LSE:MGGT

Stock Analysis Report

Executive Summary

Meggitt PLC designs and manufactures components and sub-systems in the United Kingdom, rest of Europe, the United States, and internationally.

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Meggitt's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.7%

MGGT

-2.4%

GB Aerospace & Defense

-0.3%

GB Market


1 Year Return

14.2%

MGGT

7.5%

GB Aerospace & Defense

3.0%

GB Market

Return vs Industry: MGGT exceeded the UK Aerospace & Defense industry which returned 7.5% over the past year.

Return vs Market: MGGT exceeded the UK Market which returned 3% over the past year.


Shareholder returns

MGGTIndustryMarket
7 Day-4.7%-2.4%-0.3%
30 Day-6.4%-6.3%-0.9%
90 Day5.9%7.2%-2.0%
1 Year17.7%14.2%11.3%7.5%8.0%3.0%
3 Year45.6%31.9%19.0%6.5%18.0%3.6%
5 Year56.2%33.3%34.7%7.4%35.8%6.4%

Price Volatility Vs. Market

How volatile is Meggitt's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Meggitt undervalued compared to its fair value and its price relative to the market?

31.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MGGT (£5.9) is trading above our estimate of fair value (£5.52)

Significantly Undervalued: MGGT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MGGT is poor value based on its PE Ratio (31.4x) compared to the Aerospace & Defense industry average (22.7x).

PE vs Market: MGGT is poor value based on its PE Ratio (31.4x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MGGT is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: MGGT is good value based on its PB Ratio (1.9x) compared to the GB Aerospace & Defense industry average (2.2x).


Next Steps

Future Growth

How is Meggitt forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGGT's forecast earnings growth (18.4% per year) is above the savings rate (1.2%).

Earnings vs Market: MGGT's earnings (18.4% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: MGGT's earnings are forecast to grow, but not significantly.

Revenue vs Market: MGGT's revenue (4.5% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: MGGT's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MGGT's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Meggitt performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MGGT's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: MGGT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MGGT had negative earnings growth (-37.3%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-23.4%).


Return on Equity

High ROE: MGGT's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: MGGT's Return on Assets is below or equal to the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: MGGT has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Meggitt's financial position?


Financial Position Analysis

Short Term Liabilities: MGGT's short term assets (£1.1B) exceeds its short term liabilities (£694.9M)

Long Term Liabilities: MGGT's short term assets (1.1B) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: MGGT's debt to equity ratio (46.6%) is considered high

Reducing Debt: MGGT's debt to equity ratio has increased from 31.2% to 46.6% over the past 5 years.

Debt Coverage: MGGT's debt is well covered by operating cash flow (25.8%).

Interest Coverage: MGGT's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: MGGT has a low level of unsold assets or inventory.

Debt Coverage by Assets: MGGT's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Meggitt's current dividend yield, its reliability and sustainability?

2.82%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.0%markettop25%5.4%industryaverage3.2%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MGGT's dividend (2.82%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: MGGT's dividend (2.82%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: MGGT's dividends per share have been stable in the past 10 years.

Growing Dividend: MGGT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90%), MGGT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGGT's dividends in 3 years are forecast to be well covered by earnings (43.2% payout ratio).


Next Steps

Management

What is the CEO of Meggitt's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Tony Wood 0

1.8yrs

Tenure

UK£2,200,000

Compensation

Mr. Anthony Wood, also known as Tony, has been Chief Executive of Meggitt PLC since January 1, 2018 and has been its Executive Director since December 1, 2016. Mr. Wood served as Chief Operating Officer of ...


CEO Compensation Analysis

Compensation vs. Market: Tony has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Tony's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

58yo

Average Age

Experienced Management: MGGT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

64yo

Average Age

Experienced Board: MGGT's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MGGT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£7,87714 Oct 19
Chris Allen
EntityIndividual
Shares1,275
Max PriceUK£6.18
BuyUK£15113 Aug 19
Stewart Watson
EntityIndividual
Shares25
Max PriceUK£6.04
BuyUK£15113 Aug 19
Chris Allen
EntityIndividual
Shares25
Max PriceUK£6.04
BuyUK£15113 Aug 19
Anthony Wood
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares25
Max PriceUK£6.04
BuyUK£12713 Aug 19
Philip Green
EntityIndividual
Role
Member of the Board of Directors
Executive Director of Commercial & Corporate Affairs and Executive Director
Shares21
Max PriceUK£6.04
BuyUK£15113 Aug 19
Hugh Clayton
EntityIndividual
Shares25
Max PriceUK£6.04
BuyUK£14911 Jun 19
Hugh Clayton
EntityIndividual
Shares29
Max PriceUK£5.12
BuyUK£15411 Jun 19
Stewart Watson
EntityIndividual
Shares30
Max PriceUK£5.12
BuyUK£14911 Jun 19
Chris Allen
EntityIndividual
Shares29
Max PriceUK£5.12
BuyUK£14911 Jun 19
Anthony Wood
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares29
Max PriceUK£5.12
BuyUK£12311 Jun 19
Philip Green
EntityIndividual
Role
Member of the Board of Directors
Executive Director of Commercial & Corporate Affairs and Executive Director
Shares24
Max PriceUK£5.12
BuyUK£14,92228 May 19
Guy Hachey
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares3,000
Max PriceUK£4.97
BuyUK£49,96028 May 19
Anthony Rudd
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares10,000
Max PriceUK£5.00
BuyUK£9,59221 May 19
Chris Allen
EntityIndividual
Shares1,795
Max PriceUK£5.34
BuyUK£1,65013 May 19
Stewart Watson
EntityIndividual
Shares305
Max PriceUK£5.41
BuyUK£16813 May 19
Marina Thomas
EntityIndividual
Shares31
Max PriceUK£5.41
BuyUK£3,66713 May 19
Dennis Hutton
EntityIndividual
Shares678
Max PriceUK£5.41
BuyUK£82213 May 19
Paul Devaux
EntityIndividual
Shares152
Max PriceUK£5.41
BuyUK£15011 Apr 19
Hugh Clayton
EntityIndividual
Shares29
Max PriceUK£5.18
BuyUK£15011 Apr 19
Chris Allen
EntityIndividual
Shares29
Max PriceUK£5.18
BuyUK£12411 Apr 19
Philip Green
EntityIndividual
Role
Member of the Board of Directors
Executive Director of Commercial & Corporate Affairs and Executive Director
Shares24
Max PriceUK£5.18
BuyUK£15011 Apr 19
Stewart Watson
EntityIndividual
Shares29
Max PriceUK£5.18
SellUK£103,97409 Apr 19
Marina Thomas
EntityIndividual
Shares19,825
Max PriceUK£5.24
BuyUK£19,87009 Apr 19
Marina Thomas
EntityIndividual
Shares3,792
Max PriceUK£5.24
BuyUK£15112 Mar 19
Stewart Watson
EntityIndividual
Shares29
Max PriceUK£5.21
BuyUK£15112 Mar 19
Chris Allen
EntityIndividual
Shares29
Max PriceUK£5.21
BuyUK£12512 Mar 19
Philip Green
EntityIndividual
Role
Member of the Board of Directors
Executive Director of Commercial & Corporate Affairs and Executive Director
Shares24
Max PriceUK£5.21
BuyUK£15013 Feb 19
Stewart Watson
EntityIndividual
Shares28
Max PriceUK£5.35
BuyUK£15013 Feb 19
Chris Allen
EntityIndividual
Shares28
Max PriceUK£5.35
BuyUK£12813 Feb 19
Philip Green
EntityIndividual
Role
Member of the Board of Directors
Executive Director of Commercial & Corporate Affairs and Executive Director
Shares24
Max PriceUK£5.35
BuyUK£15114 Jan 19
Chris Allen
EntityIndividual
Shares31
Max PriceUK£4.87
BuyUK£15114 Jan 19
Stewart Watson
EntityIndividual
Shares31
Max PriceUK£4.87
BuyUK£12214 Jan 19
Philip Green
EntityIndividual
Role
Member of the Board of Directors
Executive Director of Commercial & Corporate Affairs and Executive Director
Shares25
Max PriceUK£4.87

Ownership Breakdown


Management Team

  • Philip Green (63yo)

    Executive Director of Commercial & Corporate Affairs and Executive Director

    • Tenure: 18.8yrs
    • Compensation: UK£1.60m
  • Tony Wood

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£2.20m
  • Andrew Garard (52yo)

    Group General Counsel & Director of Corporate Affairs

    • Tenure: 0.08yrs
  • Geoff Lloyd

    Group Director of Human Resources

    • Tenure: 2.1yrs
  • Amir Allahverdi

    Group Operations Director

    • Tenure: 0yrs
  • Louisa Burdett

    CFO & Executive Director

    • Tenure: 0.8yrs
  • Keith Jackson (58yo)

    Chief Technology Officer

    • Tenure: 6.5yrs
  • Adrian Bunn

    Vice President of Strategy & Investor Relations

    • Tenure: 0yrs
  • Chris Hopper

    Senior Vice President

    • Tenure: 0yrs
  • Chris Bryant

    Chief Procurement Officer

    • Tenure: 1.8yrs

Board Members

  • Guy Hachey (64yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Colin Day (64yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
  • Nigel Rudd (73yo)

    Non-Executive Chairman

    • Tenure: 4.5yrs
  • Guy Berruyer (68yo)

    Senior Independent Director

    • Tenure: 0.5yrs
  • Philip Green (63yo)

    Executive Director of Commercial & Corporate Affairs and Executive Director

    • Tenure: 18.8yrs
    • Compensation: UK£1.60m
  • Tony Wood

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£2.20m
  • Nancy Gioia (59yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
  • Caroline Silver (57yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Louisa Burdett

    CFO & Executive Director

    • Tenure: 0.8yrs
  • Alison J. Goligher

    Independent Non-Executive Director

    • Tenure: 5yrs

Company Information

Meggitt PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Meggitt PLC
  • Ticker: MGGT
  • Exchange: LSE
  • Founded: 1947
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£4.550b
  • Shares outstanding: 771.37m
  • Website: https://www.meggitt.com

Number of Employees


Location

  • Meggitt PLC
  • Atlantic House
  • Aviation Park West
  • Christchurch
  • Dorset
  • BH23 6EW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MEGG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
MGGTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
MGIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
MGGTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
MGGT NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
MEGG.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2010

Biography

Meggitt PLC designs and manufactures components and sub-systems in the United Kingdom, rest of Europe, the United States, and internationally. It operates through four segments: Airframe Systems, Engine Sy ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.