Fact based stock research
Morgan Sindall (LSE:MGNS)
GB0008085614
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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).
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Morgan Sindall stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 56 (better than 56% compared with investment alternatives), Morgan Sindall (Construction & Engineering, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Morgan Sindall are low in value (priced high) with a consolidated Value Rank of 6 (worse than 94% of alternatives). But they show above-average growth (Growth Rank of 82) and are safely financed (Safety Rank of 72, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 56, is a buy recommendation based on Morgan Sindall's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Morgan Sindall exhibits low value (Obermatt Value Rank of 6), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 82). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 72) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | United Kingdom |
| Industry | Construction & Engineering |
| Index | FTSE All Shares, FTSE 250, FTSE 350 |
| Size class | X-Large |
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Morgan Sindall
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 35 |
|
29 |
|
50 |
|
6 |
|
| GROWTH | ||||||||
| GROWTH | 45 |
|
67 |
|
65 |
|
82 |
|
| SAFETY | ||||||||
| SAFETY | 71 |
|
57 |
|
67 |
|
72 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
82 |
|
96 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
67 |
|
86 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 56 (better than 56% compared with investment alternatives), Morgan Sindall (Construction & Engineering, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Morgan Sindall are low in value (priced high) with a consolidated Value Rank of 6 (worse than 94% of alternatives). But they show above-average growth (Growth Rank of 82) and are safely financed (Safety Rank of 72, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 56, is a buy recommendation based on Morgan Sindall's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Morgan Sindall exhibits low value (Obermatt Value Rank of 6), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 82). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 72) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 35 |
|
29 |
|
50 |
|
6 |
|
| GROWTH | ||||||||
| GROWTH | 45 |
|
67 |
|
65 |
|
82 |
|
| SAFETY | ||||||||
| SAFETY | 71 |
|
57 |
|
67 |
|
72 |
|
| COMBINED | ||||||||
| COMBINED | 67 |
|
45 |
|
60 |
|
56 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 6 (worse than 94% compared with alternatives), Morgan Sindall shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Morgan Sindall. Price-to-Sales (P/S) is 52, which means that the stock price compared with what market professionals expect for future sales is lower than 52% of comparable companies, indicating a good value concerning to Morgan Sindall's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 38, meaning that dividends are expected to be lower than for 62% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 80% of alternatives (only 20% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 78% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 6, is a sell recommendation based on Morgan Sindall's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Morgan Sindall could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Morgan Sindall looks like an expensive investment today. 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) | 38 |
|
61 |
|
59 |
|
52 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 42 |
|
38 |
|
67 |
|
22 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 3 |
|
30 |
|
28 |
|
20 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 72 |
|
74 |
|
72 |
|
38 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 35 |
|
29 |
|
50 |
|
6 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 82 (better than 82% compared with alternatives) for 2024, Morgan Sindall shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Morgan Sindall. Profit Growth has a rank of 75 which means that currently professionals expect the company to grow its profits more than 75% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 95, and Stock Returns has a rank of 99 which means that the stock returns have recently been above 99% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 13 (87% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 82, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. 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. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 30 |
|
8 |
|
31 |
|
13 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 47 |
|
76 |
|
53 |
|
75 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
40 |
|
48 |
|
95 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 84 |
|
85 |
|
87 |
|
99 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 45 |
|
67 |
|
65 |
|
82 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 72 (better than 72% compared with alternatives), the company Morgan Sindall has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Morgan Sindall is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Morgan Sindall. Leverage is at a rank of 71, meaning the company has a below-average debt-to-equity ratio. It has less debt than 71% of its competitors. Liquidity is also good at a rank of 86, meaning the company generates more profit to service its debt than 86% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 36, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 64% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 72 (better than 72% compared with alternatives), Morgan Sindall has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Morgan Sindall. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Morgan Sindall 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 | 76 |
|
68 |
|
68 |
|
71 |
|
| REFINANCING | ||||||||
| REFINANCING | 38 |
|
35 |
|
42 |
|
36 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 77 |
|
57 |
|
80 |
|
86 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 71 |
|
57 |
|
67 |
|
72 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
65 |
|
89 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
74 |
|
88 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
73 |
|
85 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
82 |
|
96 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Morgan Sindall from December 19, 2024.
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