Morgan Advanced Materials (BA29) AI Stock Analysis

• Market Cap: £637.96M
• Dividend Yield: 5.37%
• Average Volume (3M): 133.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 8,694
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: N/A
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 133
• PEG Ratio: 0.06
• Price to Book (P/B): 0.61
• 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: 63 Neutral
• Price Target: 74.00p ▲(6.47%Upside)

The overall stock score reflects a mix of stable financial performance and concerning technical indicators. While consistent margins and cash flow management support financial stability, technical analysis suggests potential downward pressure. The absence of P/E data limits full valuation assessment, though the high dividend yield is a positive aspect.

Morgan Advanced Materials Business Overview & Revenue Model

Company Description

Morgan Advanced Materials is a global leader in advanced materials technology, specializing in the development and manufacturing of ceramic, carbon, and composite materials. The company operates across diverse sectors including aerospace, automotive, healthcare, electronics, and energy, providing innovative solutions that enhance performance and efficiency. Its core products include thermal ceramics, carbon and graphite components, and high-performance materials for critical applications.

How the Company Makes Money

Morgan Advanced Materials generates revenue through the sale of its specialized materials and components, which are integral to various high-performance applications. The company operates a business-to-business model, supplying its products directly to manufacturers and producers in industries such as aerospace, automotive, healthcare, and electronics. Key revenue streams include the production and sale of thermal management solutions, carbon and ceramic components, and bespoke engineered products. The company's earnings are bolstered by strategic partnerships and collaborations that facilitate innovation and entry into new markets, as well as long-term contracts with major industry players. Additionally, Morgan Advanced Materials invests in research and development to maintain its competitive edge and expand its product offerings, contributing to sustained revenue growth.

Morgan Advanced Materials Financial Statement Overview

Summary

Morgan Advanced Materials demonstrates stable profitability with consistent margins and a balanced asset structure. However, rising leverage and stagnant revenue growth could pose challenges. Positive cash flow management supports operational stability, but inconsistency in free cash flow growth highlights potential areas for improvement.

Income Statement

Morgan Advanced Materials shows consistent gross profit margins (~73-74%) over the years, indicating stable cost management. However, the revenue growth rate has been stagnant, with a slight decline in the most recent period. Net profit margins are modest at around 4-5%, with some improvement in EBIT and EBITDA margins, suggesting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is rising, indicating increasing leverage, which could pose financial risks. However, the equity ratio is stable at around 33-35%, showing a balanced asset structure. Return on equity has been fluctuating but remains positive, reflecting moderate profitability.

Cash Flow

The operating cash flow has improved significantly, but free cash flow growth is inconsistent, reflecting volatility in capital expenditures. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation relative to reported profits.

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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BA29, the sentiment is Positive. The current price of 69.5 is above the 20-day moving average (MA) of 68.63, above the 50-day MA of 67.05, and below the 200-day MA of 70.39, indicating a neutral trend. The MACD of 0.65 indicates Negative momentum. The RSI at 85.14 is Negative, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BA29.

Morgan Advanced Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	76 Outperform	£5.27B	22.25	23.50%	1.45%	0.64%	4.92%
GDWN	74 Outperform	£578.24M	29.64	16.39%	1.73%	3.13%	24.54%
SPX	74 Outperform	£4.55B	23.82	16.16%	2.83%	-1.03%	4.06%
ROR	74 Outperform	£2.69B	26.56	17.03%	2.30%	4.91%	-7.75%
BOY	71 Outperform	£1.07B	56.51	2.74%	3.95%	-5.66%	-76.42%
BA29	63 Neutral	£637.96M	―		5.37%	―	―
Sector *	57 Neutral	£2.58B	5.06	-9.48%	4.35%	5.28%	-6.27%