Morgan Advanced MaterialsLSE:MGAM -0.91%74 Interest Coverage is 2.85 as of Dec. 2025, which is 57% below its 10-year median of 6.66. GuruFocus rates LSE:MGAM with a GF Score™ of 74/100 and a GF Value™ of £2.41 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 2,324 Industrial Products companies, Morgan Advanced Materials ranks worse than 79.35% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Morgan Advanced Materials's
Operating Income
for the
six
months ended in Dec. 2025 was £35.9 Mil. Morgan Advanced Materials's Interest Expense for the
six
months ended in Dec. 2025 was £-12.6 Mil.
Morgan Advanced Materials's interest coverage for the quarter that ended in Dec. 2025 was 2.85.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Morgan Advanced Materials's Interest Coverage or its related term are showing as below:
LSE:MGAM'
s Interest Coverage Range Over the Past 10 Years
Min: 3.72 Med: 6.66 Max: 13.36
Current: 3.72
LSE:MGAM's Interest Coverage is ranked worse than 79.35% of 2324
companies
in the Industrial Products industry
Industry Median: 14.835
vs LSE:MGAM: 3.72
Morgan Advanced Materials (LSE:MGAM) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Morgan Advanced Materials Interest Coverage Related Terms
Morgan Advanced Materials Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LSE:MGAM vs GEV, ETN, PH: Interest Coverage Comparison
For the Specialty Industrial Machinery subindustry, Morgan Advanced Materials's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Morgan Advanced Materials Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Morgan Advanced Materials's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Morgan Advanced Materials's Interest Coverage falls into.
Morgan Advanced Materials Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Morgan Advanced Materials (LSE:MGAM) has a Interest Coverage of 2.85 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Morgan Advanced Materials and its competitors. This is 57% below median its historical median of 6.66. Over the past decade, Morgan Advanced Materials' Interest Coverage has ranged from 3.72 to 13.36. According to the industry distribution chart, Morgan Advanced Materials ranks #1844 out of 2324 companies in the Industrial Products industry, placing it in the top 79.3%.
Is Morgan Advanced Materials' Interest Coverage too high?
Morgan Advanced Materials' current Interest Coverage of 2.85 is 57% below median its 10-year median of 6.66. Over the past 10 years, this metric has ranged from a low of 3.72 to a high of 13.36. The Industrial Products industry median Interest Coverage is 14.84. Morgan Advanced Materials' value of 2.85 is 80.8% below this industry median. Based on the distribution chart, Morgan Advanced Materials ranks #1844 out of 2324 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Morgan Advanced Materials has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Morgan Advanced Materials' Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Morgan Advanced Materials ranks #1844 out of 2324 companies for Interest Coverage. This places Morgan Advanced Materials in the lower half of its industry. The industry median Interest Coverage is 14.84. Morgan Advanced Materials' value of 2.85 is 80.8% below this benchmark. Historically, Morgan Advanced Materials' own Interest Coverage has ranged from 3.72 to 13.36 over the past decade. While the company's 10-year median is 6.66 vs. the industry median of 14.84, Morgan Advanced Materials has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.84, based on 2,324 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Morgan Advanced Materials's current Interest Coverage of 2.85 is 80.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Morgan Advanced Materials and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morgan Advanced Materials's current Interest Coverage is 2.85, which is 57% below median its own 10-year median of 6.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Advanced Materials stock overvalued right now?
Based on GuruFocus' analysis, Morgan Advanced Materials (LSE:MGAM) is currently considered Modestly Undervalued. The stock's GF Value™ is £2.41, compared to a current price of £2.17 — trading 10% below its estimated fair value. The current Interest Coverage is 2.85, which is 57% below median its 10-year median of 6.66 and 80.8% below the Industrial Products industry median of 14.84. Morgan Advanced Materials' overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Morgan Advanced Materials (LSE:MGAM), the current Interest Coverage is 2.85 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Morgan Advanced Materials (LSE:MGAM) Overvalued in 2026?
Based on GuruFocus' analysis, Morgan Advanced Materials stock appears to be undervalued.
The current stock price of £2.17 is trading 10% below its estimated GF Value™ of £2.41.
GuruFocus considers Morgan Advanced Materials to be Modestly Undervalued.
Key valuation signals for LSE:MGAM:
Interest Coverage: 2.85 (57% below median its 10-year median of 6.66)
GF Value™: £2.41 vs. price of £2.17 (10% below fair value)
Industry Position: 80.8% below the Industrial Products median (#1844 of 2324)
No single metric tells the full story. See the LSE:MGAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morgan Advanced Materials PLC is an advanced materials company that co-designs and manufactures mission-critical solutions using material science and application expertise. The Company's products and solutions include semiconductor consumables, collector strips and carbon brushes, graphite powders, face seals, sliding bearings, rotary seals, rotary vane pump components, structural ceramic components, engineered coatings, ceramic cores, ceramic-to-metal assemblies, braze alloys, ceramic tubes and rollers, extruded products, laser products, and MACOR machinable glass ceramic. The Group operates through three segments: Thermal Products generates maximum revenue, Performance Carbon, and Technical Ceramics. Geographically, it generates the majority of its revenue from the USA.
74GF Score
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