Mitie Group plc (MTO) AI Stock Analysis

• Market Cap: £1.81B
• Dividend Yield: 3.06%
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.98
• Revenue Growth: 14.34%
• EPS Growth: -16.43%
• Country: UK
• Employees: 72,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.05
• Shares Outstanding: 1,343,945,400
• 10 Day Avg. Volume: 3,909,236
• 30 Day Avg. Volume: 2,889,160
• PEG Ratio: 0.23
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 7.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £170.00
• Price Target Upside: 22.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: 156.00p ▲(12.72% Upside)

Mitie Group plc's overall stock score of 70 reflects strong financial performance, particularly in revenue growth and cash flow efficiency. The stock's valuation is reasonable with a moderate P/E ratio and a solid dividend yield. Technical indicators suggest a neutral trend, with no significant bullish or bearish signals. The absence of earnings call and corporate events data limits the analysis to these factors.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Mitie's services and effective market penetration, supporting long-term business expansion.

Operational Cash Flow

Improved operational cash flow enhances financial flexibility, enabling Mitie to invest in growth opportunities and manage debt more effectively.

Market Position

Diversified sector presence strengthens Mitie's market position, reducing dependency on any single industry and enhancing resilience to sector-specific downturns.

Negative Factors

Debt Levels

Increased debt levels may strain Mitie's financial resources, limiting its ability to invest in growth and posing risks if interest rates rise.

Return on Equity

Declining ROE indicates potential inefficiencies in using shareholder equity, which could impact investor confidence and future capital raising.

Net Income Decline

Decreasing net income may reflect rising operational costs, which could erode profit margins and affect long-term profitability if not managed.

Mitie Group plc Business Overview & Revenue Model

Company Description

Mitie Group plc, together with its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally. The company operates in eight segments: Business Services, Technical Services, Central Government & Defense (CG&D), Communities, Care & Custody, Landscapes, Waste, and Spain. The company provides security services, such as manned guarding and technology-backed monitoring solutions, fire and security systems installations, vetting and front-of-house services; and general, specialist, and technical cleaning services in offices, buildings, transport and logistics hubs, and high-security environments. It is also involved in the provision of technology-backed engineering; maintenance, repair, and mechanical and electrical project activities; energy, carbon, and water management services; air conditioning and disinfection solutions; telecoms and energy services; and remote asset monitoring, and digital and connected workplace solutions. In addition, the company provides facilities management services across central government and defense contracts; decarbonization solutions; and engineering services. Further, it offers integrated facilities management services to devolved public sector customers, which focuses on community environments in healthcare, schools and universities, emergency services, and local authorities; portering services; public services in immigration, criminal justice, and healthcare; horticultural and winter landscaping services; and waste elimination, reduction, recycling, and treatment solutions. Mitie Group plc was incorporated in 1936 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Mitie generates revenue primarily through long-term contracts with public and private sector clients, providing services that encompass facilities management, property management, and energy solutions. Key revenue streams include service contracts for cleaning, security, landscaping, and maintenance, as well as specialized services like energy management and consultancy. The company also benefits from strategic partnerships with other service providers and technology firms, which enhance its service offerings and operational capabilities. Additionally, Mitie leverages its expertise in sustainability to attract clients looking to improve their environmental impact, further diversifying its income sources.

Mitie Group plc Financial Statement Overview

Summary

Mitie Group plc demonstrates robust revenue growth and improved operational cash flow, which are positive indicators of financial health. However, a growing debt-to-equity ratio and declining ROE signal potential challenges in leveraging equity effectively. The company should focus on managing costs and debt levels to sustain profitability and financial stability.

Income Statement

Mitie Group plc shows a strong revenue growth trend, with a 14.34% increase from 2024 to 2025, driven by consistent performance in the specialty business services sector. The gross profit margin remains stable at approximately 11.21% in 2025, and the net profit margin improved to 1.99% despite a decline in EBIT margin to 3.18%. The EBITDA margin also increased to 5.31%, indicating better operational efficiency. However, a decline in net income suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a relatively stable financial position with an equity ratio of 19.36% in 2025, slightly lower than the previous year. The debt-to-equity ratio increased to 0.91, indicating a higher reliance on debt financing, which may pose risks if not managed effectively. Return on equity decreased to 24.71%, suggesting a slight decline in profitability from equity investments.

Cash Flow

Operating cash flow increased significantly, enhancing the free cash flow to net income ratio to 1.86. The free cash flow growth rate was positive, supported by improved operational cash generation. The operating cash flow to net income ratio of 2.17 in 2025 reflects strong cash conversion efficiency, although capital expenditures have increased, potentially impacting future cash flow.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.08B	4.45B	5.08B	3.94B	3.90B	2.50B
Gross Profit	549.40M	499.90M	569.70M	407.30M	422.90M	258.50M
EBITDA	292.80M	244.70M	269.70M	205.00M	137.50M	54.60M
Net Income	101.40M	126.30M	101.40M	91.10M	37.70M	-8.10M
Balance Sheet
Total Assets	2.12B	1.93B	2.12B	1.83B	1.82B	1.63B
Cash, Cash Equivalents and Short-Term Investments	176.10M	244.90M	176.10M	248.30M	345.20M	196.20M
Total Debt	375.10M	321.50M	375.10M	286.00M	300.60M	278.80M
Total Liabilities	1.69B	1.45B	1.69B	1.41B	1.40B	1.27B
Stockholders Equity	410.40M	453.20M	410.40M	421.70M	425.80M	357.50M
Cash Flow
Free Cash Flow	197.20M	177.80M	188.40M	69.00M	198.90M	1.90M
Operating Cash Flow	221.20M	197.70M	220.00M	94.20M	234.50M	23.60M
Investing Cash Flow	-79.10M	-41.70M	-77.90M	-35.70M	-30.20M	-85.30M
Financing Cash Flow	-206.30M	-158.90M	-206.30M	-156.40M	-55.10M	119.00M

Mitie Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 138.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MTO, the sentiment is Negative. The current price of 138.4 is below the 20-day moving average (MA) of 141.50, below the 50-day MA of 141.90, and above the 200-day MA of 128.38, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 30.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MTO.

Mitie Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSG	79 Outperform	564.71M	16.68	11.60%	2.79%	6.55%	18.44%
SRP	77 Outperform	2.21B	46.50	5.25%	1.60%	0.84%	-62.73%
MTO	70 Outperform	£1.81B	17.17	23.48%	3.06%	14.34%	-16.43%
RST	64 Neutral	368.33M	38.63	5.30%	2.23%	6.90%	0.00%
REAT	61 Neutral	12.05M	-34.00	0.21%	―	6.90%	-242.86%
CPI	59 Neutral	294.04M	18.00	38.37%	―	-4.87%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mitie Group plc Corporate Events

Mitie Group Updates Share Capital and Voting Rights

Mitie Group plc announced its updated share capital and voting rights as of August 29, 2025, in compliance with the Disclosure Guidance and Transparency Rules. The total number of issued shares is 1,348,106,025, with 1,343,945,446 voting rights, which shareholders can use to determine their interest in the company. This update is crucial for stakeholders to understand their shareholding positions and any changes in their interests.

The most recent analyst rating on (GB:MTO) stock is a Hold with a £151.00 price target. To see the full list of analyst forecasts on Mitie Group plc stock, see the GB:MTO Stock Forecast page.

Mitie Group Aligns Management Incentives with Shareholder Interests

Mitie Group plc has announced a transaction involving the company’s Share Incentive Plan, where ordinary shares were purchased on behalf of Phil Bentley, a person discharging managerial responsibility. This transaction, compliant with the UK Market Abuse Regulation, involves the acquisition of 102 partnership shares and the awarding of 51 matching shares, reflecting the company’s ongoing commitment to aligning management incentives with shareholder interests.

The most recent analyst rating on (GB:MTO) stock is a Buy with a £170.00 price target. To see the full list of analyst forecasts on Mitie Group plc stock, see the GB:MTO Stock Forecast page.

Mitie Group Directors Increase Stake Through Dividend Reinvestment

Mitie Group plc announced the acquisition of ordinary shares by directors and persons discharging managerial responsibility under the Dividend Reinvestment Plan. This transaction, compliant with UK Market Abuse Regulation, reflects ongoing investment by key stakeholders in the company, potentially indicating confidence in its future performance.

The most recent analyst rating on (GB:MTO) stock is a Buy with a £170.00 price target. To see the full list of analyst forecasts on Mitie Group plc stock, see the GB:MTO Stock Forecast page.

Mitie Group Announces Share Acquisition for Phil Bentley

Mitie Group plc announced that the Trustees of the Company’s Share Incentive Plan have acquired ordinary shares on behalf of Phil Bentley, in line with the Dividend Reinvestment Plan. This transaction is part of the company’s ongoing efforts to align managerial interests with shareholder value, potentially impacting stakeholder confidence positively.

The most recent analyst rating on (GB:MTO) stock is a Buy with a £190.00 price target. To see the full list of analyst forecasts on Mitie Group plc stock, see the GB:MTO Stock Forecast page.

Mitie Group Expands Market Presence with Marlowe Acquisition

Mitie Group PLC has announced the admission of 86,565,085 new ordinary shares to the London Stock Exchange following its acquisition of Marlowe PLC. This strategic move is expected to strengthen Mitie’s market position and expand its service offerings, potentially impacting shareholder interests and industry dynamics.

The most recent analyst rating on (GB:MTO) stock is a Buy with a £170.00 price target. To see the full list of analyst forecasts on Mitie Group plc stock, see the GB:MTO Stock Forecast page.

Mitie Group Completes Strategic Acquisition of Marlowe PLC

Mitie Group PLC has completed its acquisition of Marlowe PLC, marking a significant step in its strategic plan to transition from a leader in facilities management to a leader in facilities compliance. This acquisition is expected to enhance Mitie’s capabilities in fire safety, security, and water and air hygiene, with plans to integrate Marlowe’s resources and achieve cost synergies and revenue growth. The acquisition, sanctioned by the High Court, involves a cash and share offer, and Marlowe’s shares will be delisted from AIM, with new Mitie shares issued to Marlowe shareholders.

The most recent analyst rating on (GB:MTO) stock is a Buy with a £170.00 price target. To see the full list of analyst forecasts on Mitie Group plc stock, see the GB:MTO Stock Forecast page.