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 Analysis

Undervalued with solid track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.8%

MGGT

0.6%

GB Aerospace & Defense

0.1%

GB Market


1 Year Return

-52.5%

MGGT

-0.8%

GB Aerospace & Defense

-23.6%

GB Market

Return vs Industry: MGGT underperformed the UK Aerospace & Defense industry which returned -0.8% over the past year.

Return vs Market: MGGT underperformed the UK Market which returned -23.6% over the past year.


Shareholder returns

MGGTIndustryMarket
7 Day-6.8%0.6%0.1%
30 Day-51.0%-15.8%-15.5%
90 Day-62.0%-19.2%-27.0%
1 Year-52.1%-52.5%2.3%-0.8%-19.8%-23.6%
3 Year-38.7%-43.2%-5.6%-15.2%-13.5%-24.3%
5 Year-49.8%-56.4%-1.8%-21.8%-1.6%-23.5%

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?

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGGT (£2.51) is trading below our estimate of fair value (£4.02)

Significantly Below Fair Value: MGGT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MGGT is good value based on its PE Ratio (8.7x) compared to the Aerospace & Defense industry average (18x).

PE vs Market: MGGT is good value based on its PE Ratio (8.7x) compared to the UK market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: MGGT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: MGGT is good value based on its PB Ratio (0.8x) compared to the GB Aerospace & Defense industry average (2.1x).


Next Steps

Future Growth

How is Meggitt forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGGT's forecast earnings growth (6.1% per year) is above the savings rate (0.5%).

Earnings vs Market: MGGT's earnings (6.1% per year) are forecast to grow slower than the UK market (15.5% per year).

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

Revenue vs Market: MGGT's revenue (2.6% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: MGGT's revenue (2.6% 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 (11%).


Next Steps

Past Performance

How has Meggitt performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGGT has high quality earnings.

Growing Profit Margin: MGGT's current net profit margins (9.8%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: MGGT's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: MGGT's earnings growth over the past year (24.4%) exceeds its 5-year average (3.2% per year).

Earnings vs Industry: MGGT earnings growth over the past year (24.4%) exceeded the Aerospace & Defense industry 12.4%.


Return on Equity

High ROE: MGGT's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Meggitt's financial position?


Financial Position Analysis

Short Term Liabilities: MGGT's short term assets (£1.1B) exceed its short term liabilities (£885.1M).

Long Term Liabilities: MGGT's short term assets (£1.1B) do not cover its long term liabilities (£1.4B).


Debt to Equity History and Analysis

Debt Level: MGGT's debt to equity ratio (37.2%) is considered satisfactory.

Reducing Debt: MGGT's debt to equity ratio has increased from 31.6% to 37.2% over the past 5 years.

Debt Coverage: MGGT's debt is well covered by operating cash flow (40.1%).

Interest Coverage: MGGT's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


Next Steps

Dividend

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

6.91%

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 payouts.

High Dividend: Unable to evaluate MGGT's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

2.3yrs

Average management tenure


CEO

Tony Wood

2.25s

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's total compensation ($USD2.69M) is above average for companies of similar size in the UK market ($USD1.85M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Wood
CEO & Director2.25yrsUK£2.20m0.0055% £107.4k
Louisa Burdett
CFO & Executive Director1.25yrsno data0.00071% £13.8k
Amir Allahverdi
Group Operations Directorno datano datano data
Keith Jackson
Chief Technology Officer7yrsno datano data
Andrew Garard
Group General Counsel & Director of Corporate Affairs0.58yrno datano data
Geoff Lloyd
Group Director of Human Resources2.58yrsno data0.00031% £6.0k
Chris Hopper
Senior Vice Presidentno datano datano data
Chris Bryant
Chief Procurement Officer2.33yrsno datano data
Robert Meyer
President & GM of Meggitt Thermal Systemsno datano datano data
Peter Huber
President of Meggitt Sensing Systemsno datano datano data

2.3yrs

Average Tenure

Experienced Management: MGGT's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Wood
CEO & Director2.25yrsUK£2.20m0.0055% £107.4k
Louisa Burdett
CFO & Executive Director1.25yrsno data0.00071% £13.8k
Guy Hachey
Independent Non-Executive Director1.25yrsno data0.00039% £7.6k
Colin Day
Independent Non-Executive Director4.5yrsno data0.0099% £192.8k
Anthony Rudd
Non-Executive Chairman5yrsno data0.032% £626.7k
Guy Berruyer
Senior Independent Director1yrno data0.0017% £32.6k
Nancy Gioia
Independent Non-Executive Director3yrsno data0.00041% £8.0k
Caroline Silver
Non-Executive Director1yrno datano data
Alison J. Goligher
Independent Non-Executive Director5.5yrsno data0.00039% £7.6k

3.0yrs

Average Tenure

64yo

Average Age

Experienced Board: MGGT's board of directors are considered experienced (3 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 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£1.942b
  • Shares outstanding: 774.47m
  • 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. The company operates through 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. The company also provides ammunition handling, thermal, weapon scoring, and weapon training systems; energy storage, power conversion and distribution, and power generation systems; ducting systems, engine composites, and flow control valves; and fire protection and controls comprising bleed air leak detection products, cables and clamps, electronic control units, fire and overheat detection products, and fire suppression products. In addition, it offers ground fuelling, and fuel systems and tanks; motion control actuators, electric motor drives, and electric motors; oxygen and specialty restraint safety systems; and accelerometers, ceramics, fluid sensors, magnetic and current sensors, position and inertial sensors, pressure sensors, speed sensors, and temperature sensors. Further, the company provides polymer seals; heat exchangers, printed circuit heat exchangers, thermal components, and thermal management systems; and live fire and virtual trainers, as well as aftermarket services. It serves aerospace, defense, and energy and equipment markets. The company was formerly known as Meggitt Holdings Public Limited Company and changed its name to Meggitt PLC in April 1989. Meggitt PLC was founded in 1947 and is based in Christchurch, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 21:16
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.