Morgan Advanced Materials Plc (MGAM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hardide Plc

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Morgan Advanced Materials Plc

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Quadrise Plc

Active Energy Group Plc

Asimilar Group Plc

Zenova Group Plc

Why is Morgan Advanced Materials Plc ?

Poor long term growth as Operating profit has grown by an annual rate 0.44% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

ROCE(HY) Lowest at 8.04%
INTEREST COVERAGE RATIO(Q) Lowest at 636.29
NET PROFIT(Q) At GBP 25.24 MM has Fallen at -37.18%

With ROE of 18.41%, it has a very expensive valuation with a 1.83 Price to Book Value

Over the past year, while the stock has generated a return of -9.84%, its profits have fallen by -31.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.84% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Morgan Advanced Materials Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Morgan Advanced Materials Plc

-12.63%

-1.03

34.44%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.96%

EBIT Growth (5y)

0.44%

EBIT to Interest (avg)

10.41

Debt to EBITDA (avg)

0.93

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

1.72

Tax Ratio

30.61%

Dividend Payout Ratio

69.00%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

26.34%

ROE (avg)

24.57%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.83

EV to EBIT

7.32

EV to EBITDA

5.31

EV to Capital Employed

1.45

EV to Sales

0.80

PEG Ratio

Dividend Yield

5.94%

ROCE (Latest)

19.84%

ROE (Latest)

18.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 253.5 MM

RAW MATERIAL COST(Y)

Fallen by -30.72% (YoY

-12What is not working for the Company

ROCE(HY)

Lowest at 8.04%

INTEREST COVERAGE RATIO(Q)

Lowest at 636.29

NET PROFIT(Q)

At GBP 25.24 MM has Fallen at -37.18%

CASH AND EQV(HY)

Lowest at GBP 84.6 MM

DEBT-EQUITY RATIO (HY)

Highest at 93.62 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.49 times

NET SALES(Q)

Lowest at GBP 522.6 MM

INTEREST(Q)

Highest at GBP 12.4 MM

PRE-TAX PROFIT(Q)

Fallen at -23.82%

Here's what is working for Morgan Advanced Materials Plc

Operating Cash Flow

Highest at GBP 253.5 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Raw Material Cost

Fallen by -30.72% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Morgan Advanced Materials Plc

Interest Coverage Ratio

Lowest at 636.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At GBP 25.24 MM has Fallen at -37.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Net Sales

Lowest at GBP 522.6 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Interest

Highest at GBP 12.4 MM

in the last five periods and Increased by 12.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Pre-Tax Profit

Fallen at -23.82%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Cash and Eqv

Lowest at GBP 84.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 93.62 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 5.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio