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Magontec Limited (AU:MGL)
ASX:MGL
Australian Market
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Magontec Limited (MGL) AI Stock Analysis

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AU:MGL

Magontec Limited

(Sydney:MGL)

Rating:53Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The stock's overall score is primarily weighed down by poor financial performance and valuation concerns, particularly the negative earnings and cash flow. While technical indicators provide some support with mixed signals, the lack of positive earnings and absence of dividend yield are significant detractors.

Magontec Limited (MGL) vs. iShares MSCI Australia ETF (EWA)

Magontec Limited Business Overview & Revenue Model

Company DescriptionMagontec Limited, together with its subsidiaries, engages in the research, development, manufacture, and sale of generic and specialist alloys in Asia, the Americas, Europe, and internationally. The company manufactures and distributes magnesium and titanium cathodic corrosion protection (CCP) products, such as HyTonic anodes, Correx impressed current systems, CorroScout measuring systems, and S-Patron intelligent measuring and control systems for use in water storage vessels. It also recycles magnesium alloys. The company was formerly known as Advanced Magnesium Limited and changed its name to Magontec Limited in November 2011. Magontec Limited was founded in 1953 and is headquartered in Potts Point, Australia.
How the Company Makes MoneyMagontec Limited generates revenue primarily through the sale of its magnesium alloy products and corrosion protection solutions. The company capitalizes on the demand for lightweight materials in the automotive and electronics industries, offering products that enhance fuel efficiency and performance. Key revenue streams include contracts with automotive manufacturers and suppliers who require magnesium alloys for vehicle parts, as well as electronics companies that use these materials in their products. Additionally, the company's anode products are sold to various sectors needing corrosion protection solutions, thereby broadening its market reach. Significant partnerships with industry leaders and long-term supply agreements also contribute to Magontec's financial performance, ensuring a steady flow of income.

Magontec Limited Financial Statement Overview

Summary
Magontec Limited faces substantial challenges with declining revenues and profitability, as reflected in the negative net income and deteriorating cash flow. The balance sheet remains relatively solid, but the company's ability to return to growth and improve cash flow generation is critical for future stability.
Income Statement
45
Neutral
The company's revenue has shown significant volatility, with a sharp decline in the most recent period. Gross profit margin and net profit margin have deteriorated, with net income turning negative. The decline in EBIT and EBITDA margins indicates operational challenges in the latest year.
Balance Sheet
60
Neutral
The balance sheet exhibits a relatively healthy equity ratio, indicating strong equity financing. However, the decline in stockholders' equity and return on equity due to recent losses poses concerns about long-term sustainability.
Cash Flow
40
Negative
Cash flow from operations has significantly declined, leading to negative free cash flow in the latest year. The inability to generate positive operating cash flow raises concerns about financial stability and liquidity management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue57.09M102.36M158.60M115.15M95.07M
Gross Profit10.31M9.38M28.90M10.66M12.16M
EBITDA-3.21M3.21M27.26M10.08M1.07M
Net Income-9.52M466.00K16.52M5.01M-717.00K
Balance Sheet
Total Assets70.59M85.17M96.32M82.51M75.03M
Cash, Cash Equivalents and Short-Term Investments7.75M13.14M11.26M4.64M4.96M
Total Debt2.26M4.42M9.55M12.02M17.16M
Total Liabilities20.59M28.52M40.20M46.24M46.13M
Stockholders Equity50.00M56.65M56.13M36.27M28.89M
Cash Flow
Free Cash Flow-2.92M7.43M8.84M4.94M3.86M
Operating Cash Flow-996.00K11.40M10.75M5.82M4.54M
Investing Cash Flow-1.94M-4.00M-1.78M-844.00K-1.09M
Financing Cash Flow-2.85M-5.54M-2.35M-5.66M-2.79M

Magontec Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.20
Price Trends
50DMA
0.19
Positive
100DMA
0.20
Positive
200DMA
0.20
Negative
Market Momentum
MACD
<0.01
Negative
RSI
62.21
Neutral
STOCH
52.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MGL, the sentiment is Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.19, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MGL.

Magontec Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
AU$11.39M-17.85%2.79%-29.47%-2033.87%
51
Neutral
AU$11.55M-118.63%-1123.94%
44
Neutral
AU$1.51B-6.22-41.37%3.85%-3.52%-43.04%
43
Neutral
AU$11.79M25.00-4.50%95.18%
42
Neutral
AU$9.70M-42.30%-66.67%
34
Underperform
AU$14.13M-44.85%-77.78%
26
Underperform
AU$17.01M-146.25%-68.70%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MGL
Magontec Limited
0.20
-0.06
-23.08%
AU:WIN
Widgie Nickel Limited
0.02
0.00
0.00%
AU:EVG
BlackEarth Minerals NL
0.03
<0.01
50.00%
AU:OLY
CropLogic Ltd.
0.16
0.12
300.00%
AU:VML
Vital Metals Ltd
0.10
0.04
66.67%
AU:CTN
Shree Minerals Limited

Magontec Limited Corporate Events

Magontec Limited Announces Director’s Interest Change
May 23, 2025

Magontec Limited announced a change in the director’s interest, specifically regarding Nicholas William Andrews. The change involves an increase in unlisted performance rights, which are part of Mr. Andrews’ variable remuneration package approved at the recent AGM. This adjustment in securities holdings reflects the company’s ongoing commitment to aligning executive compensation with performance metrics, potentially impacting stakeholder perceptions positively.

Magontec Limited’s AGM Highlights Strategic Focus and Shareholder Alignment
May 20, 2025

Magontec Limited held its 42nd Annual General Meeting, where key topics included the approval of a share buyback from Qinghai Salt Lake Magnesium Co Ltd and the company’s strategic focus for 2025. The meeting also covered formal business such as the adoption of the remuneration report and the re-election of a director, with no objections or questions raised by shareholders, indicating smooth proceedings and shareholder alignment with the company’s direction.

Magontec Limited Announces Successful AGM Resolutions
May 7, 2025

Magontec Limited held its Annual General Meeting on May 7, 2025, where all resolutions were passed by a poll. The successful resolutions included the re-election of directors and the approval of performance rights for the Executive Director and CEO, indicating strong shareholder support and potentially positive implications for the company’s governance and strategic direction.

Magontec Restructures Shareholding, Eyes Future Growth
May 7, 2025

Magontec Limited’s recent AGM highlighted a significant shift in its shareholder structure following the buyback and cancellation of shares held by Qinghai Salt Lake Magnesium Co Ltd, reducing shares by 28.5% and increasing ownership for remaining shareholders by 40%. This strategic move allows the company to focus on future business activities, despite a slight decline in gross profit for the first quarter of 2025 compared to the previous year.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025