olivLaw · European equity research
Morgan Advanced Materials plc MGAM.L
United Kingdom · London Stock Exchange · ISIN GB0006027295 · Vertical: Listed companies from United Kingdom
Morgan Advanced Materials is a UK-based producer of advanced carbon materials, technical ceramics and performance products used in industries with high safety and efficiency requirements. The company is steering its strategy toward cleaner operations and toward customer demand for sustainable solutions, while cutting emissions through renewable energy and efficiency investments, with Scope 1 emissions of tonnes CO2e in 2025.
At the close of 05 Nov 2026, Morgan Advanced Materials plc (MGAM.L) stock was 2.66 GBP (+2.70% on the day), with market capitalisation 748.3 m GBP, P/E 35.5 on diluted EPS of 0.08 GBP over the last 12 months, dividend yield 2.03%, beta 0.99, 52-week range 1.87–2.90 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 52.0
- neutral
- Bollinger (20, 2)
- 2.41 – 2.95
- in the lower half of the band · %B 0.46 · band width 20.2%
- SMA 50 / 200
- 2.59 / 2.32
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- -0.00 / 0.01
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −3.8% | −0.6% | −3.1 pp | — |
| 3 months | +8.6% | −4.2% | +12.7 pp | — |
| 6 months | +17.4% | +4.3% | +13.1 pp | — |
| Year to date | +22.0% | +7.5% | +14.5 pp | — |
| 1 year | +30.4% | +9.9% | +20.5 pp | +5.8% |
| 3 years | +14.4% | +49.8% | −35.4 pp | +26.3% |
| 5 years | −27.1% | +42.8% | −69.9 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 3-quarter history (min 15.5, median 17.2, max 29.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 1.1 bn | 1.1 bn | 996.6 m |
| Revenue YoY | unavailable | −4.9% | −6.0% |
| Net income | 47.3 m | 50.3 m | 21.1 m |
| Net income YoY | unavailable | +6.3% | −58.1% |
| Diluted EPS | 0.17 | 0.18 | 0.08 |
| Diluted EPS YoY | unavailable | +6.1% | −57.1% |
| net % | 4.2% | 4.7% | 2.1% |
| Free cash flow | 18.1 m | 17.2 m | unavailable |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 79.3 m GBP
- Financial debt
- 311.5 m GBP
- Net debt
- 232.2 m GBP
- Equity
- 348.9 m GBP
- Total assets
- 984.8 m GBP
- Debt / equity
- 0.89x
- Current ratio
- 1.23x
- ROE
- 5.7%
- ROA
- 2.0%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 1.1 bn | 1.1 bn | 996.6 m | esef· 07 Apr 2026verified |
| Operating income | 91.9 m | 99.2 m | 45.2 m | esef· 07 Apr 2026verified |
| Interest expense | 18.0 m | 21.6 m | 25.1 m | esef· 07 Apr 2026verified |
| Pre-tax income | 77.8 m | 80.2 m | 23.0 m | esef· 07 Apr 2026verified |
| Income tax | 22.2 m | 24.7 m | 17.9 m | esef· 07 Apr 2026verified |
| Net income | 47.3 m | 50.3 m | 21.1 m | esef· 07 Apr 2026verified |
| Diluted EPS | 0.17 | 0.18 | 0.08 | esef· 07 Apr 2026verified |
| Dividend per share | 0.05 | 0.05 | — | esef· 15 Apr 2025verified |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 124.5 m | 120.8 m | 79.3 m | esef· 07 Apr 2026verified |
| Receivables | 191.6 m | 189.6 m | 139.1 m | esef· 07 Apr 2026verified |
| Inventories | 175.1 m | 165.9 m | 146.5 m | esef· 07 Apr 2026verified |
| Current assets | 493.9 m | 479.8 m | 416.3 m | esef· 07 Apr 2026verified |
| Property, plant & equipment, net | 293.8 m | 344.9 m | 326.0 m | esef· 07 Apr 2026verified |
| Goodwill | 177.5 m | 176.9 m | 163.7 m | esef· 07 Apr 2026verified |
| Intangibles (excl. goodwill) | 4.7 m | 3.0 m | 3.2 m | esef· 07 Apr 2026verified |
| Total assets | 1.0 bn | 1.1 bn | 984.8 m | esef· 07 Apr 2026verified |
| Accounts payable | 192.0 m | 204.1 m | 194.6 m | esef· 07 Apr 2026verified |
| Short-term debt | 600.0 k | 9.3 m | 99.4 m | esef· 07 Apr 2026verified |
| Long-term debt | 309.1 m | 337.7 m | 212.1 m | esef· 07 Apr 2026verified |
| Current liabilities | 239.5 m | 263.1 m | 337.7 m | esef· 07 Apr 2026verified |
| Total liabilities | 639.6 m | 687.8 m | 635.9 m | esef· 07 Apr 2026verified |
| Equity | 398.6 m | 389.3 m | 348.9 m | esef· 07 Apr 2026verified |
| Shares outstanding at year end | 284.9 m | 284.2 m | 281.3 m | esef· 07 Apr 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 78.5 m | 113.3 m | 117.8 m | esef· 07 Apr 2026verified |
| Capex | 60.4 m | 96.1 m | — | esef· 15 Apr 2025verified |
| Free cash flow | 18.1 m ≈ | 17.2 m ≈ | — | esef· 15 Apr 2025derived |
| Investing cash flow | -60.2 m | -86.0 m | -52.2 m | esef· 07 Apr 2026verified |
| Financing cash flow | -2.0 m | -33.0 m | -99.5 m | esef· 07 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 52.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 748.3 m GBP
Key indicators
Coverage and freshness
Score by group
52% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 52.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 6.3% | 25 (vs peers) | 20% |
| Net margin · Quality | 2.1% | 26 (vs peers) | 12% |
| FCF conversion · Quality | 102.8% | 100 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 1.8x | 5 (on a fixed band) | 12% |
| Current ratio · Balance sheet | 1.2x | 36 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 35.5x | 6 (vs peers) | 20% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 2.9% | 36 (on a fixed band) | 16% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet17/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality46/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation19/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
MORGAN ADVANCED MATERIALS PLC (MGAM.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 996.6 m GBP in 2025; YoY growth -6.0%; net margin 2.1%; ROE 6.3%.
The estimated value range is 0.60–1.20 GBP per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 0.84 GBP, the price of 2.66 GBP leaves a potential of -68.4% (value / price − 1) and a margin of safety of -216.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 102.8%
What contradicts it
- ROIC: 6.3%
- Net margin: 2.1%
- Interest coverage: 1.8x
- P/E (TTM): 35.5x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| MGAM.LMorgan Advanced Materials PLC | 748.3 m | 35.5 | 6.3% | 2.1% | −6.0% | +31% / +4% |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for MGAM.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 1.42 Total return -45% · Per year -45% | 2.53 Total return -3% · Per year -3% | 3.82 Total return 46% · Per year 46% |
| 3 years | 1.13 Total return -54% · Per year -23% | 2.28 Total return -9% · Per year -3% | 3.82 Total return 51% · Per year 15% |
| 5 years | 0.90 Total return -60% · Per year -17% | 2.06 Total return -14% · Per year -3% | 3.82 Total return 55% · Per year 9% |
- Exit P/E± 0.57
- Net margin± 0.40
- Annual revenue growth± 0.36
- Annual dilution± 0.03
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Morgan Advanced Materials is a UK-based producer of advanced carbon materials, technical ceramics and performance products used in industries with high safety and efficiency requirements. The company is steering its strategy toward cleaner operations and toward customer demand for sustainable solutions, while cutting emissions through renewable energy and efficiency investments, with Scope 1 emissions of 1 tonnes CO2e in 2025.
SWOT
Strengths
- The company runs a structured safety programme, with no fatalities reported since 2012, which can support customer confidence.
- The renewable and nuclear electricity target was reached in 2025, showing real progress in decarbonisation.
- The product portfolio is described as integral to customers' safety applications, which can reinforce its position as a preferred supplier.
Weaknesses
- The LTA rate rose in 2025, indicating gaps in operational safety leadership.
- Gas-fired industrial processes remain a major source of emissions, which limits the pace of decarbonisation.
- The extract does not provide detailed financial data by division, which makes segment performance hard to assess.
Opportunities
- Customer demand for sustainable solutions could open new revenue streams for low-impact products.
- Investment in energy efficiency and alternative manufacturing technologies could lower costs over the long term.
- Expanding solar projects and long-term energy contracts could help stabilise production costs.
Threats
- Costs linked to the energy transition and new technologies could squeeze margins if prices cannot be passed on to customers.
- Higher reporting and emissions verification requirements may create additional administrative costs.
- Safety incidents could disrupt production continuity and damage the company's reputation.
Risks
- Operational safetyhigh
The rise in the LTA rate shows the safety culture is not yet stabilised, and incidents could interrupt production.
- Process emissionsmedium
Reliance on natural gas in kilns may limit emission reductions if alternative technologies do not become viable.
- Decarbonisation costsmedium
Investment in renewable energy and new equipment could weigh on margins in the short term.
- Compliance and reportinglow
Higher climate and diversity reporting requirements could lead to errors or additional compliance costs.
- Energy and resource dependencemedium
Energy and water use remain sensitive to local costs and regulation, particularly in water-stressed regions.
Investment thesis
What would need to be true (bull case)
- Progress toward the SBTi target and lower emissions could strengthen the company's position with customers seeking sustainable solutions.
- A safety programme that delivers results over time could reduce incidents and support production continuity.
- Combining high-performance products with energy efficiency could generate revenue in segments with demanding technical requirements.
What would break the thesis
- A rising LTA rate could point to operational culture problems that affect costs and reputation.
- The energy transition requires large investment, and if prices cannot be passed on, margins could fall.
- Dependence on gas-fired industrial processes could limit long-term progress in reducing emissions.
What to watch
- Results of the ThinkSAFE Leaders programme and the trend in the LTA rate2026
- Completion of compliance audits of the new safety standards2026
- Progress toward carbon neutral operations, the 2050 goal2050
- Trend in total energy consumption and the share of renewable energynext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
According to the annual report for the year ended 31 December 2025 1, the group runs industrial operations at sites in the United States, India, France, Germany, Mexico, China and the United Kingdom. The business is built on manufacturing advanced-material components, and its management system emphasises health, safety and environment alongside ethics and anti-corruption policies. The report describes a strategy with three execution priorities: safer and cleaner operations, growth by meeting demand for sustainable solutions, and maximising portfolio value.
The company has set decarbonisation targets validated as SBTi targets, aligned with a well below 2°C ambition, with a goal of carbon neutral operations by 2050. In 2025 it reached its target of 80% renewable and nuclear electricity, and total energy consumption fell slightly. Efficiency investments include electric ovens, energy monitoring systems and solar projects, such as a 1.8 MW array in the US.
On safety, the group reports no fatalities since 2012 and has launched the ThinkSAFE Leaders programme to strengthen operational safety leadership. The LTA rate rose in 2025, prompting the company to revise standards and expand process hazard analyses. Beyond industrial activity, the company supports community projects and diversity programmes.
Segments
Thermal Products
The Thermal Products division appears in the report in connection with energy efficiency and water reduction projects, including a new electric annealing oven in France that delivered 740 tonnes CO2 savings per year. The report does not give separate financial figures for this division in the available extract.
Performance Carbon
The Performance Carbon division completed a 1.8 MW solar installation in the US, the largest in the group's portfolio, which would cover 12% of the site's annual electricity needs. The report also mentions a more efficient thermal oxidiser, but gives no separate financial data in the available extract.
Technical Ceramics
The Technical Ceramics division introduced water recycling systems and furnace temperature controls at sites in the UK and Germany. The report does not present separate financial figures for this division in the available extract.
Market context
The extract does not include data on the size of the global advanced-materials market. The company does indicate, however, that customer demand for solutions that reduce environmental impact and energy use is a growth factor for its portfolio.
In industrial markets, customers in sectors with high safety requirements are an important segment, and the safety performance of products can influence purchasing decisions. The report suggests these requirements may support demand over the medium term, but it offers no quantitative estimates.
Trends
- Decarbonisation and renewable energymixed
Customer demand for low-impact solutions and the SBTi commitments could create opportunities, but the costs of new technologies and renewable energy could weigh on margins in the short term.
- Demand for sustainable solutionstailwind
If industrial customers continue to prioritise sustainability, products that cut energy use and emissions could gain market share.
- Reporting and compliance costsheadwind
Higher climate reporting requirements, including TCFD and external verification of emissions, can add administrative and operational costs.
- Pressure on operational safetyheadwind
The rise in the LTA rate points to challenges in safety culture that could require additional investment in training and audits.
Competitive position
The report extract does not name competitors, so the company's comparative market positions cannot be specified from this source.
According to the report, the company differentiates itself by combining safety, efficiency and sustainability in its products, which could strengthen customer trust relative to alternative suppliers.
- Competitors not named in the extract
The report does not name direct competitors in the available section, so no US-listed peers can be confirmed.
- Technical ceramics producers
Companies in this segment are not identified in the source, and the information cannot be verified from the extract.
- Carbon materials suppliers
The source does not mention specific competitors in this area.
- Energy-efficiency solution providers
The report gives no names of competing companies in this segment.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202507 Apr 2026
- Annual report 202415 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Morgan Advanced Materials plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.