Morgan Sindall (MGNS) AI Stock Analysis

• Market Cap: £2.14B
• Dividend Yield: 2.46%
• Average Volume (3M): 137.74K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.67
• 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: 48,021,090
• 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: 10.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 5,318.00p ▲(11.96% Upside)

Morgan Sindall's strong financial performance, characterized by robust revenue growth and effective cash flow management, is the primary driver of its stock score. Technical indicators suggest a stable market position with a slight bullish trend. The valuation is reasonable, offering a balanced risk-reward profile.

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 is a UK-based construction and regeneration company that operates through several sectors, including Construction & Infrastructure, Fit Out, and Property Services. The company provides a wide range of services, such as building construction, civil engineering, and facilities management, catering to both public and private sector clients. With a commitment to sustainable practices, Morgan Sindall focuses on delivering innovative solutions that enhance communities and create lasting value.

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: 4750.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4750 is above the 20-day moving average (MA) of 4501.00, above the 50-day MA of 4606.05, and above the 200-day MA of 4017.86, indicating a bullish trend. The MACD of 12.14 indicates Negative momentum. The RSI at 64.98 is Neutral, neither overbought nor oversold. The STOCH value of 99.04 is Negative, 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	£1.09B	7.97	24.69%	3.17%	-1.17%	12.31%
KIE	78 Outperform	£900.43M	16.67	10.87%	3.21%	4.40%	31.59%
MGNS	76 Outperform	£2.14B	14.02	24.19%	2.46%	6.93%	21.50%
RNWH	76 Outperform	£739.32M	16.33	19.85%	2.12%	7.13%	17.31%
HILS	76 Outperform	£1.72B	21.37	17.29%	2.24%	3.88%	5.10%
BBY	72 Outperform	£3.29B	18.80	16.34%	1.24%	9.97%	-15.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Morgan Sindall Corporate Events

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.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £52.50 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

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.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £4738.00 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 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.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £4738.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Announces 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.