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Meggitt

DB:MGI
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGI
DB
£5B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Meggitt PLC designs and manufactures components and sub-systems in the United Kingdom, rest of Europe, the United States, and internationally. The last earnings update was 67 days ago. More info.


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MGI Share Price and Events
7 Day Returns
3.3%
DB:MGI
0.8%
Europe Aerospace & Defense
2.5%
DE Market
1 Year Returns
24.1%
DB:MGI
11.7%
Europe Aerospace & Defense
2.6%
DE Market
MGI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Meggitt (MGI) 3.3% 1% 17.5% 24.1% 43.2% 29.2%
Europe Aerospace & Defense 0.8% -2.9% 0.9% 11.7% 67.1% 114.9%
DE Market 2.5% 0.2% 1% 2.6% 7.8% 23.7%
1 Year Return vs Industry and Market
  • MGI outperformed the Aerospace & Defense industry which returned 11.7% over the past year.
  • MGI outperformed the Market in Germany which returned 2.6% over the past year.
Price Volatility
MGI
Industry
5yr Volatility vs Market

MGI Value

 Is Meggitt undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Meggitt to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Meggitt.

DB:MGI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:MGI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 19%) (26%))
1.031
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.031 * 6.65%)
7.08%

Discounted Cash Flow Calculation for DB:MGI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Meggitt is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:MGI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.08%)
2020 241.23 Analyst x9 225.28
2021 299.68 Analyst x8 261.35
2022 304.00 Analyst x3 247.58
2023 307.01 Est @ 0.99% 233.50
2024 309.36 Est @ 0.76% 219.72
2025 311.22 Est @ 0.6% 206.43
2026 312.74 Est @ 0.49% 193.72
2027 314.03 Est @ 0.41% 181.65
2028 315.15 Est @ 0.36% 170.24
2029 316.15 Est @ 0.32% 159.49
Present value of next 10 years cash flows £2,098.00
DB:MGI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £316.15 × (1 + 0.23%) ÷ (7.08% – 0.23%)
£4,623.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £4,623.04 ÷ (1 + 7.08%)10
£2,332.14
DB:MGI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £2,098.00 + £2,332.14
£4,430.14
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £4,430.14 / 771.37
£5.74
DB:MGI Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:MGI represents 1.14226x of LSE:MGGT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.14226x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 5.74 x 1.14226
€6.56
Value per share (EUR) From above. €6.56
Current discount Discount to share price of €7.07
= -1 x (€7.07 - €6.56) / €6.56
-7.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Meggitt is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Meggitt's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Meggitt's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:MGI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.19
LSE:MGGT Share Price ** LSE (2019-10-11) in GBP £6.19
Europe Aerospace & Defense Industry PE Ratio Median Figure of 36 Publicly-Listed Aerospace & Defense Companies 21.4x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Meggitt.

DB:MGI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:MGGT Share Price ÷ EPS (both in GBP)

= 6.19 ÷ 0.19

32.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Meggitt is overvalued based on earnings compared to the Europe Aerospace & Defense industry average.
  • Meggitt is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Meggitt's expected growth come at a high price?
Raw Data
DB:MGI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
18.4%per year
Europe Aerospace & Defense Industry PEG Ratio Median Figure of 26 Publicly-Listed Aerospace & Defense Companies 1.59x
Germany Market PEG Ratio Median Figure of 264 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

DB:MGI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.95x ÷ 18.4%

1.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Meggitt is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Meggitt's assets?
Raw Data
DB:MGI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £3.15
LSE:MGGT Share Price * LSE (2019-10-11) in GBP £6.19
Europe Aerospace & Defense Industry PB Ratio Median Figure of 49 Publicly-Listed Aerospace & Defense Companies 1.96x
Germany Market PB Ratio Median Figure of 597 Publicly-Listed Companies 1.74x
DB:MGI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:MGGT Share Price ÷ Book Value per Share (both in GBP)

= 6.19 ÷ 3.15

1.96x

* Primary Listing of Meggitt.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Meggitt is good value based on assets compared to the Europe Aerospace & Defense industry average.
X
Value checks
We assess Meggitt's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Meggitt has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MGI Future Performance

 How is Meggitt expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Meggitt expected to grow at an attractive rate?
  • Meggitt's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Meggitt's earnings growth is expected to exceed the Germany market average.
  • Meggitt's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:MGI Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:MGI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 18.4%
DB:MGI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 4.5%
Europe Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
Europe Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:MGI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:MGI Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 2,560 463 288 4
2021-12-31 2,454 477 266 12
2020-12-31 2,353 421 232 14
2019-12-31 2,239 334 177 13
2019-10-12
DB:MGI Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 2,199 292 145
2019-03-31 2,140 294 162
2018-12-31 2,081 295 179
2018-09-30 2,031 318 205
2018-06-30 1,981 341 232
2018-03-31 1,988 339 262
2017-12-31 1,994 338 293
2017-09-30 2,050 351 313
2017-06-30 2,075 348 286
2017-03-31 2,034 335 229
2016-12-31 1,992 322 171
2016-09-30 1,864 313 145

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Meggitt's earnings are expected to grow by 18.4% yearly, however this is not considered high growth (20% yearly).
  • Meggitt's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:MGI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Meggitt Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MGI Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.40 0.40 0.40 1.00
2021-12-31 0.35 0.38 0.27 5.00
2020-12-31 0.30 0.33 0.24 6.00
2019-12-31 0.21 0.23 0.19 4.00
2019-10-12
DB:MGI Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.19
2019-03-31 0.21
2018-12-31 0.23
2018-09-30 0.27
2018-06-30 0.30
2018-03-31 0.34
2017-12-31 0.38
2017-09-30 0.40
2017-06-30 0.37
2017-03-31 0.29
2016-12-31 0.22
2016-09-30 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Meggitt is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Meggitt's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Meggitt has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MGI Past Performance

  How has Meggitt performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Meggitt's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Meggitt's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Meggitt's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Meggitt's 1-year earnings growth is negative, it can't be compared to the Europe Aerospace & Defense industry average.
Earnings and Revenue History
Meggitt's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Meggitt Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MGI Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 2,199.30 145.20 369.50 72.40
2019-03-31 2,139.95 162.10 341.45 71.20
2018-12-31 2,080.60 179.00 313.40 70.00
2018-09-30 2,030.90 205.30 283.25 72.75
2018-06-30 1,981.20 231.60 253.20 75.40
2018-03-31 1,987.80 262.20 227.40 77.50
2017-12-31 1,994.40 292.80 201.60 79.60
2017-09-30 2,049.75 313.40 199.30 78.20
2017-06-30 2,074.90 285.80 210.90 77.10
2017-03-31 2,033.65 228.50 265.65 74.05
2016-12-31 1,992.40 171.20 320.40 71.00
2016-09-30 1,864.40 145.35 316.00 65.85
2016-06-30 1,736.40 119.50 311.60 60.70
2016-03-31 1,691.80 150.80 270.30 61.05
2015-12-31 1,647.20 182.10 229.00 61.40
2015-09-30 1,637.85 188.55 232.10 63.95
2015-06-30 1,628.50 195.00 235.20 66.50
2015-03-31 1,591.10 186.00 228.95 62.50
2014-12-31 1,553.70 177.00 222.70 58.50
2014-09-30 1,549.90 194.30 192.70 71.40
2014-06-30 1,546.10 211.60 162.70 84.30
2014-03-31 1,591.70 221.95 201.50 70.70
2013-12-31 1,637.30 232.30 240.30 57.10
2013-09-30 1,638.60 235.35 272.45 28.55
2013-06-30 1,639.90 238.40 304.60
2013-03-31 1,622.85 236.95 282.80
2012-12-31 1,605.80 235.50 261.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Meggitt has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Meggitt used its assets less efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.
  • Meggitt has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Meggitt's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Meggitt has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MGI Health

 How is Meggitt's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Meggitt's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Meggitt is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Meggitt's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Meggitt's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Meggitt Company Filings, last reported 3 months ago.

DB:MGI Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 2,435.10 1,134.40 116.40
2019-03-31 2,435.10 1,134.40 116.40
2018-12-31 2,492.40 1,158.50 181.90
2018-09-30 2,492.40 1,158.50 181.90
2018-06-30 2,387.60 1,136.00 103.70
2018-03-31 2,387.60 1,136.00 103.70
2017-12-31 2,311.50 1,077.20 118.90
2017-09-30 2,556.40 1,077.20 118.90
2017-06-30 2,468.60 1,212.50 96.60
2017-03-31 2,468.60 1,212.50 96.60
2016-12-31 2,456.40 1,346.30 175.70
2016-09-30 2,456.40 1,346.30 175.70
2016-06-30 2,268.50 1,331.80 61.20
2016-03-31 2,268.50 1,331.80 61.20
2015-12-31 2,178.50 1,193.00 147.30
2015-09-30 2,178.50 1,193.00 147.30
2015-06-30 2,067.00 801.60 95.30
2015-03-31 2,067.00 801.60 95.30
2014-12-31 2,140.80 675.60 105.50
2014-09-30 2,140.80 675.60 105.50
2014-06-30 2,043.80 638.00 74.60
2014-03-31 2,043.80 638.00 74.60
2013-12-31 2,076.40 673.20 116.10
2013-09-30 2,076.40 673.20 116.10
2013-06-30 2,071.30 782.20 87.10
2013-03-31 2,071.30 782.20 87.10
2012-12-31 1,905.40 739.50 104.90
  • Meggitt's level of debt (46.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (31.2% vs 46.6% today).
  • Debt is well covered by operating cash flow (25.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).
X
Financial health checks
We assess Meggitt's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Meggitt has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MGI Dividends

 What is Meggitt's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.69%
Current annual income from Meggitt dividends. Estimated to be 3.02% next year.
If you bought €2,000 of Meggitt shares you are expected to receive €54 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Meggitt's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Meggitt's dividend is below the markets top 25% of dividend payers in Germany (3.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:MGI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Europe Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 1.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:MGI Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.20 4.00
2021-12-31 0.20 14.00
2020-12-31 0.19 16.00
2019-12-31 0.18 15.00
2019-10-12
DB:MGI Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-21 0.167 2.989
2019-02-26 0.167 3.145
2018-03-22 0.159 3.120
2018-02-27 0.159 3.506
2017-03-24 0.151 3.097
2017-02-28 0.151 3.329
2016-03-21 0.144 3.356
2016-02-23 0.144 3.477
2015-03-20 0.138 3.106
2015-02-24 0.138 2.462
2014-03-27 0.128 2.601
2014-03-04 0.128 2.713
2013-03-05 0.118 2.276
2012-03-06 0.105 2.628
2011-03-01 0.092 2.575
2011-02-28 0.092 2.668
2010-03-02 0.085 2.674
2010-03-01 0.085 2.893
2009-08-04 0.085 3.494
2009-03-03 0.085 5.465

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Meggitt's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Meggitt's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Meggitt afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Meggitt has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MGI Management

 What is the CEO of Meggitt's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tony Wood
COMPENSATION £2,200,000
TENURE AS CEO 1.8 years
CEO Bio

Mr. Anthony Wood, also known as Tony, has been Chief Executive of Meggitt PLC since January 1, 2018 and has been its Executive Director since December 1, 2016. Mr. Wood served as Chief Operating Officer of Meggitt PLC from December 1, 2016 to January 1, 2018. He served as the President of Aerospace at Rolls-Royce plc since May 13, 2013 and was its Executive of Transitional Support until 2016. He served as the President of Marine at Rolls Royce Holdings plc (a/k/a, Rolls Royce Group plc) from January 2012 to May 13, 2013 and served as its President of Services. He served as the President of Gas Turbine Services at Rolls Royce Holdings plc since 2008 with the responsibility for Services across the Group. He served as Chief Operating Officer of Civil Aerospace since January 2006. He served as Managing Director of the Defense Aerospace Business for Rolls Royce Holdings plc since January 2004. He served as Director of Operations for Defense Aerospace at Rolls Royce Holdings plc since 2001. He joined Rolls Royce Holdings plc in 2001 from Messier-Dowty, where he was responsible for all Defense customers outside North America. He was employed with Dowty and Messier-Dowty for 16 years. He joined Dowty Group in 1984 as a Sponsored Undergraduate and held a variety of engineering, production, purchasing and programme management roles before serving as its Vice-President Manufacturing in Toronto, Canada in 1995. He served as Vice President Operations at Messier-Dowty Inc in Canada since 1998. He served as Board Member of Rolls-Royce Engine Services joint ventures in Hong Kong, Singapore, Germany and the USA. He is a Fellow of the Royal Aeronautical Society and the Association of Project Management. He undertook an apprenticeship programme with Dowty, which led to an Open University degree in Engineering. Mr. Wood also holds an MBA from INSEAD in Fontainebleau, France.

CEO Compensation
  • Tony's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Tony's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Meggitt management team in years:

1.8
Average Tenure
58
Average Age
  • The average tenure for the Meggitt management team is less than 2 years, this suggests a new team.
Management Team

Tony Wood

TITLE
CEO & Director
COMPENSATION
£2M
TENURE
1.8 yrs

Philip Green

TITLE
Executive Director of Commercial & Corporate Affairs and Executive Director
COMPENSATION
£2M
AGE
63

Louisa Burdett

TITLE
CFO & Executive Director
TENURE
0.8 yrs

Amir Allahverdi

TITLE
Group Operations Director

Keith Jackson

TITLE
Chief Technology Officer
AGE
58
TENURE
6.5 yrs

Adrian Bunn

TITLE
Vice President of Strategy & Investor Relations

Andrew Garard

TITLE
Group General Counsel & Director of Corporate Affairs
AGE
52
TENURE
0.1 yrs

Geoff Lloyd

TITLE
Group Director of Human Resources
TENURE
2.1 yrs

Chris Hopper

TITLE
Senior Vice President

Chris Bryant

TITLE
Chief Procurement Officer
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Meggitt board of directors in years:

2.7
Average Tenure
64
Average Age
  • The average tenure for the Meggitt board of directors is less than 3 years, this suggests a new board.
Board of Directors

Nigel Rudd

TITLE
Non-Executive Chairman
AGE
73
TENURE
4.5 yrs

Tony Wood

TITLE
CEO & Director
COMPENSATION
£2M
TENURE
2.8 yrs

Philip Green

TITLE
Executive Director of Commercial & Corporate Affairs and Executive Director
COMPENSATION
£2M
AGE
63
TENURE
18.8 yrs

Louisa Burdett

TITLE
CFO & Executive Director
TENURE
0.8 yrs

Alison J. Goligher

TITLE
Independent Non-Executive Director
TENURE
5 yrs

Colin Day

TITLE
Independent Non-Executive Director
AGE
64
TENURE
4 yrs

Guy Berruyer

TITLE
Senior Independent Director
AGE
68
TENURE
0.5 yrs

Nancy Gioia

TITLE
Independent Non-Executive Director
AGE
59
TENURE
2.5 yrs

Guy Hachey

TITLE
Independent Non-Executive Director
AGE
64
TENURE
0.8 yrs

Caroline Silver

TITLE
Non-Executive Director
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Meggitt individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
13. Aug 19 Buy Hugh Clayton Individual 12. Aug 19 12. Aug 19 25 €6.50 €162
13. Aug 19 Buy Stewart Watson Individual 12. Aug 19 12. Aug 19 25 €6.50 €162
13. Aug 19 Buy Chris Allen Individual 12. Aug 19 12. Aug 19 25 €6.50 €162
13. Aug 19 Buy Anthony Wood Individual 12. Aug 19 12. Aug 19 25 €6.50 €162
13. Aug 19 Buy Philip Green Individual 12. Aug 19 12. Aug 19 21 €6.50 €136
11. Jun 19 Buy Hugh Clayton Individual 10. Jun 19 10. Jun 19 29 €5.74 €167
11. Apr 19 Buy Hugh Clayton Individual 10. Apr 19 10. Apr 19 29 €6.02 €174
11. Jun 19 Buy Stewart Watson Individual 10. Jun 19 10. Jun 19 30 €5.74 €172
11. Jun 19 Buy Chris Allen Individual 10. Jun 19 10. Jun 19 29 €5.74 €167
11. Jun 19 Buy Anthony Wood Individual 10. Jun 19 10. Jun 19 29 €5.74 €167
11. Jun 19 Buy Philip Green Individual 10. Jun 19 10. Jun 19 24 €5.74 €138
28. May 19 Buy Guy Hachey Individual 28. May 19 28. May 19 3,000 €5.64 €16,916
28. May 19 Buy Anthony Rudd Individual 28. May 19 28. May 19 10,000 €5.66 €56,636
21. May 19 Buy Chris Allen Individual 13. May 19 13. May 19 1,795 €6.17 €11,066
13. May 19 Buy Dennis Hutton Individual 10. May 19 10. May 19 678 €6.27 €4,250
13. May 19 Buy Paul Devaux Individual 10. May 19 10. May 19 152 €6.27 €953
13. May 19 Buy Stewart Watson Individual 10. May 19 10. May 19 305 €6.27 €1,912
13. May 19 Buy Marina Thomas Individual 10. May 19 10. May 19 31 €6.27 €194
09. Apr 19 Sell Marina Thomas Individual 08. Apr 19 08. Apr 19 -19,825 €6.07 €-120,433
09. Apr 19 Buy Marina Thomas Individual 08. Apr 19 08. Apr 19 3,792 €6.07 €23,015
11. Apr 19 Buy Stewart Watson Individual 10. Apr 19 10. Apr 19 29 €6.02 €174
11. Apr 19 Buy Chris Allen Individual 10. Apr 19 10. Apr 19 29 €6.02 €174
11. Apr 19 Buy Philip Green Individual 10. Apr 19 10. Apr 19 24 €6.02 €144
12. Mar 19 Buy Stewart Watson Individual 11. Mar 19 11. Mar 19 29 €6.08 €176
12. Mar 19 Buy Chris Allen Individual 11. Mar 19 11. Mar 19 29 €6.08 €176
12. Mar 19 Buy Philip Green Individual 11. Mar 19 11. Mar 19 24 €6.08 €146
13. Feb 19 Buy Stewart Watson Individual 11. Feb 19 11. Feb 19 28 €6.10 €171
13. Feb 19 Buy Chris Allen Individual 11. Feb 19 11. Feb 19 28 €6.10 €171
13. Feb 19 Buy Philip Green Individual 11. Feb 19 11. Feb 19 24 €6.10 €146
14. Jan 19 Buy Stewart Watson Individual 10. Jan 19 10. Jan 19 31 €5.40 €167
14. Jan 19 Buy Chris Allen Individual 10. Jan 19 10. Jan 19 31 €5.40 €167
14. Jan 19 Buy Philip Green Individual 10. Jan 19 10. Jan 19 25 €5.40 €135
X
Management checks
We assess Meggitt's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Meggitt has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MGI News

Simply Wall St News

MGI Company Info

Description

Meggitt PLC designs and manufactures components and sub-systems in the United Kingdom, rest of Europe, the United States, and internationally. It operates through four segments: Airframe Systems, Engine Systems, Energy & Equipment, and Services & Support. The company offers ice protection products, radomes, and structures; air data and flight display products; brake control and tyre pressure monitoring systems, and wheels and brakes; engine vibration monitoring, health and usage monitoring, and turbine monitoring and protection products; and aircraft cameras and aircraft security systems. It also provides ammunition handling, thermal, weapon scoring, and weapon training systems; energy storage, power conversion and distribution, and power generation systems; ducting systems, engine composites, and flow control valves; and fire protection and controls comprising bleed air leak detection products, cables and clamps, electronic control units, fire and overheat detection products, and fire suppression products. In addition, the company offers ground fuelling, and fuel systems and tanks; motion control actuators, electric motor drives, and electric motors; oxygen and specialty restraint safety systems; and accelerometers, ceramics, fluid sensors, magnetic and current sensors, position and inertial sensors, pressure sensors, speed sensors, and temperature sensors. Further, it provides polymer seals; heat exchangers, printed circuit heat exchangers, thermal components, and thermal management systems; and live fire and virtual trainers, as well as aftermarket services. The company serves the civil aerospace, fixed wing, military aircraft, military ground, vehicle, marine, energy and industrial, ground fuelling, defence, medical, test, and automotive markets. The company was formerly known as Meggitt Holdings Public Limited Company and changed its name to Meggitt PLC in April 1989. Meggitt PLC was founded in 1947 and is headquartered in Christchurch, the United Kingdom.

Details
Name: Meggitt PLC
MGI
Exchange: DB
Founded: 1947
£5,477,187,216
771,369,090
Website: http://www.meggitt.com
Address: Meggitt PLC
Atlantic House,
Aviation Park West,
Christchurch,
Dorset, BH23 6EW,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE MGGT Ordinary Shares London Stock Exchange GB GBP 01. Jan 1992
OTCPK MEGG.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB MGI Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
BMV MGGT N Ordinary Shares Bolsa Mexicana de Valores MX MXN 01. Jan 1992
BATS-CHIXE MGGTL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jan 1992
OTCPK MEGG.Y UNSPONSORD ADR Pink Sheets LLC US USD 20. Dec 2010
Number of employees
Current staff
Staff numbers
11,739
Meggitt employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/12 20:53
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/11
Last earnings filing: 2019/08/06
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.