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Morgan Advanced Materials
(LSE:BA29)
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Rating:63Neutral
Price Target:
74.00 p
▲(6.47% Upside)
Action:Reiterated
Date:06/24/25
The overall stock score reflects a mix of stable financial performance and concerning technical indicators. While consistent margins and cash flow management support financial stability, technical analysis suggests potential downward pressure. The absence of P/E data limits full valuation assessment, though the high dividend yield is a positive aspect.
Positive Factors
Operational Efficiency
Improved EBIT and EBITDA margins indicate enhanced operational efficiency, which can lead to better profitability and competitive positioning over the long term.
Negative Factors
Rising Leverage
Increasing leverage can heighten financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational Efficiency
Improved EBIT and EBITDA margins indicate enhanced operational efficiency, which can lead to better profitability and competitive positioning over the long term.
Read all positive factors
Morgan Advanced Materials (BA29) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£682.74M
Dividend Yield740.74%
Average Volume (3M)5.00K
Price to Earnings (P/E)3.9
Beta (1Y)-0.10
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees8,694
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.10
Shares OutstandingN/A
10 Day Avg. Volume5,000
30 Day Avg. Volume5,000
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00197
P/FCF Ratio0.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 en...
How the Company Makes Money
Morgan Advanced Materials generates revenue primarily through the sale of its advanced materials and engineered solutions across several key sectors. The company has a diversified revenue model that includes the sale of high-performance products s...
Morgan Advanced Materials Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 26, 2027
Earnings Call Sentiment Neutral
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.Positive Updates
Revenue and Organic Growth
Group revenue of GBP 518m for H1 2026; organic constant currency growth of 4.8% including an GBP 8.9m take-or-pay phasing benefit, and 3.0% organic constant currency growth excluding that one-off phasing item.
Negative Updates
Take-or-Pay Phasing Benefit Not Repeatable
An GBP 8.9m take-or-pay payment in H1 2026 materially aided revenue and margins (added ~160 basis points to margin); this benefit will not repeat in H2, reducing comparability and underlying organic performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Organic Growth
Group revenue of GBP 518m for H1 2026; organic constant currency growth of 4.8% including an GBP 8.9m take-or-pay phasing benefit, and 3.0% organic constant currency growth excluding that one-off phasing item.
Read all positive 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
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05B | 1.10B | 1.11B | 1.11B | 950.50M | 910.70M |
| Gross Profit | 115.00M | 813.20M | 120.80M | 244.70M | 207.10M | 184.00M |
| EBITDA | 133.90M | 160.70M | 138.60M | 176.40M | 156.30M | 44.50M |
| Net Income | 27.90M | 50.30M | 47.30M | 88.00M | 73.80M | -22.50M |
Balance Sheet | ||||||
| Total Assets | 1.02B | 1.08B | 1.02B | 1.03B | 925.40M | 945.00M |
| Cash, Cash Equivalents and Short-Term Investments | 84.60M | 118.60M | 124.50M | 117.70M | 127.30M | 147.80M |
| Total Debt | 381.10M | 393.70M | 356.80M | 318.10M | 223.80M | 303.40M |
| Total Liabilities | 668.20M | 687.80M | 626.10M | 602.30M | 575.80M | 705.00M |
| Stockholders Equity | 316.70M | 353.70M | 360.30M | 389.00M | 310.60M | 202.30M |
Cash Flow | ||||||
| Free Cash Flow | 4.20M | 17.20M | 18.10M | -37.40M | 74.60M | 80.70M |
| Operating Cash Flow | 45.10M | 113.30M | 78.50M | 20.60M | 106.20M | 110.70M |
| Investing Cash Flow | -37.80M | -86.00M | -60.20M | -57.00M | -13.90M | -27.10M |
| Financing Cash Flow | -35.50M | -33.00M | -2.00M | 23.40M | -112.20M | -66.80M |
Morgan Advanced Materials Technical Analysis
Negative
69.50
Price Trends
67.86
Negative
68.68
Negative
68.24
Negative
Market Momentum
-0.08
Negative
0.15
Positive
100.00
Negative
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 69.5 is above the 20-day moving average (MA) of 67.50, above the 50-day MA of 67.86, and above the 200-day MA of 68.24, indicating a neutral trend. The MACD of -0.08 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £7.20B | 22.22 | 32.41% | 1.16% | 7.67% | 45.97% | |
76 Outperform | £3.94B | 32.52 | 21.48% | 1.72% | 2.22% | 25.89% | |
69 Neutral | £7.38B | 33.34 | 13.71% | 1.82% | -31.27% | -13.26% | |
67 Neutral | £1.61B | 27.90 | 9.30% | 2.42% | 1.68% | 111.96% | |
65 Neutral | £7.03B | 26.71 | 13.45% | 1.53% | 5.84% | -14.62% | |
63 Neutral | £682.74M | 3.86 | 14.09% | 740.74% | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
GB:BA29
Morgan Advanced Materials
67.50
-2.00
-2.88%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.