Morgan Advanced Materials (BA05) AI Stock Analysis

• Market Cap: £630.45M
• Dividend Yield: 519.34%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.53
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 8,694
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: N/A
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.06
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 57 Neutral
• Price Target: ―

Morgan Advanced Materials shows a stable financial performance with strong gross margins and healthy cash flows, but struggles with net profit margins. The technical analysis reveals a lack of momentum, suggesting neutral market sentiment. The absence of valuation metrics like P/E ratio and dividend yield complicates valuation assessment, thus impacting the overall score.

Morgan Advanced Materials Business Overview & Revenue Model

Company Description

Morgan Advanced Materials PLC is a U.K.-based company that manufactures a wide array of specialized and high-specification materials. The company's product line includes high-temperature insulation products used to reduce energy consumption, electrical carbon, linear and rotary transfer systems used for transferring electrical energy in motor and generator applications, seals and bearings, ceramic cores, piezoelectric sensors and transducers, crucibles, and others. The company's customers come from sectors including healthcare, petrochemical, transportation, electronics, energy, security and defense, and other industrial applications. Morgan Advanced Materials has a global presence, with the United States being the largest markets for the company.

How the Company Makes Money

Morgan Advanced Materials generates revenue through the sale of its specialized materials and components to a wide array of industries. The company's key revenue streams include its thermal products, which provide insulation and protection for high-temperature environments; carbon and technical ceramics, which are used for their wear resistance and electrical conductivity in various applications; and electrical carbon products, which are integral in power transmission and electrical applications. Significant partnerships and collaborations with industry leaders also contribute to Morgan's earnings, as does its investment in research and development to continually improve product offerings and meet the evolving needs of its clients.

Morgan Advanced Materials Financial Statement Overview

Summary

Morgan Advanced Materials presents a stable financial profile with strong gross margins and consistent revenue. The balance sheet shows moderate leverage, with a healthy equity ratio. Cash flows are robust, supporting net income effectively. However, the company faces challenges in improving net profit margins and enhancing free cash flow growth.

Income Statement

Morgan Advanced Materials demonstrates consistent revenue and gross profit levels, though recent growth is minimal. Gross profit margin remains robust at 73.9%, and EBIT margin is stable at 9.4%. However, net profit margin is relatively low at 4.6%, showing room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.11. Equity ratio stands at 32.8%, indicating a balanced capital structure. Return on equity is modest at 14.2%, suggesting efficient use of equity, albeit with higher debt levels.

Cash Flow

Operating cash flow is strong, covering net income well, with an operating cash flow to net income ratio of 2.25. Free cash flow remains positive, although showing a slight decline. The free cash flow to net income ratio is 0.34, indicating decent cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	572.60M	1.10B	1.11B	1.11B	950.50M	910.70M
Gross Profit	71.30M	813.20M	120.80M	808.00M	697.70M	665.50M
EBITDA	87.20M	152.30M	138.60M	185.20M	158.30M	47.70M
Net Income	37.40M	50.30M	47.30M	88.00M	73.80M	-20.00M
Balance Sheet
Total Assets	1.05B	1.08B	1.02B	1.02B	912.50M	930.50M
Cash, Cash Equivalents and Short-Term Investments	137.50M	118.60M	124.50M	117.70M	125.80M	146.90M
Total Debt	384.00M	393.70M	356.80M	318.10M	223.40M	303.00M
Total Liabilities	657.20M	687.80M	626.10M	590.70M	562.90M	690.50M
Stockholders Equity	357.60M	353.70M	360.30M	389.00M	310.60M	202.30M
Cash Flow
Free Cash Flow	-5.70M	17.20M	18.10M	-39.00M	73.80M	79.80M
Operating Cash Flow	40.20M	113.30M	78.50M	19.00M	105.40M	109.80M
Investing Cash Flow	-41.50M	-86.00M	-64.10M	-55.40M	-13.10M	-23.40M
Financing Cash Flow	-4.90M	-33.00M	-2.00M	23.40M	-112.20M	-69.60M

Morgan Advanced Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	81 Outperform	£5.46B	23.10	23.50%	1.03%	0.64%	4.92%
SMIN	79 Outperform	£7.62B	26.04	13.99%	1.92%	6.10%	33.05%
GDWN	74 Outperform	£561.72M	28.80	18.87%	1.78%	3.13%	24.54%
ROR	74 Outperform	£2.69B	26.58	17.03%	1.76%	4.91%	-7.75%
BOY	74 Outperform	£1.01B	53.67	4.10%	2.66%	-6.95%	-52.08%
BA05	57 Neutral	£630.45M	―		519.34%	―	―
Sector *	44 Neutral	AU$1.49B	-6.14	-41.46%	4.16%	-2.94%	-41.86%