Morgan Advanced Materials (MGAM) AI Stock Analysis

• Market Cap: £620.27M
• Dividend Yield: 4.02%
• Average Volume (3M): 552.02K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.41
• Revenue Growth: -7.30%
• EPS Growth: -59.71%
• Country: UK
• Employees: 8,479
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.14
• Shares Outstanding: 278,613,400
• 10 Day Avg. Volume: 559,552
• 30 Day Avg. Volume: 552,022
• PEG Ratio: 2.62
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 44.99
• 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: £231.00
• Price Target Upside: 3.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: 231.00p ▲(3.59% Upside)

Morgan Advanced Materials has a solid financial foundation with strong gross margins and efficient operations. However, concerns about revenue and net income growth, along with high capital expenditures impacting cash flow, weigh on the score. Technical indicators suggest a neutral to slightly positive outlook, while the valuation is moderate with an attractive dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Business Model Strength

The company's diversified revenue streams across aerospace, automotive, and healthcare sectors reduce dependency on a single market, enhancing resilience and stability.

Gross Margin Sustainability

A strong gross margin indicates effective cost management and pricing power, which supports long-term profitability and competitive positioning.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Revenue Growth Concerns

Declining revenue growth indicates potential challenges in market expansion or competitive pressures, which could affect long-term earnings potential.

High Capital Expenditures

High capital expenditures limit free cash flow, which may restrict the company's ability to invest in new projects or return capital to shareholders.

Increasing Debt Levels

Rising debt levels could strain financial resources and increase risk, potentially impacting the company's ability to fund operations and growth initiatives.

Morgan Advanced Materials Business Overview & Revenue Model

Company Description

Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom. It offers high-temperature insulating fibers, microporous, firebrick and insulating firebrick, monolithic, heat shields, and fired refractory shape products; crucibles, foundry and ferrous products, and furnace industries furnace ranges; and seals and bearings, such as face seals, split and segmented seals, sliding bearings, shafts, rotary vane pump components, and sliding valve components. The company also provides carbon brushes and collectors, brush holders, power slip rings, terminal blocks, diagnostic equipment, carbon current collection strips, shaft grounding rings, and linear transfer systems. In addition, it offers components, ceramic cores, ceramic to metal brazed/metallized assemblies, mass spectrometry components, wax injection, ceramic injection molded, extruded, laser, machinable glass ceramic, semiconductor, and zirconia products, as well as tubes, laboratory porcelain products, and kiln furniture under the Haldenwanger name. The company serves customers in the industrial, transportation, petrochemical and chemical, energy, semiconductor and electronics, healthcare, and security and defense markets. It also operates in the United States, China, Germany, France, other Asian countries, Australasia, the Middle East and Africa, other European countries, other North American countries, and South America. The company was formerly known as The Morgan Crucible Company plc and changed its name to Morgan Advanced Materials plc in March 2013. Morgan Advanced Materials plc was founded in 1856 and is headquartered in Windsor, the United Kingdom.

How the Company Makes Money

Morgan Advanced Materials generates revenue through multiple streams, primarily by selling its advanced materials and components to various industries. The company has a diversified client base, which allows it to mitigate risks associated with reliance on a single market. Key revenue streams include the sale of engineered components for the aerospace and defense sectors, thermal management products for the automotive industry, and specialized materials for healthcare applications. Additionally, MGAM benefits from long-term contracts with major clients, providing a stable revenue base. Strategic partnerships with leading companies in these sectors enhance its market reach and innovation capabilities, further contributing to its earnings.

Morgan Advanced Materials Financial Statement Overview

Summary

Morgan Advanced Materials displays strong gross margins and efficient operations, contributing to healthy EBIT and EBITDA margins. However, revenue and net income growth remain areas of concern. The balance sheet is stable, with moderate leverage, but increasing debt levels require monitoring. Cash flows are positive but impacted by high capital expenditures, suggesting a need to optimize cash utilization.

Income Statement

The income statement reflects stable revenue with a slight decline over the recent year. Gross profit margin remains strong at approximately 74% in 2024, while net profit margin is modest at around 4.57%. The EBIT and EBITDA margins are healthy at 9.41% and 13.84%, respectively, indicating efficient cost management. However, there was no significant revenue growth, and net income has seen fluctuations, which could be a concern.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of approximately 32.83% for 2024. The debt-to-equity ratio is manageable at about 1.11, suggesting moderate leverage. Return on equity is somewhat low at 14.23%, indicating average profitability relative to equity. The company has maintained a stable asset base, but the increasing debt levels could pose risks if not managed carefully.

Cash Flow

Cash flow analysis indicates a positive but low free cash flow growth rate and a reasonable operating cash flow to net income ratio of 2.25 for 2024. The free cash flow to net income ratio is 0.34, reflecting limited cash generation relative to net income. While the company has improved its operating cash flows, capital expenditures remain high, constraining free cash flow.

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	150.00M	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	-60.20M	-57.00M	-13.90M	-27.10M
Financing Cash Flow	-69.30M	-33.00M	-2.00M	23.40M	-112.20M	-66.80M

Morgan Advanced Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 223.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MGAM, the sentiment is Positive. The current price of 223 is above the 20-day moving average (MA) of 216.38, above the 50-day MA of 214.68, and above the 200-day MA of 221.48, indicating a bullish trend. The MACD of 2.09 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MGAM.

Morgan Advanced Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	75 Outperform	£5.67B	24.42	22.90%	1.39%	-0.32%	-3.96%
BOY	74 Outperform	£1.13B	40.55	2.99%	2.92%	-6.95%	-52.08%
ROR	74 Outperform	£2.82B	28.78	17.39%	1.95%	1.93%	-15.07%
GDWN	72 Outperform	£1.04B	41.87	17.78%	1.49%	14.88%	45.73%
SPX	71 Outperform	£5.13B	30.87	15.82%	2.37%	0.10%	-15.33%
MGAM	66 Neutral	£620.27M	22.22	8.04%	4.02%	-7.30%	-59.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Morgan Advanced Materials Corporate Events

Morgan Advanced Materials Executes Share Buyback

Morgan Advanced Materials PLC announced the repurchase of 24,044 of its ordinary shares at a weighted average price of 215.7389 pence per share through Investec Bank plc. The company plans to cancel these shares as part of its ongoing buyback program initiated in November 2024, which may positively impact shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (GB:MGAM) stock is a Hold with a £235.00 price target. To see the full list of analyst forecasts on Morgan Advanced Materials stock, see the GB:MGAM Stock Forecast page.

Morgan Advanced Materials PLC Executes Share Buyback

Morgan Advanced Materials PLC announced the repurchase of 23,255 of its ordinary shares at a weighted average price of 217.4690 pence per share, as part of its ongoing buyback program initiated in November 2024. The company plans to cancel these shares, which is likely to impact its share capital structure and potentially enhance shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (GB:MGAM) stock is a Hold with a £235.00 price target. To see the full list of analyst forecasts on Morgan Advanced Materials stock, see the GB:MGAM Stock Forecast page.

Morgan Advanced Materials Executes Share Buyback Program

Morgan Advanced Materials PLC has announced the repurchase of 24,850 of its ordinary shares through Investec Bank plc, as part of a buyback program initiated in November 2024. The shares were bought at prices ranging from 213.50 to 218.50 pence and will be canceled, reflecting the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (GB:MGAM) stock is a Hold with a £235.00 price target. To see the full list of analyst forecasts on Morgan Advanced Materials stock, see the GB:MGAM Stock Forecast page.

Morgan Advanced Materials Executes Share Buyback

Morgan Advanced Materials PLC has announced the purchase of 25,274 of its ordinary shares at a weighted average price of 213.4429 pence per share, as part of its ongoing share buyback program. The company intends to cancel these shares, a move that could potentially enhance shareholder value by reducing the number of shares outstanding, thereby increasing earnings per share.

The most recent analyst rating on (GB:MGAM) stock is a Hold with a £235.00 price target. To see the full list of analyst forecasts on Morgan Advanced Materials stock, see the GB:MGAM Stock Forecast page.

Morgan Advanced Materials Executes Share Buyback as Part of Ongoing Program

Morgan Advanced Materials PLC has announced the repurchase of 24,927 of its ordinary shares at a weighted average price of 211.9941 pence per share. This transaction is part of a buyback program initiated in November 2024, aimed at reducing the number of outstanding shares, which could potentially enhance shareholder value and improve earnings per share.

The most recent analyst rating on (GB:MGAM) stock is a Hold with a £235.00 price target. To see the full list of analyst forecasts on Morgan Advanced Materials stock, see the GB:MGAM Stock Forecast page.

Morgan Advanced Materials Announces Share Buyback

Morgan Advanced Materials PLC has announced the repurchase of 23,926 of its ordinary shares through Investec Bank plc, as part of a buyback programme initiated in November 2024. The shares, purchased at a weighted average price of 214.9506 pence, will be cancelled, a move that could potentially enhance shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (GB:MGAM) stock is a Hold with a £235.00 price target. To see the full list of analyst forecasts on Morgan Advanced Materials stock, see the GB:MGAM Stock Forecast page.

Morgan Advanced Materials Announces Share Buyback

Morgan Advanced Materials PLC, a company specializing in advanced materials, has announced the repurchase of 23,094 of its ordinary shares at prices ranging from 214.00 to 217.00 pence per share, with a weighted average price of 215.0503 pence. This transaction is part of a buyback program initiated in November 2024, and the company plans to cancel the purchased shares, potentially impacting its share value and market perception.

The most recent analyst rating on (GB:MGAM) stock is a Hold with a £235.00 price target. To see the full list of analyst forecasts on Morgan Advanced Materials stock, see the GB:MGAM Stock Forecast page.

Morgan Advanced Materials Grants Shares to Executive Under Share Plan

Morgan Advanced Materials has announced a grant of restricted shares to Laurent Cohen-Scali, President of Thermal Products, as part of the Morgan Advanced Materials Share Plan 2022. This grant compensates for forfeited long-term incentives from his previous employer and includes a conditional award under the company’s Long Term Incentive Plan, which is subject to performance conditions over three years.

The most recent analyst rating on (GB:MGAM) stock is a Hold with a £235.00 price target. To see the full list of analyst forecasts on Morgan Advanced Materials stock, see the GB:MGAM Stock Forecast page.

Morgan Advanced Materials Executes Share Buyback Program

Morgan Advanced Materials PLC has executed a share buyback, purchasing 22,701 of its ordinary shares at a weighted average price of 214.2739 pence per share. This transaction is part of a previously announced buyback program, and the company intends to cancel the purchased shares, potentially impacting its share value and benefiting shareholders by reducing the number of shares in circulation.

The most recent analyst rating on (GB:MGAM) stock is a Hold with a £231.00 price target. To see the full list of analyst forecasts on Morgan Advanced Materials stock, see the GB:MGAM Stock Forecast page.