Latest news with #MGNS
Yahoo
3 days ago
- Business
- Yahoo
Morgan Sindall Group plc's (LON:MGNS) Stock Is Going Strong: Is the Market Following Fundamentals?
Morgan Sindall Group's (LON:MGNS) stock is up by a considerable 34% over the past three months. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Morgan Sindall Group's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How To Calculate Return On Equity? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Morgan Sindall Group is: 20% = UK£132m ÷ UK£647m (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each £1 of shareholders' capital it has, the company made £0.20 in profit. See our latest analysis for Morgan Sindall Group What Is The Relationship Between ROE And Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. A Side By Side comparison of Morgan Sindall Group's Earnings Growth And 20% ROE To start with, Morgan Sindall Group's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 14%. This probably laid the ground for Morgan Sindall Group's moderate 16% net income growth seen over the past five years. We then compared Morgan Sindall Group's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 31% in the same 5-year period, which is a bit concerning. Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Morgan Sindall Group is trading on a high P/E or a low P/E, relative to its industry. Is Morgan Sindall Group Efficiently Re-investing Its Profits? Morgan Sindall Group has a healthy combination of a moderate three-year median payout ratio of 46% (or a retention ratio of 54%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits. Besides, Morgan Sindall Group has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 48%. Accordingly, forecasts suggest that Morgan Sindall Group's future ROE will be 17% which is again, similar to the current ROE. Summary Overall, we are quite pleased with Morgan Sindall Group's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Reuters
17-06-2025
- Business
- Reuters
UK's Morgan Sindall expects annual results to track ahead of expectations
June 17 (Reuters) - British construction company Morgan Sindall (MGNS.L), opens new tab on Tuesday said it expects annual results to be significantly ahead of previous expectations, backed by strong growth in its construction and fit out divisions.
Yahoo
01-06-2025
- Business
- Yahoo
At UK£38.75, Is It Time To Put Morgan Sindall Group plc (LON:MGNS) On Your Watch List?
Morgan Sindall Group plc (LON:MGNS), might not be a large cap stock, but it saw a significant share price rise of 32% in the past couple of months on the LSE. The company is now trading at yearly-high levels following the recent surge in its share price. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, what if the stock is still a bargain? Let's take a look at Morgan Sindall Group's outlook and value based on the most recent financial data to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that Morgan Sindall Group's ratio of 13.76x is trading slightly above its industry peers' ratio of 13.76x, which means if you buy Morgan Sindall Group today, you'd be paying a relatively sensible price for it. And if you believe Morgan Sindall Group should be trading in this range, then there isn't really any room for the share price grow beyond the levels of other industry peers over the long-term. Is there another opportunity to buy low in the future? Since Morgan Sindall Group's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. See our latest analysis for Morgan Sindall Group Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. However, with a relatively muted profit growth of 6.8% expected over the next couple of years, growth doesn't seem like a key driver for a buy decision for Morgan Sindall Group, at least in the short term. Are you a shareholder? It seems like the market has already priced in MGNS's growth outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at MGNS? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio? Are you a potential investor? If you've been keeping an eye on MGNS, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive growth outlook may mean it's worth diving deeper into other factors in order to take advantage of the next price drop. If you want to dive deeper into Morgan Sindall Group, you'd also look into what risks it is currently facing. Case in point: We've spotted 1 warning sign for Morgan Sindall Group you should be aware of. If you are no longer interested in Morgan Sindall Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-03-2025
- Business
- Yahoo
Morgan Sindall Group Full Year 2024 Earnings: In Line With Expectations
Revenue: UK£4.55b (up 10% from FY 2023). Net income: UK£131.7m (up 12% from FY 2023). Profit margin: 2.9% (in line with FY 2023). EPS: UK£2.81 (up from UK£2.54 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations. The primary driver behind last 12 months revenue was the Fit Out segment contributing a total revenue of UK£1.30b (29% of total revenue). Notably, cost of sales worth UK£4.02b amounted to 88% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to UK£360.0m (91% of total expenses). Explore how MGNS's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Construction industry in the United Kingdom. Performance of the British Construction industry. The company's shares are up 2.0% from a week ago. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Morgan Sindall Group that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
