Why Manchester United is Poised to Flop

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, English soccer club operator Manchester United has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Manchester United, and see what CAPS investors are saying about the stock right now.

Manchester Unitedfacts

Headquarters (founded)

Manchester, United Kingdom (1990)

Market Cap

$2.5 billion

Industry

Entertainment

Trailing-12-Month Revenue

$518.9 million

Management

CEO David Gill

COO Michael Bolingbroke

Trailing-12-Month Operating Margin

13.1%

Cash/Debt

$84.4 million / $610.3 million

Competitors

Arsenal Holdings

Chelsea FC

The Liverpool Football Club and Athletic Grounds


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 51% of the 782 members who have rated Manchester United believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star joryko, wrote that the Manchester United bear case all boiled down to price:

Profitable? Yes.

Growth Story? Not so much.

Will everybody get their cut of the pie before shareholders? Essentially.

Priced like a growth stock, but no true growth story. Just can't see it beating the market over the long haul.

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The article Why Manchester United is Poised to Flop originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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