Fact based stock research
Morgan Advanced Materials (LSE:MGAM)

GB0006027295

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Morgan Advanced Materials stock research in summary

morganadvancedmaterials.com

ANALYSIS: With an Obermatt Combined Rank of 4 (worse than 96% compared with investment alternatives), Morgan Advanced Materials (Industrial Machinery, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of Morgan Advanced Materials are low in value (priced high) with a consolidated Value Rank of 44 (worse than 56% of alternatives), show below-average growth (Growth Rank of 12), and are riskily financed (Safety Rank of 34), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 4, is a sell recommendation based on Morgan Advanced Materials's financial characteristics. As the company Morgan Advanced Materials's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 44), low growth (Obermatt Growth Rank of 12), and risky financing practices (Obermatt Safety Rank of 34), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	44
Growth Rank	12
Safety Rank	34
Combined Rank	4

Country	United Kingdom
Industry	Industrial Machinery
Index	FTSE All Shares, FTSE 250, FTSE 350, Low Emissions, Dividends Europe, Solar Energy
Size class	Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Morgan Advanced Materials

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	58	53	46	44
GROWTH
GROWTH	47	33	13	12
SAFETY
SAFETY	35	23	51	34
SENTIMENT
SENTIMENT	n/a	85	67	^new
360° VIEW
360° VIEW	n/a	43	28	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Morgan Advanced Materials is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	58	53	46	44
GROWTH
GROWTH	47	33	13	12
SAFETY
SAFETY	35	23	51	34
COMBINED
COMBINED	18	19	20	4

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Morgan Advanced Materials the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 44 (worse than 56% compared with alternatives), Morgan Advanced Materials shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Morgan Advanced Materials. Price-to-Profit (also referred to as price-earnings, P/E) is 64 which means that the stock price compared with what market professionals expect for future profits is lower than for 64% of comparable companies, indicating a good value concerning Morgan Advanced Materials's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 1, which means that the stock price is lower as regards to invested capital than for 1% of comparable investments. On the other hand, Price-to-Sales is less favorable than 51% of alternatives (only 49% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 18% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 44, is a hold recommendation based on Morgan Advanced Materials's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	68	53	55	49
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	51	75	79	64
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	26	1	1	1
DIVIDEND YIELD
DIVIDEND YIELD	58	77	84	82
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	58	53	46	44

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Morgan Advanced Materials; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 12 (better than 12% compared with alternatives), Morgan Advanced Materials shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Morgan Advanced Materials. Sales Growth has a below market rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors. The same is valid for Capital Growth, with a rank of 7, and Profit Growth, with a rank of 45. Currently, professionals expect the company to grow its profits less than 55% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 52, which means that the stock returns have recently been above 52% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 12, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Morgan Advanced Materials, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	23	15	45	19
PROFIT GROWTH
PROFIT GROWTH	63	40	15	45
CAPITAL GROWTH
CAPITAL GROWTH	n/a	73	46	7
STOCK RETURNS
STOCK RETURNS	54	35	23	52
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	47	33	13	12

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Morgan Advanced Materials.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 34 (better than 34% compared with alternatives), the company Morgan Advanced Materials has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Morgan Advanced Materials is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Morgan Advanced Materials and the other two below average. Refinancing is at 57, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 57% of its competitors. But Leverage is high with a rank of 20, meaning the company has an above-average debt-to-equity ratio. It has more debt than 80% of its competitors. Liquidity is also on the riskier side with a rank of 39, meaning the company generates less profit to service its debt than 61% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 34 (worse than 66% compared with alternatives), Morgan Advanced Materials has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Morgan Advanced Materials are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Morgan Advanced Materials and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	34	14	32	20
REFINANCING
REFINANCING	52	55	65	57
LIQUIDITY
LIQUIDITY	78	43	50	39
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	35	23	51	34

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Morgan Advanced Materials and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	70	80	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	35	24	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	87	40	^new
MARKET PULSE
MARKET PULSE	n/a	49	85	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	85	67	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Morgan Advanced Materials.
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