Morgan Advanced MaterialsLSE:MGAM +0.23%74 Return-on-Tangible-Equity is 8.34% as of Dec. 2025, which is 71% below its 10-year median of 28.59. GuruFocus rates LSE:MGAM with a GF Score™ of 74/100 and a GF Value™ of £2.41 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,968 Industrial Products companies, Morgan Advanced Materials ranks better than 74.09% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Morgan Advanced Materials's annualized net income for the quarter that ended in Dec. 2025 was £12.2 Mil. Morgan Advanced Materials's average shareholder tangible equity for the quarter that ended in Dec. 2025 was £146.3 Mil. Therefore, Morgan Advanced Materials's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.34%.
The historical rank and industry rank for Morgan Advanced Materials's Return-on-Tangible-Equity or its related term are showing as below:
LSE:MGAM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -54.68 Med: 28.59 Max: 178.08
Current: 13.57
During the past 13 years, Morgan Advanced Materials's highest Return-on-Tangible-Equity was 178.08%. The lowest was -54.68%. And the median was 28.59%.
LSE:MGAM's Return-on-Tangible-Equity is ranked better than 74.09% of 2968
companies
in the Industrial Products industry
Industry Median: 6.725
vs LSE:MGAM: 13.57
Morgan Advanced Materials (LSE:MGAM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Morgan Advanced Materials Return-on-Tangible-Equity Related Terms
Morgan Advanced Materials Return-on-Tangible-Equity Historical Data
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The historical data trend for Morgan Advanced Materials's Return-on-Tangible-Equity can be seen below:
* 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 Return-on-Tangible-Equity Chart
LSE:MGAM vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Morgan Advanced Materials's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Morgan Advanced Materials's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Morgan Advanced Materials's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.34% mean?
Morgan Advanced Materials (LSE:MGAM) has a Return-on-Tangible-Equity of 8.34% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Morgan Advanced Materials and its competitors. This is 71% below median its historical median of 28.59. According to the industry distribution chart, Morgan Advanced Materials ranks #769 out of 2968 companies in the Industrial Products industry, placing it in the top 25.9%.
Is Morgan Advanced Materials' Return-on-Tangible-Equity too high?
Morgan Advanced Materials' current Return-on-Tangible-Equity of 8.34% is 71% below median its 10-year median of 28.59. The Industrial Products industry median Return-on-Tangible-Equity is 6.73. Morgan Advanced Materials' value of 8.34% is 24% above this industry median. Based on the distribution chart, Morgan Advanced Materials ranks #769 out of 2968 companies in the Industrial Products industry, which is above the industry midpoint. 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' Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Morgan Advanced Materials ranks #769 out of 2968 companies for Return-on-Tangible-Equity. This puts Morgan Advanced Materials in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.73. Morgan Advanced Materials' value of 8.34% is 24% above this benchmark. While the company's 10-year median is 28.59 vs. the industry median of 6.73, Morgan Advanced Materials has consistently been above 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 Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.73, based on 2,968 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Morgan Advanced Materials's current Return-on-Tangible-Equity of 8.34% is 24% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Morgan Advanced Materials and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morgan Advanced Materials's current Return-on-Tangible-Equity is 8.34%, which is 71% below median its own 10-year median of 28.59. 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 £2.15 — trading 11% below its estimated fair value. The current Return-on-Tangible-Equity is 8.34%, which is 71% below median its 10-year median of 28.59 and 24% above the Industrial Products industry median of 6.73. Morgan Advanced Materials' overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Morgan Advanced Materials (LSE:MGAM), the current Return-on-Tangible-Equity is 8.34% 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 £2.15 is trading 11% below its estimated GF Value™ of £2.41.
GuruFocus considers Morgan Advanced Materials to be Modestly Undervalued.
Key valuation signals for LSE:MGAM:
Return-on-Tangible-Equity: 8.34% (71% below median its 10-year median of 28.59)
GF Value™: £2.41 vs. price of £2.15 (11% below fair value)
Industry Position: 24% above the Industrial Products median (#769 of 2968)
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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