Morgan Sindall (MGNS) AI Stock Analysis

• Market Cap: £2.11B
• Dividend Yield: 2.49%
• Average Volume (3M): 137.74K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.73
• Revenue Growth: 6.93%
• EPS Growth: 21.50%
• Country: UK
• Employees: 8,097
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.06
• Shares Outstanding: 48,059,803
• 10 Day Avg. Volume: 100,689
• 30 Day Avg. Volume: 137,735
• PEG Ratio: 0.39
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 11.51
• 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: £5,800.00
• Price Target Upside: 24.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.33
• Revenue Forecast (FY): £5.10B

• Rating: 73 Outperform
• Price Target: 5,012.00 p ▲(7.32% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven mainly by solid financial performance (consistent revenue growth, improved earnings, and manageable leverage), supported by a constructive longer-term technical trend. Valuation is reasonable with a moderate dividend, but thin margins and cash-flow volatility temper the overall rating.

Positive Factors

Consistent revenue growth

Multi-year revenue growth through 2025 indicates expanding contract wins and stronger top-line momentum. Durable growth reduces reliance on one-off projects, improves bidding credibility on larger jobs, and supports reinvestment into operations and development activity over the next 2–6 months and beyond.

Efficient capital use & strong ROE

High ROE and low relative leverage signal efficient capital deployment and disciplined investment. This strength provides capacity to finance projects or selective M&A, maintain dividend support and absorb short-term shocks while preserving balance-sheet flexibility over multiple quarters.

Recurring framework revenue

Longer-term maintenance and framework contracts create predictable, recurring cash flows that smooth project-driven volatility. Stable public-sector frameworks support backlog visibility, reduce revenue seasonality, and enhance working-capital planning across medium-term project cycles.

Negative Factors

Structurally thin margins

Thin industry margins leave little room for cost overruns, supply-chain price jumps or subcontractor failures on fixed-price contracts. Even modest margin compression can materially hit earnings, making profitability sensitive to project mix and execution quality over coming quarters.

Volatile cash generation

Year-to-year free cash flow swings complicate forecasting and working-capital management for a project-driven contractor. Volatility increases reliance on external liquidity for bid bonds, mobilisation and development work, and can pressure timing of dividends or growth investments if adverse trends recur.

Rising absolute debt in 2025

An increase in absolute debt reduces headroom and raises interest and refinancing exposure if continued. For a business that needs liquidity for mobilising projects and development, rising debt can constrain bidding capacity and reduce financial flexibility across the medium term.

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

Strong multi-year revenue growth and improved profitability into 2024–2025 support the score. Balance sheet leverage remains manageable with strong ROE, but thin industry margins, slightly higher absolute debt in 2025, and volatile cash-flow conversion limit upside.

Income Statement

Revenue has grown consistently from 2020–2025, with 2025 revenue up ~6.7% and strong multi-year momentum after the 2020 dip. Profitability has also improved materially versus 2022: EBIT and net income rose meaningfully into 2024–2025, indicating better operating execution. That said, margins are structurally thin (as typical for construction) and 2024 profitability levels still leave limited cushion if project mix or costs deteriorate.

Balance Sheet

Leverage looks manageable with low debt relative to equity in recent years (debt-to-equity ~0.18 in 2024, improving from higher levels earlier), and equity has steadily expanded alongside asset growth. Returns on equity have been strong (about ~20% in 2023–2024), suggesting efficient capital use. The main watchout is the uptick in absolute debt in 2025 versus 2024, which is not yet alarming but worth monitoring if it continues.

Cash Flow

Cash generation is generally solid: free cash flow covered net income well in 2023–2024 (roughly 0.86–0.93x), and 2025 free cash flow increased sharply (+34%). However, cash flow has been volatile year-to-year (notably weaker in 2022 and a decline in free cash flow in 2024 versus 2023), which is common in contracting businesses but still increases forecasting risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.02B	4.55B	4.12B	3.61B	3.21B
Gross Profit	606.10M	529.90M	446.70M	370.90M	382.80M
EBITDA	248.50M	209.30M	162.90M	111.00M	147.00M
Net Income	174.90M	131.70M	117.70M	60.90M	97.90M
Balance Sheet
Total Assets	2.45B	2.13B	2.03B	1.79B	1.71B
Cash, Cash Equivalents and Short-Term Investments	590.50M	544.20M	541.30M	431.70M	468.60M
Total Debt	181.70M	118.50M	144.40M	134.00M	163.40M
Total Liabilities	1.70B	1.48B	1.46B	1.30B	1.23B
Stockholders Equity	748.80M	647.20M	568.10M	496.20M	474.20M
Cash Flow
Free Cash Flow	189.90M	110.60M	181.40M	42.90M	102.50M
Operating Cash Flow	205.90M	128.80M	196.00M	54.70M	110.50M
Investing Cash Flow	-44.80M	4.70M	-11.00M	8.30M	-4.50M
Financing Cash Flow	-122.30M	-101.80M	-78.90M	-66.80M	-80.80M

Morgan Sindall Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4670.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MGNS, the sentiment is Negative. The current price of 4670 is below the 20-day moving average (MA) of 5093.00, below the 50-day MA of 4958.20, and above the 200-day MA of 4556.43, indicating a bearish trend. The MACD of -107.93 indicates Positive momentum. The RSI at 29.16 is Positive, neither overbought nor oversold. The STOCH value of 8.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	£1.45B	8.23	24.69%	3.08%	-1.17%	12.31%
HILS	78 Outperform	£1.78B	7.70	17.29%	2.34%	3.88%	5.10%
BBY	76 Outperform	£3.42B	6.66	16.34%	1.80%	9.97%	-15.46%
MGNS	73 Outperform	£2.11B	12.50	24.19%	2.49%	6.93%	21.50%
GFRD	72 Outperform	£530.13M	7.10	27.48%	3.65%	5.78%	-6.80%
KIE	71 Outperform	£904.04M	9.81	10.87%	3.19%	4.40%	31.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Morgan Sindall Corporate Events

Morgan Sindall Discloses CEO Nil-Cost Option Vesting and Dividend Share Award

Morgan Sindall Group has disclosed a transaction by its chief executive, John Morgan, in line with market abuse regulations governing dealings by senior managers. The filing relates to the vesting of nil-cost share options that were originally granted in March 2023 under the company’s Deferred Bonus Plan adopted in 2017.

Upon vesting on 3 March 2026, the options carried a right to receive an amount linked to dividends paid over the deferral period, and this dividend equivalent has been settled in additional ordinary shares. The award, including the dividend equivalent of 856 new shares, remains exercisable until the tenth anniversary of the original grant date and was executed outside a trading venue, underscoring routine remuneration rather than an open-market share purchase.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5897.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall CEO Retains Shares After LTIP Vesting and Tax Sale

Morgan Sindall Group has disclosed a share transaction involving its chief executive, John Morgan, under market abuse regulations. The move relates to the vesting of conditional share awards granted under the company’s 2014 Long Term Incentive Plan and reflects ongoing use of equity-based remuneration to align leadership incentives with shareholder interests.

Following the vesting, Morgan acquired 53,205 ordinary shares at nil cost, including dividend equivalent shares, and sold 23,943 shares at £46.25 each to meet PAYE tax obligations. The remaining 29,262 shares have been retained in the company’s nominee account for a mandatory two-year holding period, underscoring governance controls over executive share ownership and longer-term value alignment.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5897.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Seeks Admission of New Shares for Employee Savings Plan

Morgan Sindall Group has applied to the London Stock Exchange for the admission to trading of 33,000 new ordinary shares of 5p each, which may be issued in future under the Morgan Sindall Sharesave Plan (2018). The shares, expected to be admitted on 5 March 2026, will rank pari passu with existing ordinary shares, supporting the company’s employee savings and share ownership arrangements without altering existing shareholder rights.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5897.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Confirms Total Voting Rights at Just Over 48 Million Shares

Morgan Sindall Group plc has confirmed that, as of 28 February 2026, its issued share capital comprises 48,026,802 ordinary shares of 5p each, all carrying voting rights and with no shares held in treasury. This establishes the total number of voting rights in the company at 48,026,802, a figure that shareholders and other market participants must use as the denominator when assessing and reporting any notifiable holdings under the FCA’s Disclosure and Transparency Rules.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5897.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Chair Takes New Non-Executive Role at Marsh & McLennan

Morgan Sindall Group has announced a change in its board-related disclosures, highlighting a new external appointment for its Non-Executive Chair, Peter Harrison. The update reflects the group’s ongoing obligation to report directors’ roles in other listed companies under UK listing rules.

Harrison has been appointed a Non-Executive Director of Marsh & McLennan Companies, Inc., effective 25 February 2026. The additional blue-chip board position may broaden his external perspective and network, potentially benefiting Morgan Sindall’s governance and strategic oversight without altering its existing executive structure.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5800.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall posts record 2025 profits and raises growth targets

Morgan Sindall Group reported another record year in 2025, with revenue up 10% to £5.0bn and adjusted profit before tax rising 35% to £232.6m, underpinned by margin expansion and a robust net cash position of £531m. The group lifted its full-year dividend by 20% and enters 2026 with a record £19.1bn of secured and preferred bidder work, prompting higher medium-term targets for its Infrastructure and Mixed Use Partnerships divisions despite housing market headwinds.

Performance was broad-based, led by standout growth in the Fit Out and Construction businesses, resilient gains in Partnership Housing, and a return to profit in Property Services after remediation, while Mixed Use Partnerships absorbed planned investment costs ahead of 2026 project starts. The group also maintained top-tier ESG ratings, reinforcing its positioning as a financially strong, sustainability-focused contractor, and signaling continued confidence in long-term demand across its chosen markets.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5800.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Lifts 2026 Outlook on Record Order Book and Surging Fit-Out Profits

Morgan Sindall Group reported that all divisions performed well in 2025 and the company expects full-year results to be in line with current market expectations. The group has entered 2026 with a record secured order book and preferred bidder work of £19.1 billion, up 17% year-on-year, reflecting strong strategic progress across its operating sectors.

Management highlighted a marked increase in confidence around converting preferred bidder work and securing new tenders in its Fit Out division, boosting revenue visibility. Profits from Fit Out in 2026 are now expected to be significantly ahead of prior expectations and well above the division’s medium-term target range, lifting the overall group outlook for 2026 above earlier forecasts, while other divisions are set to perform in line with previous guidance.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5400.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Confirms Total Voting Rights at 48 Million Shares

Morgan Sindall Group plc has reported that, as of 31 January 2026, its issued share capital stands at 48,023,525 ordinary shares of 5p each, all carrying voting rights, with no shares held in treasury. This disclosure sets the official total of voting rights in the company at 48,023,525, providing shareholders and other interested parties with the denominator needed to assess and report any notifiable holdings or changes under the UK Financial Conduct Authority’s Disclosure and Transparency Rules.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5400.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Sets Date for 2025 Full-Year Results Announcement

Morgan Sindall Group plc has announced that it will publish its full-year results for the 12 months to 31 December 2025 on Wednesday 25 February 2026, with the figures to be released via the London Stock Exchange’s Regulatory News Service and the investor relations section of its website. The company will also host an analyst presentation at Bank of America’s London offices on the morning of the announcement, underlining its engagement with the investment community ahead of a key update on trading and financial performance that will be closely watched by market participants and other stakeholders.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5400.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.

Morgan Sindall Confirms Total Voting Rights at Year-End

Morgan Sindall Group plc has confirmed that, as of 31 December 2025, its issued share capital comprises 48,022,962 ordinary shares of 5p each, all carrying voting rights, with no shares held in treasury. This disclosure sets the official total number of voting rights in the company at 48,022,962, providing the reference denominator for shareholders and other obligated parties to assess and report any notifiable interests or changes in their holdings under the Financial Conduct Authority’s Disclosure and Transparency Rules, thereby supporting regulatory compliance and market transparency around the company’s ownership structure.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5444.00 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 36,000 Ordinary Shares to be added to the Official List of the UK Listing Authority and traded on the London Stock Exchange. These shares, expected to be admitted on 18 December 2025, will fulfill options granted under the Morgan Sindall Sharesave Plan (2018), aligning with the company’s strategy to incentivize and reward its employees.

The most recent analyst rating on (GB:MGNS) stock is a Buy with a £5444.00 price target. To see the full list of analyst forecasts on Morgan Sindall stock, see the GB:MGNS Stock Forecast page.