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Market Cap

UK£3.8b

Last Updated

2021/05/13 01:33 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Trading at 17.7% below our estimate of its fair value

Earnings are forecast to grow 63.43% per year

Risk Analysis

No risks detected for MGGT from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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

Stable Share Price: MGGT is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MGGT's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

5.3%

MGGT

1.6%

GB Aerospace & Defense

-0.7%

GB Market


1 Year Return

103.7%

MGGT

12.5%

GB Aerospace & Defense

28.0%

GB Market

Return vs Industry: MGGT exceeded the UK Aerospace & Defense industry which returned 9.1% over the past year.

Return vs Market: MGGT exceeded the UK Market which returned 24.2% over the past year.


Shareholder returns

MGGTIndustryMarket
7 Day5.3%1.6%-0.7%
30 Day2.1%0.4%1.8%
90 Day19.0%8.1%6.4%
1 Year103.7%103.7%18.5%12.5%33.4%28.0%
3 Year2.2%-1.8%-8.3%-17.7%10.6%-2.0%
5 Year43.4%28.6%16.8%-1.5%49.8%21.6%

Long-Term 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?

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGGT (£4.85) is trading below our estimate of fair value (£5.89)

Significantly Below Fair Value: MGGT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MGGT is unprofitable, so we can't compare its PE Ratio to the UK Aerospace & Defense industry average.

PE vs Market: MGGT is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MGGT's PEG Ratio to determine if it is good value.


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 (2x).


Future Growth

How is Meggitt forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

63.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGGT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: MGGT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MGGT's is expected to become profitable in the next 3 years.

Revenue vs Market: MGGT's revenue (7% per year) is forecast to grow faster than the UK market (5.2% per year).

High Growth Revenue: MGGT's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGGT's Return on Equity is forecast to be low in 3 years time (12.9%).


Past Performance

How has Meggitt performed over the past 5 years?

-33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGGT is currently unprofitable.

Growing Profit Margin: MGGT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MGGT is unprofitable, and losses have increased over the past 5 years at a rate of 33.4% per year.

Accelerating Growth: Unable to compare MGGT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MGGT is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (3.3%).


Return on Equity

High ROE: MGGT has a negative Return on Equity (-15.46%), as it is currently unprofitable.


Financial Health

How is Meggitt's financial position?


Financial Position Analysis

Short Term Liabilities: MGGT's short term assets (£937.0M) exceed its short term liabilities (£487.3M).

Long Term Liabilities: MGGT's short term assets (£937.0M) do not cover its long term liabilities (£1.5B).


Debt to Equity History and Analysis

Debt Level: MGGT's debt to equity ratio (39.7%) is considered satisfactory.

Reducing Debt: MGGT's debt to equity ratio has reduced from 54.9% to 39.7% over the past 5 years.

Debt Coverage: MGGT's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: MGGT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

2.60%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MGGT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MGGT'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 MGGT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MGGT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MGGT is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MGGT'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?

3.5yrs

Average management tenure


CEO

Tony Wood

3.33yrs

Tenure

UK£885,000

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's total compensation ($USD1.25M) is below average for companies of similar size in the UK market ($USD2.10M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MGGT's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: MGGT's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MGGT 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

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£3.771b
  • Shares outstanding: 778.23m
  • Website: https://www.meggitt.com

Number of Employees


Location

  • Meggitt PLC
  • Ansty Business Park
  • Pilot Way
  • Coventry
  • West Midlands
  • CV7 9JU
  • United Kingdom

Listings


Biography

Meggitt PLC designs and manufactures components and sub-systems in the United Kingdom, rest of Europe, the United States, and internationally. The company operates in four segments: Airframe Systems, Engin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/13 01:33
End of Day Share Price2021/05/12 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.