Morgan Advanced Materials
Market Cap
UK£893.6m
Last Updated
2021/03/03 20:06 UTC
Data Sources
Company Financials +
Executive Summary
Morgan Advanced Materials plc operates as a materials science and application engineering company. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Morgan Advanced Materials's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MGAM is less volatile than 75% 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.
Market Performance
7 Day Return
1.8%
MGAM
1.6%
GB Machinery
-0.2%
GB Market
1 Year Return
11.6%
MGAM
25.7%
GB Machinery
1.1%
GB Market
Return vs Industry: MGAM underperformed the UK Machinery industry which returned 28.5% over the past year.
Return vs Market: MGAM exceeded the UK Market which returned 2% over the past year.
Shareholder returns
| MGAM | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 1.6% | -0.2% |
| 30 Day | 6.3% | 3.7% | 3.6% |
| 90 Day | 4.5% | 9.4% | 4.2% |
| 1 Year | 12.4%11.6% | 27.5%25.7% | 7.0%1.1% |
| 3 Year | 4.3%-4.1% | 33.6%24.5% | 10.6%-2.7% |
| 5 Year | 60.8%36.4% | 123.7%96.6% | 40.5%13.4% |
Long-Term Price Volatility Vs. Market
How volatile is Morgan Advanced Materials's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Morgan Advanced Materials (LON:MGAM) Has Compensated Shareholders With A Respectable 68% Return On Their Investment2 months ago | Simply Wall St
Here's Why We Think Morgan Advanced Materials's (LON:MGAM) Statutory Earnings Might Be Conservative2 months ago | Simply Wall St
Is Morgan Advanced Materials plc's (LON:MGAM) Recent Stock Performance Influenced By Its Fundamentals In Any Way?Valuation
Is Morgan Advanced Materials undervalued compared to its fair value and its price relative to the market?
110.51x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MGAM (£3.05) is trading above our estimate of fair value (£1.62)
Significantly Below Fair Value: MGAM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MGAM is poor value based on its PE Ratio (107.2x) compared to the GB Machinery industry average (29.4x).
PE vs Market: MGAM is poor value based on its PE Ratio (107.2x) compared to the UK market (24x).
Price to Earnings Growth Ratio
PEG Ratio: MGAM is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: MGAM is overvalued based on its PB Ratio (3.6x) compared to the GB Machinery industry average (2.1x).
Next Steps
Future Growth
How is Morgan Advanced Materials forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
74.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGAM's forecast earnings growth (74% per year) is above the savings rate (1%).
Earnings vs Market: MGAM's earnings (74% per year) are forecast to grow faster than the UK market (23.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGAM's revenue (2.8% per year) is forecast to grow slower than the UK market (7.3% per year).
High Growth Revenue: MGAM's revenue (2.8% 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 (21.9%)
Next Steps
Past Performance
How has Morgan Advanced Materials performed over the past 5 years?
6.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGAM has a large one-off loss of £68.9M impacting its June 30 2020 financial results.
Growing Profit Margin: MGAM's current net profit margins (0.8%) are lower than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: MGAM's earnings have grown by 6.5% per year over the past 5 years.
Accelerating Growth: MGAM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MGAM had negative earnings growth (-86%) over the past year, making it difficult to compare to the Machinery industry average (-21.6%).
Return on Equity
High ROE: MGAM's Return on Equity (4.8%) is considered low.
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Financial Health
How is Morgan Advanced Materials's financial position?
Financial Position Analysis
Short Term Liabilities: MGAM's short term assets (£451.2M) exceed its short term liabilities (£298.8M).
Long Term Liabilities: MGAM's short term assets (£451.2M) exceed its long term liabilities (£418.2M).
Debt to Equity History and Analysis
Debt Level: MGAM's debt to equity ratio (96.9%) is considered high.
Reducing Debt: MGAM's debt to equity ratio has reduced from 130.1% to 96.9% over the past 5 years.
Debt Coverage: MGAM's debt is well covered by operating cash flow (47.8%).
Interest Coverage: MGAM's interest payments on its debt are well covered by EBIT (10.1x coverage).
Balance Sheet
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Dividend
What is Morgan Advanced Materials's current dividend yield, its reliability and sustainability?
2.74%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MGAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MGAM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MGAM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MGAM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MGAM is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MGAM's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
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Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Pete Raby (52 yo)
5.58yrs
Tenure
UK£1,747,631
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 ($USD2.44M) is above average for companies of similar size in the UK market ($USD1.62M).
Compensation vs Earnings: Pete's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.58yrs | UK£1.75m | 0.091% £ 812.8k | |
| CFO & Executive Director | 4.92yrs | UK£1.33m | 0.093% £ 830.1k | |
| General Counsel | 16.67yrs | no data | 0.016% £ 147.3k | |
| Company Secretary | no data | no data | no data | |
| Director of Strategic Programmes | 7.08yrs | no data | no data |
6.3yrs
Average Tenure
52yo
Average Age
Experienced Management: MGAM's management team is seasoned and experienced (6.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.58yrs | UK£1.75m | 0.091% £ 812.8k | |
| CFO & Executive Director | 4.92yrs | UK£1.33m | 0.093% £ 830.1k | |
| Independent Non-Executive Chairman | 2.17yrs | UK£189.50k | 0.039% £ 347.3k | |
| Independent Non-Executive Director | 5.08yrs | UK£57.90k | 0.00071% £ 6.3k | |
| Independent Non-Executive Director | 3.67yrs | UK£57.90k | no data | |
| Senior Independent Director | 3.25yrs | UK£57.90k | 0.0024% £ 21.2k | |
| Independent Non-Executive Director | 1.83yrs | UK£32.18k | 0.016% £ 142.4k |
3.7yrs
Average Tenure
53.5yo
Average Age
Experienced Board: MGAM's board of directors are considered experienced (3.7 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Morgan Advanced Materials plc's company bio, 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
- Market Cap: UK£893.585m
- Shares outstanding: 284.13m
- Website: https://www.morganadvancedmaterials.com
Number of Employees
Location
- Morgan Advanced Materials plc
- Quadrant
- 55-57 High Street
- Windsor
- Berkshire
- SL4 1LP
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MCRU.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| MGAM | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| MGJ | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
Biography
Morgan Advanced Materials plc operates as a materials science and application engineering company. The company offers high-temperature insulating fiber products, microporous products, firebricks, monolithi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/03 20:06 |
| End of Day Share Price | 2021/03/03 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.