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Morgan Sindall Group PLC (GB:MGNS)
LSE:MGNS

Morgan Sindall (MGNS) AI Stock Analysis

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GB

Morgan Sindall

(LSE:MGNS)

Rating:75Outperform
Price Target:
4,359.00p
▲(13.22%Upside)
Morgan Sindall's overall stock score of 75 reflects its strong financial performance, attractive valuation, and positive corporate events. While technical indicators suggest potential short-term volatility, the company's strategic positioning and governance provide a solid foundation for long-term growth.

Morgan Sindall (MGNS) vs. iShares MSCI United Kingdom ETF (EWC)

Morgan Sindall Business Overview & Revenue Model

Company DescriptionMorgan Sindall Group plc is a leading UK construction and regeneration group. The company operates through six divisions: Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, Urban Regeneration, and Investments. It provides a range of services including design, construction, infrastructure development, refurbishment, and regeneration solutions. Morgan Sindall serves public and private sector clients across various sectors including commercial, education, healthcare, residential, and transport.
How the Company Makes MoneyMorgan Sindall generates revenue through its diversified operations across six main divisions. The Construction & Infrastructure division is a major revenue stream, undertaking large-scale projects in sectors like transportation, energy, and utilities. The Fit Out division specializes in office interiors and refurbishments, catering mainly to commercial clients. Property Services focuses on maintenance and refurbishment for social housing and public sector clients. Partnership Housing and Urban Regeneration divisions engage in residential development and urban renewal projects, often through joint ventures and partnerships with local authorities and housing associations. The Investments division focuses on long-term strategic partnerships and funding for regeneration and development projects. Revenue is also driven by strategic alliances and joint ventures that enhance project opportunities and resource sharing, contributing significantly to the company's earnings.

Morgan Sindall Financial Statement Overview

Summary
Morgan Sindall exhibits strong financial health with consistent revenue growth, stable profit margins, and prudent cash flow management. The company's low leverage and effective equity utilization position it well for future growth, despite minor fluctuations in free cash flow.
Income Statement
85
Very Positive
Morgan Sindall has demonstrated a strong revenue growth trend, with a notable increase of 10.4% from 2023 to 2024. The gross profit margin has remained stable around 11.7%, and the net profit margin improved to 2.9%. EBIT and EBITDA margins have shown resilience despite industry challenges, indicating operational efficiency.
Balance Sheet
78
Positive
The company's balance sheet is robust, with a low debt-to-equity ratio of 0.18, reflecting prudent financial management. Return on equity improved to 20.3%, showcasing effective use of equity capital. The equity ratio stands at 30.4%, indicating a solid equity base supporting its assets.
Cash Flow
80
Positive
Morgan Sindall's cash flow management is commendable, with a free cash flow growth rate of -39% due to prior year high free cash flow. The operating cash flow to net income ratio of 0.98 suggests strong cash generation capability. Free cash flow to net income ratio at 0.84 indicates effective capital expenditure management.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.55B4.12B3.61B3.21B3.03B
Gross Profit
529.90M446.70M370.90M382.80M315.80M
EBIT
162.00M140.60M88.30M129.80M65.40M
EBITDA
209.30M162.90M111.00M147.00M89.10M
Net Income Common Stockholders
131.70M117.70M60.90M97.90M45.40M
Balance SheetCash, Cash Equivalents and Short-Term Investments
544.20M541.30M431.70M468.60M400.50M
Total Assets
2.13B2.03B1.79B1.71B1.49B
Total Debt
118.50M144.40M134.00M163.40M118.70M
Net Debt
-425.70M-396.90M-297.70M-305.20M-281.80M
Total Liabilities
1.48B1.46B1.30B1.23B1.06B
Stockholders Equity
647.20M568.10M496.20M474.20M430.00M
Cash FlowFree Cash Flow
110.60M181.40M42.90M102.50M171.90M
Operating Cash Flow
128.80M196.00M54.70M110.50M177.70M
Investing Cash Flow
4.70M-11.00M8.30M-4.50M-7.40M
Financing Cash Flow
-101.80M-78.90M-66.80M-80.80M-29.80M

Morgan Sindall Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3850.00
Price Trends
50DMA
3548.23
Positive
100DMA
3441.31
Positive
200DMA
3423.65
Positive
Market Momentum
MACD
71.41
Positive
RSI
67.67
Neutral
STOCH
55.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MGNS, the sentiment is Positive. The current price of 3850 is above the 20-day moving average (MA) of 3786.75, above the 50-day MA of 3548.23, and above the 200-day MA of 3423.65, indicating a bullish trend. The MACD of 71.41 indicates Positive momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 55.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MGNS.

Morgan Sindall Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBKLR
79
Outperform
£1.08B7.7325.66%4.29%0.70%60.51%
78
Outperform
£660.17M14.5922.62%3.20%3.23%2.00%
GBKIE
77
Outperform
£743.22M17.4410.20%2.27%8.04%6.94%
75
Outperform
£1.79B13.5721.67%4.71%10.41%11.04%
GBBBY
74
Outperform
£2.51B14.7515.35%3.45%3.02%-3.23%
73
Outperform
£1.37B17.9816.97%3.81%3.05%10.64%
66
Neutral
$4.52B12.345.41%3.62%4.15%-12.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MGNS
Morgan Sindall
3,775.00
1,310.46
53.17%
GB:KIE
Kier Group plc
175.20
44.14
33.68%
GB:BBY
Balfour Beatty
497.40
159.61
47.25%
GB:RNWH
Renew Holdings plc
821.00
-219.83
-21.12%
GB:KLR
Keller Group plc
1,526.00
355.32
30.35%
GB:HILS
Hill & Smith Holdings
1,680.00
-196.16
-10.46%

Morgan Sindall Corporate Events

Regulatory Filings and Compliance
Morgan Sindall Announces Share Capital and Voting Rights Update
Neutral
Jun 2, 2025

Morgan Sindall Group PLC, a company listed on the stock exchange, announced that as of May 31, 2025, its issued share capital comprises 48,013,999 ordinary shares with voting rights. The company holds no treasury shares, meaning the total number of voting rights is equal to the number of shares. This information is crucial for shareholders and others with notification obligations under the FCA’s Disclosure and Transparency Rules to determine their interest in the company.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £45.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Executive/Board Changes
Morgan Sindall Appoints New General Counsel and Company Secretary
Positive
Jun 2, 2025

Morgan Sindall Group plc has announced the appointment of Lisa Minns as the new General Counsel and Company Secretary. Lisa brings over 20 years of experience in legal, commercial, regulatory, and governance roles from her previous positions at St. Modwen Properties and Centrica plc. This strategic appointment is expected to strengthen Morgan Sindall’s legal and governance framework, potentially enhancing its operational efficiency and industry positioning.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £45.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Delistings and Listing ChangesBusiness Operations and Strategy
Morgan Sindall Announces Additional Listing of Shares
Neutral
May 8, 2025

Morgan Sindall Group plc has announced a block listing application for 50,000 Ordinary Shares to be added to the UK Listing Authority’s Official List and traded on the London Stock Exchange. These shares, issued to fulfill options under the Morgan Sindall Sharesave Plan (2018), will be fully paid and align with existing shares, with admission expected by 9 May 2025. This move is part of the company’s ongoing efforts to manage its share capital and provide options for employee investment, potentially strengthening its market position and stakeholder engagement.

Regulatory Filings and Compliance
Morgan Sindall Announces Change in Major Holdings
Neutral
May 7, 2025

Morgan Sindall Group PLC has announced a change in its major holdings, with Ameriprise Financial, Inc. reducing its voting rights from 5.009% to 4.641%. This adjustment reflects a transfer out of temporary proxy voting shares, impacting the company’s shareholder structure and potentially influencing its governance dynamics.

Shareholder MeetingsDividendsBusiness Operations and Strategy
Morgan Sindall Group PLC AGM Resolutions Passed Successfully
Positive
May 1, 2025

Morgan Sindall Group PLC announced the successful passing of all resolutions at its Annual General Meeting held on May 1, 2025. The resolutions included the approval of financial statements, director appointments, and dividend payments. The outcome of the AGM reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

Regulatory Filings and Compliance
Morgan Sindall Updates Share Capital and Voting Rights
Neutral
May 1, 2025

Morgan Sindall Group PLC has announced that as of April 30, 2025, its issued share capital consists of 48,013,170 ordinary shares with voting rights, and the company holds no treasury shares. This information is crucial for shareholders and others with notification obligations under the FCA’s Disclosure and Transparency Rules, as it serves as the denominator for calculating their interest in the company.

Business Operations and StrategyFinancial Disclosures
Morgan Sindall Group Reports Strong Start to 2025 with Robust Order Book
Positive
May 1, 2025

Morgan Sindall Group plc reports a positive start to 2025, with trading exceeding initial expectations and a strong secured order book valued at £11.3 billion. The company’s divisions, including Partnership Housing and Fit Out, are performing well, with the latter expected to surpass its medium-term targets. The Group maintains a healthy balance sheet with an average daily net cash expected to exceed £330 million for the year, supporting its long-term growth ambitions.

Executive/Board Changes
Morgan Sindall Announces Interim Company Secretary Appointment
Neutral
Apr 22, 2025

Morgan Sindall Group PLC has announced a change in its company secretary position. Helen Mason, who has been with the company for 11 years and served as General Counsel & Company Secretary since June 2024, is retiring. Amanda Matthews, the Deputy Company Secretary with over 20 years of corporate governance experience, will assume the role on an interim basis while the company searches for a permanent replacement. This transition reflects the company’s commitment to maintaining strong governance practices.

Other
Morgan Sindall Sees Change in BlackRock’s Voting Rights
Neutral
Apr 22, 2025

Morgan Sindall Group PLC announced that BlackRock, Inc., a major shareholder, has adjusted its voting rights in the company. As of April 17, 2025, BlackRock holds a total of 6.52% of voting rights, a slight decrease from its previous position. This change in holdings could impact Morgan Sindall’s shareholder dynamics and influence future corporate decisions.

Regulatory Filings and Compliance
Morgan Sindall Announces Share Capital and Voting Rights Update
Neutral
Apr 1, 2025

Morgan Sindall Group PLC, a construction and regeneration group, announced that as of March 31, 2025, its issued share capital consisted of 48,011,022 ordinary shares with voting rights. This figure is crucial for shareholders and others with notification obligations under the FCA’s Disclosure and Transparency Rules to determine if they need to notify changes in their interest in the company.

Regulatory Filings and Compliance
Morgan Sindall Discloses Executive Share Transaction
Neutral
Mar 27, 2025

Morgan Sindall Group PLC has disclosed a transaction involving its Chief Executive, John Morgan, in compliance with the EU Market Abuse Regulation. The transaction involved the transfer of 31,690 ordinary shares from one of Morgan’s accounts to another, with no change in his overall shareholding. This disclosure ensures transparency and adherence to regulatory obligations, maintaining trust with stakeholders.

Business Operations and StrategyFinancial Disclosures
Morgan Sindall Expects Stronger 2025 Financial Performance
Positive
Mar 25, 2025

Morgan Sindall Group PLC has reported an acceleration in trading momentum within its Fit Out division, surpassing previous expectations and revised Medium Term Targets. As a result, the company anticipates its full year results for 2025 to slightly exceed market consensus, indicating a positive outlook for its financial performance.

Delistings and Listing ChangesBusiness Operations and Strategy
Morgan Sindall Announces Additional Share Listing
Positive
Mar 25, 2025

Morgan Sindall Group PLC has announced the listing of 55,000 new ordinary shares on the London Stock Exchange, expected to be effective from 27 March 2025. These shares will fulfill options granted under the Morgan Sindall Sharesave Plan (2018), indicating a strategic move to enhance employee investment and engagement.

Business Operations and StrategyFinancial Disclosures
Morgan Sindall Releases 2024 Annual Report Amid Stable Market Conditions
Positive
Mar 20, 2025

Morgan Sindall Group PLC has released its 2024 Annual Report and other key documents, highlighting a stable market environment supported by public sector investments. The company is well-positioned to navigate economic uncertainties, with a strong balance sheet and a strategic focus on maintaining a high-quality order book. Despite challenges in the UK residential market, Morgan Sindall remains resilient, leveraging government support and strategic partnerships to address housing needs.

Business Operations and Strategy
Morgan Sindall CEO Increases Shareholding Following Deferred Bonus Plan Exercise
Neutral
Mar 14, 2025

Morgan Sindall Group plc announced a transaction involving its Chief Executive, John Morgan, who acquired 9,849 shares at no cost through the exercise of an award under the company’s Deferred Bonus Plan. Subsequently, he sold 4,444 shares at £29.88 each to cover associated costs, resulting in a net increase of 5,405 shares in his shareholding. This transaction highlights the company’s ongoing commitment to aligning management interests with shareholder value and may have implications for investor confidence in the company’s leadership and strategic direction.

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.