Magontec Limited (MGL) AI Stock Analysis

• Market Cap: AU$12.53M
• Dividend Yield: N/A
• Average Volume (3M): 22.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -28.07%
• EPS Growth: -29.81%
• Country: AU
• Employees: 339
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.06
• Shares Outstanding: 56,961,826
• 10 Day Avg. Volume: 32,616
• 30 Day Avg. Volume: 22,596
• PEG Ratio: <0.01
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -5.04
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: AU$0.20 ▼(-12.61% Downside)

Magontec Limited's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and negative cash flow. While technical indicators show some positive trends, the negative P/E ratio and lack of dividend yield present valuation concerns. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Market Position

Being a global leader in specialty magnesium products, Magontec holds a strong market position, providing a competitive edge and potential for sustained demand in automotive and aerospace sectors.

Business Model Strength

The focus on direct sales to major manufacturers ensures stable revenue streams and long-term contracts, supporting business model resilience and reducing market volatility impact.

Strategic Partnerships

Strategic partnerships enhance product offerings and market reach, fostering innovation and expanding customer access, which is crucial for long-term growth and competitiveness.

Negative Factors

Revenue Decline

Significant revenue decline indicates challenges in maintaining market demand or competitive pricing, which could impact the company's ability to sustain operations and invest in growth.

Negative Cash Flow

Negative cash flow from operations suggests liquidity challenges and may limit the company's ability to invest in growth opportunities or manage financial obligations effectively.

Profitability Challenges

Deteriorating profit margins and negative net income highlight operational inefficiencies and cost management issues, which could affect long-term financial health and shareholder value.

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.76M	57.09M	102.36M	158.60M	115.15M	95.07M
Gross Profit	8.56M	9.55M	9.38M	38.59M	19.23M	12.16M
EBITDA	-4.76M	-3.21M	5.47M	27.26M	10.08M	1.07M
Net Income	-8.22M	-9.52M	466.00K	16.52M	5.01M	-717.00K
Balance Sheet
Total Assets	73.14M	70.59M	85.17M	96.32M	82.51M	75.03M
Cash, Cash Equivalents and Short-Term Investments	6.31M	7.75M	13.14M	11.26M	4.64M	4.96M
Total Debt	6.16M	2.26M	4.42M	9.55M	12.02M	17.16M
Total Liabilities	25.07M	20.59M	28.52M	40.20M	46.24M	46.13M
Stockholders Equity	48.06M	50.00M	56.65M	56.13M	36.27M	28.89M
Cash Flow
Free Cash Flow	-8.71M	-2.92M	7.43M	8.84M	4.94M	3.86M
Operating Cash Flow	-7.41M	-996.00K	11.40M	10.75M	5.82M	4.54M
Investing Cash Flow	-1.30M	-1.94M	-4.00M	-1.78M	-844.00K	-1.09M
Financing Cash Flow	4.00M	-2.85M	-5.54M	-2.35M	-5.66M	-2.79M

Magontec Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MGL, the sentiment is Neutral. The current price of 0.23 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.21, and above the 200-day MA of 0.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 65.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
MGL	51 Neutral	AU$12.53M	-1.86	-16.74%	―	-28.07%	-29.81%
EVG	49 Neutral	AU$18.49M	-3.33	-42.91%	―	―	-4.35%
OLY	48 Neutral	AU$8.36M	-1.52	-217.79%	―	―	43.46%
WIN	45 Neutral	AU$29.14M	-0.41	-121.41%	―	―	-1034.67%
CTN	45 Neutral	AU$8.96M	-2.13	-40.27%	―	―	-114.29%
VML	41 Neutral	AU$44.97M	-6.76	-5.81%	―	-67.81%	-244.10%

Magontec Limited Corporate Events

Magontec Limited Reports Strong Financial Performance for Q3 2025

Magontec Limited reported a significant improvement in its financial performance for the nine months ending September 2025, with a 20.1% increase in gross profit compared to the previous year. The company’s CCP division saw a notable rise in revenues and gross profit, driven by a recovery in magnesium alloy recycling volumes and the launch of a new electronic anode product series. Despite challenging economic conditions in its key markets, the company benefited from improved economic conditions and the absence of costs associated with the closure of its Chinese magnesium alloy plant. The positive cash generation in the third quarter and increased net assets per share highlight the company’s strengthening financial position.