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MGNS

Morgan Sindall GroupLSE:MGNS Stock Report

Last Price

UK£22.25

Market Cap

UK£1.0b

7D

-4.9%

1Y

46.2%

Updated

21 Jan, 2022

Data

Company Financials +
MGNS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends4/6

MGNS Stock Overview

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

Morgan Sindall Group Competitors

Balfour Beatty

LSE:BBY

UK£1.7b

Kier Group

LSE:KIE

UK£467.9m

Galliford Try Holdings

LSE:GFRD

UK£192.9m

Costain Group

LSE:COST

UK£133.9m

Price History & Performance

Summary of all time highs, changes and price drops for Morgan Sindall Group
Historical stock prices
Current Share PriceUK£22.25
52 Week HighUK£27.30
52 Week LowUK£13.88
Beta1.4
1 Month Change-9.92%
3 Month Change-2.63%
1 Year Change46.19%
3 Year Change99.02%
5 Year Change170.68%
Change since IPO1,403.38%

Recent News & Updates

Jan 11
Is It Time To Consider Buying Morgan Sindall Group plc (LON:MGNS)?

Is It Time To Consider Buying Morgan Sindall Group plc (LON:MGNS)?

Morgan Sindall Group plc ( LON:MGNS ), might not be a large cap stock, but it received a lot of attention from a...

Dec 19
These 4 Measures Indicate That Morgan Sindall Group (LON:MGNS) Is Using Debt Safely

These 4 Measures Indicate That Morgan Sindall Group (LON:MGNS) Is Using Debt Safely

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Sep 29
Investors Will Want Morgan Sindall Group's (LON:MGNS) Growth In ROCE To Persist

Investors Will Want Morgan Sindall Group's (LON:MGNS) Growth In ROCE To Persist

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

Sep 06
Is Now An Opportune Moment To Examine Morgan Sindall Group plc (LON:MGNS)?

Is Now An Opportune Moment To Examine Morgan Sindall Group plc (LON:MGNS)?

Morgan Sindall Group plc ( LON:MGNS ), is not the largest company out there, but it led the LSE gainers with a...

Shareholder Returns

MGNSGB ConstructionGB Market
7D-4.9%-2.8%-1.3%
1Y46.2%13.6%7.8%

Return vs Industry: MGNS exceeded the UK Construction industry which returned 14.2% over the past year.

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

Price Volatility

Is MGNS's price volatile compared to industry and market?
MGNS volatility
MGNS Average Weekly Movement3.5%
Construction Industry Average Movement4.2%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.5%

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

Volatility Over Time: MGNS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19536,600John Morganhttps://www.morgansindall.com

Morgan Sindall Group plc operates as a construction and regeneration company in the United Kingdom. It operates through Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, and Urban Regeneration divisions. The Construction & Infrastructure division provides infrastructure services to highways, rail, aviation, energy, water, and nuclear markets; and construction services in education, healthcare, commercial, defense, industrial, leisure, and retail markets.

Morgan Sindall Group Fundamentals Summary

How do Morgan Sindall Group's earnings and revenue compare to its market cap?
MGNS fundamental statistics
Market CapUK£1.03b
Earnings (TTM)UK£75.10m
Revenue (TTM)UK£3.23b

13.7x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGNS income statement (TTM)
RevenueUK£3.23b
Cost of RevenueUK£2.88b
Gross ProfitUK£353.60m
ExpensesUK£278.50m
EarningsUK£75.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)1.63
Gross Margin10.95%
Net Profit Margin2.33%
Debt/Equity Ratio17.3%

How did MGNS perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

43%

Payout Ratio

Valuation

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

13.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGNS (£22.25) is trading above our estimate of fair value (£17.26)

Significantly Below Fair Value: MGNS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MGNS is good value based on its PE Ratio (13.7x) compared to the UK Construction industry average (18.8x).

PE vs Market: MGNS is good value based on its PE Ratio (13.7x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: MGNS is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: MGNS is overvalued based on its PB Ratio (2.3x) compared to the GB Construction industry average (1.3x).


Future Growth

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

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGNS's forecast earnings growth (8.5% per year) is above the savings rate (0.9%).

Earnings vs Market: MGNS's earnings (8.5% per year) are forecast to grow slower than the UK market (12.1% per year).

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

Revenue vs Market: MGNS's revenue (0.9% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: MGNS's revenue (0.9% 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 (18.3%).


Past Performance

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

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGNS has high quality earnings.

Growing Profit Margin: MGNS's current net profit margins (2.3%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: MGNS's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: MGNS's earnings growth over the past year (40.1%) exceeds its 5-year average (11.5% per year).

Earnings vs Industry: MGNS earnings growth over the past year (40.1%) exceeded the Construction industry 7.1%.


Return on Equity

High ROE: MGNS's Return on Equity (16.9%) is considered low.


Financial Health

How is Morgan Sindall Group's financial position?


Financial Position Analysis

Short Term Liabilities: MGNS's short term assets (£1.2B) exceed its short term liabilities (£1.0B).

Long Term Liabilities: MGNS's short term assets (£1.2B) exceed its long term liabilities (£80.3M).


Debt to Equity History and Analysis

Debt Level: MGNS has more cash than its total debt.

Reducing Debt: MGNS's debt to equity ratio has reduced from 21% to 17.3% over the past 5 years.

Debt Coverage: MGNS's debt is well covered by operating cash flow (309.1%).

Interest Coverage: MGNS's interest payments on its debt are well covered by EBIT (28.9x coverage).


Balance Sheet


Dividend

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

3.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGNS's dividend (3.15%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: MGNS's dividend (3.15%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


Stability and Growth of Payments

Stable Dividend: MGNS's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.8%), MGNS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGNS's dividends in 3 years are forecast to be well covered by earnings (44.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure


CEO

John Morgan (65 yo)

45yrs

Tenure

UK£936,000

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 ($USD1.27M) is about average for companies of similar size in the UK market ($USD1.55M).

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


Leadership Team

Experienced Management: MGNS's management team is seasoned and experienced (9 years average tenure).


Board Members

Experienced Board: MGNS's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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
  • Implied Market Cap: UK£1.026b
  • Shares outstanding: 46.10m
  • 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


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.