MJ Gleeson PLC (GLE) AI Stock Analysis

• Market Cap: £274.57M
• Dividend Yield: 2.34%
• Average Volume (3M): 60.63K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.10
• Revenue Growth: 13.91%
• EPS Growth: -2.75%
• Country: UK
• Employees: 709
• Sector: Consumer Cyclical
• Sector Strength: 46
• Industry: Residential Construction
• EPS (TTM): 0.28
• Shares Outstanding: 58,428,127
• 10 Day Avg. Volume: 39,235
• 30 Day Avg. Volume: 60,631
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.81
• Price to Cash Flow (P/CF): -5.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 630.00p
• Price Target Upside: 35.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

MJ Gleeson PLC has a strong financial foundation with low leverage and solid equity, contributing to financial stability. However, the company faces challenges in revenue growth and cash flow consistency. Technical indicators show potential weakness, but the stock's fair valuation and dividend yield offer some compensation. The director's share purchase is a positive signal, although it does not significantly alter the overall outlook.

Positive Factors

Growth Potential

Homes' growth should accelerate in the second half as site openings accelerate.

Market Positioning

MJ Gleeson is favored for its exposure to first-time buyers and northern regions, where affordability is better compared to other parts of the UK.

Reservation Rates

Homes comes into the second half with improving momentum, reporting a reservation rate of 0.77 per site per week, up 45% on the comparable period.

Sales Performance

Momentum is expected to improve as Homes benefits from a stronger order book, more sites and a stronger sales rate.

Negative Factors

Financial Performance

H1 results were as expected with adjusted PBT down 50% due to timing of land sales and a little more margin pressure in Homes.

Profitability

The Group continues to see profits for the full year in line with consensus, which implies full-year adjusted PBT of approximately £28 million.

MJ Gleeson PLC Business Overview & Revenue Model

Company Description

MJ Gleeson PLC is a leading UK-based housebuilder and land promoter that specializes in providing affordable, quality homes primarily in the North of England and the Midlands. The company operates through two main business units: Gleeson Homes and Gleeson Strategic Land. Gleeson Homes focuses on building low-cost homes for first-time buyers, while Gleeson Strategic Land acquires and promotes land with the aim of securing residential planning consents for sale to other developers.

How the Company Makes Money

MJ Gleeson PLC generates revenue primarily through the sale of homes built by its Gleeson Homes division. This division constructs affordable housing and targets first-time buyers, capitalizing on demand for cost-effective housing solutions. The company's Gleeson Strategic Land division contributes to revenue by acquiring land, securing planning permissions, and then selling this land at a profit to third-party developers. This dual approach allows MJ Gleeson PLC to benefit from both direct sales of housing units and the appreciation of land value through strategic planning and development. Key factors contributing to its earnings include the company's ability to efficiently manage construction costs, access to an extensive land bank, and a strong reputation for delivering quality homes. Partnerships with local authorities and adherence to government housing policies also play significant roles in supporting its revenue model.

MJ Gleeson PLC Financial Statement Overview

Summary

MJ Gleeson PLC maintains a stable financial position with robust equity and low leverage. The income statement reflects stable profitability but limited growth in revenue and net income. Cash flow shows improvement but requires attention for consistency.

Income Statement

MJ Gleeson PLC shows a mixed performance in its income statement. The gross profit margin is healthy, indicating efficient cost management. However, the net profit margin has declined over the years, primarily due to a decrease in EBIT and EBITDA margins. Revenue growth in the latest period is modest at 5.2%, suggesting potential challenges in expanding market share or pricing power. Overall, the company displays stable profitability but faces growth headwinds.

Balance Sheet

The company's balance sheet is robust with a strong equity position. The debt-to-equity ratio is low, reflecting minimal leverage and conservative financial management. The equity ratio is impressive, indicating a high proportion of assets financed through equity. Return on equity has seen fluctuations but remains solid, suggesting effective use of shareholder funds. The strong equity base provides a cushion against potential financial uncertainties.

Cash Flow

Cash flow statements indicate volatility, with operating cash flow recovering positively after a dip. The free cash flow growth rate is substantial, indicating improved cash generation capabilities. However, cash flow to net income ratios suggest some inconsistencies in converting net income to cash, pointing to potential working capital challenges. The overall cash position has improved, but continued focus on cash flow stability is necessary.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
345.35M	328.32M	373.41M	288.57M	147.18M
	Gross Profit
84.53M	90.09M	97.79M	89.34M	40.44M
	EBIT
28.55M	32.54M	43.93M	43.08M	5.93M
	EBITDA
32.90M	37.53M	59.92M	46.05M	8.67M
	Net Income Common Stockholders
19.31M	24.17M	35.09M	33.87M	4.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.93M	5.16M	33.76M	34.33M	76.81M
	Total Assets
378.05M	376.33M	367.56M	313.13M	322.05M
	Total Debt
5.08M	5.14M	3.01M	60.00M	60.00M
	Net Debt
-5.61M	-15.00K	-30.75M	25.67M	-16.81M
	Total Liabilities
80.31M	90.31M	95.38M	68.20M	109.45M
	Stockholders Equity
297.74M	286.02M	272.18M	244.93M	212.60M
Cash Flow		Free Cash Flow
15.95M	-18.86M	8.15M	20.35M	-17.06M
	Operating Cash Flow
17.99M	-14.42M	11.84M	24.18M	-14.65M
	Investing Cash Flow
-1.33M	-3.15M	-2.10M	-2.97M	-1.28M
	Financing Cash Flow
-8.88M	-11.03M	-10.30M	-63.69M	62.43M

MJ Gleeson PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 464.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GLE, the sentiment is Negative. The current price of 464 is below the 20-day moving average (MA) of 472.30, below the 50-day MA of 475.18, and below the 200-day MA of 533.50, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 38.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GLE.

MJ Gleeson PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWY	69 Neutral	£2.68B	18.22	4.22%	2.39%	-11.63%	-31.81%
PSN	69 Neutral	£3.73B	13.95	7.71%	5.15%	15.42%	4.45%
GLE	68 Neutral	£274.57M	16.58	5.65%	2.34%	13.91%	-2.75%
Sector *	59 Neutral	$12.18B	11.09	-1.08%	3.77%	1.26%	-19.82%
CRST	54 Neutral	£389.72M	―	-13.06%	1.45%	-5.98%	-677.54%

MJ Gleeson PLC Corporate Events

MJ Gleeson Director Increases Shareholding

MJ Gleeson PLC announced that Nicola Bruce, a Non-Executive Director, acquired 2,096 Ordinary shares at a price of £4.744085 per share. This transaction increases her total shareholding to 4,114 shares, representing 0.0070% of the company’s issued share capital. The acquisition of shares by a board member may indicate confidence in the company’s future prospects and could positively influence investor sentiment.

MJ Gleeson CEO Increases Stake in Company

MJ Gleeson PLC announced that its Chief Executive Officer, Graham Prothero, has acquired 8,020 Ordinary shares of the company on the London Stock Exchange at a price of 498.73p per share. This transaction, carried out under the regulations of the UK Market Abuse Regulation, increases Prothero’s total shareholding to 66,985 shares, representing 0.11147% of the issued share capital, reflecting a personal investment in the company’s future performance.

MJ Gleeson PLC Reports Resilient Half-Year Performance Amid Market Challenges

MJ Gleeson PLC reported a strong half-year performance for the period ending December 31, 2024, despite subdued market conditions. Gleeson Homes saw a 10% revenue increase and a rise in home sales to 801 units, supported by new site openings and improved net reservation rates, indicating a potential market recovery. However, the division’s operating profit decreased by 10.8% due to flat pricing and increased sales incentives. Gleeson Land faced an 85.9% revenue decline, with no land sales completed, but showed progress in planning consents and portfolio development. The company remains optimistic about long-term growth prospects, driven by new site openings and a stable planning environment.

MJ Gleeson Directors Acquire Shares Under Employee Scheme

MJ Gleeson PLC has announced that several of its directors and persons discharging management responsibilities have acquired ordinary shares in the company. The transactions were conducted through a Profit Sharing Employee Share Ownership Scheme approved by HMRC, showcasing a commitment to aligning management interests with company performance.

MJ Gleeson Reports Robust H1 Performance Amid Market Challenges

MJ Gleeson PLC announced a trading update for the half-year ended 31 December 2024, reporting a performance ahead of last year and in line with market expectations. Gleeson Homes increased home completions and reservation rates, while Gleeson Land saw strong demand for consented sites. However, no sales were completed in the first half. The company ended the period with a slight reduction in net debt, positioning itself for improved performance in the second half of the financial year.

MJ Gleeson Executives Acquire Shares Signaling Confidence in Company’s Future

MJ Gleeson PLC has announced that several key figures within the company, including the CEO, CFO, and Company Secretary, have acquired ordinary shares through a Profit Sharing Employee Share Ownership Scheme approved by HMRC. This move, involving the purchase of shares at £5.03 each, is seen as a reinforcement of commitment by the company’s leadership and may inspire confidence among investors regarding the management’s belief in the company’s future performance.