| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
MGAM Stock Overview
Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom.
Morgan Advanced Materials Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£3.48 |
| 52 Week High | UK£4.19 |
| 52 Week Low | UK£2.77 |
| Beta | 1.32 |
| 1 Month Change | 2.05% |
| 3 Month Change | 0.87% |
| 1 Year Change | 16.00% |
| 3 Year Change | 31.52% |
| 5 Year Change | 15.62% |
| Change since IPO | 50.65% |
Recent News & Updates
Is There Now An Opportunity In Morgan Advanced Materials plc (LON:MGAM)?
Morgan Advanced Materials plc ( LON:MGAM ), might not be a large cap stock, but it received a lot of attention from a...
Morgan Advanced Materials' (LON:MGAM) Returns Have Hit A Wall
There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...
Calculating The Intrinsic Value Of Morgan Advanced Materials plc (LON:MGAM)
Does the November share price for Morgan Advanced Materials plc ( LON:MGAM ) reflect what it's really worth? Today, we...
Shareholder Returns
| MGAM | GB Machinery | GB Market | |
|---|---|---|---|
| 7D | 1.8% | -2.1% | -1.3% |
| 1Y | 16.0% | 7.2% | 7.8% |
Return vs Industry: MGAM exceeded the UK Machinery industry which returned 9.1% over the past year.
Return vs Market: MGAM exceeded the UK Market which returned 8.7% over the past year.
Price Volatility
| MGAM volatility | |
|---|---|
| MGAM Average Weekly Movement | 4.0% |
| Machinery Industry Average Movement | 4.3% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.8% |
| 10% least volatile stocks in GB Market | 2.5% |
Stable Share Price: MGAM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MGAM's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1856 | 7,466 | Pete Raby | https://www.morganadvancedmaterials.com |
Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom. It offers high-temperature insulating fiber, microporous, firebrick and insulating firebrick, monolithic, heat shield, fired refractory shape, and structural block insulation products; crucibles, foundry products, and furnace industries furnace ranges; and seals and bearings, as well as general pump components, such as shafts, vanes, rotors, and washers. The company also provides carbon brushes and collectors, brush holders, power slip rings, terminal blocks, diagnostic equipment, carbon current collection strips, shaft grounding rings, and linear transfer systems.
Morgan Advanced Materials Fundamentals Summary
| MGAM fundamental statistics | |
|---|---|
| Market Cap | UK£990.16m |
| Earnings (TTM) | UK£41.30m |
| Revenue (TTM) | UK£894.10m |
24.0x
P/E Ratio1.1x
P/S RatioIs MGAM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MGAM income statement (TTM) | |
|---|---|
| Revenue | UK£894.10m |
| Cost of Revenue | UK£790.90m |
| Gross Profit | UK£103.20m |
| Expenses | UK£61.90m |
| Earnings | UK£41.30m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.15 |
| Gross Margin | 11.54% |
| Net Profit Margin | 4.62% |
| Debt/Equity Ratio | 56.9% |
How did MGAM perform over the long term?
See historical performance and comparisonDividends
1.9%
Current Dividend Yield46%
Payout RatioValuation
Is Morgan Advanced Materials undervalued compared to its fair value and its price relative to the market?
9.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGAM (£3.48) is trading below our estimate of fair value (£3.83)
Significantly Below Fair Value: MGAM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MGAM is good value based on its PE Ratio (24x) compared to the UK Machinery industry average (26.1x).
PE vs Market: MGAM is poor value based on its PE Ratio (24x) compared to the UK market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: MGAM is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: MGAM is overvalued based on its PB Ratio (3.8x) compared to the GB Machinery industry average (2.5x).
Future Growth
How is Morgan Advanced Materials forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
13.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGAM's forecast earnings growth (13.2% per year) is above the savings rate (0.9%).
Earnings vs Market: MGAM's earnings (13.2% per year) are forecast to grow faster than the UK market (12.1% per year).
High Growth Earnings: MGAM's earnings are forecast to grow, but not significantly.
Revenue vs Market: MGAM's revenue (3.9% per year) is forecast to grow slower than the UK market (4.9% per year).
High Growth Revenue: MGAM's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MGAM's Return on Equity is forecast to be high in 3 years time (24.9%)
Past Performance
How has Morgan Advanced Materials performed over the past 5 years?
-20.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGAM has a large one-off loss of £20.1M impacting its June 30 2021 financial results.
Growing Profit Margin: MGAM's current net profit margins (4.6%) are higher than last year (0.8%).
Past Earnings Growth Analysis
Earnings Trend: MGAM's earnings have declined by 20.6% per year over the past 5 years.
Accelerating Growth: MGAM's earnings growth over the past year (409.9%) exceeds its 5-year average (-20.6% per year).
Earnings vs Industry: MGAM earnings growth over the past year (409.9%) exceeded the Machinery industry 19.6%.
Return on Equity
High ROE: MGAM's Return on Equity (16.2%) is considered low.
Financial Health
How is Morgan Advanced Materials's financial position?
Financial Position Analysis
Short Term Liabilities: MGAM's short term assets (£398.7M) exceed its short term liabilities (£221.7M).
Long Term Liabilities: MGAM's short term assets (£398.7M) exceed its long term liabilities (£357.8M).
Debt to Equity History and Analysis
Debt Level: MGAM's net debt to equity ratio (21.5%) is considered satisfactory.
Reducing Debt: MGAM's debt to equity ratio has reduced from 190.8% to 56.9% over the past 5 years.
Debt Coverage: MGAM's debt is well covered by operating cash flow (64.9%).
Interest Coverage: MGAM's interest payments on its debt are well covered by EBIT (11.7x coverage).
Balance Sheet
Dividend
What is Morgan Advanced Materials's current dividend yield, its reliability and sustainability?
1.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGAM's dividend (1.93%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: MGAM's dividend (1.93%) is low compared to the top 25% of dividend payers in the UK market (4.04%).
Stability and Growth of Payments
Stable Dividend: MGAM's dividend payments have been volatile in the past 10 years.
Growing Dividend: MGAM's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (46.2%), MGAM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MGAM's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.2yrs
Average management tenure
CEO
Pete Raby (53 yo)
6.42yrs
Tenure
UK£772,125
Compensation
Mr. Pete Raby has been Independent Non-Executive Director at Hill & Smith Holdings PLC since 2019. Mr. Raby has been the Chief Executive Officer of Morgan Advanced Materials plc since August 01, 2015. Mr....
CEO Compensation Analysis
Compensation vs Market: Pete's total compensation ($USD1.05M) is below average for companies of similar size in the UK market ($USD1.55M).
Compensation vs Earnings: Pete's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MGAM's management team is seasoned and experienced (7.2 years average tenure).
Board Members
Experienced Board: MGAM's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Morgan Advanced Materials plc's employee growth, exchange listings and data sources
Key Information
- Name: Morgan Advanced Materials plc
- Ticker: MGAM
- Exchange: LSE
- Founded: 1856
- Industry: Industrial Machinery
- Sector: Capital Goods
- Implied Market Cap: UK£990.158m
- Shares outstanding: 284.53m
- Website: https://www.morganadvancedmaterials.com
Number of Employees
Location
- Morgan Advanced Materials plc
- York House
- Sheet Street
- Windsor
- Berkshire
- SL4 1DD
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 21:17 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.