Morgan Advanced Materials

MGAM.L

Industrial - Specialties · Industrials

Exchange

London Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Strong

Stability

Mixed

Valuation

Good

Dividends

Exceptional

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Winston Score History

The full picture

Morgan Advanced Materials makes specialist materials — mainly carbon, ceramics, and thermal products — used inside industrial machines, engines, and energy systems. Its customers include manufacturers in aerospace, defense, healthcare, and energy. The company is based in the UK and has been making advanced materials for over 160 years.

Morgan earns revenue by selling engineered components and materials to industrial customers around the world, with operations across Europe, North America, and Asia. Its competitive edge comes from deep technical expertise in materials that are difficult to make and hard for customers to switch away from. However, the company's low margins and weak returns on capital suggest it faces pricing pressure and high costs, and its main risk is that slower industrial activity globally could reduce demand for its products.

Score breakdown

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Quality

Profit per sale

Gross Margin

11.1%

Thin — 11.1% gross margin

Profit after running costs

Operating Margin

11.1%

Modest — 11.1% operating margin

Return on the money invested

ROCE

12.9%

Good — 12.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

-5.6%

Shrinking sales (-5.6% YoY)

Profit growth

EPS YoY

-32.5%

Earnings shrinking (-32.5% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

515%

Turns 515% of profit into real cash

Spare cash per sale

FCF Margin

5.5%

Thin free cash flow (5.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

1.12

Elevated debt (1.12)

Covers its interest

Interest Cover

3.53x

Tight — interest eats into profit (3.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

35.5x

no trend

Pricey — P/E 35.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+24.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (35.5 → 11.2)

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Dividends

Dividend

Dividend Yield

5.22%

no trend

Healthy income — 5.22% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

+20.1%

no trend

Dividend growing fast (20.1% YoY)

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