Morgan Sindall (MGNS) AI Stock Analysis

• Market Cap: £2.21B
• Dividend Yield: 2.49%
• Average Volume (3M): 137.74K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.65
• 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: 48,021,935
• 10 Day Avg. Volume: 100,689
• 30 Day Avg. Volume: 137,735
• 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: £5,225.00
• Price Target Upside: 11.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 5,444.00p ▲(15.95% Upside)

Morgan Sindall's strong financial performance and positive corporate events are the primary drivers of its high score. The technical analysis indicates a strong upward trend, though caution is advised due to potential overbought conditions. The valuation is fair, providing a balanced investment opportunity.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective execution of its business strategy, contributing to long-term sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future growth opportunities.

Cash Flow Management

Effective cash flow management ensures the company can fund operations and investments, supporting long-term financial health.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to invest in new projects or return capital to shareholders, impacting long-term growth.

Margin Pressure

While margins are stable, the relatively low net profit margin suggests limited pricing power or cost pressures, which could affect profitability.

Free Cash Flow Volatility

Volatility in free cash flow may pose challenges in maintaining consistent capital allocation strategies, affecting long-term financial planning.

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 various construction and infrastructure projects, which include public and private sector contracts for building and civil engineering works. The company operates on a mixed contract basis, taking on fixed-price contracts, cost-reimbursable contracts, and framework agreements. Key revenue streams include construction services, fit-out works, and property development, with significant income derived from long-term partnerships with government entities and private organizations. Additionally, Morgan Sindall benefits from its ability to engage in regeneration projects, which often involve public-private partnerships, enhancing its earnings potential. The company's focus on sustainability and innovation also attracts investment and grants that contribute to its revenue.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.70B	4.55B	4.12B	3.61B	3.21B	3.03B
Gross Profit	568.90M	529.90M	446.70M	370.90M	382.80M	315.80M
EBITDA	227.20M	209.30M	162.90M	111.00M	147.00M	89.10M
Net Income	152.10M	131.70M	117.70M	60.90M	97.90M	45.40M
Balance Sheet
Total Assets	2.25B	2.13B	2.03B	1.79B	1.71B	1.49B
Cash, Cash Equivalents and Short-Term Investments	450.90M	544.20M	541.30M	431.70M	468.60M	400.50M
Total Debt	147.50M	118.50M	144.40M	134.00M	163.40M	118.70M
Total Liabilities	1.57B	1.48B	1.46B	1.30B	1.23B	1.06B
Stockholders Equity	677.30M	647.20M	568.10M	496.20M	474.20M	420.10M
Cash Flow
Free Cash Flow	141.60M	110.60M	181.40M	42.90M	102.50M	171.90M
Operating Cash Flow	152.30M	128.80M	196.00M	54.70M	110.50M	177.70M
Investing Cash Flow	-18.50M	4.70M	-11.00M	8.30M	-4.50M	-7.40M
Financing Cash Flow	-103.60M	-101.80M	-78.90M	-66.80M	-80.80M	-29.80M

Morgan Sindall Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4695.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4695 is above the 20-day moving average (MA) of 4692.00, above the 50-day MA of 4642.90, and above the 200-day MA of 4124.79, indicating a bullish trend. The MACD of 25.71 indicates Positive momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 47.32 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
KLR	80 Outperform	£1.14B	8.42	24.69%	3.13%	-1.17%	12.31%
HILS	78 Outperform	£1.73B	21.62	17.29%	2.32%	3.88%	5.10%
MGNS	78 Outperform	£2.21B	14.46	24.19%	2.49%	6.93%	21.50%
BBY	76 Outperform	£3.51B	20.12	16.34%	1.79%	9.97%	-15.46%
KIE	74 Outperform	£937.82M	17.49	10.87%	0.92%	4.40%	31.59%
RNWH	73 Outperform	£708.45M	14.51	19.85%	2.16%	7.13%	17.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Morgan Sindall Corporate Events

Morgan Sindall Updates Share Capital and Voting Rights

Morgan Sindall Group plc announced that as of November 30, 2025, its issued share capital comprised 48,021,934 ordinary shares with voting rights, with no treasury shares held. 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 changes in their interest in the company.

Morgan Sindall Discloses Share Transactions by Key Personnel

Morgan Sindall Group plc has disclosed transactions involving the purchase of shares by Mark Robson, a Non-executive Director, and Rachel Robson, a person closely associated with him. These transactions, conducted on the London Stock Exchange, involved the reinvestment of interim dividends into ordinary shares of the company. This notification fulfills the company’s obligations under the EU Market Abuse Regulation, highlighting transparency in managerial financial activities.

Morgan Sindall Updates Share Capital and Voting Rights

Morgan Sindall Group plc announced that as of October 31, 2025, its issued share capital consisted of 48,021,093 ordinary shares with voting rights, and it holds no treasury shares. This information is relevant for shareholders and others with notification obligations under the FCA’s Disclosure and Transparency Rules, as it serves as the denominator for calculating required notifications of interest changes.

Morgan Sindall CEO Disposes of Shares in Market Transaction

Morgan Sindall Group PLC announced a transaction involving the disposal of 28,458 ordinary shares by its Chief Executive, John Morgan. This transaction, conducted on the London Stock Exchange, reflects a managerial decision impacting the company’s shareholding structure, potentially influencing investor perception and market dynamics.

Morgan Sindall Expects Strong 2025 Performance, Driven by Fit Out Division

Morgan Sindall Group PLC has announced that its financial performance for 2025 is expected to significantly exceed previous expectations, driven by strong results from its Fit Out division. The company’s secured order book has increased, reflecting confidence in future growth, while the balance sheet remains robust with higher than anticipated average daily net cash. The Group’s strategic partnerships and investments continue to support its growth trajectory, although some divisions face increased investment costs.

Morgan Sindall Updates Share Capital Information

Morgan Sindall Group PLC has announced its issued share capital as of September 30, 2025, which consists of 48,018,729 ordinary shares with voting rights. This information is crucial for shareholders and others with notification obligations under the Financial Conduct Authority’s Disclosure and Transparency Rules, as it serves as the denominator for calculating changes in their interest in the company.