# Morgan Sindall Group plc (MGNS.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Construction & Engineering. Price 4172p, market value 2.0 billionp.

## Valuation
- **P/E (trailing): 10.9×** (5-yr avg 1207.0×, 3-yr avg 1209.2×). Morgan Sindall Group plc trades at 10.9× trailing earnings, well below its own five-year average of 1207.0×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 12.0×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.39**. A PEG of 0.39 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.5×**. The shares trade at 2.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.3×**. Enterprise value is 3.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 15.4%** (5-yr avg 0.1%). Free cash flow equals 15.4% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 9.2%**. The inverse of the P/E: 9.2% of the price is earned each year.

## Profitability
- **Gross margin: 11.9%**. Morgan Sindall Group plc keeps 11.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 4.2%**. 4.2% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 3.5%**. 3.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 23.4%**. 23.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 104.9%**. Return on all capital, debt included, is 104.9%: comfortably above what that capital costs.
- **Return on assets: 12.5%**. Each dollar of assets produces 12.5% of profit.

## Growth
- **Revenue growth (1 yr): 10.4%** (3-yr 11.6%/yr, 5-yr 10.6%/yr). Revenue grew 10.4% over the last year, against 10.6% a year compounded over five years.
- **EPS growth (1 yr): 30.5%** (3-yr 39.8%/yr, 5-yr 29.4%/yr). Earnings per share rose 30.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 64.2%/yr**. Free cash flow has compounded at 64.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.18**. Debt is 0.18 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Morgan Sindall Group plc holds more cash than debt.
- **Interest coverage: 23.7×**. Operating profit covers interest 23.7× over, a safe margin.
- **Current ratio: 1.18** (quick 0.80). Current assets cover the next year's liabilities 1.18 times.
- **Altman Z-score: 3.62**. A Z-score of 3.62 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.86%** (2p per share, trailing). Morgan Sindall Group plc yields 3.86%, an income-level yield.
- **Payout ratio: 38%** (40% of free cash flow). 38% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 46.1%/yr** (1-yr 17.2%). The dividend has compounded at 46.1% a year over five years, doubling roughly every 2 years at that pace.
- **Shareholder yield: 7.4%**. Dividends plus net buybacks return 7.4% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (7 analysts). 7 analysts cover Morgan Sindall Group plc; the consensus is buy, with an average price target of 5621p (+35% 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): 2.0%** (YTD -8.4%, 3-mo -4.4%). The shares are up 2.0% over twelve months including dividends.
- **From 52-week high: -27.2%** (4.4% above the low). Trading 27% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 39**. An RSI of 39 is neutral.
- **Beta (1 yr): 1.04** (volatility 29%). Beta of 1.04 against the FTSE All-Share: the shares move roughly with the market.

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

Not investment advice.