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
$20.05
52-week range
$14.59 - $24.45
Market cap
—
Balance sheet
Distressed
-0.50x Concerning
Net debt $940.27M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Revenue grew 0.7% last year.
- Risk Return on equity was -9.6% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 7.7% over 3 years.
What this company does
Manchester
Manchester United is one of the world's most famous professional soccer teams based in England. The club makes money from three main sources: selling broadcasting rights for its games, commercial deals like sponsorships and selling team merchandise, and matchday income (money from ticket sales and events at its stadium). This business model relies on the team's powerful global brand for financial success, not just its performance on the field.
How the company got here
Founded in 1878 as a team for railway workers, Manchester United has grown into one of the most famous and successful football clubs in the world. Its modern era of dominance was defined by manager Sir Alex Ferguson, who led the team to numerous trophies. The American Glazer family purchased the club in 2005, later listing it on the New York Stock Exchange, which means people can buy and sell shares of the company. This long history of on-field success has built a massive global fanbase, which is the foundation of its business.
What it actually does
At its heart, Manchester United is a professional football club that plays in England's top division, the Premier League, and in European competitions. Beyond the pitch, it operates as a global entertainment brand. The company uses the team's popularity to sell a variety of products and services to its estimated 1.1 billion followers worldwide. This involves everything from selling tickets to watch games at its Old Trafford stadium to marketing products with its famous crest.
Commercial
This is the company's largest business area, making money by using its well-known brand. It signs sponsorship (when a company pays to have its logo associated with the team) deals with large global companies for everything from the jerseys the players wear to official partners for different products. This segment also includes selling branded merchandise (products like apparel, mugs, and scarves) to fans through its own stores and other retailers. This part of the business is a top focus for growth.
Broadcasting
Manchester United makes a significant amount of money from selling the rights to show its games on TV and other digital platforms. This revenue (the total money a company brings in from its business activities) comes from the collective agreements of the leagues and competitions it plays in, like the Premier League and UEFA's Champions League. The money from these media rights is pooled and then distributed among the participating clubs, with more successful teams often earning a larger share.
Matchday
This part of the business earns money directly from the fans who come to watch the team play at its home stadium, Old Trafford. The main source of income is from ticket sales for each home game, including single tickets and season tickets. It also includes all the spending that happens at the stadium on a game day, such as food, drinks, and hospitality packages for corporate clients. The stadium's large capacity allows it to generate substantial revenue when the team plays at home.
What management is betting on now
The company's main focus is on improving the team's performance on the field, as winning is crucial for strengthening the brand and driving revenue in all areas. They are also making a huge investment in infrastructure, with plans to build a new, larger stadium to increase Matchday income and improve the fan experience. Additionally, the club is focused on expanding its global brand and digital engagement to connect with its worldwide fanbase and create new commercial opportunities.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $20.05
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $940.3M. Interest coverage -0.5x.
Net debt
$940.27M
Interest coverage
-0.50x
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 $1.02B Interest coverage -0.50x 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
2 Risks
Rewards
-
Revenue grew 0.7% last year.
Risks
-
Return on equity was -9.6% last year — the company lost money on shareholders' equity.
-
Net debt grew 7.7% 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
134.93x
P/B
14.18x
P/S
—
EV/EBITDA
19.26x
PEG ratio
0.35x
Profitability
How much profit each dollar creates
Gross margin
83.4%
Operating margin
14.2%
Net margin
-2.6%
ROE
-9.6%
ROA
0.0%
Health
Liquidity and balance-sheet strength
Debt / equity
4.21x
Current ratio
0.37x
Quick ratio
0.33x
Total debt
$1.02B
Total cash
$82.44M
Growth
How the business has been compounding
Revenue TTM
$925.83M
Revenue 5Y CAGR
4.6%
EPS TTM
-0.14
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$98.36M
Free CF TTM
$-339.26M
FCF margin
-36.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2022-06-03