Morgan Advanced Materials (BA29) AI Stock Analysis

• Market Cap: £597.44M
• Dividend Yield: 628.19%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 8,694
• Sector: Basic Materials
• Sector Strength: 60
• 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): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1

• 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.

Positive Factors

Operational Efficiency

Improved EBIT and EBITDA margins indicate enhanced operational efficiency, which can lead to better profitability and competitive positioning over the long term.

Cash Flow Management

Strong operating cash flow suggests effective cash management, ensuring liquidity and financial flexibility to support growth and investment initiatives.

Stable Gross Margins

Stable gross margins reflect effective cost management, providing a solid foundation for profitability and resilience against market fluctuations.

Negative Factors

Rising Leverage

Increasing leverage can heighten financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.

Stagnant Revenue Growth

Stagnant revenue growth may limit the company's ability to expand market share and enhance profitability, posing challenges to long-term growth prospects.

Inconsistent Free Cash Flow

Volatile free cash flow growth can hinder strategic investments and financial planning, affecting the company's ability to pursue long-term opportunities.

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 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 maintains stable gross profit margins and operational efficiency, reflected in EBIT and EBITDA improvements. Concerns stem from rising leverage and stagnant revenue growth, though positive cash flow management is a supportive factor.

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	244.70M	207.10M	184.00M
EBITDA	87.20M	152.30M	138.60M	183.80M	156.30M	44.50M
Net Income	37.40M	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	-5.70M	17.20M	18.10M	-37.40M	74.60M	80.70M
Operating Cash Flow	40.20M	113.30M	78.50M	20.60M	106.20M	110.70M
Investing Cash Flow	-41.50M	-86.00M	-64.10M	-57.00M	-13.90M	-27.10M
Financing Cash Flow	-4.90M	-33.00M	-2.00M	23.40M	-112.20M	-66.80M

Morgan Advanced Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.50
• 50DMA: Negative
• 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, below the 50-day MA of 69.50, and below the 200-day MA of 70.88, indicating a neutral trend. The MACD of 0.03 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	£5.65B	24.53	23.79%	1.40%	-0.32%	-3.96%
BOY	74 Outperform	£1.14B	40.93	4.10%	2.67%	-6.95%	-52.08%
ROR	74 Outperform	£2.89B	29.47	16.97%	1.92%	1.93%	-15.07%
GDWN	72 Outperform	£784.75M	31.94	18.87%	1.98%	14.88%	45.73%
SPX	71 Outperform	£5.19B	31.94	14.19%	2.37%	0.10%	-15.33%
BA29	63 Neutral	£597.44M	―		628.19%	―	―
Sector *	61 Neutral	$10.42B	7.39	-0.05%	2.86%	2.86%	-36.73%