LSE:MGNS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet, good value and pays a dividend.


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


Market Performance


7 Day Return

0.5%

LSE:MGNS

-0.6%

GB Construction

-0.02%

GB Market


1 Year Return

-16.6%

LSE:MGNS

-40.0%

GB Construction

-1.7%

GB Market

MGNS outperformed the Construction industry which returned -40.1% over the past year.

MGNS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2% over the past year.


Share holder returns

MGNSIndustryMarket
7 Day0.5%-0.6%-0.02%
30 Day-11.6%-11.1%1.4%
90 Day-14.7%-17.7%-0.4%
1 Year-13.1%-16.6%-37.1%-40.0%2.8%-1.7%
3 Year119.3%95.8%-22.0%-32.5%27.3%11.3%
5 Year71.6%42.7%-28.8%-46.7%34.4%6.7%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Morgan Sindall Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Morgan Sindall Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Morgan Sindall Group is good value based on earnings compared to the GB Construction industry average.

Morgan Sindall Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Morgan Sindall Group is poor value based on expected growth next year.


Price Based on Value of Assets

Morgan Sindall Group is overvalued based on assets compared to the GB Construction industry average.


Next Steps

Future Growth

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

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Morgan Sindall Group's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).

Morgan Sindall Group's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Morgan Sindall Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Morgan Sindall Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Morgan Sindall Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Morgan Sindall Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

38.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Morgan Sindall Group has delivered over 20% year on year earnings growth in the past 5 years.

Morgan Sindall Group's 1-year earnings growth is less than its 5-year average (27.5% vs 38.9%)

Morgan Sindall Group's earnings growth has exceeded the GB Construction industry average in the past year (27.5% vs 3.6%).


Return on Equity

Morgan Sindall Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Morgan Sindall Group used its assets less efficiently than the GB Construction industry average last year based on Return on Assets.


Return on Capital Employed

Morgan Sindall Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Morgan Sindall Group's financial position?


Financial Position Analysis

Morgan Sindall Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Morgan Sindall Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Morgan Sindall Group's level of debt (2.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (11.1% vs 2.9% today).

Debt is well covered by operating cash flow (720.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 20.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 95.7x debt.


Next Steps

Dividend

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

5.15%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Morgan Sindall Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).

Morgan Sindall Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

What is the CEO of Morgan Sindall Group's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

John Morgan (63yo)

6.7yrs

Tenure

UK£2,353,000

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

John's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.5yrs

Average Tenure

The average tenure for the Morgan Sindall Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.2yrs

Average Tenure

58.5yo

Average Age

The tenure for the Morgan Sindall Group board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellUK£503,87004 Mar 19
Stephen Crummett
EntityIndividual
Role
Finance Director & Director
Member of the Board of Directors
Shares38,172
Max PriceUK£13.20
SellUK£631,91004 Mar 19
John Morgan
EntityIndividual
Role
Founder
Member of the Board of Directors
Shares47,872
Max PriceUK£13.20
BuyUK£7,89216 Nov 18
Tracey Killen
EntityIndividual
Role
Member of the Board of Directors
Shares611
Max PriceUK£12.92

Ownership Breakdown


Management Team

  • Matt Crompton

    Managing Director of Urban Regeneration

  • Camilla Aitchison

    Director of People

  • Steve Crummett (54yo)

    Finance Director & Director

    • Tenure: 6.4yrs
    • Compensation: £1.87m
  • Pat Boyle

    Managing Director of Construction & Infrastructure’s construction Business

    • Tenure: 5.5yrs
  • Chris Booth

    Managing Director of Fit Out

    • Tenure: 6.5yrs
  • Martin Lubieniecki

    Managing Director of BakerHicks (design)

  • John Morgan (63yo)

    Founder

    • Tenure: 6.7yrs
    • Compensation: £2.35m
  • Les Turner

    Head of Supply Chain Utility Services - Construction and Infrastructure Division

  • Helen Mason

    General Counsel

  • Catherine Beaumont

    Communications Manager


Board Members

  • Steve Crummett (54yo)

    Finance Director & Director

    • Tenure: 6.4yrs
    • Compensation: £1.87m
  • Michael Findlay (51yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: £170.00k
  • David Lowden (62yo)

    Senior Independent Director

    • Tenure: 0.5yrs
    • Compensation: £16.00k
  • John Morgan (63yo)

    Founder

    • Tenure: 24.8yrs
    • Compensation: £2.35m
  • Malcolm Cooper (60yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: £58.00k
  • Tracey Killen (57yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: £46.00k

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£504.280m
  • Shares outstanding: 44.71m
  • Website: Click here

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, Partner ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/22 20:36
End of Day Share Price2019/07/22 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.