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M&G Plc (GB:MNG)
LSE:MNG

M&G Plc (MNG) AI Stock Analysis

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GB

M&G Plc

(LSE:MNG)

Rating:72Outperform
Price Target:
282.00p
▲(10.68%Upside)
The overall stock score reflects a mixed financial performance with significant financial challenges, offset by strong technical indicators and positive corporate events. The positive sentiment from the earnings call and strategic initiatives provide a solid foundation for future growth, despite current profitability concerns.
Positive Factors
Earnings
Adjusted Operating Profit exceeded expectations by 6%, driven by lower costs and strong performance in the Life segment.
Financial Targets
The company raised its 2022-24 OCG target to £2.7bn and increased its cost-saving target to £220mn, indicating improved financial goals.
Negative Factors
Asset Management Outflows
There were significant outflows in Asset Management, particularly from UK Institutional clients, although offset by strong international flows.
Capital Generation
Underlying Capital Generation was 7% below consensus due to new business strain and lower returns on surplus assets.

M&G Plc (MNG) vs. iShares MSCI United Kingdom ETF (EWC)

M&G Plc Business Overview & Revenue Model

Company DescriptionM&G plc, through its subsidiaries, engages in savings and investment businesses in the United Kingdom and internationally. The company operates through two segments, Asset Management, and Retail and Savings. It offers retirement, savings, and investment management solutions to its retail and institutional customers. The company also provides individual and corporate pensions, annuities, life, savings, and investment products. It serves individual savers and investors, financial advisers and paraplanners, and institutional investors. The company was formerly known as M&G Prudential PLC and changed its name to M&G plc in September 2019. M&G plc was founded in 1848 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyM&G Plc generates revenue through its asset management and insurance operations. The asset management division earns money by charging management fees and performance fees on the assets it manages on behalf of clients, including mutual funds, pension funds, and other institutional and retail investment vehicles. Additionally, the insurance division contributes to revenue through the sale of life insurance and other related insurance products, which generate premiums. M&G also benefits from its investment income, earned by investing its own capital alongside client funds. Moreover, strategic partnerships and collaborations with other financial institutions enhance M&G's distribution capabilities and market reach, further supporting its revenue generation.

M&G Plc Earnings Call Summary

Earnings Call Date:Mar 19, 2025
(Q4-2024)
|
% Change Since: 22.81%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with impressive capital generation, asset management growth, and successful cost-saving measures. However, the challenges of client outflows and market volatility were also evident. The overall sentiment leans positive due to the strength in growth areas and strategic achievements.
Q4-2024 Updates
Positive Updates
Record-Breaking Capital Generation
M&G generated over £900 million of capital, exceeding the upgraded OCG target and allowing for debt reduction and increased dividend cash spend.
Strong Asset Management Performance
Group operating profit increased by 5%, driven by a nearly 20% improvement in asset management results. Average AUM grew by nearly 3% with improved cost efficiencies.
International Growth and Diversification
International assets grew by 50% over the past 4 years, with 56% of third-party assets belonging to international clients, enhancing financial resilience.
Simplification and Cost Savings Achievements
Achieved £188 million in savings and upgraded the cost target to £230 million by the end of 2025, with a focus on reducing the cost-to-income ratio.
Launch of New Value Share Proposition
Introduced a new value share BPA, completing 6 deals worth £1.7 billion, including a £500 million indicative value share transaction.
Negative Updates
Net Client Outflows
Net client outflows of £1.9 billion were mainly due to U.K. institutional asset management and PruFund, although PruFund outflows halved in the final 6 months.
Decline in PruFund Sales
PruFund has been impacted by high rates, resulting in lower sales and higher redemptions, though redemptions have started to reduce.
Impact of Market Volatility
Short-term market fluctuations led to significant negative impacts below the line, including £643 million from market short-term impacts and £333 million from IFRS 17 mismatches.
Company Guidance
During the call, M&G provided comprehensive guidance on their financial performance and strategic priorities for the fiscal year 2024. They announced over £900 million in capital generation, surpassing their upgraded capital generation (OCG) target, which enabled them to reduce debt and increase dividend cash spend for the first time since their listing in 2019. They declared a shift to a progressive dividend policy, starting with a 2% increase in dividend per share (DPS) for 2024. M&G also reported £188 million in savings over the first two years of their simplification program and upgraded their cost-saving target to £230 million by the end of 2025. Their asset management segment achieved a 20% improvement in results, contributing to a 5% year-on-year increase in group operating profit. M&G is poised to expand its presence in private markets, leveraging its competitive advantage of combining an international active asset manager with a scaled life business. They also highlighted their £185 billion in life operations assets and the strategic use of their With-Profit fund’s nearly £6 billion of surplus capital to drive long-term growth without adding risk to the balance sheet.

M&G Plc Financial Statement Overview

Summary
M&G Plc faces several financial challenges, including inconsistent revenue growth, operational inefficiencies, and high leverage. The declining equity and cash flow concerns highlight the need for strategic adjustments to improve long-term financial health.
Income Statement
45
Neutral
M&G Plc's revenue showed a slight increase from the previous year but has faced a volatile trajectory over the years with a recent net income decline to a loss. The gross profit margin remains strong at 100% due to the nature of its business model. However, the lack of EBIT and negative net income indicates challenges in operational efficiency and profitability.
Balance Sheet
50
Neutral
The company's balance sheet reflects a high leverage position with a debt-to-equity ratio of 2.11. The stockholders' equity has decreased over time, indicating potential financial instability. However, M&G maintains substantial cash reserves, which provides some financial flexibility.
Cash Flow
40
Negative
M&G's cash flow situation is concerning, with a significant decrease in free cash flow and a negative growth rate, indicating potential liquidity issues. The operating cash flow to net income ratio is impacted by negative net income, further highlighting cash flow challenges.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
11.26B10.66B-7.94B16.25B15.76B
Gross Profit
11.26B15.15B-7.94B16.25B15.76B
EBIT
145.00M-23.00M-1.61B1.20B3.06B
EBITDA
754.00M1.27B-2.58B1.09B2.11B
Net Income Common Stockholders
-360.00M297.00M-1.63B83.00M1.14B
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.84B5.59B4.88B6.91B6.78B
Total Assets
184.22B189.62B190.37B217.47B216.97B
Total Debt
6.91B8.03B7.96B9.34B8.62B
Net Debt
2.07B2.89B3.07B2.44B1.84B
Total Liabilities
180.90B185.10B187.54B212.12B211.38B
Stockholders Equity
3.28B4.04B2.78B5.30B5.58B
Cash FlowFree Cash Flow
388.00M1.52B-1.27B352.00M1.57B
Operating Cash Flow
677.00M2.02B-694.00M1.12B2.39B
Investing Cash Flow
152.00M-603.00M-368.00M-466.00M-957.00M
Financing Cash Flow
-1.14B-680.00M-1.01B-501.00M-691.00M

M&G Plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price254.80
Price Trends
50DMA
214.45
Positive
100DMA
206.76
Positive
200DMA
197.65
Positive
Market Momentum
MACD
11.47
Negative
RSI
85.57
Negative
STOCH
95.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MNG, the sentiment is Positive. The current price of 254.8 is above the 20-day moving average (MA) of 235.14, above the 50-day MA of 214.45, and above the 200-day MA of 197.65, indicating a bullish trend. The MACD of 11.47 indicates Negative momentum. The RSI at 85.57 is Negative, neither overbought nor oversold. The STOCH value of 95.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MNG.

M&G Plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBEMG
79
Outperform
£1.97B8.4817.94%9.82%18.85%26.14%
GBSDR
78
Outperform
£5.71B13.479.48%8.14%0.72%7.66%
GBMNG
72
Outperform
$6.06B30.42-10.00%10.19%28.69%-220.08%
69
Neutral
£3.41B14.074.88%7.63%-5.51%1596.15%
GBICG
67
Neutral
£5.58B12.2318.83%5.75%1.50%-12.67%
64
Neutral
$12.93B9.707.85%78.03%12.07%-7.83%
$4.21B8.2240.46%7.57%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MNG
M&G Plc
254.80
72.31
39.62%
GB:ICG
Intermediate Capital
1,921.00
-225.00
-10.48%
GB:EMG
Man Group plc
170.50
-58.99
-25.70%
GB:SDR
Schroders
355.80
7.28
2.09%
GB:ABDN
Aberdeen Group
185.70
53.73
40.71%
NINTF
Ninety One
1.80
-0.23
-11.33%

M&G Plc Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
M&G Plc Executives Participate in Share Incentive Plan
Positive
Jun 10, 2025

M&G Plc announced that several of its key executives, including the Group General Counsel and Company Secretary, Chief People Officer, and Chief Strategy & Transformation Officer, have purchased partnership shares and received matching shares under the M&G UK Share Incentive Plan. This move, compliant with the Market Abuse Regulation, reflects the company’s commitment to aligning the interests of its leadership with those of its shareholders, potentially strengthening stakeholder confidence and enhancing market positioning.

The most recent analyst rating on (GB:MNG) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.

Executive/Board Changes
M&G Plc Grants Performance Share Awards to Executives
Neutral
Jun 10, 2025

M&G Plc has announced the grant of nil-cost option awards under its Performance Share Plan 2019 to key executives, including CEO Andrea Rossi and CFO Kathryn McLeland. These awards, approved by the Remuneration Committee, align with the revised Directors’ Remuneration Policy and are contingent on performance conditions over a three-year period, with an additional two-year holding period, reflecting the company’s commitment to long-term value creation for its stakeholders.

The most recent analyst rating on (GB:MNG) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.

Other
M&G Plc Director Increases Stake with Share Purchase
Positive
Jun 4, 2025

M&G Plc announced that Clive Adamson, an Independent Non-Executive Director, purchased 600 ordinary shares of the company. This transaction, conducted on June 3, 2025, was made through reinvested dividends, reflecting a personal investment in the company and demonstrating confidence in its financial stability and future prospects.

The most recent analyst rating on (GB:MNG) stock is a Buy with a £220.00 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.

Regulatory Filings and Compliance
M&G Plc Announces Total Voting Rights and Share Capital Update
Neutral
Jun 3, 2025

M&G Plc has announced its total voting rights and issued share capital as of May 31, 2025. The company reported an issued share capital of 2,408,167,838 ordinary shares, with 3,414,030 shares held in treasury, resulting in a total of 2,404,753,808 voting rights. This information is crucial for shareholders to determine their interests in the company under regulatory guidelines.

The most recent analyst rating on (GB:MNG) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
M&G and Dai-ichi Life Forge Strategic Partnership for European and Asian Expansion
Positive
May 30, 2025

M&G Plc and Dai-ichi Life Holdings have announced a strategic partnership that will see M&G become Dai-ichi’s preferred asset management partner in Europe. This partnership is expected to generate significant new business flows, with M&G anticipating $6 billion over the next five years. Dai-ichi Life HD plans to acquire a 15% shareholding in M&G, aligning both companies for long-term growth and collaboration in asset management and life insurance sectors. This move is set to enhance M&G’s market position in Europe and provide new avenues for growth in Asia, benefiting stakeholders through increased business opportunities and improved operational profits.

The most recent analyst rating on (GB:MNG) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.

DividendsRegulatory Filings and Compliance
M&G Plc Updates PDMR Share Interests Post-Dividend
Neutral
May 16, 2025

M&G Plc has announced changes in the share interests of certain Persons Discharging Managerial Responsibilities (PDMRs) following the company’s interim dividend payment. On May 14, 2025, dividend equivalent shares accrued on vested incentive plans were released to PDMRs, who retained shares after covering tax liabilities and sale costs. This move aligns with regulatory requirements under the Market Abuse Regulation and reflects M&G’s ongoing commitment to transparent governance practices.

The most recent analyst rating on (GB:MNG) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.

Executive/Board ChangesDividendsRegulatory Filings and Compliance
M&G Plc Updates on Executive Share Transactions Post-Dividend
Neutral
May 15, 2025

M&G Plc announced changes in the share interests of certain Persons Discharging Managerial Responsibilities (PDMRs) following the release of dividend equivalent shares from incentive plans. These changes, which include the retention of shares after tax deductions and reinvestment of dividends, are part of the company’s ongoing management of executive compensation and shareholder interests. The transactions, conducted outside trading venues, reflect M&G’s adherence to regulatory requirements and its strategic focus on aligning management incentives with shareholder value.

The most recent analyst rating on (GB:MNG) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.

DividendsRegulatory Filings and Compliance
M&G plc Executives Adjust Shareholdings Under Incentive Plan
Neutral
May 13, 2025

M&G plc announced changes in share interests for several key executives under the M&G Share Incentive Plan (SIP). Executives Charlotte Heiss, Matthew Howells, and Benoît Macé purchased partnership shares and received matching shares, while Christopher Cochrane, along with the aforementioned executives, acquired dividend shares following the reinvestment of interim dividends. These transactions, compliant with the Market Abuse Regulation, reflect the company’s ongoing commitment to aligning management interests with shareholder value.

The most recent analyst rating on (GB:MNG) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.

DividendsBusiness Operations and Strategy
M&G Plc Updates PDMR Share Interests Post-Dividend
Neutral
May 13, 2025

M&G Plc has announced changes to the interests of its Persons Discharging Managerial Responsibilities (PDMRs) following the payment of an interim dividend. This adjustment involves the accrual of dividend equivalent shares on deferred and long-term incentive share plans, aligning with the original award terms. This move reflects the company’s ongoing commitment to aligning management incentives with shareholder interests, potentially impacting the company’s operational dynamics and stakeholder engagement.

The most recent analyst rating on (GB:MNG) stock is a Buy with a £2.75 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.

Regulatory Filings and Compliance
M&G Plc Updates on Share Capital and Voting Rights
Neutral
May 1, 2025

M&G Plc has announced its total voting rights and issued share capital as of April 30, 2025. The company reported an issued share capital of 2,408,021,702 ordinary shares, with 3,414,030 shares held in treasury, leaving 2,404,607,672 voting rights available. This update is crucial for shareholders to determine their interest in the company under regulatory guidelines.

Executive/Board ChangesShareholder MeetingsStock BuybackBusiness Operations and Strategy
M&G Plc Successfully Passes All Resolutions at 2025 AGM
Positive
Apr 30, 2025

M&G Plc announced the successful passing of all resolutions at its 2025 Annual General Meeting, including both ordinary and special resolutions. The approval of these resolutions, such as the election and re-election of directors and authorization for the company to purchase its own shares, reflects strong shareholder support and positions M&G for continued strategic growth and operational flexibility.

Business Operations and StrategyRegulatory Filings and Compliance
M&G Plc Executives Acquire Shares Under Incentive Plan
Positive
Apr 11, 2025

M&G Plc announced that several key executives, including the Group General Counsel, Chief People Officer, and Chief Strategy & Transformation Officer, have purchased partnership shares and were granted matching shares under the M&G UK Share Incentive Plan. This move, compliant with the Market Abuse Regulation, reflects the company’s commitment to aligning management interests with shareholder value and could enhance stakeholder confidence in its governance practices.

Financial DisclosuresRegulatory Filings and Compliance
M&G plc Releases 2024 Solvency and Financial Condition Report
Neutral
Apr 4, 2025

M&G plc has submitted its Solvency and Financial Condition Report for the year ending December 31, 2024, to the Prudential Regulation Authority. This report, now available on the company’s website, provides insights into M&G’s financial health and regulatory compliance, potentially impacting its operational strategies and stakeholder confidence.

Executive/Board ChangesBusiness Operations and Strategy
M&G Plc Announces Share Vesting and New Awards for Executives
Neutral
Apr 3, 2025

M&G Plc announced the vesting and release of shares under its Deferred Incentive Plan (DIP) and Performance Share Plan (PSP) for several key executives, including Clive Bolton, Christopher Cochrane, and Matthew Howells. These transactions, which took place on April 1, 2025, involved selling sufficient shares to cover tax liabilities and retaining the balance. Additionally, new awards were granted to Shawn Gamble to compensate for forfeited awards from her previous employer, aligning with M&G’s strategic talent retention and incentive objectives.

Executive/Board ChangesBusiness Operations and StrategyRegulatory Filings and Compliance
M&G Plc Announces Share Vesting and New Awards for Key Executives
Neutral
Apr 1, 2025

M&G Plc announced the vesting and release of shares under its Deferred Incentive Plan (DIP) and Performance Share Plan (PSP) for several key executives, including Joseph Pinto and Louise Shield. These awards, some subject to performance conditions, were partially sold to cover tax liabilities, with the remainder retained by the executives. The company also granted new awards under these plans, with specific holding periods and performance conditions, aligning with regulatory requirements and emphasizing long-term value creation for stakeholders.

Regulatory Filings and Compliance
M&G plc Announces Total Voting Rights and Issued Share Capital
Neutral
Apr 1, 2025

M&G plc has announced its total voting rights and issued share capital as of March 31, 2025. The company has an issued share capital comprising 2,407,849,526 ordinary shares, with 3,414,030 of these held in Treasury, leaving 2,404,435,496 shares with voting rights. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how they manage their interests in the company.

Shareholder Meetings
M&G Plc Announces 2025 Annual General Meeting Details
Positive
Mar 26, 2025

M&G Plc has announced the availability of its Notice of Annual General Meeting 2025 on its website, with the meeting scheduled for April 30, 2025, in London. The announcement highlights the company’s commitment to transparency and shareholder engagement by offering both in-person and virtual attendance options, reflecting its adaptability and focus on stakeholder inclusivity.

Financial DisclosuresRegulatory Filings and Compliance
M&G Plc Releases 2024 Annual Report and Accounts
Neutral
Mar 19, 2025

M&G Plc has released its 2024 Annual Report and Accounts, which is now available to shareholders who have requested a paper copy and can also be accessed online. This release is part of the company’s compliance with the Disclosure & Transparency Rules and provides essential information for stakeholders, reinforcing M&G’s commitment to transparency and shareholder communication.

DividendsBusiness Operations and StrategyFinancial Disclosures
M&G Plc Reports Strong 2024 Financial Performance and Announces Progressive Dividend Policy
Positive
Mar 19, 2025

M&G Plc has reported a robust financial performance for 2024, with a 5% increase in adjusted operating profit before tax and a 2% increase in total dividend per share, reflecting its new progressive dividend policy. The company has made significant strides in simplifying its operations, reducing costs, and expanding its asset management and life insurance businesses, positioning itself for sustainable and diversified growth. Despite challenging market conditions, M&G has improved its solvency ratio and reduced debt, demonstrating resilience and a commitment to delivering long-term value to shareholders.

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.