Morgan Advanced Materials PLC (GB:BA29)
LSE:BA29
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Morgan Advanced Materials
(LSE:BA29)
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Rating:63Neutral
Price Target:
74.00 p
▲(6.47% Upside)
Action:ReiteratedDate:06/24/25
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.
Negative Factors
Rising Leverage
Increasing leverage can heighten financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Morgan Advanced Materials (BA29) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£603.97M
Dividend Yield628.19%
Average Volume (3M)1.50K
Price to Earnings (P/E)<0.1
Beta (1Y)-0.21
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees8,694
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume0
30 Day Avg. Volume1,500
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00197
P/FCF Ratio0.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, elect...
How the Company Makes Money
Morgan Advanced Materials generates revenue primarily through the sale of its advanced materials and engineered solutions across several key sectors. The company has a diversified revenue model that includes the sale of high-performance products s...
Morgan Advanced Materials Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Neutral
Mixed but balanced. The company delivered a resilient margin (9.6%) and positive free cash flow (GBP 45m) despite a 3.3% organic revenue decline and a ~6.7% volume drop driven by semiconductor weakness. Management has stabilized H2 performance, realized tangible simplification and procurement benefits, and identified clear strategic actions (sale of MMS, strategic review of Thermal Products) with targeted margin uplift (c.12% EBITDA by 2028). However, near‑term headwinds remain: semiconductor impairment (GBP 15.6m), substantial specific adjusting items (GBP 47.6m), Thermal Products operational and regional weaknesses, inflation outpacing pricing, and leverage above the target range (~1.8x). The outlook implies gradual improvement (2026 margin ~10% and 1%–2% organic market growth) while the group executes transformation and portfolio optimization.Positive Updates
Resilient headline profit and margin
Headline adjusted operating profit of GBP 99.1m with an adjusted operating margin of 9.6%, delivered despite challenging end markets and volume pressure.
Negative Updates
Revenue decline and volume weakness
Headline revenue of GBP 1,030m represented a 3.3% organic constant currency decline for the year; volume decline was around 6.7%, driven principally by the semiconductor downturn.
Read all updates
Q4-2025 Updates
Positive
Negative
Resilient headline profit and margin
Headline adjusted operating profit of GBP 99.1m with an adjusted operating margin of 9.6%, delivered despite challenging end markets and volume pressure.
Read all positive updates
Company Guidance
Management guided that for 2026 they expect organic constant‑currency revenue growth of 1–2% and adjusted operating margin to return to around 10% (up from 9.6% in 2025), with year‑end leverage around 1.7% while targeting a 1.0–1.5x range and to bring leverage to c.1.5x over the next two years (net debt was £232m at end‑2025, c.1.8x EBITDA). They expect capital expenditure of ~£50m (c.1.2x depreciation) with ERP spend of ~£20m in 2026, a net finance charge of ~£24m (after expiry of £94m fixed debt at ~3%), and an effective tax rate of 27–29%. Management reiterated pricing of ~3.5% versus c.5% COGS inflation, expects transform net benefits of c.£11m in 2026 (building on £16m in‑year simplification benefits and 1.7 percentage points of margin improvement in 2025), and signaled continued free cash flow focus (FY25 FCF £45.4m) while maintaining the 12.2p dividend (adjusted EPS 15.9p in 2025) and pursuing a medium‑term aim of c.12% EBITDA margin by 2028.Morgan Advanced Materials Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05B | 1.10B | 1.11B | 1.11B | 950.50M | 910.70M |
| Gross Profit | 115.00M | 813.20M | 120.80M | 244.70M | 207.10M | 184.00M |
| EBITDA | 133.90M | 160.70M | 138.60M | 176.40M | 156.30M | 44.50M |
| Net Income | 27.90M | 50.30M | 47.30M | 88.00M | 73.80M | -22.50M |
Balance Sheet | ||||||
| Total Assets | 1.02B | 1.08B | 1.02B | 1.03B | 925.40M | 945.00M |
| Cash, Cash Equivalents and Short-Term Investments | 84.60M | 118.60M | 124.50M | 117.70M | 127.30M | 147.80M |
| Total Debt | 381.10M | 393.70M | 356.80M | 318.10M | 223.80M | 303.40M |
| Total Liabilities | 668.20M | 687.80M | 626.10M | 602.30M | 575.80M | 705.00M |
| Stockholders Equity | 316.70M | 353.70M | 360.30M | 389.00M | 310.60M | 202.30M |
Cash Flow | ||||||
| Free Cash Flow | 4.20M | 17.20M | 18.10M | -37.40M | 74.60M | 80.70M |
| Operating Cash Flow | 45.10M | 113.30M | 78.50M | 20.60M | 106.20M | 110.70M |
| Investing Cash Flow | -37.80M | -86.00M | -60.20M | -57.00M | -13.90M | -27.10M |
| Financing Cash Flow | -35.50M | -33.00M | -2.00M | 23.40M | -112.20M | -66.80M |
Morgan Advanced Materials Technical Analysis
Positive
69.50
Price Trends
69.50
Neutral
69.50
Neutral
69.50
Neutral
Market Momentum
<0.01
Positive
80.95
Negative
100.00
Negative
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 equal to the 20-day moving average (MA) of 69.50, equal to the 50-day MA of 69.50, and equal to the 200-day MA of 69.50, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 80.95 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £6.68B | 20.02 | 24.91% | 1.29% | -0.32% | -3.96% | |
67 Neutral | £2.75B | 23.57 | 20.10% | 2.04% | 1.93% | -15.07% | |
64 Neutral | £7.49B | 15.58 | 13.46% | 1.93% | -6.93% | 18.57% | |
64 Neutral | £7.87B | 29.74 | 13.42% | 1.26% | -1.97% | 40.55% | |
63 Neutral | £603.97M | 0.03 | 6.66% | 628.19% | ― | ― | |
62 Neutral | £1.17B | 22.48 | 8.58% | 3.30% | -6.95% | -52.08% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
GB:BA29
Morgan Advanced Materials
69.50
-6.00
-7.95%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.