Morgan Sindall (MGNS) AI Stock Analysis

• Market Cap: £2.05B
• Dividend Yield: 2.27%
• Average Volume (3M): 80.88K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.66
• Revenue Growth: 6.93%
• EPS Growth: 21.50%
• Country: UK
• Employees: 8,097
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.47
• Shares Outstanding: 48,018,284
• 10 Day Avg. Volume: 96,109
• 30 Day Avg. Volume: 80,876
• PEG Ratio: 1.30
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 16.50
• 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: £4,884.50
• Price Target Upside: 13.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: 4,738.00p ▲(10.06% Upside)

Morgan Sindall's strong financial performance is the primary driver of its stock score, supported by stable revenue growth and effective cash flow management. While technical indicators suggest a neutral market position, the company's reasonable valuation and dividend yield enhance its attractiveness. The absence of earnings call data and corporate events does not impact the overall assessment.

Morgan Sindall Business Overview & Revenue Model

Company Description

Morgan Sindall Group plc operates as a construction and regeneration company in the United Kingdom. It operates through five segments: Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, and Urban Regeneration divisions. The Construction & Infrastructure segment provides infrastructure services to highways, rail, energy, water, and nuclear markets; and construction services in education, healthcare, commercial, defense, industrial, leisure, and retail markets. The Fit Out segment specializes in fit out and refurbishment projects in commercial, central, and local government offices, as well as education markets. This segment also provides office interior design and build services. The Property Services segment offers responsive repairs and planned maintenance services for social housing and the public sector. The Partnership Housing segment engages in mixed-tenure development; building and developing homes for open market; sale and affordable rent; design and build house contracting; and planned maintenance and refurbishment activities. The Urban Regeneration segment works with landowners and public sector partners to transform the urban landscape through the development of multi-phase sites and mixed-use regeneration, including residential, commercial, retail, and leisure facilities. The company was incorporated in 1953 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Morgan Sindall generates revenue primarily through its construction and infrastructure projects, which include building and civil engineering contracts. The company earns money by bidding for and executing contracts, which can range from small-scale projects to large, complex developments. Key revenue streams include project management fees, construction services, and specialist services such as fit-out and refurbishment. Additionally, Morgan Sindall benefits from long-term maintenance contracts in its property services division. Strategic partnerships with local authorities and public bodies in regeneration projects further enhance its revenue potential. The company also engages in joint ventures and collaborations to mitigate risks and leverage expertise in specific projects, which contributes positively to its 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.55B	4.12B	3.61B	3.21B	3.03B
Gross Profit	529.90M	446.70M	370.90M	382.80M	315.80M
EBITDA	209.30M	162.90M	111.00M	147.00M	89.10M
Net Income	131.70M	117.70M	60.90M	97.90M	45.40M
Balance Sheet
Total Assets	2.13B	2.03B	1.79B	1.71B	1.49B
Cash, Cash Equivalents and Short-Term Investments	544.20M	541.30M	431.70M	468.60M	400.50M
Total Debt	118.50M	144.40M	134.00M	163.40M	118.70M
Total Liabilities	1.48B	1.46B	1.30B	1.23B	1.06B
Stockholders Equity	647.20M	568.10M	496.20M	474.20M	430.00M
Cash Flow
Free Cash Flow	110.60M	181.40M	42.90M	102.50M	171.90M
Operating Cash Flow	128.80M	196.00M	54.70M	110.50M	177.70M
Investing Cash Flow	4.70M	-11.00M	8.30M	-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 Price: 4305.00
• 50DMA: Negative
• 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:MGNS, the sentiment is Positive. The current price of 4305 is above the 20-day moving average (MA) of 4191.50, below the 50-day MA of 4376.60, and above the 200-day MA of 3823.48, indicating a neutral trend. The MACD of -6.09 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 58.77 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HILS	76 Outperform	1.62B	20.18	16.06%	2.43%	3.88%	5.10%
MGNS	74 Outperform	£2.05B	13.42	24.19%	2.27%	6.93%	21.50%
BBY	74 Outperform	3.11B	17.49	15.88%	1.97%	9.97%	-15.46%
KIE	73 Outperform	905.80M	16.28	―	2.56%	4.40%	26.56%
KLR	73 Outperform	983.10M	7.12	23.97%	1.30%	-1.17%	12.31%
RNWH	70 Outperform	634.05M	13.87	20.14%	2.41%	3.23%	2.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Morgan Sindall Corporate Events

Morgan Sindall Announces Share Capital and Voting Rights Update

Morgan Sindall Group plc has announced that as of August 31, 2025, its issued share capital consists of 48,018,284 ordinary shares, each with voting rights, and the company holds no treasury shares. This information is crucial for shareholders and others with notification obligations to determine if they need to notify their interest or changes in interest under the FCA’s Disclosure and Transparency Rules.

The most recent analyst rating on (GB:MGNS) stock is a Hold with a £4612.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall CFO Acquires Shares in Compliance with Market Regulations

Morgan Sindall Group plc announced a transaction involving its Chief Financial Officer, Kelly Gangotra, who acquired 660 shares of the company at a price of £45.098125 per share. This transaction, disclosed in compliance with the Market Abuse Regulation, took place on the London Stock Exchange on 4 August 2025, and reflects the company’s ongoing commitment to transparency in its financial dealings.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £4000.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Achieves Record H1 2025 Results with Strong Growth Across Divisions

Morgan Sindall Group has reported record results for the first half of 2025, with a 7% increase in revenue to £2.37 billion and a 40% rise in adjusted operating profit to £91.8 million. The company has seen strong growth across its divisions, particularly in the Fit Out and Construction sectors, supported by a robust order book and favorable market conditions. The group’s strategic focus on partnership businesses and government investment commitments has led to upgraded medium-term targets for its Fit Out and Construction divisions. The integration of Property Services into the Construction division is expected to further strengthen its market position.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £4000.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

BlackRock Increases Stake in Morgan Sindall Group

Morgan Sindall Group PLC, a UK-based company, has announced a change in its major holdings. BlackRock, Inc., a major shareholder, has increased its voting rights in Morgan Sindall to 6.84% from a previous 6.52%, as of July 16, 2025. This change in holdings reflects BlackRock’s strategic interest and influence in Morgan Sindall, potentially impacting the company’s governance and decision-making processes.

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.

Morgan Sindall Updates Share Capital and Voting Rights

Morgan Sindall Group PLC announced that as of June 30, 2025, its issued share capital consists of 48,014,951 ordinary shares with voting rights, with no treasury shares held. This update is in accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, impacting how shareholders calculate their notification obligations regarding their interests in the company.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £4000.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Announces Additional Listing of Shares

Morgan Sindall Group plc has announced a block listing application for 40,000 Ordinary Shares to be admitted to the UK Listing Authority’s Official List and traded on the London Stock Exchange. These shares will fulfill options granted under the Morgan Sindall Sharesave Plan (2018), with admission expected on 26 June 2025, reflecting the company’s ongoing commitment to employee investment and engagement.

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.