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Magontec Limited (AU:MGL)
ASX:MGL
Australian Market

Magontec Limited (MGL) AI Stock Analysis

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AU

Magontec Limited

(Sydney:MGL)

Rating:48Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The overall stock score reflects significant financial performance challenges, including negative profitability and cash flow issues. Technical analysis indicates a bearish trend with mixed momentum signals. The valuation is unattractive due to the negative P/E ratio and lack of dividend yield.

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

Magontec Limited Business Overview & Revenue Model

Company DescriptionMagontec Limited (MGL) is a global leader in the production and supply of magnesium alloys and anodes, serving a diverse range of industries including automotive, aerospace, and electronics. Headquartered in Australia, the company operates through several key manufacturing plants in Europe and China. Magontec is recognized for its innovative solutions in magnesium technology, focusing on sustainability and efficiency to meet the evolving demands of its customers worldwide.
How the Company Makes MoneyMagontec Limited makes money primarily through the production and sale of magnesium alloys and anodes. The company's revenue streams are diversified across its different product lines, including advanced magnesium alloys used in automotive and aerospace applications, as well as magnesium anodes used in water heater systems and other industrial applications. Magontec benefits from strategic partnerships with major global manufacturers, enabling it to secure long-term supply contracts and enhance its market reach. Additionally, the company's focus on sustainable and efficient production processes allows it to capitalize on the growing demand for eco-friendly materials, thus contributing positively to its earnings.

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 Profit9.51M19.22M28.90M10.66M4.31M
EBITDA-3.21M3.21M27.26M10.08M3.47M
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
Negative
Last Price0.18
Price Trends
50DMA
0.20
Negative
100DMA
0.20
Negative
200DMA
0.20
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
37.74
Neutral
STOCH
-12.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MGL, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.20, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.74 is Neutral, neither overbought nor oversold. The STOCH value of -12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:MGL.

Magontec Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUWIN
51
Neutral
AU$10.45M-118.63%-1123.94%
AUMGL
48
Neutral
AU$10.54M-17.85%2.79%-29.47%-2033.87%
43
Neutral
AU$1.42B-6.13-40.62%4.05%-4.78%-42.91%
AUVML
43
Neutral
AU$10.61M25.00-4.50%95.18%
AUCTN
42
Neutral
AU$9.70M-42.30%-66.67%
AUEVG
34
Underperform
AU$8.26M-44.85%-77.78%
AUOLY
26
Underperform
AU$15.46M-146.25%-68.70%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MGL
Magontec Limited
0.18
-0.12
-40.00%
AU:WIN
Widgie Nickel Limited
0.02
0.00
0.00%
AU:EVG
BlackEarth Minerals NL
0.02
0.00
0.00%
AU:OLY
CropLogic Ltd.
0.15
0.10
200.00%
AU:VML
Vital Metals Ltd
0.09
0.03
50.00%
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: Jun 17, 2025