One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Manchester
MANU · NYQ · Communication Services · Entertainment
Current price
$20.72
52-week range
$14.85 - $24.45
Market cap
$3.57B
Balance sheet
Distressed
-0.22x Concerning
Net debt $833.75M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Revenue grew 1.7% last year.
- Risk Return on equity was -25.0% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 14.4% over 3 years.
- Risk Operating margin compressed from -4.4% to -15.1% over 3 years.
What this company does
Manchester
Manchester United plc is a professional football club that makes money primarily through sponsorships and selling merchandise like jerseys and other fan gear. It also earns significant revenue from broadcasting rights for its games and operating its stadium, Old Trafford. This diversified income stream is important because it means the club isn't solely reliant on matchday ticket sales for its financial success.
How the company got here
Manchester United plc, founded way back in 1878, is one of the world's most famous football (soccer) clubs. Originally known as Newton Heath LYR Football Club, it was renamed Manchester United in 1902. The club has a rich history of success, winning numerous domestic and international titles. This success has built a massive global fanbase, which is key to its business model today. The company officially became Manchester United plc in August 2012, marking its transition into a publicly traded entity.
What it actually does
At its core, Manchester United operates a professional football team. However, its business extends far beyond the pitch. The company leverages its globally recognized brand to generate revenue through various channels. This includes attracting major sponsors, selling merchandise, broadcasting matches, and even operating its iconic stadium, Old Trafford. Essentially, it's a sports entertainment business built around the success and popularity of its football club.
Commercial
This segment is all about making money from the Manchester United brand itself, separate from matchday revenue. It involves striking deals with international and regional companies for marketing and sponsorship. Think of big brands putting their logos on team jerseys or advertising during games. This segment also includes selling a wide array of Manchester United-branded merchandise, like apparel, training gear, and other licensed products such as coffee mugs and home accessories. These items are sold through the club's own stores, online platforms, and wholesale partners, turning fan loyalty into sales.
Matchday
This is the revenue generated directly from fans attending games at the club's home stadium, Old Trafford. It includes ticket sales for all the matches played throughout the season. Beyond tickets, this segment also encompasses the sale of food, beverages, and other items purchased by fans while at the stadium on match days. It's a significant revenue stream, directly tied to the experience of being a supporter at the heart of the club's operations.
Media
This part of the business focuses on broadcasting and content. Manchester United earns money from selling the rights to show its matches in various competitions, like the Premier League and European tournaments, to television broadcasters. It also produces and distributes its own content, including programming on its dedicated TV channel, MUTV, which is available worldwide. This segment capitalizes on the global demand for live football action and exclusive club content, reaching fans wherever they are.
What management is betting on now
Manchester United's management is focused on strengthening the club's on-field performance, as success in competitions directly boosts brand value and revenue potential. They are also heavily invested in expanding the global reach of the brand through digital engagement and new commercial partnerships, aiming to tap into emerging markets. Furthermore, ongoing investment in the stadium and infrastructure is crucial to enhance the fan experience and maintain Old Trafford as a premier venue. The strategy is to balance sporting ambition with commercial growth to ensure long-term profitability and continued global appeal.
Price history
How the share price has moved
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Loading price history…
Is it cheap or expensive?
Fair value — vs current price $20.72
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $833.7M. Interest coverage -0.2x.
Net debt
$833.75M
Interest coverage
-0.22x
Manchester's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
MANU
BASELINE
Manchester
Total debt $923.46M Interest coverage -0.22x This is the baseline the peer rows are being compared against.
Total debt $896.69M Interest coverage 0.36x This peer still has a real interest-payment cushion, while MANU does not.
Total debt $1.16B Interest coverage 1.47x This peer still has a real interest-payment cushion, while MANU does not.
Total debt $913.31M Interest coverage -2.10x Neither company has much profit cushion over interest right now.
Total debt $4.95B Interest coverage 4.12x This peer still has a real interest-payment cushion, while MANU does not.
Total debt $5.16B Interest coverage 2.43x This peer still has a real interest-payment cushion, while MANU does not.
What you should know
The case for and against MANU
1 Reward
3 Risks
Rewards
-
Revenue grew 1.7% last year.
Risks
-
Return on equity was -25.0% last year — the company lost money on shareholders' equity.
-
Net debt grew 14.4% over 3 years.
-
Operating margin compressed from -4.4% to -15.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
85.94x
P/B
17.74x
P/S
5.27x
EV/EBITDA
388.29x
PEG ratio
0.35x
Profitability
How much profit each dollar creates
Gross margin
82.6%
Operating margin
-15.1%
Net margin
-6.3%
ROE
-25.0%
ROA
-0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
4.60x
Current ratio
0.33x
Quick ratio
0.28x
Total debt
$923.46M
Total cash
$89.71M
Growth
How the business has been compounding
Revenue TTM
$904.01M
Revenue 5Y CAGR
1.5%
EPS TTM
-33.42
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$238.41M
Free CF TTM
$-266.10M
FCF margin
-29.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
106.6%
Last ex-div date
2022-06-03