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M&G Plc (GB:MNG)
LSE:MNG
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M&G Plc
(LSE:MNG)
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Rating:54Neutral
Price Target:
258.00p
▲(2.83% Upside)
M&G's overall score is driven by positive earnings call highlights, including strong capital generation and strategic achievements. However, financial performance challenges and a neutral technical outlook weigh on the score.
Positive Factors
Negative Factors
M&G Plc (MNG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
$5.94B
Dividend Yield8.05%
Average Volume (3M)5.76M
Price to Earnings (P/E)30.4
Beta (1Y)1.19
Revenue Growth9.86%
EPS Growth-134.41%
CountryUK
Employees6,151
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.13
Shares Outstanding2,404,966,600
10 Day Avg. Volume6,737,951
30 Day Avg. Volume5,760,934
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.44
Price to Sales (P/S)0.42
P/FCF Ratio12.18
Enterprise Value/Market Cap2.20
Enterprise Value/Revenue1.23
Enterprise Value/Gross Profit1.72
Enterprise Value/Ebitda14.12
Forecast
1Y Price Target
$272.08Price Target Upside8.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
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 primarily through its investment management and insurance operations. The company earns fees from managing assets on behalf of individual and institutional clients, including mutual funds, pensions, and other investment vehicles. These fees are typically based on a percentage of the assets under management (AUM) and may include performance-related fees when investment results exceed certain benchmarks. In addition to investment management fees, M&G earns premiums from its insurance products, such as life insurance and annuities, which provide a stable source of revenue. The company also benefits from its strategic partnerships and distribution agreements, which expand its reach and customer base, further contributing to its earnings. Market performance, interest rates, and regulatory environments are significant factors influencing M&G's financial outcomes.
M&G Plc Earnings Call Summary
Earnings Call Date:Sep 03, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
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 financial challenges with inconsistent revenue growth, operational inefficiencies, and high leverage. Despite strong cash reserves, declining equity and cash flow concerns highlight the need for strategic adjustments.Income Statement
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.45
Neutral
Balance Sheet
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.50
Neutral
Cash Flow
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.61B | 11.26B | 10.66B | -7.94B | 16.25B | 15.76B |
| Gross Profit | 7.60B | 11.26B | 15.15B | -7.94B | 16.25B | 15.76B |
| EBITDA | 925.00M | 754.00M | 1.27B | -2.58B | 1.09B | 2.11B |
| Net Income | -55.00M | -360.00M | 297.00M | -1.63B | 83.00M | 1.14B |
Balance Sheet | ||||||
| Total Assets | 184.08B | 184.22B | 189.62B | 190.37B | 217.47B | 216.97B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 4.84B | 5.59B | 4.88B | 6.91B | 6.78B |
| Total Debt | 6.35B | 6.91B | 8.03B | 7.96B | 9.34B | 8.62B |
| Total Liabilities | 180.81B | 180.90B | 185.10B | 187.54B | 212.12B | 211.38B |
| Stockholders Equity | 3.23B | 3.28B | 4.04B | 2.78B | 5.30B | 5.58B |
Cash Flow | ||||||
| Free Cash Flow | 1.09B | 388.00M | 1.52B | -1.27B | 352.00M | 1.57B |
| Operating Cash Flow | 1.30B | 677.00M | 2.02B | -694.00M | 1.12B | 2.39B |
| Investing Cash Flow | 1.00M | 152.00M | -603.00M | -368.00M | -466.00M | -957.00M |
| Financing Cash Flow | -827.00M | -1.14B | -680.00M | -1.01B | -501.00M | -691.00M |
M&G Plc Technical Analysis
Neutral
250.90
Price Trends
254.43
Negative
245.80
Positive
217.67
Positive
Market Momentum
-0.80
Positive
44.96
Neutral
15.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MNG, the sentiment is Neutral. The current price of 250.9 is below the 20-day moving average (MA) of 252.99, below the 50-day MA of 254.43, and above the 200-day MA of 217.67, indicating a neutral trend. The MACD of -0.80 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 15.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:MNG.
M&G Plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 3.46B | 11.59 | 40.20% | 6.07% | 0.18% | -6.74% | |
76 Outperform | 1.99B | 14.33 | 17.78% | 7.28% | -10.85% | -42.02% | |
74 Outperform | 5.77B | 16.16 | 9.82% | 5.78% | 4.78% | ― | |
71 Outperform | 3.44B | 10.67 | 4.71% | 7.56% | -7.11% | 0.45% | |
67 Neutral | 6.26B | 14.08 | ― | 3.75% | -0.15% | -7.47% | |
54 Neutral | $5.94B | 30.42 | -1.53% | 8.05% | 9.86% | -134.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
GB:MNG
M&G Plc
250.90
61.42
32.41%
GB:ICG
Intermediate Capital
2,214.00
73.76
3.45%
GB:EMG
Man Group plc
177.50
-17.93
-9.17%
GB:SDR
Schroders
372.20
42.46
12.88%
GB:ABDN
Aberdeen Group
193.10
42.45
28.18%
NINTF
Ninety One
2.59
0.28
12.12%
M&G Plc Corporate Events
Business Operations and Strategy
M&G Plc Executives Participate in Share Incentive Plan
Positive
Sep 10, 2025
M&G Plc announced that several of its senior executives, including the Group General Counsel, Chief People Officer, and Chief Transformation and Integration Officer, have participated in the company’s UK Share Incentive Plan. They purchased partnership shares and were granted matching shares, reflecting confidence in the company’s future performance. This move is part of M&G’s strategy to align management interests with shareholders and enhance stakeholder value.
The most recent analyst rating on (GB:MNG) stock is a Hold with a £264.00 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
M&G Plc Reports Strong H1 2025 Results with Significant International Growth
Positive
Sep 3, 2025
M&G Plc reported strong financial results for the first half of 2025, highlighted by £2.1 billion in net flows from open business and an improved asset management cost-to-income ratio. The company has made significant strides in international expansion, with 58% of its asset management third-party assets under management coming from international clients. A strategic partnership with Dai-ichi Life is expected to generate $6 billion in new business flows over the next five years. M&G’s diversified business model and continued focus on efficiency and product innovation, such as the planned launch of a With-Profits Bulk Purchase Annuity, position it well for sustainable growth.
The most recent analyst rating on (GB:MNG) stock is a Buy with a £275.00 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
Sep 1, 2025
M&G Plc has announced its total voting rights and issued share capital as of August 31, 2025. The company has an issued share capital comprising 2,408,380,648 ordinary shares, with 3,414,030 shares held in treasury, resulting in 2,404,966,618 total voting rights. This information is crucial for shareholders to determine their interests under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
The most recent analyst rating on (GB:MNG) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on M&G Plc stock, see the GB:MNG Stock Forecast page.
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.