Montanaro European Smaller Companies Trust plc(MTE)
GBX --+0.00%
Reward55Moderate
Risk51Moderate
📊75%Data
Strong 84% profit margin · Revenue growing 762% YoY
MTE
+0.0 · +0.00%
GBX · LSE
Montanaro European Smaller Companies Trust plc | Financial Services
Balanced
Market Cap:208.28M
ℹ️
Reward Rating
55
Moderate
Bottom 50% (model universe)
75% data coverage
ℹ️
Risk Rating
51
Moderate
Risk Assessment
ℹ️

Educational tool only – Scores are based on historical data and financial metrics for informational purposes. This is not financial advice or a recommendation to buy or sell any security. Always conduct your own research or consult a qualified financial adviser.

ℹ️ Educational tool only · More

Market Performance

Stock returned +10.0% over the past year, broadly in line with market conditions.

What is Montanaro European Smaller Companies Trust plc?

Montanaro European Smaller Companies Trust plc is an open ended equity mutual fund launched and managed by Montanaro Investment Managers Ltd.

MTE · Verdict

Solid reward · elevated risk

MTE is broadly in line with peers, with volatility the standout concern.

Based on 88% data coverage

MTE · Verdict

What’s working & what to watch

Watchouts 1

  • Volatility35/100

    Below average

Model-based scoring. For information only — not financial advice.

What is Montanaro European Smaller Companies Trust plc?

Montanaro European Smaller Companies Trust plc is an open ended equity mutual fund launched and managed by Montanaro Investment Managers Ltd. It invests in public equity markets of Europe. The company is listed on the LSE in UK, operating in the Financial Services sector, with a market capitalisation of 208.28M, and a P/E ratio of 24.3x.

Financial Highlights

Investment Breakdown

📈 Growth
Revenue and earnings growing steadily, indicating improving operating performance.
💰 Profitability
Adequate profitability with some margin variability in recent periods.
⚠️ Risk
Performance tied to macro conditions — sensitive to interest rate cycles.
💸 Valuation
Valuation appears fair relative to current fundamentals.

OpenBook Logo Analysis

Reward: Moderate (55)

The scoring profile indicates moderate reward potential, with valuation and growth as the leading contributors. Risk indicators are elevated — volatility and macro sensitivity warrant consideration.

For informational purposes only. Not financial advice.

Company Information
SectorFinancial Services
Market Cap208.28M
P/E Ratio24.2997
Dividend Yield0.86%
52 Week High185.0531
52 Week Low129.5588
Last AnnualMarch
IPO DateN/A
IncorporatedUK
Shares Outstanding131M
No. of EmployeesN/A
IndustryAsset Management
ExchangeLSE
Beta1.223
CurrencyGBX

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Uses ISF.L (iShares FTSE 100 ETF)
Indicators

Performance Metrics

Historical returns

Annual Returns

Calendar year performance

Insufficient price history.
Fundamentals
Fundamentals Insights
Educational tool only. Not financial advice.

Business Snapshot

  • Revenue TrendDecelerating
  • Profitability TrendImproving
  • Balance Sheet StrengthModerate
  • Cash GenerationModerate

Risk Flags

Structural indicators detected (5):
Growth
  • Revenue growth has decelerated for 2 consecutive years (-113.1% latest).
  • Revenue remains 102.2% below the prior peak from 2021.
Balance Sheet
  • Interest coverage is 0.00x (below 3.0x).
  • Net debt growth is outpacing EBITDA growth by 75.8pp (CAGR spread).
  • Net debt has shown elevated year-over-year volatility.

What Changed This Year

Compared to 2024:
  • EBITDA↓ 3204.5%
  • Net Debt↑ 2609.9%
  • Free Cash Flow↑ 586.3%
  • Operating Income↓ 124.7%

Income Statement

CAGR: N/A
CAGR: N/A
CAGR: N/A

Balance Sheet

CAGR: N/A
CAGR: N/A
CAGR: N/A
CAGR: N/A

Cash Flow

CAGR: N/A
CAGR: N/A
CAGR: N/A

Key Ratios

Net Margin
177.13%
Net Income / Revenue
Operating Margin
154.72%
Operating Income / Revenue
ROE
-1.45%
Net Income / Equity
Debt-to-Equity
0.02x
Net Debt / Equity
FCF Yield
9.86%
FCF / Market Cap
Key Takeaway

Mixed ownership structure with varying levels of insider, institutional, and public participation.

1.3% Insider 32.4% Institutional 66.3% Float
34%
Total Owned
Insider
Institutional
Public Float
1.3%
Insider

Insider Ownership

Bearish

Insiders own 1.3%, which points to limited direct management ownership.

32.4%
Institutional

Institutional Ownership

Low

Institutions own 32.4%, which suggests relatively limited professional investor coverage.

66.3%
Public

Public Float

High

Public float is 66.3%, which supports good trading liquidity.

Reward Rating Breakdown

Our Reward Rating provides a model-based reward profile for MTE using 5 weighted factors. Each factor is scored 0-100 and combined using the weights shown below.

Overall Reward Rating
55
Moderate REWARD
Data Coverage: 75%

📈 Growth

Weight: 40%
57/100

Growth measures the company's ability to expand its business over time through revenue, earnings, and cash flow generation.

Historical (60%)
Revenue CAGR (3yr)
Neutral
Net Income CAGR (3yr)
-43.2%
Very Bad
FCF CAGR (3yr)
38.6%
Very Good
Forward Estimates (40%)
Rev Est Growth (NTM)
Neutral
EPS Est Growth (NTM)
Neutral
Analyst Target Upside
Neutral
🤖Model Commentary

MTE scored 57/100 for growth, blending a 3-year historical track record (60%) with analyst forward estimates (40%). Net income contracted at -43.2%, suggesting cost or margin pressure. No analyst forward estimates available — score based on historical data only. Overall, growth metrics are moderately positive. Forecasts and analyst targets are estimates and may be inaccurate.

🚀 Momentum

Weight: 25%
50/100

Momentum is assessed relative to the FTSE 100 benchmark where available. This provides context for recent price movement across different market conditions.

12M vs Benchmark 30%
Absolute return
No Benchmark
6M vs Benchmark 25%
Absolute return
No Benchmark
3M Return 20%
Neutral
Consistency 15%
3m vs 1Y/4 normalised
No Data
Volume Trend 10%
30d vs 90d avg volume
Neutral
🤖Model Commentary

Insufficient price history to assess momentum. Score defaulted to neutral (50).

💰 Profitability

Weight: 20%
55/100

Profitability examines both the current margin level and margin expansion trends. High and expanding margins indicate pricing power and operational efficiency.

Gross Margin 25%
Sector avg 45%
No Data
Net Margin 20%
Sector avg 10%
No Data
FCF Conversion 20%
>200%
FCF / Net Income
Very Good
EBIT Growth (3yr) 15%
Neutral
ROE (TTM) 10%
9.5%
Neutral
ROA (TTM) 10%
6.1%
Good
🤖Model Commentary

Insufficient profitability data available. Score defaulted to neutral (50).

💎 Valuation

Weight: 15%
61/100

Valuation is scored sector-relative — each metric is compared against the typical multiple for this industry, so a high P/E in Healthcare is judged differently to a high P/E in Energy. PEG and Price/FCF use absolute thresholds.

PEG Ratio 25%
0.00
No Data
EV/EBITDA 25%
0.0x
Sector avg 12x
Higher Relative Value
Fwd P/E 20%
0.0x
Sector avg 18x
Material Premium vs Peers
Price/FCF 20%
10.1x
Above-Average Relative Value
EV/Sales 10%
8.0x
Sector avg 2x
Material Premium vs Peers
🤖Model Commentary

MTE received a valuation score of 61/100 using sector-relative scoring. Its Forward P/E of 0.0x is 100% below the sector average of 18x. EV/EBITDA of 0.0x sits 100% below the sector norm of 12x. Price/FCF of 10.1x is low on this model's cash-yield lens. Overall, valuation multiples are broadly in line with selected sector references. Valuation metrics are not forecasts of future returns.

⚠️

Educational Tool Only

The reward rating and analysis shown above are based on historical financial data and quantitative metrics, provided for informational and educational purposes only. This is not financial advice and should not be interpreted as a recommendation to buy, sell, or hold any security. Past performance does not guarantee future results. Always conduct your own research or consult a qualified financial adviser before making investment decisions.

Risk Rating Breakdown

Our Risk Rating provides a model-based risk profile for MTE using 4 weighted factors. Each factor is scored 0-100 (higher = riskier), then combined using the weights shown below.

Overall Risk Rating
51
Moderate RISK
Data Coverage: 100%

⚖️ Financial Solvency

Weight: 35%
41/100

Financial Solvency measures the company's ability to service and repay its debt obligations. Five sub-metrics are weighted to produce the composite score.

Interest Coverage (25%)
0.0x
Highest Risk Band
Net Debt / EBITDA (20%)
Current Ratio (20%)
Debt Trend 3yr (15%)
-60%
Rapidly Improving
FCF / Debt Coverage (20%)
338%
Lower Risk Band
🤖Model Commentary

MTE has a financial solvency risk score of 41/100. This represents moderate leverage that warrants monitoring. Interest coverage of 0.0x is adequate but not comfortable. Debt has changed -60% over the last 3 years. The balance sheet appears manageable in normal conditions but could face stress in a downturn. Coverage ratios and free cash flow trends remain important.

💼 Operational Quality

Weight: 30%
45/100

Operational Quality measures bottom-line efficiency, cash generation, capital productivity, and margin consistency — four equally weighted signals of business model resilience.

Net Margin (25%)
FCF Margin (25%)
Cash ROA (25%)
6.6%
Adequate
Margin Stability (25%)
±7.1pp
Moderate Variance
🤖Model Commentary

MTE scores 45/100 for operational quality, indicating moderate operational risk. The company shows adequate capital efficiency with 6.6% Cash ROA. Key concerns: moderate margin variance of ±7.1pp over 3 years. Overall the business appears viable but not without risk. Margin trends should be monitored over time.

📉 Volatility

Weight: 25%
65/100

Volatility measures price instability, worst-case drawdowns, and sensitivity to broader market moves.

Annualised Volatility (35%)
Max Drawdown (35%)
Beta (30%)
1.22
Moderately Aggressive
🤖Model Commentary

MTE has a volatility risk score of 65/100. This represents moderate-to-elevated volatility — above average but manageable. Beta of 1.22 means it amplifies broad market moves. Investors may experience periodic double-digit declines in this profile.

📊 Size Factor

Weight: 10%
65/100

Size factor captures existential risk. Smaller companies have higher failure rates, less diversification, and greater vulnerability to shocks.

Market Cap
£0.2B
Neutral
Size Category
Micro Cap
Neutral
🤖Model Commentary

MTE has a market cap of £0.2B (Micro Cap), resulting in a size risk score of 65/100. As a smaller company, it faces elevated business and funding risk. Small and micro-caps have higher failure rates, less diversified revenue, and greater vulnerability to competitive threats or economic shocks. They often lack scale advantages and may struggle to access capital markets during stress. Smaller companies can experience higher dispersion of outcomes, including business failure or sustained capital impairment. Diversification is important when investing at this size.

ℹ️

Educational Tool Only

The risk rating and analysis shown above are based on historical financial data and quantitative metrics, provided for informational and educational purposes only. This is not financial advice and should not be interpreted as a recommendation to buy, sell, or hold any security. Past performance does not guarantee future results. Always conduct your own research or consult a qualified financial adviser before making investment decisions.

Analyst Forecasts

Forward-looking analyst estimates for MTE. Forecasts are estimates, not guarantees.

Revenue+762.1% growth
Consensus next-period revenue growth
EPS+1906.1% growth
EPS revisions stable over the past 30 days
Forecast ToneBalanced
Balanced consensus profile with +762.1% revenue growth and +1906.1% EPS growth.
forecast ranges show tight ranges, 30-day EPS revisions are flat.
Consensus
+762.1% revenue growth
Confidence
Limited visibility
tight ranges
Watch Item
Execution needs to hold
Strong growth expectations leave less room for disappointment if execution slows.

Share Price Forecast

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Model Commentary
Analyst targets and forecasts can change quickly after new company or market information.

Yearly Revenue and 2-Year Forecast

Reported revenue for the last 5 years, followed by low, consensus, and high analyst revenue estimates for the next two years. Consensus revenue implies +762.1% YoY growth tight ranges on revenue estimates

Model Commentary
Revenue is projected to move from — last year to — in 2013E and — in 2014E. That implies +100.0% into 2013E on the top line. The 2014E range of — to — suggests tight ranges on revenue expectations. Revenue misses can lead to EPS estimate revisions and changes in valuation assumptions. Forecast ranges reflect uncertainty and should be read alongside risk metrics.

2-Year EPS Estimates

Low, consensus, and high analyst EPS estimates for the next two fiscal years. Consensus EPS implies +1906.1% YoY growth tight ranges on EPS estimates

Model Commentary
Analysts are currently looking for 0.00p in 2013E and 0.00p in 2014E. The outer-year range runs from 0.00p to 0.00p, which counts as tight ranges. Consensus currently models +1906.1% EPS growth over the next period. EPS estimates are subject to revision and do not guarantee future results.