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Morgan Advanced Materials (BA29) AI Stock Analysis
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Morgan Advanced Materials
(LSE:BA29)
The score is driven primarily by mixed financial performance: improving recent cash flow is a clear positive, but softer revenue trends, weaker 2025 bottom-line results, and moderate-to-elevated leverage limit the outlook. Technical indicators add downside pressure (below longer-term moving averages with slightly negative MACD). Valuation helps due to a very low P/E, while earnings-call guidance is constructive but tempered by one-off benefits, ongoing cost programs, and above-target leverage.
Morgan Advanced Materials (BA29) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 199.95M
- Dividend Yield
- 740.74%
- Average Volume (3M)
- 5,000
- Price to Earnings (P/E)
- 3.9
- Beta (1Y)
- -0.11
- Revenue Growth
- ―
- EPS Growth
- ―
- Country
- UK
- Employees
- 8,694
- Sector
- General
- Sector Strength
- 55
- Industry
- Industrial - Machinery
Morgan Advanced Materials Business Overview & Revenue Model
Company Description
Morgan Advanced Materials PLC is a UK-based enterprise focused on developing and manufacturing a wide variety of advanced and high-specification materials. Their diverse product offerings encompass high-temperature insulation solutions aimed at energ...
Morgan Advanced Materials Earnings Call Summary
The call conveyed balanced progress: the company reported underlying organic growth, improved segment performance (notably Technical Ceramics), clear execution on major operational turnarounds and procurement initiatives, and a credible roadmap to hit a 12% margin by 2028. However, near-term results were aided by a non-repeatable GBP 8.9m take-or-pay benefit, certain divisions (Performance Carbon, European Thermal) face softness, there were operational disruptions earlier in the year, and leverage remains above target. Delivery of planned site turnarounds, procurement savings and ERP completion will be critical to sustain momentum and achieve margin targets.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The company guided to around 2% organic constant‑currency revenue growth for full‑year 2026 and said H2 adjusted operating margin should be broadly in line with H1 excluding a one‑off £8.9m take‑or‑pay benefit (the payment added ~160bps to H1 margin); 2026 specific guidance includes ERP spend of £22–24m, simplification costs of ~£10m (program closing), and capital expenditure of ~£50m (weighted to H2; c.1.2x depreciation over the next three years); net finance charge is expected to be c.£24m, effective tax rate 27–29%, and year‑end leverage c.1.7x (net debt £253m excl. leases at 30 June, ~2x EBITDA with a target range of 1–1.5x); management expects positive free cash flow by end‑2027 and remains on track for a 12% adjusted operating margin in 2028 (14% longer term); H1 metrics referenced alongside this guidance were revenue £518m (+4.8% organic CC including the £8.9m phasing benefit; +3% ex that benefit), headline adjusted operating profit £57.8m (margin 11.2% or 9.6% ex take‑or‑pay), adjusted EPS 10.7p, free cash inflow £3.5m, ROIC 14.5%, and simplification run‑rate savings of £27m (implementation cost £45m).
Morgan Advanced Materials Financial Statement Overview
Summary
Overall fundamentals are mixed. Revenue has weakened recently and 2025 net income fell sharply despite higher operating profit, pointing to below-the-line pressure and less consistent earnings quality. Offsetting this, 2025 cash generation improved materially with a sharp rebound in free cash flow, though multi-year cash-flow volatility and moderate-to-elevated leverage (debt around equity and declining equity) keep risk elevated.
Income Statement
58NeutralBalance Sheet
53NeutralCash Flow
64Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 992.10M | 996.60M | 1.10B | 1.11B | 1.11B | 950.50M |
| Gross Profit | 87.50M | 198.30M | 813.20M | 120.80M | 244.70M | 207.10M |
| EBITDA | 130.10M | 212.00M | 150.00M | 138.60M | 188.10M | 156.30M |
| Net Income | 18.40M | 21.10M | 50.30M | 47.30M | 88.00M | 73.80M |
Balance Sheet | ||||||
| Total Assets | 1.05B | 984.80M | 1.08B | 1.02B | 1.03B | 925.40M |
| Cash, Cash Equivalents and Short-Term Investments | 153.10M | 126.50M | 118.60M | 124.50M | 117.70M | 127.30M |
| Total Debt | 405.80M | 360.70M | 393.70M | 356.80M | 318.10M | 223.80M |
| Total Liabilities | 697.60M | 635.90M | 687.80M | 626.10M | 602.30M | 575.80M |
| Stockholders Equity | 319.10M | 316.60M | 353.70M | 360.30M | 389.00M | 310.60M |
Cash Flow | ||||||
| Free Cash Flow | 54.80M | 53.50M | 17.20M | 18.10M | -37.40M | 74.60M |
| Operating Cash Flow | 94.70M | 120.60M | 113.30M | 78.50M | 20.60M | 106.20M |
| Investing Cash Flow | -28.80M | -55.00M | -86.00M | -60.20M | -57.00M | -13.90M |
| Financing Cash Flow | -46.40M | -99.50M | -33.00M | -2.00M | 23.40M | -112.20M |
Morgan Advanced Materials Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BA29, the sentiment is Negative. The current price of 67.50 is equal to the 20-day moving average (MA) of 67.50, equal to the 50-day MA of 67.50, and below the 200-day MA of 68.34, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 0.15 is Positive, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BA29.
Morgan Advanced Materials Peers Comparison
Overall Rating
GB:IMI76Outperform
GB:ROR76Outperform
GB:BOY67Neutral
GB:WEIR65Neutral
GB:SMIN61Neutral- GB:BA2958Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:IMI | 76Outperform | GBP 6.75B | 21.01 | 32.41% | 1.23% | 7.67% | 45.97% |
| GB:ROR | 76Outperform | GBP 4.02B | 33.18 | 21.48% | 1.69% | 2.22% | 25.89% |
| GB:BOY | 67Neutral | GBP 1.55B | 26.93 | 9.30% | 2.55% | 1.68% | 111.96% |
| GB:WEIR | 65Neutral | GBP 6.59B | 25.06 | 13.45% | 1.65% | 5.84% | -14.62% |
| GB:SMIN | 61Neutral | GBP 7.39B | 4.29 | 92.97% | 1.80% | -33.55% | 4.29% |
| GB:BA29 | 58Neutral | GBP 721.44M | 3.86 | 14.09% | 740.74% | ― | ― |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:BA29 | Morgan Advanced Materials (BA29) | 67.50 | -2.00 | -2.88% | |
| GB:BOY | Bodycote plc | 915.50 | 314.37 | 52.30% | |
| GB:IMI | IMI plc | 2878.00 | 526.10 | 22.37% | |
| GB:ROR | Rotork (ROR) | 494.00 | 159.76 | 47.80% | |
| GB:SMIN | Smiths Group plc | 2697.00 | 209.93 | 8.44% | |
| GB:WEIR | Weir Group plc (The) | 2556.00 | -319.21 | -11.10% |
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: Oct 20, 2026