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MGGT

MeggittLSE:MGGT Stock Report

Last Price

UK£7.33

Market Cap

UK£5.7b

7D

-1.2%

1Y

75.5%

Updated

21 Jan, 2022

Data

Company Financials +
MGGT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends0/6

MGGT Stock Overview

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

Meggitt Competitors

BAE Systems

LSE:BA.

UK£18.8b

Rolls-Royce Holdings

LSE:RR.

UK£10.0b

Ultra Electronics Holdings

LSE:ULE

UK£2.1b

Senior

LSE:SNR

UK£565.8m

Price History & Performance

Summary of all time highs, changes and price drops for Meggitt
Historical stock prices
Current Share PriceUK£7.33
52 Week HighUK£8.46
52 Week LowUK£3.83
Beta1.97
1 Month Change-0.87%
3 Month Change-2.27%
1 Year Change75.49%
3 Year Change43.73%
5 Year Change70.70%
Change since IPO688.17%

Recent News & Updates

Aug 05
Meggitt (LON:MGGT) Has A Somewhat Strained Balance Sheet

Meggitt (LON:MGGT) Has A Somewhat Strained Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

MGGTGB Aerospace & DefenseGB Market
7D-1.2%2.0%-0.5%
1Y75.5%26.5%8.7%

Return vs Industry: MGGT exceeded the UK Aerospace & Defense industry which returned 26.5% over the past year.

Return vs Market: MGGT exceeded the UK Market which returned 8.7% over the past year.

Price Volatility

Is MGGT's price volatile compared to industry and market?
MGGT volatility
MGGT Average Weekly Movement0.6%
Aerospace & Defense Industry Average Movement4.2%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: MGGT is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: MGGT's weekly volatility has decreased from 9% to 1% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1947n/aTony Woodhttps://www.meggitt.com

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, Engine Systems, Energy & Equipment, and Services & Support. It offers ice protection products, radomes, and structures; air data and flight display products; brake control and tyre pressure monitoring systems, and wheels and brakes; engine health and vibration monitors, H2/O2 analyzers, and turbine monitoring and protection products; and aircraft cameras and security systems, and wireless aircraft systems.

Meggitt Fundamentals Summary

How do Meggitt's earnings and revenue compare to its market cap?
MGGT fundamental statistics
Market CapUK£5.71b
Earnings (TTM)UK£58.40m
Revenue (TTM)UK£1.45b

97.8x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGGT income statement (TTM)
RevenueUK£1.45b
Cost of RevenueUK£1.00b
Gross ProfitUK£443.70m
ExpensesUK£385.30m
EarningsUK£58.40m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 03, 2022

Earnings per share (EPS)0.075
Gross Margin30.66%
Net Profit Margin4.04%
Debt/Equity Ratio38.6%

How did MGGT perform over the long term?

See historical performance and comparison

Valuation

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

0.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGGT (£7.33) is trading below our estimate of fair value (£7.36)

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 poor value based on its PE Ratio (97.8x) compared to the UK Aerospace & Defense industry average (22x).

PE vs Market: MGGT is poor value based on its PE Ratio (97.8x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: MGGT is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: MGGT is overvalued based on its PB Ratio (2.8x) compared to the GB Aerospace & Defense industry average (2.3x).


Future Growth

How is Meggitt forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

34.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGGT's forecast earnings growth (34.1% per year) is above the savings rate (0.9%).

Earnings vs Market: MGGT's earnings (34.1% per year) are forecast to grow faster than the UK market (12.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MGGT's revenue (10.6% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: MGGT's revenue (10.6% 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 (13.6%).


Past Performance

How has Meggitt performed over the past 5 years?

-40.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGGT has a large one-off loss of £60.2M impacting its June 30 2021 financial results.

Growing Profit Margin: MGGT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MGGT's earnings have declined by 40.6% per year over the past 5 years.

Accelerating Growth: MGGT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MGGT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (19.6%).


Return on Equity

High ROE: MGGT's Return on Equity (2.8%) is considered low.


Financial Health

How is Meggitt's financial position?


Financial Position Analysis

Short Term Liabilities: MGGT's short term assets (£904.7M) exceed its short term liabilities (£501.8M).

Long Term Liabilities: MGGT's short term assets (£904.7M) do not cover its long term liabilities (£1.3B).


Debt to Equity History and Analysis

Debt Level: MGGT's net debt to equity ratio (31.9%) is considered satisfactory.

Reducing Debt: MGGT's debt to equity ratio has reduced from 58.7% to 38.6% over the past 5 years.

Debt Coverage: MGGT's debt is well covered by operating cash flow (24%).

Interest Coverage: MGGT's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Dividend

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

1.71%

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?

4.2yrs

Average management tenure


CEO

Tony Wood

4yrs

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 serves as a Non-executive Director a...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD1.20M) is below average for companies of similar size in the UK market ($USD2.24M).

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 (4.2 years average tenure).


Board Members

Experienced Board: MGGT's board of directors are considered experienced (5.1 years average tenure).


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 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
  • Implied Market Cap: UK£5.709b
  • Shares outstanding: 778.91m
  • Website: https://www.meggitt.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:17
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
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.