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Mpac Group PLC (GB:MPAC)
LSE:MPAC
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Mpac Group PLC (MPAC) AI Stock Analysis

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GB:MPAC

Mpac Group PLC

(LSE:MPAC)

Rating:64Neutral
Price Target:
339.00p
▲(0.44% Upside)
The overall score is influenced by solid financial performance and strategic corporate events, offset by bearish technical indicators and a high P/E ratio. Key concerns include profitability challenges and operational risks due to market conditions.

Mpac Group PLC (MPAC) vs. iShares MSCI United Kingdom ETF (EWC)

Mpac Group PLC Business Overview & Revenue Model

Company DescriptionMpac Group PLC is a global leader in the design and manufacture of packaging and automation solutions, primarily serving the pharmaceutical, healthcare, and consumer goods sectors. The company specializes in providing high-quality, bespoke packaging systems and equipment, along with comprehensive services that include project management, installation, and ongoing support. Mpac's core offerings include cartoning, case packing, and product handling systems, which are tailored to meet the specific needs of its clients, ensuring efficiency and reliability in their packaging operations.
How the Company Makes MoneyMpac Group PLC generates revenue through the sale of its packaging machinery and automation systems, complemented by after-sales services and support. The company's primary revenue streams include the initial sale of equipment, which often involves customized solutions for clients, and recurring income from maintenance contracts and spare parts. Additionally, Mpac benefits from partnerships with major players in the pharmaceutical and consumer goods industries, which help stabilize and expand its client base. The demand for automation and efficient packaging solutions, particularly in the pharmaceutical sector, drives significant earnings for the company, as clients seek to enhance productivity and comply with stringent regulatory standards.

Mpac Group PLC Financial Statement Overview

Summary
Mpac Group PLC shows strong revenue growth and a stable equity position, but faces challenges with declining free cash flow and profitability pressures. The increased leverage indicates higher financial risk, necessitating cautious financial management.
Income Statement
75
Positive
Mpac Group PLC has shown a consistent revenue growth, with a notable increase from 97.7 million to 122.4 million over the past few years. Gross profit margins have been relatively stable, averaging around 28%. While EBIT and EBITDA margins have shown improvement, the net profit margin dipped in the latest year due to lower net income, indicating potential profitability challenges.
Balance Sheet
70
Positive
The company's balance sheet reflects strong equity growth, with stockholders' equity increasing to 108 million. The debt-to-equity ratio has increased to 0.61, indicating higher leverage, which could pose a risk. The equity ratio remains healthy at around 40%, suggesting a stable asset base supported by equity.
Cash Flow
60
Neutral
Mpac Group PLC's cash flow statements reveal a concerning trend of declining free cash flow, now at -0.5 million. The operating cash flow to net income ratio is low, suggesting challenges in converting income into cash. However, financing activities have injected liquidity, providing some cash flow relief.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue122.40M114.20M97.70M94.30M83.70M
Gross Profit34.70M31.60M22.80M27.30M22.70M
EBITDA10.20M9.10M5.10M12.40M7.00M
Net Income1.40M2.70M-400.00K7.80M4.20M
Balance Sheet
Total Assets272.40M137.90M129.70M128.10M105.00M
Cash, Cash Equivalents and Short-Term Investments18.20M11.00M4.20M14.50M15.50M
Total Debt65.40M15.10M14.20M6.90M5.10M
Total Liabilities164.40M73.90M67.50M62.70M58.80M
Stockholders Equity108.00M64.00M62.20M65.40M46.20M
Cash Flow
Free Cash Flow-500.00K8.60M-16.40M-1.30M8.20M
Operating Cash Flow1.40M11.20M-14.00M400.00K11.20M
Investing Cash Flow-59.50M-2.60M-3.20M-300.00K-13.10M
Financing Cash Flow65.70M-1.80M6.60M-1.40M-1.30M

Mpac Group PLC Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price337.50
Price Trends
50DMA
353.80
Negative
100DMA
379.69
Negative
200DMA
445.63
Negative
Market Momentum
MACD
0.51
Negative
RSI
52.58
Neutral
STOCH
55.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MPAC, the sentiment is Neutral. The current price of 337.5 is above the 20-day moving average (MA) of 329.00, below the 50-day MA of 353.80, and below the 200-day MA of 445.63, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 55.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:MPAC.

Mpac Group PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£182.43M10.6625.68%0.62%1.53%-14.16%
74
Outperform
£716.42M29.1618.87%1.45%14.88%45.73%
73
Outperform
£571.63M20.718.04%4.37%-7.30%-59.71%
72
Outperform
£145.60M33.693.87%0.92%14.30%-25.58%
71
Outperform
£117.34M28.133.19%6.57%-21.14%-75.01%
66
Neutral
£2.68B13.053.30%3.25%2.40%-22.21%
64
Neutral
£101.50M35.561.63%7.18%-28.05%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MPAC
Mpac Group PLC
337.50
-115.00
-25.41%
GB:RNO
Renold plc
80.80
24.40
43.26%
GB:CGS
Castings
280.00
-39.85
-12.46%
GB:MGAM
Morgan Advanced Materials
203.50
-88.73
-30.36%
GB:GDWN
Goodwin
9,520.00
2,062.64
27.66%
GB:AVG
Avingtrans
440.00
54.58
14.16%

Mpac Group PLC Corporate Events

Executive/Board Changes
Mpac Group Announces Board Change as Doug Robertson Steps Down
Neutral
Jul 31, 2025

Mpac Group PLC announced that Doug Robertson, an independent non-executive director, will step down from the Board effective 31 August 2025. The company is in the advanced stages of searching for a new independent non-executive director to chair the audit committee, indicating a continued focus on strong governance and leadership.

Regulatory Filings and Compliance
Mpac Group PLC Announces Change in Major Holdings
Neutral
Jul 8, 2025

Mpac Group PLC, a UK-based company, has announced a change in its major holdings due to an acquisition or disposal of voting rights by FIL Limited, a Bermuda-registered entity. As of July 2, 2025, FIL Limited holds 5.4791% of the voting rights in Mpac Group PLC, totaling 1,647,741 shares. This change in holdings was officially notified to Mpac Group PLC on July 4, 2025, and reflects FIL Limited’s significant influence in the company’s voting structure.

Business Operations and StrategyRegulatory Filings and Compliance
Mpac Group CEO Increases Shareholding in Strategic Move
Positive
Jul 4, 2025

Mpac Group PLC announced that its CEO, Adam Holland, purchased 3,810 Ordinary Shares at 262.5 pence each, increasing his total shareholding to 28,038 shares, which represents 0.09% of the company’s issued share capital. This transaction, disclosed in accordance with UK Market Abuse Regulation, reflects a potential vote of confidence in the company’s future prospects by its leadership, possibly impacting stakeholder perceptions positively.

Business Operations and StrategyFinancial Disclosures
Mpac Group PLC Announces Investor Webinar for Trading Update
Neutral
Jul 1, 2025

Mpac Group PLC announced a live investor webinar to discuss its latest trading update, scheduled for 09.00am on Friday, 4 July 2025. The event, hosted by CEO Adam Holland and CFO Will Wilkins, aims to enhance communication with shareholders by providing insights into the company’s strategy, business model, and financial performance.

Business Operations and StrategyFinancial Disclosures
Mpac Group PLC Accelerates US Consolidation Amid Slowing Orders
Negative
Jul 1, 2025

Mpac Group PLC has announced a trading update highlighting the impact of US tariffs and economic uncertainty on its operations, leading to a significant slowdown in order intake during Q2 2025. As a result, the company is accelerating its consolidation plans in the US to optimize its cost base and improve efficiency, including closing its Cleveland facility and reducing capacity in Canada. Despite these challenges, Mpac remains committed to maintaining operating margins and has implemented measures to manage debt and cash flow effectively.

Business Operations and StrategyFinancial Disclosures
Mpac Group PLC Announces US Consolidation Amid Slower Market Conditions
Negative
Jul 1, 2025

Mpac Group PLC has announced a trading update revealing that Q2 order intake was impacted by tariff uncertainties, leading to deferred order decisions and expected lower revenue for the second half of 2025. In response to slower market conditions, especially in the US, Mpac is accelerating its consolidation plans by closing its Cleveland facility and merging operations in Boston, while also reducing capacity in Canada. These measures aim to optimize costs and maintain operating margins despite reduced revenue, positioning the company for future growth when market conditions improve.

Business Operations and Strategy
Mpac Group Secures £249m Pension Scheme ‘Buy In’ with Aviva
Positive
Jul 1, 2025

Mpac Group PLC has announced a significant ‘buy in’ transaction with Aviva Life & Pensions UK Limited, securing a bulk annuity insurance policy worth £249 million for the Molins UK Pension Fund. This move eliminates primary investment, inflation, and longevity risks associated with the Scheme, while maintaining member benefits and not requiring additional contributions from Mpac. The transaction aligns with Mpac’s strategy to de-risk its UK pensions exposure, simplifying its balance sheet and enhancing shareholder value by removing funding risks linked to its defined benefit liabilities.

Shareholder MeetingsBusiness Operations and Strategy
Mpac Group PLC Successfully Concludes AGM with All Resolutions Passed
Neutral
Jun 12, 2025

Mpac Group PLC announced the successful passing of all resolutions at its Annual General Meeting, including the re-election of directors and the appointment of auditors. The AGM was delayed due to significant acquisitions in 2024, and no trading update was provided, with a half-year update expected in July 2025. This development reflects the company’s ongoing strategic adjustments and may influence its market positioning and stakeholder confidence.

Business Operations and StrategyRegulatory Filings and Compliance
Mpac Group PLC Announces Change in Major Shareholding
Neutral
Jun 6, 2025

Mpac Group PLC has announced a change in its shareholding structure, with Schroders PLC reducing its stake in the company to 14.72% from a previous 15.17%. This adjustment in shareholding could impact Mpac Group’s market dynamics and investor relations, reflecting a strategic move by Schroders PLC in managing its investment portfolio.

Executive/Board ChangesBusiness Operations and Strategy
Mpac Group PLC Grants Long Term Incentive Options to Key Directors
Neutral
May 23, 2025

Mpac Group PLC has announced the granting of 171,548 options under its Long Term Incentive Plan to key directors, including CEO Adam Holland and Group Finance Director William Wilkins. These options are tied to performance metrics such as Earnings Per Share and Operating Return On Sales, with a vesting period from January 2025 to December 2027, reflecting the company’s commitment to aligning leadership incentives with long-term performance goals.

Shareholder MeetingsFinancial Disclosures
Mpac Group Releases 2024 Annual Report and Announces 2025 AGM
Positive
May 12, 2025

Mpac Group PLC has announced the availability of its 2024 Annual Report and the Notice of its 2025 Annual General Meeting (AGM) on its website. The AGM is scheduled for 12 June 2025 at the company’s offices in Coventry, and shareholders are encouraged to submit questions to the Board prior to the meeting. This announcement underscores Mpac Group’s commitment to transparency and shareholder engagement, potentially impacting its stakeholder relations positively.

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.Date of analysis: Jul 26, 2025