Pursuant to the correction that has taken place in recent weeks with respect to the shares in Mitchells & Butlers plc, further downside risk now appears limited by close and important technical support levels at 374 GBp.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● The stock is in a well-established, long-term rising trend above the technical support level at 340.4 GBp
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● One of the major weak points of the company is its financial situation.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
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Mitchells & Butlers plc is a United Kingdom-based company that operates restaurants, pubs, and bars. The Company provides a choice of eating and drinking-out experiences through its brands. It has approximately 1,700 businesses, including restaurant and pub brands, such as All Bar One, Browns, Castle, Ember Inns, Harvester, High St, Innkeeper's Collection, Miller & Carter, Nicholson's, O'Neill's, Premium Country Pubs, Sizzling Pubs, Stonehouse Pizza & Carvery, Toby Carvery, ALEX, and Vintage Inns. In addition, the Company operates Innkeeper's Collection hotels in the United Kingdom and Alex restaurants and bars in Germany. The Companyâs subsidiaries include Mitchells & Butlers Retail Limited, Ha Ha Bar & Grill Limited, Orchid Pubs & Dining Limited, ALEX Gaststatten Gesellschaft mbH & Co KG, and Mitchells & Butlers Finance plc, among others.