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Morgan Advanced Materials plc (MGAM) Fair Value & Analysis

Industrials · GB · Market cap 605M GBX

MA Morgan Advanced Materials plc MGAM · LSE
Price£2.50
Fair Value£1.60
Upside-36.0%
Quality54/100
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Weak Growth
Thin margins · 2.1% net margin
Moderate debt · generates free cash flow
5.57% dividend yield
Mixed vs. peers (7/14)
Narrow moat 34/100
Evidence: High Range £1.20 – £2.00 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated yesterday

Share price +14.7% over the past month.

A solid business, but screening 36% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (£2.00). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

£3.26 £1.61 Fair Value £1.60 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £1.61 – £3.26 · fair‑value band £1.20 – £2.00 · the £2.50 price screens above the £1.60 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Morgan Advanced Materials plc (MGAM) currently trades at £2.50, while our model-based Fair Value estimate is £1.60, implying the stock looks roughly 36.0% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Morgan Advanced Materials plc generated revenue of £997M at a net margin of 2.1%. Revenue declined 8.7% year over year. It earns a return on equity of 1.4%. Net debt stands at £281M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £1.20 (bear case) to £2.00 (bull case); at £2.50, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at -36%, MGAM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £1.19 £1.61 £2.30 80
Residual Income £0.8800 £0.9100 £0.9000 76
Rev-Margin DCF £1.74 £2.87 £4.28 74
All 23 models by family
DCF Models
FCF DCF £1.15 £1.58 £2.37 38
5Y Revenue Exit £1.74 £2.84 £4.47 39
5Y EBITDA Exit £2.49 £4.11 £6.28 41
5Y P/E Exit £0.8100 £1.26 £1.82 38
10Y Revenue Exit £1.40 £2.26 £3.25 36
10Y EBITDA Exit £1.89 £3.03 £4.33 37
10Y P/E Exit £0.9500 £1.31 £1.68 35
Earnings-Based
Graham-Dodd £0.5200 £0.8700 £1.06 54
EPV £1.54 £1.81 £2.04 59
Dividend Discount
Gordon GGM £0.9600 £1.15 £1.33 70
DDM Multi-Stage £0.9600 £1.22 £1.50 61
Multiples
P/E Multiple £1.20 £1.60 £2.00 63
P/S Multiple £0.9700 £1.30 £1.62 58
P/B Multiple £0.9700 £1.30 £1.62 55
EV/EBIT £3.56 £4.90 £6.25 53
EV/EBITDA £4.12 £5.66 £7.19 54
EV/Revenue £2.40 £3.64 £4.87 43
Asset-Based
NCAV (Graham) £0.5700 £0.7700 £1.15 50
Growth DCF
Growth DCF £1.19 £1.61 £2.30 80
Rev-Margin DCF £1.74 £2.87 £4.28 74
Economic Profit
Residual Income £0.8800 £0.9100 £0.9000 76
ROIC Compounder £1.55 £1.87 £2.19 72
Growth Earnings
Growth-Adj P/E £0.8500 £1.21 £1.58 68

Widest divergence: DCF Models (£2.26) versus Asset-Based (£0.7700). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 997M GBX
Revenue growth (YoY) -8.7%
Net margin 2.1%
Return on equity 1.4%
Free cash flow 53.5M GBX FY2025
Operating margin 8.6%
More key figures
EPS (TTM) £-0.0100
Dividend yield 5.6%
EPS growth (YoY) -59.2%
Net debt 281M GBX FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 52 · Market factors (momentum, volatility) 62

Profitability 35
Margins and returns on capital today
Quality Growth 23
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 84
Distance to the 52-week high (market factor)
Net Issuance 95
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Morgan Advanced Materials plc manufactures and sells various carbon and ceramic products. The company operates through Thermal Products, Performance Carbon, and Technical Ceramics segments.

Full company description

Morgan Advanced Materials plc manufactures and sells various carbon and ceramic products. The company operates through Thermal Products, Performance Carbon, and Technical Ceramics segments. The Thermal Products segment manufactures products, systems, and solutions, such as crucibles, foundry products, furnace industries furnace range products, insulating fibre and microporous products, firebricks and mortars, and heat shields used in industrial metal processing, petrochemicals, cement, ceramics, and glass, as well as by manufacturers of equipment for aerospace, automotive, marine, and domestic applications. The Performance Carbon segment develops and manufactures carbon, graphite, and carbide products, including semiconductor consumables, collector strips and carbon brushes, graphite powders, face seals, sliding bearings, shafts, and rotary vane pump components for charging and driving EVs, wind turbines, and power generation, as well as for the security and defense sector. The Technical Ceramics segment designs and manufactures ceramic components comprising structural ceramic components, engineered coatings, ceramic cores, ceramic-to-metal assemblies, braze alloys, ceramic tubes and rollers, extruded products, laser products, semiconductor products, and machinable glass ceramic products. It serves semiconductors, healthcare, clean energy and transportation, industrial, conventional transportation, petrochemical and chemical, and security and defense markets. It operates in the United States, rest of North America, South America, Germany, the United Kingdom, rest of Europe, China, rest of Asia, Australasia, the Middle East, and Africa. The company was formerly known as The Morgan Crucible Company plc and changed its name to Morgan Advanced Materials plc in March 2013. The company was founded in 1856 and is headquartered in Windsor, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Morgan Advanced Materials plc reported revenue of £997M in FY2025 versus £951M in FY2021, a compound +1.2%/yr. Reported net income was £21.1M in FY2025, compounding −26.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£997M
Latest YoY
−9.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.8%
Avg. growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.0%
Revenue +1.2%/yr
FY21 £951M
FY22 £1.1B
FY23 £1.1B
FY24 £1.1B
FY25 £997M
Net income −26.9%/yr
FY21 £73.8M
FY22 £88.0M
FY23 £47.3M
FY24 £50.3M
FY25 £21.1M
Character of growth · EPS growth decomposed (2014-2025) +2.6 % p.a.
Revenue per share +1.5 pp

of which total revenue +1.4 pp · buybacks/dilution +0.0 pp

EBIT margin −2.2 pp
Tax rate +1.2 pp
Residual (interest, one-offs) +2.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

MGAM screens 36% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Morgan Advanced Materials plc Fair Value". https://www.fairvalue-calculator.com/stock/MGAM

Peer Group

Specialty Industrial Machinery · 807 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Above median
Fair Value upside −36% · Above median
Return on equity (TTM) 1% · Below median
Return on assets 5% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 9% · Above median
Revenue growth -9% · Bottom 25%
Dividend yield (TTM) 5.6% · Top 25%
Debt / equity 0.67× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/B 2.59× · Pricier than median
P/S (TTM) 0.82× · Cheaper than median
P/FCF 15.3× · Pricier than median
EV/EBITDA 8.0× · Cheaper than 75% of peers
PEG 2.43× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 0 · sector 22
PAST 6 · sector 28
HEALTH 67 · sector 96
DIVIDEND 100 · sector 24

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Morgan Advanced Materials plc (MGAM) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £1.60 versus a price of £2.50, about −36% (overvalued).
What is the fair value of MGAM?
Our model-based fair value for Morgan Advanced Materials plc is £1.60 (as of Aug 13, 2026), built from audited fundamentals. The current price is £2.50.
What is the quality score of MGAM?
Morgan Advanced Materials plc has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Morgan Advanced Materials plc (MGAM)?
Morgan Advanced Materials plc reported trailing-twelve-month revenue of about £997M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of MGAM?
The net profit margin of Morgan Advanced Materials plc is about 2.1%, meaning it keeps roughly 2.1% of revenue as net income. Based on the latest reported figures.
Does Morgan Advanced Materials plc pay a dividend?
Morgan Advanced Materials plc currently shows a dividend yield of about 5.43% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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