Magontec Limited (MGL) AI Stock Analysis

• Market Cap: AU$13.96M
• Dividend Yield: N/A
• Average Volume (3M): 22.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -28.07%
• EPS Growth: -29.81%
• Country: AU
• Employees: 339
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.03
• Shares Outstanding: 56,961,826
• 10 Day Avg. Volume: 32,616
• 30 Day Avg. Volume: 22,596
• PEG Ratio: 0.11
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -2.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): AU$88.10M

• Rating: 47 Neutral
• Price Target: AU$0.26 ▲(11.30% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by weak financial performance—continued losses, collapsing gross profit in 2025 despite higher revenue, and worsening negative free cash flow—plus higher debt increasing downside sensitivity. Technicals are mixed (neutral RSI but negative MACD and uneven moving-average positioning), and valuation is constrained by a negative P/E with no dividend yield provided.

Positive Factors

Specialized magnesium product business

Magontec's core business supplying magnesium alloys to die-casting and lightweight metal applications targets structural end-markets (automotive, industrial). This vertical specialization supports durable customer relationships, technical know-how, and relevance from ongoing lightweighting trends.

2025 top-line recovery

A strong revenue rebound in 2025 (+43%) shows the company can regain volumes and market access after downturns. Restored scale reduces per-unit fixed costs and is a necessary condition for durable profit recovery if margins and cash conversion can be improved.

Historically serviceable balance sheet

The balance sheet has been described as serviceable with historically moderate leverage, which gives the company flexibility to manage cyclicality. That prior conservatism can allow access to financing or time to execute restructuring without immediate solvency pressure if operations recover.

Negative Factors

Worsening cash generation

Operating and free cash flow turned negative and deteriorated further in 2025, with FCF down ~30% year over year. Persistent cash burn forces reliance on external funding or working-capital fixes, raising refinancing risk and constraining investment and operational flexibility.

Collapsed gross profit and persistent losses

Gross profit collapsed in 2025 and the company remained loss-making across EBIT/EBITDA and net income in 2024–2025. Weak margin resilience undermines the firm's ability to self-fund, hampers reinvestment, and makes a sustainable turnaround dependent on material-cost or pricing improvements.

Rising leverage and equity erosion

Debt increased materially in 2025 (roughly ~2.3m to ~9.0m) while equity declined, raising downside sensitivity. Higher leverage combined with ongoing losses elevates solvency and refinancing risks, reduces strategic flexibility, and magnifies the damage from another demand or cost shock.

Magontec Limited Business Overview & Revenue Model

Company Description

Magontec 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 Money

Magontec Limited generates revenue primarily through the sale of specialty magnesium products, including magnesium alloys and pure magnesium materials. The company's revenue model is built on direct sales to manufacturers in the automotive and aerospace sectors, where magnesium is increasingly used to reduce weight and improve fuel efficiency in vehicles and aircraft. Key revenue streams include long-term contracts with major automotive manufacturers, which provide a stable income base, and spot market sales for immediate delivery needs. Additionally, Magontec benefits from strategic partnerships with suppliers and research institutions that enhance its product offerings and market reach, ultimately contributing to its earnings through innovation and expanded customer access.

Magontec Limited Financial Statement Overview

Summary

Financial performance is weak overall: profitability has not recovered despite a strong 2025 revenue rebound, with negative EBIT/EBITDA and net losses persisting. Cash flow is the main pressure point with negative operating and free cash flow in 2024–2025 and worsening burn in 2025. The balance sheet is still serviceable, but debt rose sharply in 2025 while equity drifted lower, increasing risk if operations do not improve.

Income Statement

Results have deteriorated meaningfully from the 2022 peak: revenue fell sharply in 2023–2024 before rebounding strongly in 2025 (+43%), but profitability has not recovered. Gross profit collapsed in 2025 (very low gross profit dollars versus revenue), and the company remains loss-making with negative EBIT/EBITDA and net income in both 2024 and 2025 (though the net loss narrowed versus 2024). Overall, the trajectory shows high cyclicality and weak margin resilience despite the latest top-line bounce.

Balance Sheet

Leverage is still moderate relative to equity historically (debt-to-equity was low in 2023–2024), which provides some balance sheet flexibility. However, debt rose sharply in 2025 (from ~2.3m to ~9.0m) while equity drifted lower versus prior years, and returns on equity have swung from strong (2021–2022) to negative (2024). Net-net, the balance sheet looks serviceable, but the recent uptick in borrowing alongside ongoing losses increases risk if operating conditions do not improve.

Cash Flow

Cash generation weakened substantially: operating cash flow and free cash flow were strongly positive in 2022–2023, but both turned negative in 2024 and worsened further in 2025 (free cash flow down ~30% year over year). With losses persisting and cash burn increasing, the company appears more dependent on external funding or working-capital normalization to stabilize liquidity, making cash flow the key pressure point in the statements.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.12M	57.09M	102.36M	158.60M	115.15M
Gross Profit	1.24M	9.55M	9.38M	38.59M	19.23M
EBITDA	-4.71M	-3.21M	5.47M	27.26M	10.08M
Net Income	-5.40M	-9.52M	466.00K	16.52M	5.01M
Balance Sheet
Total Assets	72.73M	70.59M	85.17M	96.32M	82.51M
Cash, Cash Equivalents and Short-Term Investments	7.15M	7.75M	13.14M	11.26M	4.64M
Total Debt	9.02M	2.26M	4.42M	9.55M	12.02M
Total Liabilities	26.01M	20.59M	28.52M	40.20M	46.24M
Stockholders Equity	46.72M	50.00M	56.65M	56.13M	36.27M
Cash Flow
Free Cash Flow	-6.12M	-2.92M	7.43M	8.84M	4.94M
Operating Cash Flow	-3.52M	-996.00K	11.40M	10.75M	5.82M
Investing Cash Flow	-2.46M	-1.94M	-4.00M	-1.78M	-844.00K
Financing Cash Flow	5.59M	-2.85M	-5.54M	-2.35M	-5.66M

Magontec Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.23 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.23, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 91.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MGL.

Magontec Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EVG	48 Neutral	AU$16.75M	-1.78	-42.91%	―	―	-4.35%
MGL	47 Neutral	AU$13.96M	-2.58	-16.74%	―	-28.07%	-29.81%
OLY	46 Neutral	AU$8.53M	-0.86	-217.79%	―	―	43.46%
WIN	45 Neutral	AU$24.01M	-0.24	-121.41%	―	―	-1034.67%
CTN	45 Neutral	AU$11.53M	-76.67	-40.27%	―	―	-114.29%
VML	41 Neutral	AU$39.05M	-3.56	-5.81%	―	-67.81%	-244.10%

Magontec Limited Corporate Events

Magontec Files Appendix 4G, Confirms Full Compliance With ASX Governance Standards

Magontec Limited has lodged its annual Appendix 4G with the ASX for the financial year ended 31 December 2025, confirming that its detailed corporate governance statement is available on the company’s website and has been approved by the board as at 24 February 2026. The filing indicates Magontec reports full compliance with key ASX Corporate Governance Council recommendations, including board accountability, director appointment processes, and clear delineation of management responsibilities, underscoring its focus on governance transparency and regulatory alignment for investors and other stakeholders.

The most recent analyst rating on (AU:MGL) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Magontec Limited stock, see the AU:MGL Stock Forecast page.

Magontec Outlines 2025 Governance Framework and ASX Compliance Position

Magontec Limited has released its 2025 Corporate Governance Statement, underscoring a strong commitment to high governance standards as a foundation for long-term sustainability and shareholder value. The company highlights its oversight structure, including three independently chaired committees and a suite of publicly available policies addressing whistleblowing, continuous disclosure, diversity and inclusion, and risk management.

The statement details Magontec’s compliance with the ASX Corporate Governance Principles and Recommendations (4th Edition) as at 31 December 2025, confirming adherence to most guidelines while noting partial non-compliance on having a formal diversity policy with measurable objectives and on the independence of the board chair. The board argues some recommendations are not fully applicable to a company of its size, providing rationale for deviations that may influence investor perceptions of governance robustness and board independence.

The most recent analyst rating on (AU:MGL) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Magontec Limited stock, see the AU:MGL Stock Forecast page.

Magontec lifts gross profit and net assets despite ongoing losses

Magontec reported a 10.8% rise in full-year 2025 gross profit to $11.9 million, driven largely by stronger performance in its anodes segment and improved gross margin to 18.5%. However, the company remained loss-making at the bottom line, with underlying NPAT from continuing operations at a $4.48 million loss and underlying operating cash flow showing a $2.2 million outflow.

A key balance sheet development was the buyback and cancellation of QSLM’s 28.5% shareholding, which helped lift net assets by 30.7% to 82 cents per share and left Magontec with modest net debt of $1.0 million and a low 2.2% gearing ratio. Trading conditions improved in the second half of 2025 on rising metal volumes and the release of an upgraded electronic CCP product, signalling operational momentum despite ongoing earnings and cash flow challenges.

The most recent analyst rating on (AU:MGL) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Magontec Limited stock, see the AU:MGL Stock Forecast page.

Magontec Posts 2025 Loss as Revenue Falls and Dividend Remains Suspended

Magontec Limited has lodged its final audited annual report for the year ended 31 December 2025 with the ASX, showing gross revenue of $64.3 million, down 10.9% from the prior year. The company reported a net loss attributable to members of $5.4 million and declared no dividend for 2025, continuing the prior year’s position, indicating ongoing earnings pressure and a focus on capital preservation rather than shareholder distributions.

Management directed investors to the full 2025 audited annual report for detailed commentary on operating performance and drivers of the result. The absence of a dividend, combined with the decline in revenue and loss outcome, suggests challenging trading conditions and may prompt investors to scrutinise the company’s strategic response and prospects for returning to profitability.

The most recent analyst rating on (AU:MGL) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Magontec Limited stock, see the AU:MGL Stock Forecast page.