# Morgan Advanced Materials plc (MGAM.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Machinery. Price 247p, market value 683 millionp.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Morgan Advanced Materials plc reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.1×**. The shares trade at 2.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.4×**. Enterprise value is 3.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 10.3%** (5-yr avg 0.0%). Free cash flow equals 10.3% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 10.3%**. Morgan Advanced Materials plc keeps 10.3% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 9.3%**. 9.3% of revenue is left after running the business.
- **Net margin: 2.1%**. 2.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.7%**. 6.7% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 21.0%**. Return on all capital, debt included, is 21.0%: comfortably above what that capital costs.
- **Return on assets: 7.3%**. Each dollar of assets produces 7.3% of profit.

## Growth
- **Revenue growth (1 yr): -9.5%** (3-yr -3.6%/yr, 5-yr 1.8%/yr). Revenue fell 9.5% over the last year, against 1.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -58.3%** (3-yr -37.7%/yr). Earnings per share fell 58.3%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 1.14**. Debt is 1.14 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.9×**. It would take 0.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 4.3×**. Operating profit covers interest 4.3× over, a safe margin.
- **Current ratio: 1.23** (quick 0.80). Current assets cover the next year's liabilities 1.23 times.
- **Altman Z-score: 2.77**. A Z-score of 2.77 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.94%** (0p per share, trailing). Morgan Advanced Materials plc yields 4.94%, an income-level yield.
- **Payout ratio: 162%** (97% of free cash flow). The dividend exceeds earnings (162% payout), though free cash flow still covers it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 43.6%/yr** (1-yr 0.8%). The dividend has compounded at 43.6% a year over five years, doubling roughly every 2 years at that pace.
- **Shareholder yield: 8.9%**. Dividends plus net buybacks return 8.9% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (8 analysts). 8 analysts cover Morgan Advanced Materials plc; the consensus is buy, with an average price target of 261p (+6% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 15.8%** (YTD 14.9%, 3-mo 12.3%). The shares are up 15.8% over twelve months including dividends.
- **From 52-week high: -5.4%** (37.4% above the low). Trading 5% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 64**. An RSI of 64 is neutral.
- **Beta (1 yr): 1.40** (volatility 30%). Beta of 1.40 against the FTSE All-Share: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MGAM.L · Page: https://foliofundamentals.com/stocks/mgam.l

Not investment advice.