothercare
0.20
-2.40
-92.31%
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Mothercare Corporate Events
Executive/Board Changes
Mothercare CFO Receives Vesting of Long-Term Incentive Share Award
Positive
Sep 30, 2026
Mothercare plc has announced the vesting of an award under its 2019 long-term incentive plan for Chief Financial Officer Andrew Cook, involving nil-cost options over 3,000,000 ordinary shares. Following the sale of sufficient shares to cover tax a...
Other
Mothercare Chairman Clive Whiley Boosts Stake With 15 Million-Share Purchase
Positive
Sep 25, 2026
Mothercare plc has disclosed that chairman Clive Whiley has increased his shareholding in the company through a significant purchase executed via the Zodiac Executive Pension Scheme, of which he is the sole beneficiary. On 25 September 2026, the s...
Business Operations and StrategyStock BuybackShareholder Meetings
Mothercare Secures Full Shareholder Backing at 2026 AGM
Positive
Sep 24, 2026
Mothercare plc reported that all resolutions at its annual general meeting on 24 September 2026 were duly passed, including the receipt of the annual accounts, approval of the directors’ remuneration report and the re-election of chairman Cl...
Business Operations and StrategyDividendsFinancial Disclosures
Mothercare Receives £0.8m Dividend but Warns Solvency Still Uncertain
Negative
Sep 21, 2026
Mothercare has received notice from the liquidators of Mothercare UK Limited, which entered administration in 2019, that a further £0.8 million cash dividend will shortly be paid to a wholly owned subsidiary acting as the secured lender to th...
Business Operations and StrategyFinancial Disclosures
Mothercare warns of major hit as key Middle East partner plans widespread store closures
Negative
Sep 18, 2026
Mothercare has warned of a sharp hit to its business after its leading Middle Eastern franchise partner began reviewing its store network and signalled plans to close the substantial majority of franchised outlets in the region during 2027. The mo...
Business Operations and StrategyDelistings and Listing Changes
Mothercare Seeks Admission of New Shares on AIM for Incentive Plan
Neutral
Sep 3, 2026
Mothercare plc has applied for the admission of 8,970,985 new ordinary shares to trading on London’s Alternative Investment Market, with the shares issued under its long-term incentive plan and ranking pari passu with existing stock. The mov...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Mothercare publishes annual report and sets date for 2026 AGM
Neutral
Aug 27, 2026
Mothercare plc has published its Annual Report and Accounts for the year ended 28 March 2026 and circulated the Notice of its upcoming Annual General Meeting. The AGM is scheduled for 24 September 2026 in London, with key governance and shareholde...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Mothercare Posts Loss as Sales Slide but Bets on Global Brand Partnerships
Negative
Aug 14, 2026
Mothercare reported a sharp decline in FY26 performance, with worldwide retail sales by franchise partners falling to £180 million and revenue dropping 42%, resulting in a statutory loss of £5 million and higher net debt. The downturn re...
Business Operations and StrategyPrivate Placements and Financing
Mothercare Completes £1.54m Upsize of Debt Facilities
Positive
Jul 31, 2026
Mothercare plc has expanded its recently arranged debt facilities by issuing an additional £1.54m of financing, taking the total drawdown to the £10m cap originally envisaged under the agreement. The new funds, subscribed by existing inv...
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.