Morgan Advanced Materials PLC (GB:MGAM)
LSE:MGAM
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Morgan Advanced Materials
(LSE:MGAM)
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Rating:62Neutral
Price Target:
199.00 p
â–¼(-2.69% Downside)
Action:ReiteratedDate:03/05/26
The score is led by mixed fundamentals: strong and improving cash flow is a clear positive, but recent revenue/profit deterioration and meaningful leverage constrain the financial profile. Technicals are notably weak with the stock in a downtrend, partially offset by supportive valuation (low P/E and high dividend). Earnings call guidance suggests modest improvement, but ongoing semiconductor/segment weakness and higher financing costs keep risk elevated.
Positive Factors
Cash generation improvement
Material recovery in operating cash flow and a strong free cash flow rebound in 2025 improves the company’s ability to service debt, fund the ERP and targeted capex, and sustain dividend policy. Durable cash conversion increases financial optionality through cycles and supports execution of transformation plans.
Negative Factors
Semiconductor exposure
Significant exposure to semiconductor end-markets (including silicon carbide) drives volume volatility and inventory-related adjustments. Persistent weakness in that segment can depress revenues and utilization, erode margins on cyclical products, and slow recovery even as other divisions improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation improvement
Material recovery in operating cash flow and a strong free cash flow rebound in 2025 improves the company’s ability to service debt, fund the ERP and targeted capex, and sustain dividend policy. Durable cash conversion increases financial optionality through cycles and supports execution of transformation plans.
Read all positive factors
Morgan Advanced Materials (MGAM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£564.85M
Dividend Yield4.87%
Average Volume (3M)509.96K
Price to Earnings (P/E)28.9
Beta (1Y)1.52
Revenue Growth-7.30%
EPS Growth-59.71%
CountryUK
Employees8,479
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.11
Shares Outstanding276,676,420
10 Day Avg. Volume479,214
30 Day Avg. Volume509,962
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)1.93
Price to Sales (P/S)0.61
P/FCF Ratio11.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£235.00Price Target Upside14.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.17
Revenue Forecast (FY)£1.00B
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...
How the Company Makes Money
Morgan Advanced Materials makes money primarily by selling engineered, high-performance materials and components to industrial and technology customers, typically under B2B contracts. Revenue is generated from (1) product sales of manufactured com...
Morgan Advanced Materials Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: the group delivered resilient margins and free cash flow, achieved notable growth in Aerospace/Defense and fire protection, and progressed transformation and portfolio actions. However, meaningful near‑term headwinds persist—semiconductor volumes and mix weakness, a GBP 15.6m impairment, Thermal Products under strategic review, elevated specific adjusting items, and leverage slightly above target. Management has clear plans for efficiency, targeted growth and portfolio optimization with guidance for modest revenue growth (1%–2%) and margin recovery to ~10% in 2026, but execution and market recovery will determine outcomes.Positive Updates
Resilient headline margin and operating profit
Group headline adjusted operating profit of GBP 99.1m with an adjusted operating margin of 9.6%, described as resilient and in line with expectations despite challenging markets.
Negative Updates
Revenue contraction driven by semiconductor downturn
Organic constant currency revenue declined 3.3% in 2025, with volume decline of c.6.7%. The semiconductor downturn accounted for around GBP 33m of the revenue decline and remained weak (silicon carbide inventory adjustments persisting).
Read all updates
Q4-2025 Updates
Positive
Negative
Resilient headline margin and operating profit
Group headline adjusted operating profit of GBP 99.1m with an adjusted operating margin of 9.6%, described as resilient and in line with expectations despite challenging markets.
Read all positive updates
Company Guidance
The company guided that for 2026 it expects organic constant-currency end‑market revenue growth of 1–2%, with adjusted operating margin returning to around 10% (after a 9.6% margin in 2025), supported by pricing of c.3.5% offsetting c.5% COGS inflation, continued simplification/efficiency (which delivered 1.7 percentage points in 2025) and net transform benefits of c.£11m in 2026 (with procurement/site initiatives targeted to deliver at least £20m of margin improvement by 2028); capital expenditure is expected to be c.£50m (around 1.2x depreciation) for the next three years, ERP spend c.£20m in 2026 (winding down in 2027), net finance charge c.£24m (impacted by expiry of £94m fixed debt at ~3%), an effective tax rate of c.27–29%, year‑end leverage around 1.7x with a plan to bring leverage to ~1.5x over the next two years, a maintained dividend this year with growth in line with adjusted earnings once cover returns to ~2.5x, and an ongoing review of the Thermal Products division.Morgan Advanced Materials Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 996.60M | 1.10B | 1.11B | 1.11B | 950.50M |
| Gross Profit | 87.50M | 813.20M | 120.80M | 244.70M | 207.10M |
| EBITDA | 130.50M | 150.00M | 138.60M | 188.10M | 156.30M |
| Net Income | 21.10M | 50.30M | 47.30M | 88.00M | 73.80M |
Balance Sheet | |||||
| Total Assets | 984.80M | 1.08B | 1.02B | 1.03B | 925.40M |
| Cash, Cash Equivalents and Short-Term Investments | 126.50M | 118.60M | 124.50M | 117.70M | 127.30M |
| Total Debt | 360.70M | 393.70M | 356.80M | 318.10M | 223.80M |
| Total Liabilities | 635.90M | 687.80M | 626.10M | 602.30M | 575.80M |
| Stockholders Equity | 316.60M | 353.70M | 360.30M | 389.00M | 310.60M |
Cash Flow | |||||
| Free Cash Flow | 53.50M | 17.20M | 18.10M | -37.40M | 74.60M |
| Operating Cash Flow | 120.60M | 113.30M | 78.50M | 20.60M | 106.20M |
| Investing Cash Flow | -55.00M | -86.00M | -60.20M | -57.00M | -13.90M |
| Financing Cash Flow | -99.50M | -33.00M | -2.00M | 23.40M | -112.20M |
Morgan Advanced Materials Technical Analysis
Neutral
204.50
Price Trends
220.72
Negative
216.68
Negative
213.34
Negative
Market Momentum
-5.32
Negative
47.22
Neutral
90.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MGAM, the sentiment is Neutral. The current price of 204.5 is above the 20-day moving average (MA) of 200.99, below the 50-day MA of 220.72, and below the 200-day MA of 213.34, indicating a neutral trend. The MACD of -5.32 indicates Negative momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 90.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:MGAM.
Morgan Advanced Materials Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £916.17M | 15.43 | 33.12% | 1.01% | 24.42% | 103.25% | |
71 Outperform | £6.31B | 20.02 | 24.91% | 1.29% | -0.32% | -3.96% | |
67 Neutral | £2.62B | 23.57 | 20.10% | 2.04% | 1.93% | -15.07% | |
64 Neutral | £7.22B | 15.58 | 13.46% | 1.93% | -6.93% | 18.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £564.85M | 28.89 | 8.04% | 4.87% | -7.30% | -59.71% | |
62 Neutral | £1.08B | 22.48 | 8.58% | 3.30% | -6.95% | -52.08% |
* Industrials Sector Average
GB:MGAM
Morgan Advanced Materials
204.50
38.15
22.93%
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Morgan Advanced Materials Corporate Events
Regulatory Filings and Compliance
Morgan Advanced Materials CEO Increases Stake With Share Purchase
Positive
Mar 9, 2026
Morgan Advanced Materials has disclosed that its chief executive, Damien Caby, purchased 14,000 ordinary shares in the company on 5 March 2026 at a price of £2.12 per share on the London Stock Exchange. The transaction, filed under market abu...
Regulatory Filings and Compliance
Morgan Advanced Materials CEO boosts stake with London share purchase
Positive
Mar 5, 2026
Morgan Advanced Materials has disclosed that its chief executive officer, Damien Caby, purchased 14,000 ordinary shares of the company at a price of £2.01 per share on 3 March 2026. The trade, executed on the London Stock Exchange, was report...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Morgan Advanced Materials Tightens Portfolio as Earnings Slip in Tough Markets
Neutral
Mar 3, 2026
Morgan Advanced Materials reported a decline in 2025 revenue and profit amid weak semiconductor and European industrial demand, though trading stabilised in the second half of the year. The group maintained its total dividend and delivered stronge...
Stock BuybackRegulatory Filings and Compliance
Morgan Advanced Materials Updates Share Capital Following Buyback Cancellations
Positive
Feb 2, 2026
Morgan Advanced Materials has confirmed that, as of 31 January 2026, its issued share capital consists of 276,676,409 ordinary shares with full voting rights and 437,281 non-voting cumulative preference shares, with no shares held in treasury. The...
Business Operations and StrategyStock Buyback
Morgan Advanced Materials Cancels Further Shares Under Ongoing Buyback
Positive
Jan 12, 2026
Morgan Advanced Materials has continued to execute its previously announced share buyback programme, repurchasing 11,731 ordinary shares on 9 January 2026 via Investec Bank at a volume‑weighted average price of 230.4341 pence. The company in...
Stock Buyback
Morgan Advanced Materials Cancels Further Shares Under Ongoing Buyback Programme
Positive
Jan 9, 2026
Morgan Advanced Materials has continued to execute its previously announced share buyback programme, repurchasing 23,500 ordinary shares on 8 January 2026 through Investec Bank at prices between 224p and 227p, with a volume‑weighted average ...
Business Operations and StrategyStock Buyback
Morgan Advanced Materials Cancels 15,477 Shares Under Ongoing Buyback Programme
Positive
Jan 8, 2026
Morgan Advanced Materials has repurchased 15,477 of its 25 pence ordinary shares on 7 January 2026 through Investec Bank at prices between 224.00p and 228.00p, with a volume-weighted average price of 226.3085p, as part of the share buyback program...
Business Operations and StrategyStock Buyback
Morgan Advanced Materials Buys Back and Cancels Further Shares Under Ongoing Programme
Positive
Jan 7, 2026
Morgan Advanced Materials has repurchased 22,730 of its own 25 pence ordinary shares on 6 January 2026 through Investec Bank at prices ranging between 219p and 223p, with a volume‑weighted average price of 221.0278p, as part of the share buy...
Stock Buyback
Morgan Advanced Materials Buys Back and Cancels 20,619 Shares Under Ongoing Programme
Positive
Jan 6, 2026
Morgan Advanced Materials has repurchased 20,619 of its own 25 pence ordinary shares on 5 January 2026 via Investec Bank at a volume-weighted average price of 221.5941 pence, with trades executed on the London Stock Exchange within a price range o...
Business Operations and StrategyStock Buyback
Morgan Advanced Materials Cancels Further Shares Under Ongoing Buyback
Positive
Jan 5, 2026
Morgan Advanced Materials has repurchased 22,935 of its 25 pence ordinary shares on 2 January 2026 via Investec Bank at a volume-weighted average price of 220.0245 pence, with trades executed on the London Stock Exchange within a price range of 21...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Morgan Advanced Materials Updates Share Capital After Buyback Cancellations
Positive
Jan 2, 2026
Morgan Advanced Materials has reported that, as of 31 December 2025, its share capital comprised 276,846,825 ordinary shares with full voting rights and 437,281 non‑voting cumulative preference shares, with no shares held in treasury. The co...
Business Operations and StrategyStock Buyback
Morgan Advanced Materials Cancels Further Shares Under Ongoing Buyback Programme
Positive
Jan 2, 2026
Morgan Advanced Materials has continued to execute its share buyback programme, repurchasing 7,961 ordinary shares on 31 December 2025 via Investec Bank at prices between 218.00p and 220.50p, with a volume-weighted average price of 218.6710p. The ...
Business Operations and StrategyStock Buyback
Morgan Advanced Materials Cancels Further Shares Under Ongoing Buyback Programme
Positive
Dec 31, 2025
Morgan Advanced Materials has continued its share buyback activity, repurchasing 22,988 ordinary shares on 30 December 2025 via Investec Bank at prices between 217p and 220p, with a volume-weighted average price of 218.8966p on the London Stock Ex...
Stock Buyback
Morgan Advanced Materials Cancels Newly Repurchased Shares Under Ongoing Buyback
Positive
Dec 30, 2025
Morgan Advanced Materials has repurchased 22,475 of its ordinary shares on 29 December 2025 via Investec Bank at a volume-weighted average price of 217.6542 pence per share, with trades executed on the London Stock Exchange within a price range of...
Stock Buyback
Morgan Advanced Materials Continues Share Buyback, Cancels 14,345 Shares
Positive
Dec 29, 2025
Morgan Advanced Materials has bought back 14,345 of its own ordinary shares on 24 December 2025 via Investec Bank at a volume-weighted average price of 217.04 pence per share, with trades executed on the London Stock Exchange between 214.50 pence ...
Business Operations and StrategyStock Buyback
Morgan Advanced Materials Continues Share Buyback, Cancels Newly Repurchased Stock
Positive
Dec 24, 2025
Morgan Advanced Materials PLC has continued its share buyback activity, purchasing 22,159 ordinary shares on 23 December 2025 on the London Stock Exchange at prices between 212.50p and 216.50p, with a volume-weighted average price of 214.7295p. Th...
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.