Research on McBride plc (MCB:LON) from Equity Development
McBride’s FY26 Adj. EBITDA of £80m and Adj. PBT of c.£49m have come in c.2% above recently revised estimates, evidence of the group’s resilience, market leadership and strategy. Looking ahead, volumes in early FY27E are in-line with management’s expectations, but raw material costs are likely to rise further as geo-political tensions continue. Management is ready to mitigate inflation but in the meantime the group’s strategic acquisition of Eurotab and its significant contract manufacturing partnership with Vestacy illustrate the group’s multiple levers for growth. Trading on only 7.5x our cal 2027 EPS, we believe McBride’s rating materially undervalues the group’s high 27% ROCE. We reiterate our 265p Fair Value, equating to c.10x cal 2027 PER.
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