M&G plc
M&G plc Fundamental Analysis
M&G plc (MGPUF) shows weak financial fundamentals with a PE ratio of 28.89, profit margin of 1.73%, and ROE of 9.49%. The company generates $12.9B in annual revenue with moderate year-over-year growth of 5.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MGPUF's fundamental strength across five key dimensions:
Efficiency Score
WeakMGPUF struggles to generate sufficient returns from assets.
Valuation Score
ModerateMGPUF shows balanced valuation metrics.
Growth Score
ModerateMGPUF shows steady but slowing expansion.
Financial Health Score
WeakMGPUF carries high financial risk with limited liquidity.
Profitability Score
WeakMGPUF struggles to sustain strong margins.
Key Financial Metrics
Is MGPUF Expensive or Cheap?
P/E Ratio
MGPUF trades at 28.89 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MGPUF's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values M&G plc at 2.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.45 times EBITDA. This is generally considered low.
How Well Does MGPUF Make Money?
Net Profit Margin
For every $100 in sales, M&G plc keeps $1.73 as profit after all expenses.
Operating Margin
Core operations generate 17.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.49 in profit for every $100 of shareholder equity.
ROA
M&G plc generates $0.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
M&G plc generates limited operating cash flow of $643.40M, signaling weaker underlying cash strength.
Free Cash Flow
M&G plc produces free cash flow of $514.00M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.22 in free cash annually.
FCF Yield
MGPUF converts 10.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How MGPUF Stacks Against Its Sector Peers
| Metric | MGPUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.89 | 18.80 | Worse (Expensive) |
| ROE | 9.49% | 817.00% | Weak |
| Net Margin | 1.73% | -55.00% (disorted) | Weak |
| Debt/Equity | 2.20 | 1.03 | Weak (High Leverage) |
| Current Ratio | 0.00 | 661.52 | Weak Liquidity |
| ROA | 0.16% | -23757.00% (disorted) | Weak |
MGPUF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews M&G plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-62.53%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-134.96%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
363.05%
Industry Style: Value, Dividend, Cyclical
High Growth