During the scanning of the winners and losing the British stock market last month, one name jumped: Dr. Martens (LSE: docs). The notable Bootmaker was the third best performance in Great Britain FTSE 350 In June, its price of shares increased by 31%, defeated only by Spectros AND Weight payment solutions.

But before they got up, it is worth remembering that the price of Bootmaker’s shares has still dropped by 82% in the last five years. So the most essential question is whether these last profits are the beginning of a lasting return, or whether it is simply a false dawn.

Why did the price of the action augment?

The rally catalyst in June was the release of the full year 2024 Dr. Martens on June 6. At first glance, the numbers do not look inspiring. Revenues dropped to 787.6 million GBP, compared to 877 million GBP a year earlier, while the profit for the share fell to 2 pens from 7 pence. The net margin also collapsed, from 7.9% to just 0.57%, emphasizing how the profitability became squeezed.

However, investors seemed more focused on the newly presented development plan. Management intends to limit aggressive discounting on key markets, aimed at rebuilding the brand’s strength and protecting margins. It seems that this strategy has convinced several analysts. Peel Hunt modernized the actions to add, while Berenberg and RBC raised their goals.

On the market, a frequently powered mood in the future, this optimism has helped fuel a acute reflection.

A closer look at the finances

Drying layers reveals a more complicated image. Currently, shares trade in price to profit (P/E) of 166, which looks painfully high. However, this drops to the p/front at 17.5, when settling future expectations of earnings. And his price ratio (P/s) of 0.92 suggests that the brand still generates hearty sales of the highest line in relation to market valuation.

Currently offers a dividend performance of 3.3%, which is slightly below the average, but adds some value. But kicking deeper, and the payment rate is up to 542%, which suggests that dividends are not covered by earnings and can be threatened with cutting if trade remains feeble.

Looking at the balance sheet, Dr. Martens has debts of 401.7 million GBP, slightly balanced by 159.8 million GBP in free cash flows and 478.9 million GBP in long -term assets. Although this is not catastrophic, it emphasizes the importance of improvement in cash generation to conveniently service debt and support future dividends.

So is it time to buy?

I think there are two main risks here. First of all, the actions look costly, taking into account the frail earning database. This high p/E factor may be disappointed if the company does not implement its return plan. Secondly, his significant pile of debt, combined with low margins, leaves little space for mistakes – especially if consumer demand weakens.

For investors looking for exposure to Great Britain shares with forceful growth prospects and healthier balances, there may be better possibilities to consider elsewhere.

To say, Dr. Martens is a powerful global brand with true customers. If management can restore profitability by tightening discounting and stabilizing margins, it can achieve significant recovery in the long term.

For now, I would prefer to watch from the side until there is more specific evidence for constant recovery. Therefore, I would not consider buying shares yet.