Manchester United PLC (MANU, Financial), a prominent player in the diversified media industry, has recently shown a notable uptick in its stock performance. Over the past week, the company's stock price has increased by 1.92%, and over the last three months, it has surged by an impressive 10.42%. Currently, the market capitalization stands at $2.79 billion with a stock price of $16.52. According to GuruFocus's valuation metrics, the GF Value of the stock is $20.39, suggesting that it is modestly undervalued compared to its past GF Value of $21.27, which indicated a possible value trap.
Overview of Manchester United PLC
Manchester United PLC operates one of the most popular and successful football clubs globally. Based in England, the company not only manages the Manchester United Football Club but also oversees related activities including a media network, foundation, fan zone, news, sports features, and merchandise sales. The business is segmented into three main sectors: Commercial, Broadcasting, and Matchday, which collectively form the backbone of its revenue generation.
Assessing Profitability
Despite its global fame, Manchester United's financials show some areas of concern. The company's Profitability Rank is currently at 4/10. Its Operating Margin stands at a low 0.22%, which is better than 39.8% of 1025 companies in the same sector. The Return on Equity (ROE) is notably negative at -13.70%, although this is still better than 23.01% of its peers. Similarly, the Return on Assets (ROA) and Return on Invested Capital (ROIC) are -0.94% and 0.11% respectively, indicating challenges in asset utilization and capital returns. Manchester United has been profitable in only four of the past ten years, which is better than 33.96% of 963 companies in the industry.
Growth Trajectory
The Growth Rank of Manchester United is 5/10. The company has experienced a 9.00% growth in revenue per share over the past three years, outperforming 59.9% of 955 companies. However, the five-year revenue growth rate per share is just 0.20%, which is still better than 51.29% of 850 companies. Looking ahead, the estimated total revenue growth rate for the next three to five years is 4.98%, which is more favorable than 43.26% of 141 companies. The 3-year EPS without NRI growth rate stands at -10.30%, which, despite being negative, is better than 29.74% of 696 companies.
Key Shareholders
Notable investors in Manchester United include John Rogers (Trades, Portfolio) holding 5,306,733 shares (3.14% share percentage), Leon Cooperman (Trades, Portfolio) with 1,912,495 shares (1.13% share percentage), and Ron Baron (Trades, Portfolio) who owns 111,479 shares (0.07% share percentage). These stakeholders indicate a strong interest from seasoned investors, which could be a positive signal for potential investors.
Competitive Landscape
Manchester United competes with other major players in the diversified media sector. Liberty Live Group (LLYVA, Financial) with a market cap of $3.41 billion, Atlanta Braves Holdings Inc (BATRA, Financial) valued at $2.54 billion, and Lions Gate Entertainment Corp (LGF.B, Financial) with a market cap of $1.96 billion are its closest competitors. This competitive environment demands continuous innovation and strategic planning from Manchester United to maintain and enhance its market position.
Conclusion
Manchester United PLC's recent stock performance reflects a positive trend, despite some underlying challenges in profitability and growth metrics. The company's strategic position within the diversified media industry, combined with its global brand recognition and strong investor base, provides a solid foundation for future growth. However, potential investors should consider both the opportunities and risks associated with its financial health and competitive standing.
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.
