Marshall Motor Share Discussion Threads

[edmundshaw] 04/8/2021 08:32

Stunning performance.

The only real questions for me are relative performance to our peer group (we will doubtless be updated on that on 18th with interims) and how long those tail winds will persist.

Some of those profit levels are not likely to be sustained in the long term, but MMH is certainly making hay, and its long term management success, capture of market share and exceptionally strong underlying balance sheet are not going away!

[this_is_me] 04/8/2021 07:22

Having said in May:
" the business is currently targeting an underlying profit before tax for 2021 of not less than 2019's result of GBP22.1m"

Now:

"the Board now expects that continuing underlying profit before tax for 2021 will be not less than GBP40.0m."

That is some spectacular uplift in such a short interval.

[jaf111] 04/8/2021 07:21

Yet another trading update from MMH with a significant increase in profit estimates.

Truly exceptional………

[mortimer7] 05/7/2021 09:12

SMMT have released the figures for UK new car registrations for the month of June today. Total 186,128. June 2020 was 145,377. June 2019 was 223,421.

[edmundshaw] 28/6/2021 14:59

Got to agree with that.

Most of the growth generated over the four/five years to the end of 2019 has been top line (more or less doubling), though EPS has gone up too, but net asset growth (underpinned by significant property holdings) and underlying earnings potential is really good. Since 2019 this has taken further market share and ridden out the pandemic very well (some of the other motor sellers have done well too in this period, but none better than MMH).

That the price is barely higher than when this listed in 2015 is crazy...

[jaf111] 25/6/2021 14:45

In his analysis of Marshall’s latest trading update, Zeus Capital market analyst Mike Allen suggested that the group was on track to emerge from 2021 as a “sector winner”.

He said: “This latest earnings upgrade reinforces our view that MMH is a highly reliable platform that is well positioned to emerge as a sector winner.

“The effects of COVID-19 are likely to accelerate change in the sector. Following this latest upgrade, MMH trades on a 2021E P/E of 7.3x and an EV/EBITDA of 2.6x, which looks far too low given the growth generated, and strength of balance sheet that can be unlocked to generate further value from here.”

[jaf111] 25/6/2021 07:45

ANOTHER great update from MMH......to repeat MMH surely are THE premier car dealer and their share price should be a lot higher.....

Hopefully Mr Market will start to recognize that!!!

[mortimer7] 04/6/2021 09:27

SMMT have announced the total number for New Car registrations in the UK for the month of May as 156,737. May 2020 was 20,247 and May 2019 183,724.

[ga_dti] 24/5/2021 08:54

Exclusive analyst interview with Zeus Capital discussing highlights from the trading update, key themes, changes to the forecast and how they view the company in terms of a valuation:

[edmundshaw] 21/5/2021 11:46

I love thoise interviews! And of course the news has been excellent herefor a number of years... just need Mr.Market to sit up and take notice.

Congratulation to Daksh Gupta on that 100% vote of confidence! Well deserved from what I can see.

[ga_dti] 21/5/2021 08:19

Daksh Gupta and Richard Blumberger discuss their trading statement covering the 4 month period ending 30th April 2021:

[edmundshaw] 20/5/2021 14:17

I think given the importance to large motor manufacturers, the semiconductor issue will be fixed pretty fast, even if they have to pay a bit more per unit... or utilise a more up-to-date semiconductor...

[daneswooddynamo] 20/5/2021 11:03

All the dealers appear to be having a bit of a breather in share price terms. Of course they have recovered strongly but continue to look pretty cheap. Maybe the semiconductor issue will turn out to be a little more problematic a few months hence

[edmundshaw] 20/5/2021 09:19

_IF_ there are no new COVID headwinds and the earnings target is achieved, and with reported debt slashed at the FY, 2019 EPS could well see a return to the 2019 dividend level too. That would represent a yield of around 5.5% at the current share price.

The only serious reason I can see not to restart the higher dividend policy if targets and outlook are in line is a major and very beneficial acquisition...

[this_is_me] 20/5/2021 07:18

" the business is currently targeting an underlying profit before tax for 2021 of not less than 2019's result of GBP22.1m"

"We are pleased to have continued to significantly outperform both the new retail and used car markets and to deliver a strong financial result for the Period. "

The company continues to perform well.

[edmundshaw] 05/5/2021 15:43

So down,but S/H might be better, and margins should be good. Not a problem here, I think...

[mortimer7] 05/5/2021 09:34

New Car Registrations in UK for April 2020 were 141,583.
2010 to 2019 April average was 162,537.

[edmundshaw] 19/4/2021 10:17

Very sad news.

[this_is_me] 19/4/2021 07:35

Huge Shock.

[bigbigdave] 19/4/2021 07:09

Tragic news, thoughts go out to the family :o(

[mortimer7] 06/4/2021 09:17

SMMT have announced the number of new cars registered in the UK during the month of March was 283,964, an increase of 11.5% compared to March 2020 figure of 254,684.
Looking ahead, last April total units was 4,321 so the percentage increase for April 2021 could be 4000%!!

[edmundshaw] 29/3/2021 12:06

I imagine that "pent-up demand" and possible supply issues will push up short term margins again this year. Any reason why not?

[edmundshaw] 25/3/2021 17:18

I think they are doing superbly well with the smaller acquisition strategy. I wouldn't be over the moon to see them bite at a large and troubled beast without some very, very good rationale.

[jaf111] 25/3/2021 17:13

A nice move up in recent weeks - well overdue since MMH is surely THE sector pick.

The company has a strong B/S and did made reference to taking advantage of "further growth and consolidation opportunities as they arise".......

There must surely be many small / medium sized opportunities. Also, whilst perhaps unlikely I do wonder whether MMH might even be looking at either Lookers or Cambria, both of which are surely "in play"????

[1tx] 09/3/2021 11:05

Good value I agree based on expectations of a likely improvement of prospects over coming months;and on this basis I bought shares a couple of months ago.Just a note of caution MMH shares have been cheap in normal times and traded below the present price for most of 2019 in spite of its then excellent performance.UKs best listed car dealer in my opinion.