Morgan Sindall GroupLSE:MGNS +1.45%74 ROE % is 28.58% as of Dec. 2025, which is 44% above its 10-year median of 19.78. GuruFocus rates LSE:MGNS with a GF Score™ of 74/100 and a GF Value™ of £32.87 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,742 Construction companies, Morgan Sindall Group ranks better than 89.78% on this metric.
The historical rank and industry rank for Morgan Sindall Group's ROE % or its related term are showing as below:
LSE:MGNS'
s ROE % Range Over the Past 10 Years
Min: 11.25 Med: 19.78 Max: 25.31
Current: 25.31
During the past 13 years, Morgan Sindall Group's highest ROE % was 25.31%. The lowest was 11.25%. And the median was 19.78%.
LSE:MGNS's ROE % is ranked better than 89.78% of 1742
companies
in the Construction industry
Industry Median: 6.715
vs LSE:MGNS: 25.31
Morgan Sindall Group (LSE:MGNS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Engineering & Construction subindustry, Morgan Sindall Group's ROE %, along with its competitors' market caps and ROE % 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 Sindall Group ROE % vs Construction Industry
For the Construction industry and Industrials sector, Morgan Sindall Group's ROE % distribution charts can be found below:
* The bar in red indicates where Morgan Sindall Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Morgan Sindall Group (LSE:MGNS) has a ROE % of 28.58% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Morgan Sindall Group and its competitors. This is 44% above median its historical median of 19.78. Over the past decade, Morgan Sindall Group's ROE % has ranged from 11.25 to 25.31. According to the industry distribution chart, Morgan Sindall Group ranks #178 out of 1742 companies in the Construction industry, placing it in the top 10.2%.
Is Morgan Sindall Group's ROE % too high?
Morgan Sindall Group's current ROE % of 28.58% is 44% above median its 10-year median of 19.78. Over the past 10 years, this metric has ranged from a low of 11.25 to a high of 25.31. The Construction industry median ROE % is 6.72. Morgan Sindall Group's value of 28.58% is 325.6% above this industry median. Based on the distribution chart, Morgan Sindall Group ranks #178 out of 1742 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Morgan Sindall Group has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morgan Sindall Group's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Morgan Sindall Group ranks #178 out of 1742 companies for ROE %. This places Morgan Sindall Group in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 6.72. Morgan Sindall Group's value of 28.58% is 325.6% above this benchmark. Historically, Morgan Sindall Group's own ROE % has ranged from 11.25 to 25.31 over the past decade. While the company's 10-year median is 19.78 vs. the industry median of 6.72, Morgan Sindall Group 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 ROE % for a Construction company?
The median ROE % among Construction companies is 6.72, based on 1,742 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Morgan Sindall Group's current ROE % of 28.58% is 325.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Morgan Sindall Group and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morgan Sindall Group's current ROE % is 28.58%, which is 44% above median its own 10-year median of 19.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Sindall Group stock overvalued right now?
Based on GuruFocus' analysis, Morgan Sindall Group (LSE:MGNS) is currently considered Significantly Overvalued. The stock's GF Value™ is £32.87, compared to a current price of £48.82 — trading 48.5% above its estimated fair value. The current ROE % is 28.58%, which is 44% above median its 10-year median of 19.78 and 325.6% above the Construction industry median of 6.72. Morgan Sindall Group's overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Morgan Sindall Group (LSE:MGNS), the current ROE % is 28.58% 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 Sindall Group (LSE:MGNS) Overvalued in 2026?
Based on GuruFocus' analysis, Morgan Sindall Group stock appears to be overvalued.
The current stock price of £48.82 is trading 48.5% above its estimated GF Value™ of £32.87.
GuruFocus considers Morgan Sindall Group to be Significantly Overvalued.
Key valuation signals for LSE:MGNS:
ROE %: 28.58% (44% above median its 10-year median of 19.78)
GF Value™: £32.87 vs. price of £48.82 (48.5% above fair value)
Industry Position: 325.6% above the Construction median (#178 of 1742)
No single metric tells the full story. See the LSE:MGNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morgan Sindall Group PLC is a construction and regeneration company in the United Kingdom. The business segments are Partnership Housing, Mixed Use Partnership, Fit Out, Construction, Infrastructure, and Property Services. The company offers services to commercial, defense, education, energy, healthcare, industrial, leisure, retail, transportation, and water markets. Group serves both the public and private sectors. It derives the majority of revenue from the Fit Out segment. The Fit Out segment includes Overbury plc, which specialises in fit out and refurbishment in commercial, central, and local government offices and further education. Morgan Lovell plc provides office interior design and build services directly to occupiers.
74GF Score
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