LSE:MNG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

M&G plc, through its subsidiaries, engages in savings and investment businesses in the United Kingdom and internationally. More Details


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has M&G's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MNG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

MNG

-0.1%

GB Diversified Financial

-1.9%

GB Market


1 Year Return

-22.9%

MNG

-9.9%

GB Diversified Financial

-16.2%

GB Market

Return vs Industry: MNG underperformed the UK Diversified Financial industry which returned -5.1% over the past year.

Return vs Market: MNG underperformed the UK Market which returned -14.8% over the past year.


Shareholder returns

MNGIndustryMarket
7 Day-0.8%-0.1%-1.9%
30 Day10.8%11.7%0.7%
90 Day-4.7%7.4%-4.8%
1 Year-10.5%-22.9%-0.3%-9.9%-13.0%-16.2%
3 Yearn/a-2.5%-10.9%-9.4%-20.6%
5 Yearn/a244.9%179.1%13.5%-12.0%

Price Volatility Vs. Market

How volatile is M&G's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is M&G undervalued compared to its fair value and its price relative to the market?

24.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNG (£1.65) is trading below our estimate of fair value (£2.19)

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


Price To Earnings Ratio

PE vs Industry: MNG is good value based on its PE Ratio (3.9x) compared to the GB Diversified Financial industry average (9.5x).

PE vs Market: MNG is good value based on its PE Ratio (3.9x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MNG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MNG is good value based on its PB Ratio (0.8x) compared to the GB Diversified Financial industry average (1.1x).


Next Steps

Future Growth

How is M&G forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNG's earnings are forecast to decline over the next 3 years (-22.6% per year).

Earnings vs Market: MNG's earnings are forecast to decline over the next 3 years (-22.6% per year).

High Growth Earnings: MNG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MNG's revenue (10.2% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: MNG's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MNG's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has M&G performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNG has a large one-off loss of £1.1B impacting its June 30 2020 financial results.

Growing Profit Margin: MNG's current net profit margins (7.2%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: MNG's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: MNG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MNG had negative earnings growth (-28.7%) over the past year, making it difficult to compare to the Diversified Financial industry average (-26.5%).


Return on Equity

High ROE: MNG's Return on Equity (19.8%) is considered low.


Next Steps

Financial Health

How is M&G's financial position?


Financial Position Analysis

Short Term Liabilities: MNG's short term assets (£49.2B) exceed its short term liabilities (£15.5B).

Long Term Liabilities: MNG's short term assets (£49.2B) do not cover its long term liabilities (£201.5B).


Debt to Equity History and Analysis

Debt Level: MNG's debt to equity ratio (142.8%) is considered high.

Reducing Debt: Insufficient data to determine if MNG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MNG's debt is not well covered by operating cash flow (14%).

Interest Coverage: MNG's interest payments on its debt are well covered by EBIT (28.3x coverage).


Balance Sheet


Next Steps

Dividend

What is M&G current dividend yield, its reliability and sustainability?

7.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MNG's dividend (7.27%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: MNG's dividend (7.27%) is in the top 25% of dividend payers in the UK market (5.32%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MNG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MNG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.5%), MNG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MNG's dividends in 3 years are forecast to be covered by earnings (83.4% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

John Foley (62 yo)

3.17yrs

Tenure

UK£3,737,000

Compensation

Mr. John William Foley serves as a Director at M&G Group Limited. He serves as a Director at The Prudential Assurance Company Limited. He served as Chief Executive of M&G Prudential at Prudential plc since ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.91M) is above average for companies of similar size in the UK market ($USD2.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Foley
CEO & Director3.17yrsUK£3.74m0.021%
£ 889.1k
Clare Bousfield
CFO & Director1.75yrsUK£1.86m0.0042%
£ 178.5k
Roddy Thomson
Chief Operating Officer1.58yrsno datano data
Jonathan Daniels
Chief Investment Officer1.58yrsno datano data
Spencer Horgan
Director of Investor Relationsno datano datano data
Alan Porter
Group General Counsel & Company Secretary1.25yrsno datano data
Jonathan Miller
Head of External Communicationsno datano datano data
Irene Brown
Chief Human Resource Officer3.08yrsno datano data
William Nicoll
Head of Institutional Fixed Incomeno datano datano data
David Macmillan
Chief Customer & Distribution Officer1.33yrsno datano data
Jonathan Willcocks
Global Head of Asset Management Distributionno datano datano data
Graham Mason
Chief International Officer1.58yrsno datano data

1.6yrs

Average Tenure

56yo

Average Age

Experienced Management: MNG's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Foley
CEO & Director3.17yrsUK£3.74m0.021%
£ 889.1k
Clare Bousfield
CFO & Director1.75yrsUK£1.86m0.0042%
£ 178.5k
Massimo Tosato
Independent Non-Executive Director0.50yrno data0.0024%
£ 100.8k
Michael Evans
Independent Chair2yrsUK£450.70k0.0032%
£ 137.9k
Robin Lawther
Independent Non-Executive Director1.58yrsUK£101.10k0.00022%
£ 9.4k
Fiona Clutterbuck
Senior Independent Directorno datano datano data
Clive Adamson
Independent Non-Executive Director1.58yrsUK£146.60k0.00033%
£ 14.1k
Clare Thompson
Independent Non-Executive Director1.42yrsUK£98.50k0.00085%
£ 36.3k

1.6yrs

Average Tenure

62yo

Average Age

Experienced Board: MNG's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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

M&G plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: M&G plc
  • Ticker: MNG
  • Exchange: LSE
  • Founded: 2017
  • Industry: Other Diversified Financial Services
  • Sector: Diversified Financials
  • Market Cap: UK£4.270b
  • Shares outstanding: 2.59b
  • Website: https://global.mandg.com

Number of Employees


Location

  • M&G plc
  • 10 Fenchurch Avenue
  • London
  • Greater London
  • EC3M 5AG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNGLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2019
7MPBST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 2019
MNGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2019
MGPU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2019

Biography

M&G plc, through its subsidiaries, engages in savings and investment businesses in the United Kingdom and internationally. The company operates through two segments, Savings & Asset Management and Heritage ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 22:11
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.