Fact based stock research
Morgan Sindall (LSE:MGNS)

GB0008085614

How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Morgan Sindall stock research in summary

morgansindall.com

ANALYSIS: With an Obermatt Combined Rank of 74 (better than 74% compared with investment alternatives), Morgan Sindall (Construction & Engineering, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Morgan Sindall are a good value (attractively priced) with a consolidated Value Rank of 53 (better than 53% of alternatives), show above-average growth (Growth Rank of 75), and are safely financed (Safety Rank of 70), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 74, is a buy recommendation based on Morgan Sindall's financial characteristics. As the company Morgan Sindall's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 53), above-average growth (Obermatt Growth Rank of 75), and indicate that the company is safely financed (Obermatt Safety Rank of 70), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Morgan Sindall. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	53
Growth Rank	75
Safety Rank	70
Combined Rank	74

Country	United Kingdom
Industry	Construction & Engineering
Index	FTSE All Shares, FTSE 250, FTSE 350
Size class	X-Large

This stock has achievements: Top 10 Stock.

18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

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Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Morgan Sindall

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	35	29	50	53
GROWTH
GROWTH	45	67	65	75
SAFETY
SAFETY	71	57	67	70
SENTIMENT
SENTIMENT	n/a	82	96	^new
360° VIEW
360° VIEW	n/a	67	86	^new

Most recent update of the stock research: 18-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Morgan Sindall is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	35	29	50	53
GROWTH
GROWTH	45	67	65	75
SAFETY
SAFETY	71	57	67	70
COMBINED
COMBINED	67	45	60	74

Last update of combined financial performance: 18-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Morgan Sindall the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 53 (better than 53% compared with alternatives), Morgan Sindall shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Morgan Sindall. Price-to-Sales (P/S) is 64, which means that the stock price compared with what market professionals expect for future sales is lower than for 64% of comparable companies, indicating a good value concerning Morgan Sindall's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 67% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 76 (dividends are expected to be higher than 76% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 68% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Morgan Sindall to 32. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 53, is a buy recommendation based on Morgan Sindall's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	38	61	59	64
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	42	38	67	67
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	3	30	28	32
DIVIDEND YIELD
DIVIDEND YIELD	72	74	72	76
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	35	29	50	53

Last update of Value Rank: 18-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Morgan Sindall; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 75 (better than 75% compared with alternatives) for 2024, Morgan Sindall shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Morgan Sindall. Capital Growth has a rank of 78, which means that currently professionals expect the company to grow its invested capital more than 49% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 76 (above 76% of alternative investments). But Sales Growth has only a rank of 42, which means that, currently, professionals expect the company to grow less than 58% of its competitors, and Profit Growth is also low at a rank of 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Morgan Sindall, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	30	8	31	42
PROFIT GROWTH
PROFIT GROWTH	47	76	53	49
CAPITAL GROWTH
CAPITAL GROWTH	n/a	40	48	78
STOCK RETURNS
STOCK RETURNS	84	85	87	76
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	45	67	65	75

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Morgan Sindall.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Morgan Sindall has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Morgan Sindall is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Morgan Sindall. Leverage is at a rank of 68, meaning the company has a below-average debt-to-equity ratio. It has less debt than 68% of its competitors. Liquidity is also good at a rank of 82, meaning the company generates more profit to service its debt than 82% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 42, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Morgan Sindall has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Morgan Sindall. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Morgan Sindall and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	76	68	68	68
REFINANCING
REFINANCING	38	35	42	42
LIQUIDITY
LIQUIDITY	77	57	80	82
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	71	57	67	70

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Morgan Sindall and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	65	89	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	74	88	^new
MARKET PULSE
MARKET PULSE	n/a	73	85	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	82	96	^new

Last update of Sentiment Rank: 18-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Morgan Sindall.
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