Morgan Sindall Group plc (MGNS) 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

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Morgan Sindall Group plc

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Severfield Plc

Petrofac Ltd.

Why is Morgan Sindall Group plc ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Net Sales has grown by an annual rate of 10.59%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 19.60
The company has been able to generate a Return on Capital Employed (avg) of 83.72% signifying high profitability per unit of total capital (equity and debt)

Flat results in Jun 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 29.55%
DEBT-EQUITY RATIO (HY) Highest at -45.27 %
INVENTORY TURNOVER RATIO(HY) Lowest at 7.29 times

With ROE of 22.93%, it has a attractive valuation with a 3.13 Price to Book Value

Over the past year, while the stock has generated a return of -0.38%, its profits have risen by 10% ; the PEG ratio of the company is 1.4

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 18.59% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.38% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Morgan Sindall Group plc should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Morgan Sindall Group plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Morgan Sindall Group plc

-0.38%

2.44

30.13%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.59%

EBIT Growth (5y)

29.22%

EBIT to Interest (avg)

22.50

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.73

Sales to Capital Employed (avg)

6.11

Tax Ratio

25.04%

Dividend Payout Ratio

42.46%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

55.99%

ROE (avg)

18.33%

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

3.12

EV to EBIT

8.36

EV to EBITDA

7.17

EV to Capital Employed

7.56

EV to Sales

0.37

PEG Ratio

1.38

Dividend Yield

319.74%

ROCE (Latest)

90.51%

ROE (Latest)

22.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 369.2 MM

ROCE(HY)

Highest at 26.06%

DIVIDEND PER SHARE(HY)

Highest at GBP 7.11

RAW MATERIAL COST(Y)

Fallen by -13.96% (YoY

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 29.55%

DEBT-EQUITY RATIO (HY)

Highest at -45.27 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.29 times

Here's what is working for Morgan Sindall Group plc

Operating Cash Flow

Highest at GBP 369.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend per share

Highest at GBP 7.11 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -13.96% (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

Depreciation

Highest at GBP 18.9 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Morgan Sindall Group plc

Debt-Equity Ratio

Highest at -45.27 %

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 7.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 29.55%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)