LSE:MGAM

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Morgan Advanced Materials

Executive Summary

Morgan Advanced Materials plc operates as a materials science and application engineering company. More Details


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

MGAMIndustryMarket
7 Day1.8%1.6%-0.2%
30 Day6.3%3.7%3.6%
90 Day4.5%9.4%4.2%
1 Year12.4%11.6%27.5%25.7%7.0%1.1%
3 Year4.3%-4.1%33.6%24.5%10.6%-2.7%
5 Year60.8%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

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.


Next Steps

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


Next Steps

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.


Next Steps

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

NamePositionTenureCompensationOwnership
Pete Raby
CEO & Executive Director5.58yrsUK£1.75m0.091%
£ 812.8k
Peter Turner
CFO & Executive Director4.92yrsUK£1.33m0.093%
£ 830.1k
Paul Boulton
General Counsel16.67yrsno data0.016%
£ 147.3k
Stephanie Mackie
Company Secretaryno datano datano data
Simon Halliday
Director of Strategic Programmes7.08yrsno datano 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

NamePositionTenureCompensationOwnership
Pete Raby
CEO & Executive Director5.58yrsUK£1.75m0.091%
£ 812.8k
Peter Turner
CFO & Executive Director4.92yrsUK£1.33m0.093%
£ 830.1k
Douglas Caster
Independent Non-Executive Chairman2.17yrsUK£189.50k0.039%
£ 347.3k
Helen Bunch
Independent Non-Executive Director5.08yrsUK£57.90k0.00071%
£ 6.3k
Jane Aikman
Independent Non-Executive Director3.67yrsUK£57.90kno data
Laurence B. L. Mulliez
Senior Independent Director3.25yrsUK£57.90k0.0024%
£ 21.2k
Clement Woon
Independent Non-Executive Director1.83yrsUK£32.18k0.016%
£ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCRU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
MGAMLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
MGJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 20:06
End of Day Share Price2021/03/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.