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M&G Plc (GB:MNG)
LSE:MNG

M&G Plc (MNG) AI Stock Analysis

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M&G Plc

(LSE:MNG)

61Neutral
M&G Plc's overall stock score reflects a mixed outlook. Financial challenges such as high leverage and inconsistent growth are notable risks. However, strong dividend yield, positive market momentum, and strategic achievements highlighted in the earnings call and corporate events provide optimism. The stock may offer opportunities for investors seeking high yield and potential recovery.
Positive Factors
Earnings
Adjusted Operating Profit exceeded expectations by 6%, driven by lower costs and strong performance in the Life segment.
Financial Targets
The company raised its 2022-24 OCG target to £2.7bn and increased its cost-saving target to £220mn, indicating improved financial goals.
Negative Factors
Asset Management Outflows
There were significant outflows in Asset Management, particularly from UK Institutional clients, although offset by strong international flows.
Capital Generation
Underlying Capital Generation was 7% below consensus due to new business strain and lower returns on surplus assets.

M&G Plc (MNG) vs. S&P 500 (SPY)

M&G Plc Business Overview & Revenue Model

Company DescriptionM&G Plc is a UK-based savings and investment company, primarily operating in the asset management and insurance sectors. The company offers a wide range of investment solutions including mutual funds, retirement products, and insurance services to individuals and institutions. M&G is committed to providing long-term investment growth and income opportunities through its comprehensive suite of financial products.
How the Company Makes MoneyM&G Plc generates revenue through its asset management and insurance operations. The asset management division earns money by charging management fees and performance fees on the assets it manages on behalf of clients, including mutual funds, pension funds, and other institutional and retail investment vehicles. Additionally, the insurance division contributes to revenue through the sale of life insurance and other related insurance products, which generate premiums. M&G also benefits from its investment income, earned by investing its own capital alongside client funds. Moreover, strategic partnerships and collaborations with other financial institutions enhance M&G's distribution capabilities and market reach, further supporting its revenue generation.

M&G Plc Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
10.66B-7.94B16.25B15.76B32.67B
Gross Profit
15.15B-7.94B16.25B15.76B32.67B
EBIT
-23.00M-1.61B1.20B3.06B4.17B
EBITDA
1.27B-2.58B1.09B2.11B2.02B
Net Income Common Stockholders
297.00M-1.63B83.00M1.14B1.12B
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.59B4.88B6.91B6.78B6.05B
Total Assets
189.62B190.37B217.47B216.97B214.28B
Total Debt
8.48B7.96B9.34B8.62B7.86B
Net Debt
2.89B3.07B2.44B1.84B1.81B
Total Liabilities
185.54B187.54B212.12B211.38B209.15B
Stockholders Equity
4.04B2.78B5.30B5.58B5.13B
Cash FlowFree Cash Flow
1.52B-1.27B352.00M1.57B-234.00M
Operating Cash Flow
2.02B-694.00M1.12B2.39B159.00M
Investing Cash Flow
-603.00M-368.00M-466.00M-957.00M-382.00M
Financing Cash Flow
-680.00M-1.01B-501.00M-691.00M-297.00M

M&G Plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price209.90
Price Trends
50DMA
198.49
Positive
100DMA
194.09
Positive
200DMA
191.78
Positive
Market Momentum
MACD
3.36
Negative
RSI
65.66
Neutral
STOCH
90.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MNG, the sentiment is Positive. The current price of 209.9 is above the 20-day moving average (MA) of 194.44, above the 50-day MA of 198.49, and above the 200-day MA of 191.78, indicating a bullish trend. The MACD of 3.36 indicates Negative momentum. The RSI at 65.66 is Neutral, neither overbought nor oversold. The STOCH value of 90.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MNG.

M&G Plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBAV
81
Outperform
£15.10B24.085.48%6.29%-1.13%-38.11%
GBADM
80
Outperform
£9.98B15.0556.17%3.77%34.86%95.18%
64
Neutral
$12.64B9.748.05%17044.60%12.66%-4.62%
GBDLG
63
Neutral
£3.72B25.475.97%2.45%26.11%-29.43%
62
Neutral
£5.98B-60.34%9.01%-6.33%
GBMNG
61
Neutral
$4.97B30.42-10.00%8.92%28.69%-220.08%
55
Neutral
£13.74B82.284.06%8.98%-21.56%-61.14%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MNG
M&G Plc
209.90
26.04
14.17%
GB:AV
Aviva plc
567.80
119.13
26.55%
GB:ADM
Admiral
3,258.00
633.55
24.14%
GB:DLG
Direct Line Insurance
286.00
102.69
56.02%
GB:LGEN
Legal & General
237.80
12.30
5.45%
GB:PHNX
Phoenix Group Holdings
599.50
130.32
27.78%

M&G Plc Earnings Call Summary

Earnings Call Date:Mar 19, 2025
(Q4-2024)
|
% Change Since: 1.17%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with impressive capital generation, asset management growth, and successful cost-saving measures. However, the challenges of client outflows and market volatility were also evident. The overall sentiment leans positive due to the strength in growth areas and strategic achievements.
Q4-2024 Updates
Positive Updates
Record-Breaking Capital Generation
M&G generated over £900 million of capital, exceeding the upgraded OCG target and allowing for debt reduction and increased dividend cash spend.
Strong Asset Management Performance
Group operating profit increased by 5%, driven by a nearly 20% improvement in asset management results. Average AUM grew by nearly 3% with improved cost efficiencies.
International Growth and Diversification
International assets grew by 50% over the past 4 years, with 56% of third-party assets belonging to international clients, enhancing financial resilience.
Simplification and Cost Savings Achievements
Achieved £188 million in savings and upgraded the cost target to £230 million by the end of 2025, with a focus on reducing the cost-to-income ratio.
Launch of New Value Share Proposition
Introduced a new value share BPA, completing 6 deals worth £1.7 billion, including a £500 million indicative value share transaction.
Negative Updates
Net Client Outflows
Net client outflows of £1.9 billion were mainly due to U.K. institutional asset management and PruFund, although PruFund outflows halved in the final 6 months.
Decline in PruFund Sales
PruFund has been impacted by high rates, resulting in lower sales and higher redemptions, though redemptions have started to reduce.
Impact of Market Volatility
Short-term market fluctuations led to significant negative impacts below the line, including £643 million from market short-term impacts and £333 million from IFRS 17 mismatches.
Company Guidance
During the call, M&G provided comprehensive guidance on their financial performance and strategic priorities for the fiscal year 2024. They announced over £900 million in capital generation, surpassing their upgraded capital generation (OCG) target, which enabled them to reduce debt and increase dividend cash spend for the first time since their listing in 2019. They declared a shift to a progressive dividend policy, starting with a 2% increase in dividend per share (DPS) for 2024. M&G also reported £188 million in savings over the first two years of their simplification program and upgraded their cost-saving target to £230 million by the end of 2025. Their asset management segment achieved a 20% improvement in results, contributing to a 5% year-on-year increase in group operating profit. M&G is poised to expand its presence in private markets, leveraging its competitive advantage of combining an international active asset manager with a scaled life business. They also highlighted their £185 billion in life operations assets and the strategic use of their With-Profit fund’s nearly £6 billion of surplus capital to drive long-term growth without adding risk to the balance sheet.

M&G Plc Corporate Events

Regulatory Filings and Compliance
M&G Plc Updates on Share Capital and Voting Rights
Neutral
May 1, 2025

M&G Plc has announced its total voting rights and issued share capital as of April 30, 2025. The company reported an issued share capital of 2,408,021,702 ordinary shares, with 3,414,030 shares held in treasury, leaving 2,404,607,672 voting rights available. This update is crucial for shareholders to determine their interest in the company under regulatory guidelines.

Spark’s Take on GB:MNG Stock

According to Spark, TipRanks’ AI Analyst, GB:MNG is a Neutral.

M&G Plc’s overall stock score reflects a mixed outlook. Financial challenges such as high leverage and inconsistent growth are notable risks. However, strong dividend yield, positive market momentum, and strategic achievements highlighted in the earnings call and corporate events provide optimism. The stock may offer opportunities for investors seeking high yield and potential recovery.

To see Spark’s full report on GB:MNG stock, click here.

Executive/Board ChangesShareholder MeetingsStock BuybackBusiness Operations and Strategy
M&G Plc Successfully Passes All Resolutions at 2025 AGM
Positive
Apr 30, 2025

M&G Plc announced the successful passing of all resolutions at its 2025 Annual General Meeting, including both ordinary and special resolutions. The approval of these resolutions, such as the election and re-election of directors and authorization for the company to purchase its own shares, reflects strong shareholder support and positions M&G for continued strategic growth and operational flexibility.

Spark’s Take on GB:MNG Stock

According to Spark, TipRanks’ AI Analyst, GB:MNG is a Neutral.

M&G Plc’s overall stock score reflects a mixed outlook. Financial challenges, including high leverage and inconsistent growth, are balanced by strong dividend yield and positive management actions. The technical analysis suggests potential short-term volatility, while earnings call insights and corporate events provide some optimism about strategic direction and governance.

To see Spark’s full report on GB:MNG stock, click here.

Business Operations and StrategyRegulatory Filings and Compliance
M&G Plc Executives Acquire Shares Under Incentive Plan
Positive
Apr 11, 2025

M&G Plc announced that several key executives, including the Group General Counsel, Chief People Officer, and Chief Strategy & Transformation Officer, have purchased partnership shares and were granted matching shares under the M&G UK Share Incentive Plan. This move, compliant with the Market Abuse Regulation, reflects the company’s commitment to aligning management interests with shareholder value and could enhance stakeholder confidence in its governance practices.

Spark’s Take on GB:MNG Stock

According to Spark, TipRanks’ AI Analyst, GB:MNG is a Neutral.

M&G Plc’s overall score reflects a mixed outlook. Financial performance is challenged by high leverage and inconsistent growth, but the company shows promise with strategic cost-saving measures and a strong dividend yield. Technical indicators suggest potential price appreciation despite current profitability issues, with a positive sentiment from recent earnings.

To see Spark’s full report on GB:MNG stock, click here.

Financial DisclosuresRegulatory Filings and Compliance
M&G plc Releases 2024 Solvency and Financial Condition Report
Neutral
Apr 4, 2025

M&G plc has submitted its Solvency and Financial Condition Report for the year ending December 31, 2024, to the Prudential Regulation Authority. This report, now available on the company’s website, provides insights into M&G’s financial health and regulatory compliance, potentially impacting its operational strategies and stakeholder confidence.

Executive/Board ChangesBusiness Operations and Strategy
M&G Plc Announces Share Vesting and New Awards for Executives
Neutral
Apr 3, 2025

M&G Plc announced the vesting and release of shares under its Deferred Incentive Plan (DIP) and Performance Share Plan (PSP) for several key executives, including Clive Bolton, Christopher Cochrane, and Matthew Howells. These transactions, which took place on April 1, 2025, involved selling sufficient shares to cover tax liabilities and retaining the balance. Additionally, new awards were granted to Shawn Gamble to compensate for forfeited awards from her previous employer, aligning with M&G’s strategic talent retention and incentive objectives.

Executive/Board ChangesBusiness Operations and StrategyRegulatory Filings and Compliance
M&G Plc Announces Share Vesting and New Awards for Key Executives
Neutral
Apr 1, 2025

M&G Plc announced the vesting and release of shares under its Deferred Incentive Plan (DIP) and Performance Share Plan (PSP) for several key executives, including Joseph Pinto and Louise Shield. These awards, some subject to performance conditions, were partially sold to cover tax liabilities, with the remainder retained by the executives. The company also granted new awards under these plans, with specific holding periods and performance conditions, aligning with regulatory requirements and emphasizing long-term value creation for stakeholders.

Regulatory Filings and Compliance
M&G plc Announces Total Voting Rights and Issued Share Capital
Neutral
Apr 1, 2025

M&G plc has announced its total voting rights and issued share capital as of March 31, 2025. The company has an issued share capital comprising 2,407,849,526 ordinary shares, with 3,414,030 of these held in Treasury, leaving 2,404,435,496 shares with voting rights. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how they manage their interests in the company.

Shareholder Meetings
M&G Plc Announces 2025 Annual General Meeting Details
Positive
Mar 26, 2025

M&G Plc has announced the availability of its Notice of Annual General Meeting 2025 on its website, with the meeting scheduled for April 30, 2025, in London. The announcement highlights the company’s commitment to transparency and shareholder engagement by offering both in-person and virtual attendance options, reflecting its adaptability and focus on stakeholder inclusivity.

Financial DisclosuresRegulatory Filings and Compliance
M&G Plc Releases 2024 Annual Report and Accounts
Neutral
Mar 19, 2025

M&G Plc has released its 2024 Annual Report and Accounts, which is now available to shareholders who have requested a paper copy and can also be accessed online. This release is part of the company’s compliance with the Disclosure & Transparency Rules and provides essential information for stakeholders, reinforcing M&G’s commitment to transparency and shareholder communication.

DividendsBusiness Operations and StrategyFinancial Disclosures
M&G Plc Reports Strong 2024 Financial Performance and Announces Progressive Dividend Policy
Positive
Mar 19, 2025

M&G Plc has reported a robust financial performance for 2024, with a 5% increase in adjusted operating profit before tax and a 2% increase in total dividend per share, reflecting its new progressive dividend policy. The company has made significant strides in simplifying its operations, reducing costs, and expanding its asset management and life insurance businesses, positioning itself for sustainable and diversified growth. Despite challenging market conditions, M&G has improved its solvency ratio and reduced debt, demonstrating resilience and a commitment to delivering long-term value to shareholders.

Business Operations and StrategyRegulatory Filings and Compliance
M&G Plc Executives Acquire Shares Under Incentive Plan
Positive
Mar 12, 2025

M&G Plc announced that several of its senior executives, including the Group General Counsel, Chief People Officer, and Chief Strategy & Transformation Officer, have purchased partnership shares and were granted matching shares under the M&G UK Share Incentive Plan. This move, disclosed in compliance with the Market Abuse Regulation, reflects the company’s commitment to aligning the interests of its leadership with those of its stakeholders, potentially enhancing stakeholder confidence and reinforcing its market position.

Regulatory Filings and Compliance
M&G Plc Announces Total Voting Rights and Share Capital Update
Neutral
Mar 3, 2025

M&G Plc has announced its total voting rights and issued share capital as of February 28, 2025. The company reported an issued share capital of 2,407,677,023 ordinary shares, with 3,414,030 shares held in treasury, resulting in a total of 2,404,262,993 voting rights. This information is crucial for shareholders to determine their interest or changes in interest in the company under regulatory guidelines.

Business Operations and StrategyRegulatory Filings and Compliance
M&G plc Executives Engage in Share Incentive Plan
Positive
Feb 11, 2025

M&G plc announced that several senior executives participated in the company’s UK Share Incentive Plan by purchasing partnership shares and receiving matching shares. This activity, compliant with the Market Abuse Regulation, illustrates M&G’s commitment to aligning management interests with company performance and shareholder value, potentially impacting its market positioning positively.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.