Latest news with #MorganSindallGroup
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.
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
02-05-2025
- Business
- Yahoo
Does Morgan Sindall Group (LON:MGNS) Deserve A Spot On Your Watchlist?
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Morgan Sindall Group (LON:MGNS). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. We've discovered 1 warning sign about Morgan Sindall Group. View them for free. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Morgan Sindall Group managed to grow EPS by 9.9% per year, over three years. That's a good rate of growth, if it can be sustained. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Morgan Sindall Group maintained stable EBIT margins over the last year, all while growing revenue 10% to UK£4.5b. That's encouraging news for the company! In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. View our latest analysis for Morgan Sindall Group In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Morgan Sindall Group's forecast profits? It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Morgan Sindall Group followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. We note that their impressive stake in the company is worth UK£118m. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future. As previously touched on, Morgan Sindall Group is a growing business, which is encouraging. For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth. The combination definitely favoured by investors so consider keeping the company on a watchlist. It is worth noting though that we have found 1 warning sign for Morgan Sindall Group that you need to take into consideration. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in GB with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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.
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
Yahoo
13-03-2025
- Business
- Yahoo
Undervalued Small Caps With Insider Activity In Global For March 2025
In March 2025, global markets are grappling with heightened uncertainty due to trade policy shifts and inflationary pressures, leading to notable declines in key indices like the S&P 500 and Russell 2000. Amidst these challenges, small-cap stocks present intriguing opportunities as investors seek companies that can navigate economic volatility while exhibiting strong fundamentals. Name PE PS Discount to Fair Value Value Rating Bytes Technology Group 19.0x 4.8x 25.70% ★★★★★★ Macfarlane Group 10.5x 0.6x 40.79% ★★★★★★ Speedy Hire NA 0.2x 27.56% ★★★★★☆ Robert Walters NA 0.2x 46.31% ★★★★★☆ Hong Leong Asia 9.1x 0.2x 45.58% ★★★★☆☆ Gamma Communications 21.9x 2.3x 37.51% ★★★★☆☆ Sing Investments & Finance 7.3x 3.7x 36.12% ★★★★☆☆ Saturn Oil & Gas 1.8x 0.5x -65.90% ★★★★☆☆ Calfrac Well Services 11.1x 0.2x -27.97% ★★★☆☆☆ Minto Apartment Real Estate Investment Trust 13.3x 5.4x 7.02% ★★★☆☆☆ Click here to see the full list of 133 stocks from our Undervalued Global Small Caps With Insider Buying screener. Below we spotlight a couple of our favorites from our exclusive screener. Simply Wall St Value Rating: ★★★☆☆☆ Overview: Morgan Sindall Group is a UK-based construction and regeneration company operating across segments such as fit out, construction, infrastructure, property services, urban regeneration, and partnership housing with a market capitalization of approximately £0.95 billion. Operations: The company generates revenue through diverse segments, with significant contributions from Fit Out (£1.30 billion) and Infrastructure (£1.05 billion). The gross profit margin has shown a varied trend, reaching 11.13% by the end of 2024. Operating expenses have consistently increased over time, reaching £350.8 million in late 2024, impacting overall profitability as reflected in the net income margin of approximately 2.82%. PE: 10.8x Morgan Sindall Group, a construction and regeneration company, reported sales of £4.55 billion for 2024, up from £4.12 billion the previous year, with net income rising to £131.7 million from £117.7 million. The company increased its total dividend by 15% to 131.5p per share for the year ending December 2024. Despite relying solely on external borrowing for funding, insider confidence is evident through recent purchases in January 2025, suggesting optimism about future prospects amid macroeconomic uncertainties. Take a closer look at Morgan Sindall Group's potential here in our valuation report. Explore historical data to track Morgan Sindall Group's performance over time in our Past section. Simply Wall St Value Rating: ★★★★★★ Overview: Chemtrade Logistics Income Fund operates in the industrial chemicals sector, focusing on electrochemicals and sulphur and water chemicals, with a market cap of CA$1.03 billion. Operations: Chemtrade Logistics Income Fund generates revenue primarily from its Electrochemicals (CA$755.50 million) and Sulphur and Water Chemicals (CA$1.04 billion) segments. The company's gross profit margin has shown an upward trend, reaching 22.70% as of September 30, 2024. Over recent periods, the company has experienced fluctuations in net income but reported a positive net income of CA$126.91 million for the quarter ending September 30, 2024. Operating expenses have varied slightly over time, with a recent figure of CA$155.18 million for the same period. PE: 8.7x Chemtrade Logistics, a company with a focus on strategic growth, has been actively repurchasing shares, completing 6.55% of its buyback program for C$93.45 million by February 2025. Despite a decline in net income to C$126.91 million for 2024 from the previous year, insider confidence is evident through these buybacks. The firm seeks M&A opportunities but prioritizes share repurchases and organic growth due to its low trading multiple and high debt levels, aiming to enhance shareholder value over time. Unlock comprehensive insights into our analysis of Chemtrade Logistics Income Fund stock in this valuation report. Gain insights into Chemtrade Logistics Income Fund's historical performance by reviewing our past performance report. Simply Wall St Value Rating: ★★★★☆☆ Overview: Vermilion Energy is an international oil and gas exploration and production company with a market cap of CA$2.92 billion, primarily engaged in the extraction and development of petroleum resources. Operations: The company's primary revenue stream is derived from its oil and gas exploration and production segment, generating CA$1.80 billion in revenue as of the latest reporting period. Cost of goods sold was reported at CA$666.85 million, resulting in a gross profit margin of 63.02%. The firm has experienced fluctuations in its net income margin over recent periods, with notable negative margins observed towards the end of 2024. PE: -38.8x Vermilion Energy, a smaller company in the energy sector, recently reported a net loss of CAD 46.74 million for 2024, an improvement from the previous year's larger loss. Their production guidance for 2025 has been significantly increased to between 125,000 and 130,000 boe/d. The company repurchased over two million shares from October to March, reflecting strategic capital management. With new debt financing of USD 400 million aimed at acquisitions like Westbrick Energy and other financial maneuvers, Vermilion is positioning itself for potential growth despite anticipated earnings decline over the next three years. Delve into the full analysis valuation report here for a deeper understanding of Vermilion Energy. Assess Vermilion Energy's past performance with our detailed historical performance reports. Dive into all 133 of the Undervalued Global Small Caps With Insider Buying we have identified here. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include LSE:MGNS TSX: and TSX:VET. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
