Morgan Advanced Materials Share Discussion Threads

[simon gordon] 03/5/2024 21:43

I made a mistake in the previous post, they are not doing 50p eps in 2025.

I read this incorrectly:

"Philips said that a 2025 pre-tax earnings multiple of ‘just 5.8 times suggests to us that the risk/reward balance is hugely skewed to the reward’."

...and fused it with this from JO Hambro:

"On their results day, management increased guidance for group revenue growth to 4-
7% pa as these markets start to deliver strong growth. With margin normalisation, the valuation would be a PE of 5x."

They're probably going to do 37p and be on 8.5x based on what they achieved in 2022 (33.8p).

I'm not sure what year JO Hambro see them doing c.55p.

[simon gordon] 03/5/2024 17:52

30% has been added to the share price since 1988. Maybe they are about to come good after a multi-decade wait.

If they are forecast to do c.50p eps in 2025 and are planning to do bolt-ons and scale up materials for semis and evs to hit the bottom line in 2027, then it looks like there is an opportunity to break past the all-time high in 1997 (538p).


free stock charts from uk.advfn.com

[simon gordon] 03/5/2024 12:01

Capital Markets Day presentation:

25/4/24

[simon gordon] 03/5/2024 11:51

Citywire - 25/4/24:

Peel Hunt: Morgan Advanced Materials skewed to the upside

The multiple that Morgan Advanced Materials (MGAM) trades on has ‘plenty of catching up’ to do, says Peel Hunt.

Analyst Harry Philips reiterated his ‘buy’ recommendation and target price of 425p on the Citywire Elite Companies plus-rated maker of specialist ceramic products, which rose 3.4% to 309p on Wednesday.

A short update from the group confirmed ‘accelerating organic revenue growth’ and attractive margin targets in the range of 12.5% to 15% for the year, with ‘a clear path to the top end, underpinned by growth and business simplification,̵7; said Philips.

‘We are expecting to hear further detail on the additional £100m in semiconductor capacity and the profile of how the targeted £80m of sales and £25m of [pre-tax profits] drop through by 2027,’ he said.

Philips said that a 2025 pre-tax earnings multiple of ‘just 5.8 times suggests to us that the risk/reward balance is hugely skewed to the reward’.

[reddirish] 26/4/2024 07:21

Very positive capital markets update. This is looking very well diversified with excellent return on capital invested and a decent growth story. Slight question on the level of debt/ leverage, though not a serious one.

[rogerrail] 10/4/2024 08:13

Looks cheap.

[simon gordon] 05/4/2024 11:45

JO Hambro - 2/4/24:

Morgan Advanced Materials is a global market leader in the production of advanced carbon and ceramic materials and has been on our radar for the last ten years, but
we have never acquired it. These materials are poised to benefit significantly from
the anticipated rise in electricity use. The business will also benefit from a modest
recovery in global GDP through its industrial end-use markets but is also exposed to
high-growth areas such as renewable energy, grid investment and semiconductors.
On their results day, management increased guidance for group revenue growth to 4-
7% pa as these markets start to deliver strong growth. With margin normalisation, the
valuation would be a PE of 5x. The stock yields close to 5%.

[rogerrail] 18/3/2024 10:14

Bit of a delayed reaction to last week's results announcement indicates this was very much under radar. I topped up 25% soon after. Electronic carbon ( sc materials) division looks very promising, growing revenue backed up through increased £100m phased capital investment , with high margins.

[rogerrail] 11/3/2024 10:41

Surprised we have yet too see an end of year trading update. Also given the spate of opportunistic takeovers of cheap UK stocks, in particular from US, I would expect MGAM to be on the vulnerable list.

[rogerrail] 29/1/2024 08:31

According to shares magazine, MGAM is in the top ten popular FTSE 350 stocks with analysts going into 2024 I recall it has a buy rating from 10 analysts and no sells which puts it joint top with 3 or 4 other stocks.

[rogerrail] 28/11/2023 22:40

I am sure it does and not surprised. But this is now at a low point and there will be a recovery after the cyber breach.The fragmented nature of the business should provide potential for rationalisation given the right fit and cross selling of products given the reputation of the brand. Also very quiet around here so indicates this is under the radar.Reminds me a little of Laird plc, a 200 yr old concern taken over in 2018

[eigthwonder] 28/11/2023 22:06

the takeover theory does the rounds every now and then. but the problem on closer scrutiny is that even after years of restructuring the company is quite fragmented with necessarily relatively small production centres, which all adds up to something quite difficult for an acquirer to improve on and make enough money to move the dial. (i'm expecting the offer announcement any time soon after typing that!)

[rogerrail] 28/11/2023 21:46

Classic takeover target for expanding US Corp, good technology, some promising growth products, good reputation in established markets, laid back senior team that needs replacing and cheap as chips. Got on-board today.

[philanderer] 14/7/2023 10:56

Barclays starts Morgan Advanced Materials with 'overweight' - price target 365 pence

[stevenlondon3] 04/5/2023 11:16

Its now on what I think is an attractive 2024 PE of 9.2 (average of nine brokers)

[muckshifter] 28/4/2023 08:21

Back to normal now then? After the flurry of posts caused by the cyber intrusion we are back to minimal posts, mine being just the second on results day. The results looked good to me on a quick first read, and I quite like the relatively quiet troll free board.

[doobz] 28/4/2023 07:26

Solid results today, been watching from the sidelines since the cyber incident but looks like they've weathered the storm and return to growth this year. Will be looking for entries a little lower if I get the chance. Worth a long term hold this lot

[stevenlondon3] 05/3/2023 18:45

The impact is now evident on the 2023 year earning forecast ...it was 31.5 now 28.5. Investors appear to believe that it is a quality company that can manage the cyber difficulty. Soon 2022 results will be reported and the market will start forecasting results for 2024. Without the cyber attack I suspect the share price would have been north of 330p. You pays your money...

[doobz] 28/2/2023 13:30

Agreed, I came out fully expecting a tumble. Would have been very happy to keep this lot had the cyber thing not happened. I was looking at a re entry below 250 if it fell but looks strangely strong despite the issues. Hope it works out for the brave holders here

[podgyted] 26/2/2023 17:35

I guess we'll have a further update on the cyber situation on Tuesday - have to admit I'm staggered by how calmly the market is taking it.

I could say the same about Vesuvius.

But let's see.

[lennonsalive] 07/2/2023 09:21

Until they the issue under control it's not one for me I'm afraid. I had concerns at the time, but the market was quite kind to MGAM

[doobz] 07/2/2023 08:09

pleasantly surprised I could get out at the price I did, was expecting a gap down around 15% given the market these days. hope you managed to escape fairly unscathed as well all

[doobz] 07/2/2023 07:15

Such a shame as all seems to be going well aside from this issue. I'll be out today regardless

[rcturner2] 07/2/2023 07:04

Full update on the impact of the incident today, not good.