Fact based stock research
Marshalls (LSE:MSLH)
GB00B012BV22
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Marshalls stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 21 (worse than 79% compared with investment alternatives), Marshalls (Construction Materials, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of Marshalls are low in value (priced high) with a consolidated Value Rank of 34 (worse than 66% of alternatives), and are riskily financed (Safety Rank of 26, which means above-average debt burdens) but show above-average growth (Growth Rank of 57). ...read more
RECOMMENDATION: A Combined Rank of 21, is a sell recommendation based on Marshalls's financial characteristics. As the company Marshalls shows low value with an Obermatt Value Rank of 34 (66% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 57% of comparable companies (Obermatt Growth Rank is 57). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 26 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Marshalls, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° ViewnewThis stock has achievements: Gold Winner CEO, Gold Winner Biography.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Marshalls
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 3 |
|
21 |
|
30 |
|
34 |
|
| GROWTH | ||||||||
| GROWTH | 45 |
|
63 |
|
45 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 49 |
|
32 |
|
50 |
|
26 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
5 |
|
12 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
6 |
|
14 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 21 (worse than 79% compared with investment alternatives), Marshalls (Construction Materials, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of Marshalls are low in value (priced high) with a consolidated Value Rank of 34 (worse than 66% of alternatives), and are riskily financed (Safety Rank of 26, which means above-average debt burdens) but show above-average growth (Growth Rank of 57). ...read more
RECOMMENDATION: A Combined Rank of 21, is a sell recommendation based on Marshalls's financial characteristics. As the company Marshalls shows low value with an Obermatt Value Rank of 34 (66% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 57% of comparable companies (Obermatt Growth Rank is 57). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 26 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Marshalls, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 3 |
|
21 |
|
30 |
|
34 |
|
| GROWTH | ||||||||
| GROWTH | 45 |
|
63 |
|
45 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 49 |
|
32 |
|
50 |
|
26 |
|
| COMBINED | ||||||||
| COMBINED | 20 |
|
24 |
|
26 |
|
21 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 34 (worse than 66% compared with alternatives), Marshalls shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Marshalls. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 51, which means that the stock price is lower compared with invested capital than for 51% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 27 which means the stock price compared with what market professionals expect for future profits is higher than 73% of comparable companies, indicating a low value concerning Marshalls's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 51 and for the dividend yields rank which is lower than for 54% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 34, is a hold recommendation based on Marshalls's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Marshalls, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 18 |
|
17 |
|
36 |
|
27 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 18 |
|
15 |
|
27 |
|
26 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 20 |
|
15 |
|
61 |
|
51 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 54 |
|
74 |
|
49 |
|
46 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 3 |
|
21 |
|
30 |
|
34 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Marshalls shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Marshalls. Capital Growth has a rank of 96, which means that currently professionals expect the company to grow its invested capital more than 38% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 68 (above 68% of alternative investments). But Sales Growth has only a rank of 32, which means that, currently, professionals expect the company to grow less than 68% of its competitors, and Profit Growth is also low at a rank of 38. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Marshalls, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 53 |
|
45 |
|
42 |
|
32 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 84 |
|
82 |
|
23 |
|
38 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
64 |
|
72 |
|
96 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 36 |
|
23 |
|
59 |
|
68 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 45 |
|
63 |
|
45 |
|
57 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 26 (better than 26% compared with alternatives), the company Marshalls has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Marshalls is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Marshalls and the other two below average. Leverage is at a rank of 61 meaning the company has a below-average debt-to-equity ratio. It has less debt than 61% of its competitors.Refinancing is at a rank of 36, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 64% of its competitors. Liquidity is at a rank of 19, meaning that the company generates less profit to service its debt than 81% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 26 (worse than 74% compared with alternatives), Marshalls has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Marshalls are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Marshalls and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 64 |
|
43 |
|
52 |
|
61 |
|
| REFINANCING | ||||||||
| REFINANCING | 36 |
|
34 |
|
63 |
|
36 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 50 |
|
37 |
|
24 |
|
19 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 49 |
|
32 |
|
50 |
|
26 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
29 |
|
36 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
23 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
42 |
|
37 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
20 |
|
1 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
5 |
|
12 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Marshalls from December 19, 2024.
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