Should You Buy Manchester United Stock Before Earnings?

by Rob Otman
manchester united stock manchester united earnings 0

Manchester United (NYSE: MANU) is a mid cap company that operates within the media industry. Its market cap is $3 billion today, and the total one-year return is -2.13% for shareholders.

Manchester United stock is underperforming the market. It's beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question, we've turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.

Our system looks at six key metrics...

Earnings-per-Share (EPS) Growth: Manchester United reported a recent EPS growth rate of -5.81%. That's below the media industry average of 58.02%. That's not a good sign. We like to see companies that have higher earnings growth.

Price-to-Earnings (P/E): The average price-to-earnings ratio of the media industry is 28.4. And Manchester United's ratio comes in at 94.91. Its valuation looks expensive compared to many of its competitors.

Debt-to-Equity The average price-to-earnings ratio of the media industry is 28.4. And Manchester United's ratio comes in at 94.91. Its valuation looks expensive compared to many of its competitors.

Free Cash Flow per Share Growth Manchester United's FCF has been higher than that of its competitors over the last year. That's good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It's one of our most important fundamental factors.

Profit Margins The profit margin of Manchester United comes in at -2.96% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Manchester United's profit margin is below the media average of 13.34%. So that's a negative indicator for investors.

Return on Equity Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Manchester United is 2.98%, and that's below its industry average ROE of 32.63%.

Manchester United stock passes one of our six key metrics today. That's why our Investment U Stock Grader rates it as a Sell.

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Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

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