Morgan Advanced Materials (BA29) AI Stock Analysis

• Market Cap: £598.12M
• Dividend Yield: 536.96%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.24
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 8,694
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: N/A
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: £74.00
• Price Target Upside: 6.47% Upside
• Rating Consensus: Hold
• 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 design and manufacture of high-performance materials and components for various industries, including aerospace, defense, healthcare, and energy. The company operates across multiple sectors, providing innovative solutions such as ceramics, composites, and carbon products, which are essential in applications ranging from thermal management to electrical insulation and structural components.

How the Company Makes Money

Morgan Advanced Materials generates revenue through the sale of its advanced materials and components across several key sectors. The company's revenue model is primarily based on direct sales to industrial customers, as well as strategic partnerships with key players in various industries. Major revenue streams include the manufacture of high-performance ceramics for aerospace applications, carbon products for the energy sector, and specialized components for the healthcare industry. Additionally, the company benefits from long-term contracts and collaborations with major manufacturers, which provide a steady stream of income. Market demand for high-quality, durable materials that enhance product performance and sustainability also contributes significantly to Morgan's earnings.

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: Positive
• 200DMA: Negative
• MACD: Positive
• 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 69.50, above the 50-day MA of 69.15, and below the 200-day MA of 70.73, indicating a neutral trend. The MACD of 0.09 indicates Positive 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	75 Outperform	£5.74B	24.89	23.79%	1.38%	-0.32%	-3.96%
BOY	74 Outperform	£1.14B	40.96	4.10%	2.64%	-6.95%	-52.08%
ROR	74 Outperform	£2.93B	29.88	16.97%	1.88%	1.93%	-15.07%
GDWN	72 Outperform	£728.43M	29.65	18.87%	1.36%	14.88%	45.73%
SPX	71 Outperform	£5.34B	32.84	14.19%	2.25%	0.10%	-15.33%
BA29	63 Neutral	£598.12M	―		536.96%	―	―
Sector *	44 Neutral	AU$1.54B	-7.29	-18.84%	4.39%	-0.73%	-40.90%