Magontec Limited (MGL) AI Stock Analysis

• Market Cap: AU$10.54M
• Dividend Yield: 2.79%
• Average Volume (3M): 18.86K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: -29.47%
• EPS Growth: -2033.87%
• Country: AU
• Employees: 339
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Industrial Materials
• EPS (TTM): -0.12
• Shares Outstanding: 56,961,826
• 10 Day Avg. Volume: 7,584
• 30 Day Avg. Volume: 18,864
• PEG Ratio: -0.05
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.36
• 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

• Rating: 48 Neutral
• 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 Business Overview & Revenue Model

Company Description

Magontec 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 Money

Magontec 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.09M	102.36M	158.60M	115.15M	95.07M
Gross Profit	9.51M	19.22M	28.90M	10.66M	4.31M
EBITDA	-3.21M	3.21M	27.26M	10.08M	3.47M
Net Income	-9.52M	466.00K	16.52M	5.01M	-717.00K
Balance Sheet
Total Assets	70.59M	85.17M	96.32M	82.51M	75.03M
Cash, Cash Equivalents and Short-Term Investments	7.75M	13.14M	11.26M	4.64M	4.96M
Total Debt	2.26M	4.42M	9.55M	12.02M	17.16M
Total Liabilities	20.59M	28.52M	40.20M	46.24M	46.13M
Stockholders Equity	50.00M	56.65M	56.13M	36.27M	28.89M
Cash Flow
Free Cash Flow	-2.92M	7.43M	8.84M	4.94M	3.86M
Operating Cash Flow	-996.00K	11.40M	10.75M	5.82M	4.54M
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 Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WIN	51 Neutral	AU$10.45M	―	-118.63%	―	―	-1123.94%
MGL	48 Neutral	AU$10.54M	―	-17.85%	2.79%	-29.47%	-2033.87%
Sector *	43 Neutral	AU$1.42B	-6.13	-40.62%	4.05%	-4.78%	-42.91%
VML	43 Neutral	AU$10.61M	25.00	-4.50%	―	―	95.18%
CTN	42 Neutral	AU$9.70M	―	-42.30%	―	―	-66.67%
EVG	34 Underperform	AU$8.26M	―	-44.85%	―	―	-77.78%
OLY	26 Underperform	AU$15.46M	―	-146.25%	―	―	-68.70%

Magontec Limited Corporate Events

Magontec Limited Announces Director’s Interest Change

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

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

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

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.