Manchester United PLC (MANU, Financial), a prominent player in the Media - Diversified industry, has recently shown a notable performance in the stock market. With a current market capitalization of $2.82 billion and a stock price of $16.69, the company has experienced a slight decline of 0.12% over the past week. However, looking at a broader timeline, Manchester United has gained an impressive 15.62% over the past three months. According to GuruFocus, the current GF Value of the stock is $20.09, suggesting that it is modestly undervalued compared to its past GF Value of $21.27, which indicated a possible value trap.
Manchester United PLC operates the world-renowned Manchester United Football Club, along with various related activities such as a media network, foundation, fan zone, and merchandise sales. The company's operations are segmented into Commercial, Broadcasting, and Matchday, which together build a diversified revenue stream.
Assessing Manchester United's Profitability
Despite its fame, Manchester United's financial performance presents a mixed picture. The company's Profitability Rank is currently at 4/10. Its Operating Margin stands at 0.22%, which is better than 40.06% of 1026 companies in the same sector. However, its Return on Equity (ROE) is -13.70%, and Return on Assets (ROA) is -0.94%, indicating challenges in generating profit from its equity and assets, respectively. The Return on Invested Capital (ROIC) is slightly better at 0.11%, surpassing 43.25% of its industry peers. Over the past decade, Manchester United has been profitable for only four years, which is better than 33.99% of 965 companies.
Growth Trajectory of Manchester United
The Growth Rank for Manchester United is 5/10. The company has seen a 9.00% growth in revenue per share over the past three years, which is commendable and better than 60% of 960 companies. However, the five-year revenue growth rate per share is only 0.20%, indicating a slowdown. The estimated total revenue growth rate for the next three to five years is 3.96%, which is better than 37.97% of 158 companies. The three-year EPS without NRI growth rate stands at -10.30%, which, although not impressive, is still better than 29.27% of 697 companies.
Notable Shareholders and Market Influence
Manchester United's stock is held by several notable investors. John Rogers (Trades, Portfolio) holds the largest share with 5,306,733 shares, representing 3.14% of the company. Leon Cooperman (Trades, Portfolio) follows with 1,912,495 shares, accounting for 1.13%, and Ron Baron (Trades, Portfolio) holds 111,479 shares, making up 0.07% of the shares.
Competitive Landscape
When compared to its competitors, Manchester United stands strong. Liberty Live Group (LLYVA, Financial) has a higher market cap of $3.52 billion, while Atlanta Braves Holdings Inc (BATRA, Financial) and Lions Gate Entertainment Corp (LGF.B, Financial) have market caps of $2.46 billion and $2.13 billion, respectively. This positioning highlights Manchester United's significant presence and competitive edge in the diversified media industry.
Conclusion
In conclusion, Manchester United PLC's recent stock performance reflects a complex interplay of modest valuation adjustments and underlying financial metrics. While the company shows promising growth in certain areas, its profitability and return metrics suggest areas for improvement. With its strong brand and strategic market position, Manchester United remains a noteworthy entity in the media-diversified sector, offering potential value for investors willing to navigate its financial complexities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
