Morgan Advanced Materials (BA05) AI Stock Analysis

• Market Cap: £559.38M
• Dividend Yield: 608.88%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 8,694
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: N/A
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00206
• P/FCF Ratio: 0.13
• 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: 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.

Positive Factors

Strong Gross Margins

High gross margins indicate effective cost management and pricing power, which can support profitability and competitive positioning over time.

Robust Cash Flow

Strong operating cash flow suggests effective cash generation, providing the company with flexibility to invest in growth opportunities and manage debt.

Diverse Revenue Streams

Diverse revenue streams across multiple sectors reduce dependency on a single market, enhancing resilience against industry-specific downturns.

Negative Factors

Low Net Profit Margins

Low net profit margins suggest challenges in converting revenue into profit, which may impact long-term profitability and shareholder returns.

Moderate Leverage

Moderate leverage indicates reliance on debt, which can limit financial flexibility and increase risk during economic downturns.

Declining Free Cash Flow

A decline in free cash flow may restrict the company's ability to invest in growth initiatives and return capital to shareholders, impacting long-term growth prospects.

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 advanced materials and components across multiple sectors. The company’s key revenue streams are derived from its diverse product offerings, including high-performance ceramics for aerospace and defense applications, thermal management solutions for energy and industrial markets, and carbon and graphite materials used in electrical applications. The company also benefits from long-term contracts and partnerships with major players in the aerospace, automotive, and energy sectors, which provide stability and recurring revenue. Additionally, Morgan Advanced Materials invests in research and development to innovate new products, ensuring they meet the evolving needs of their customers, which further contributes to their earnings.

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	1.13B	1.10B	1.11B	1.11B	950.50M	910.70M
Gross Profit	134.60M	813.20M	120.80M	244.70M	207.10M	184.00M
EBITDA	167.50M	150.60M	138.60M	183.80M	156.30M	44.50M
Net Income	69.90M	50.30M	47.30M	88.00M	73.80M	-22.50M
Balance Sheet
Total Assets	1.05B	1.08B	1.02B	1.03B	925.40M	945.00M
Cash, Cash Equivalents and Short-Term Investments	116.60M	118.60M	124.50M	117.70M	127.30M	147.80M
Total Debt	387.10M	393.70M	356.80M	318.10M	223.80M	303.40M
Total Liabilities	642.10M	687.80M	626.10M	602.30M	575.80M	705.00M
Stockholders Equity	374.70M	353.70M	360.30M	389.00M	310.60M	202.30M
Cash Flow
Free Cash Flow	48.80M	17.20M	18.10M	-37.40M	74.60M	80.70M
Operating Cash Flow	131.10M	113.30M	78.50M	20.60M	106.20M	110.70M
Investing Cash Flow	-81.40M	-86.00M	-64.10M	-57.00M	-13.90M	-27.10M
Financing Cash Flow	-69.30M	-33.00M	-2.00M	23.40M	-112.20M	-66.80M

Morgan Advanced Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	75 Outperform	£5.79B	25.13	23.79%	1.31%	-0.32%	-3.96%
GDWN	73 Outperform	£1.70B	69.38	18.87%	0.96%	14.88%	45.73%
SMIN	68 Neutral	£7.83B	28.35	12.85%	1.89%	-6.93%	18.57%
ROR	66 Neutral	£2.80B	28.71	16.97%	1.96%	1.93%	-15.07%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BA05	57 Neutral	£559.38M	―	―	608.88%	―	―
BOY	55 Neutral	£1.07B	38.73	4.10%	2.99%	-6.95%	-52.08%