Morgan Sindall Group MGNS.L
United KingdomIndustrials · Engineering & ConstructionLondon Stock Exchange · GBP
56.21 GBP (+37.8%)
7 analysts
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Morgan Sindall Group is a British construction and urban regeneration company operating through several divisions, including construction, infrastructure, fit-out and property maintenance, with a business model based on long-term contracts and a diversified portfolio of public and private projects.
Listed on London Stock Exchange · Symbol MGNS.L · LON: MGNS · Currency GBP
Key points
from its scores- ✓Attractive valuation8.3
- ✓Attractive dividend8.2
- ✓Favourable backdrop7.5
- ✕Poor share-price trend2.0
AI analysis
bottom line, main risk, context and newsQuality and valuation offset weak momentum, and net cash protects against a higher interest rate environment.
Morgan Sindall shows solid fundamentals: net cash (Net Debt/EBITDA of -1.36), high profitability (ROE 26.06%, ROIC 24.62%) and an attractive valuation (P/E 10.65, EV/EBITDA 6.04), with a sustainable dividend yield of 4.00%. The only weak point is negative momentum (-18.33% over 12 months), which contrasts with operational strength.
The main risk is weak share price momentum (-18.33% over 12 months), which could reflect a slowdown in the UK construction sector or a risk perception that has not yet materialised in fundamentals.
Context and risks
Morgan Sindall operates mainly in the UK, a market with stable governance and no direct exposure to the geopolitical or regulatory risks affecting other sectors. Its construction and urban regeneration business does not depend on critical shipping routes or volatile commodities, and its net cash balance sheet insulates it from rising interest rates. No regulatory, legal or business model risks warranting an additional adjustment were identified.
Is Morgan Sindall Group stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 58% below the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 10.6 | 25.4 | −58% |
| EV / EBITDA | 6.0 | 14.5 | −58% |
| Price / book | 2.5 | 4.1 | −39% |
| Price / sales | 0.4 | 2.1 | −82% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.3 out of 10 (median for Industrials: 5.0).
Average analyst target: 56.21 GBP, +37.8% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.2 (sector 6.4), Growth 6.8 (sector 6.6).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 10.6
- Forward P/E
- 11.7
- EV / EBITDA
- 6.0
- Price / book
- 2.5
- Price / sales
- 0.4
- PEG
- 0.62
- Market cap
- 1.9B GBP
- Enterprise value
- 1.6B GBP
Profitability
- ROE
- 26.1%
- ROA
- 6.5%
- ROIC (approx.)
- 24.6%
- Gross margin
- 12.4%
- Operating margin
- 4.4%
- Net margin
- 3.6%
- Free cash flow
- 141.5M GBP
- FCF yield
- 7.3%
- Cash conversion
- 55%
Solvency
- Total debt
- 141.5M GBP
- Net debt
- −350.1M GBP
- Cash
- 491.6M GBP
- EBITDA
- 257.5M GBP
- Net debt / EBITDA
- −1.36
- Debt / equity
- 18.30
- Current ratio
- 1.23
- Quick ratio
- 0.79
Growth
- Revenue growth
- +8.1%
- Earnings growth
- +18.8%
- EPS (TTM)
- 3.83 GBP
- EPS (forward)
- 3.48 GBP
Dividend
- Dividend yield
- 4.0%
- Payout
- 41.3%
Risk and market
- Beta
- 0.80
- Analyst consensus
- none (7)
- Target price
- 56.21 GBP
Recent news
All MGNS.L news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Morgan Sindall Group
Is Morgan Sindall Group stock cheap or expensive?
On P/E and EV / EBITDA, it trades 58% below the Industrials median on average. Valuation score: 8.3 out of 10 (median for Industrials: 5.0). Average analyst target: 56.21 GBP, +37.8% versus the price. This is not investment advice.
What score does Morgan Sindall Group get on MeridIAn Screener?
It scores 7.0 out of 10, rank 222 of 2,130 (better than 89% of the companies analysed). Its strongest category is Valuation (8.3) and its weakest, Momentum (2.0). Analysis of 08/10/2026.
What is Morgan Sindall Group's P/E ratio?
Its P/E is 10.6: the share price equals 10.6 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 11.7.
How much is Morgan Sindall Group worth on the stock market?
Its market capitalisation is 1.9B GBP and its enterprise value, debt included, is 1.6B GBP.
How much debt does Morgan Sindall Group have?
It has more cash than debt: net cash of 350.1M GBP.
Does Morgan Sindall Group pay a dividend?
Yes: its dividend yield is 4.00% and it pays out 41% of its earnings.
How has Morgan Sindall Group stock performed over the last year?
It has fallen 17.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 57.30 GBP. Past performance does not guarantee future results.
What do analysts think of Morgan Sindall Group?
7 analysts cover it; their average recommendation is “none” and their average target is 56.21 GBP (+37.8% versus the price). It is an estimate, not market data.