LSE:MGNS

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Executive Summary

Morgan Sindall Group plc operates as a construction and regeneration company in the United Kingdom.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Morgan Sindall Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MGNS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.4%

MGNS

4.8%

GB Construction

5.5%

GB Market


1 Year Return

6.3%

MGNS

-21.5%

GB Construction

-9.2%

GB Market

Return vs Industry: MGNS exceeded the UK Construction industry which returned -21.7% over the past year.

Return vs Market: MGNS exceeded the UK Market which returned -10% over the past year.


Shareholder returns

MGNSIndustryMarket
7 Day7.4%4.8%5.5%
30 Day8.6%5.1%10.8%
90 Day-25.0%-8.9%-0.4%
1 Year8.4%6.3%-9.0%-21.5%-4.8%-9.2%
3 Year12.9%2.7%-36.5%-50.2%-0.8%-12.9%
5 Year79.8%51.7%-29.7%-52.0%18.1%-8.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Morgan Sindall Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGNS (£13.1) is trading below our estimate of fair value (£38.6)

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


Price To Earnings Ratio

PE vs Industry: MGNS is poor value based on its PE Ratio (8.3x) compared to the Construction industry average (8x).

PE vs Market: MGNS is good value based on its PE Ratio (8.3x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: MGNS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MGNS is overvalued based on its PB Ratio (1.5x) compared to the GB Construction industry average (1.2x).


Next Steps

Future Growth

How is Morgan Sindall Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGNS's forecast earnings growth (9.1% per year) is above the savings rate (1.2%).

Earnings vs Market: MGNS's earnings (9.1% per year) are forecast to grow slower than the UK market (21.2% per year).

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

Revenue vs Market: MGNS's revenue (0.5% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: MGNS's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGNS's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

How has Morgan Sindall Group performed over the past 5 years?

42.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGNS has a high level of non-cash earnings.

Growing Profit Margin: MGNS's current net profit margins (2.3%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: MGNS's earnings have grown significantly by 42.9% per year over the past 5 years.

Accelerating Growth: MGNS's earnings growth over the past year (6.6%) is below its 5-year average (42.9% per year).

Earnings vs Industry: MGNS earnings growth over the past year (6.6%) underperformed the Construction industry 11.3%.


Return on Equity

High ROE: MGNS's Return on Equity (17.9%) is considered low.


Next Steps

Financial Health

How is Morgan Sindall Group's financial position?


Financial Position Analysis

Short Term Liabilities: MGNS's short term assets (£993.3M) exceed its short term liabilities (£918.1M).

Long Term Liabilities: MGNS's short term assets (£993.3M) exceed its long term liabilities (£80.6M).


Debt to Equity History and Analysis

Debt Level: MGNS is debt free.

Reducing Debt: MGNS has no debt compared to 5 years ago when its debt to equity ratio was 12.2%.

Debt Coverage: MGNS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MGNS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Morgan Sindall Group's current dividend yield, its reliability and sustainability?

3.65%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

7.4yrs

Average management tenure


CEO

John Morgan (63yo)

7.58yrs

Tenure

UK£2,185,000

Compensation

Mr. John Christopher Morgan Founded Morgan Sindall Group plc and has been its Chief Executive Officer since November 6, 2012. Mr. Morgan served as the Chief Executive Officer of Morgan Sindall Plc from 199 ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.75M) is above average for companies of similar size in the UK market ($USD1.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Morgan
Founder7.58yrsUK£2.19m9.1% £53.8m
Stephen Crummett
Finance Director & Director7.33yrsUK£1.75m0.36% £2.2m
Helen Mason
General Counselno datano datano data
Catherine Beaumont
Communications Managerno datano datano data
Camilla Aitchison
Director of Peopleno datano datano data
Matthew Crompton
Managing Director of Muse Developments19.25yrsno datano data
Les Turner
Head of Supply Chain Utility Services - Construction and Infrastructure Divisionno datano datano data
Pat Boyle
Managing Director of Morgan Sindall Construction6.42yrsno datano data
Chris Booth
Managing Director of Overbury and Morgan Lovell7.42yrsno datano data
Martin Lubieniecki
Managing Director of Baker Hicksno datano datano data

7.4yrs

Average Tenure

Experienced Management: MGNS's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Morgan
Founder7.58yrsUK£2.19m9.1% £53.8m
Stephen Crummett
Finance Director & Director7.33yrsUK£1.75m0.36% £2.2m
Michael Findlay
Chairman3.67yrsUK£175.00k0.0092% £54.6k
David Lowden
Senior Independent Director1.42yrsUK£58.00k0.0089% £52.4k
Malcolm Cooper
Independent Non-Executive Director4.58yrsUK£68.00k0.022% £131.0k
Tracey Killen
Non-Executive Director3.08yrsUK£58.00k0.0014% £8.0k
Jen Tippin
Non-Executive Director0.25yrno datano data

3.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: MGNS'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: MGNS 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

Morgan Sindall Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Morgan Sindall Group plc
  • Ticker: MGNS
  • Exchange: LSE
  • Founded: 1953
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£591.402m
  • Shares outstanding: 45.15m
  • Website: https://www.morgansindall.com

Number of Employees


Location

  • Morgan Sindall Group plc
  • Kent House
  • 14-17 Market Place
  • London
  • Greater London
  • W1W 8AJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGNSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
MGNSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Morgan Sindall Group plc operates as a construction and regeneration company in the United Kingdom. The company operates in six divisions: Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, Urban Regeneration, and Investments. The Construction & Infrastructure division offers infrastructure services to highways, rail, aviation, energy, water, and nuclear markets; and construction services in education, healthcare, defence, commercial, industrial, leisure, and retail markets. This division also offers multi-disciplinary design and engineering consultancy services. The Fit Out division specializes in fit out and refurbishment projects in commercial, central, and local government offices, as well as education, and retail banking markets. This division also provides office interior design and build services. The Property Services division offers planned maintenance and responsive repair services to social housing and the public sector. The Partnership Housing division engages in the mixed-tenure development; building and developing homes for open market; sale and affordable rent; design and build contracting; and planned maintenance and refurbishment activities. The Urban Regeneration division works with landowners and public sector partners to transform the urban landscape through the development of multi-phase sites and mixed-use regeneration, including residential, commercial, retail, and leisure facilities. The Investments division provides opportunities across construction and regeneration activities. The company was incorporated in 1953 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 20:40
End of Day Share Price2020/06/05 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.