MGGT.L - Meggitt PLC
| Previous Close | 614.60 |
| Open | 610.40 |
| Bid | 613.60 x 0 |
| Ask | 614.20 x 0 |
| Day's Range | 608.34 - 614.00 |
| 52 Week Range | 456.10 - 615.80 |
| Volume | 38,154 |
| Avg. Volume | 2,269,427 |
| Market Cap | 4.77B |
| Beta (3Y Monthly) | 1.34 |
| PE Ratio (TTM) | 33.18 |
| EPS (TTM) | 18.50 |
| Earnings Date | N/A |
| Forward Dividend & Yield | 0.17 (2.78%) |
| Ex-Dividend Date | 2019-09-05 |
| 1y Target Est | 577.07 |
- Simply Wall St.
Should You Be Concerned About Meggitt PLC's (LON:MGGT) ROE?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
- Thomson Reuters StreetEvents
Edited Transcript of MGGT.L earnings conference call or presentation 6-Aug-19 10:00am GMT
Half Year 2019 Meggitt PLC Earnings Presentation
- Simply Wall St.
Should Meggitt (LON:MGGT) Be Disappointed With Their 37% Profit?
One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with...
- Business Wire
Florida’s Top Government Officials Join Meggitt for Global Aftermarket Center of Excellence Grand Opening
The latest indication of Florida’s status of being an international aviation hub comes from aerospace giant Meggitt PLC with their Maintenance, Repair and Overhaul (MRO) center of excellence by celebrating its grand opening with their new facility expansion in Miami-Dade County. The Miami hub was specifically located to make it easy to serve global airlines, engine manufacturers and defense customers in North and South America and could generate a significant number of new jobs over the next decade. Senator Rick Scott said, “I’m proud to celebrate the grand opening of Meggitt’s new facility expansion today.
- GuruFocus.com
FPA Crescent Fund Sells Mohawk Industries, JD.Com
Fund's largest sales of 2nd quarter Continue reading...
- Simply Wall St.
Meggitt PLC (LON:MGGT): Time For A Financial Health Check
Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Meggitt PLC (LON:MGGT...
- Business Wire
Senator Ron Wyden Visits and Commends Meggitt’s Oregon Facility for Innovation and Modernized Skilled Workforce
Senator Ron Wyden visited Meggitt’s Airframes Systems, Power & Motion facility in Milwaukie, Oregon. The Senator toured the facility and held a roundtable discussion with Meggitt’s management and employees regarding the United States’ involvement as it related to defense, workforce issues, and international tariffs. “During my visit with Meggitt, I was impressed by all that I heard from employees about their relentless innovation in power generation and aerospace and defense products,” said Senator Wyden.
- Bloomberg
Paris Air Show Lands on an Optimistic Note
(Bloomberg Opinion) -- Clouds of worry have been gathering over the commercial aviation industry, but the sun was shining in Paris this week as planemakers and suppliers gathered for the biennial Air Show.I mean that both literally — it was hot — and figuratively, with every executive I talked to adopting the same tone of cautious optimism. They conceded the market is slowing: Amid sputtering air traffic growth, weakening airline profits and a slowing global economy, orders at the Paris Air Show trailed the tally from last year’s Farnborough Air Show on both a unit and dollar basis, according to an analysis by Bloomberg Intelligence’s George Ferguson and Francois Duflot. And the orders that were announced weren’t always written in stone. Vertical Research Partners analyst Rob Stallard counted about 610 commitments for new planes between Boeing Co. and Airbus SE (short of his forecast for 800), but only about 160 of those are firm orders for large aircraft and all of those belong to Airbus.(1) Some orders for Airbus’s new A321XLR — a longer-range version of its top-selling narrow-body jet that was unveiled as expected this week — were converted from existing commitments for previous A320-family models. But there were orders, including a surprise bid from British Airways parent IAG SA for Boeing’s embattled 737 Max jets (more on that later). While everyone no doubt would have preferred a stronger showing, no one was panicking, either.Global growth in demand for commercial aviation is likely to slow to a pace of about 5% this year from around 7.5% to 8% in the past few years, according to the International Air Transport Association. “That’s still a pretty good place to be — look at what many other industries are doing,” Tony Wood, CEO of aircraft braking and fire-protection equipment maker Meggitt Plc, said in an interview. “It’s certainly quicker than the world is growing.” Tim Mahoney, CEO of Honeywell International Inc.’s aerospace unit, pointed out that airlines are filling the capacity they lost when two fatal crashes prompted a global grounding of Boeing’s Max through leases and older aircraft that are staying in service longer than planned. Jet Airways India Ltd. suspended operations in April after running out of cash and is heading to bankruptcy court, but some of its fleet has already been reallocated, Mahoney said. “It’s a validation that the demand from the flying public is there and it continues to grow,” he said. Boeing, meanwhile, now expects the commercial aviation market to need 44,040 new jets and $9.1 trillion of services over the next 20 years. That compares with last year’s prediction of 42,730 jets and $8.8 trillion of services.So, Boeing and Airbus’s backlogs are likely safe in their robustness for the time being. But as I said going into the show, the question is whether they’ve already saturated the market and whether those backlogs will continue to grow. Executives from CFM International, the engine joint venture between General Electric Co. and Safran SA, weren’t super enthusiastic about production rate increases for Airbus’s A320 family. It’s not clear that the supply chain is capable of handling a more aggressive pace, particularly the forging and casting companies, which have been the primary source of delays over the past few years. At a media briefing on Saturday, CFM executives said they also want to be sure any production rate increase is sustainable and will serve the market over the long-term — not just at its peak. The relative dearth of orders at this year’s Air Show would seem to support their cautious stance.ALL’S FAIR IN LOVE AND THE MAXBoeing’s Air Show order tally fell about $10 billion short of Airbus’s haul, but IAG’s commitment to buy 200 Max jets means more for the company than the final total. IAG CEO Willie Walsh, a former 737 pilot, said he would feel comfortable boarding a Max tomorrow. He can’t actually do that because the planes remain grounded globally, but it was a huge vote of confidence when Boeing needed one desperately. That kind of endorsement most likely didn’t come cheap: the list price for the planes IAG intends to buy is $24 billion, but the true price is likely much lower after adjusting for standard discounts and probably a few extra incentives. It’s not a done deal just yet. IAG only signed a letter of intent, which gives it an out in case the Max runs into more problems or if Airbus comes up with a better offer. Airbus sales chief Christian Scherer said his company was never invited to bid on the deal but would very much like to. Either way, IAG’s willingness to back the Max gets Boeing out of the aviation industry’s version of timeout. This was always inevitable. Customers have been resolute in their confidence that Boeing will make the fuel-efficient Max safe to fly again. IAG had previously relied largely on Airbus models for its shorter hauls, so the fact that it’s the one stepping up with a Max order is a testament to airlines’ desire to maintain competition between the two companies. But I do wonder whether that kind of dynamic properly incentivizes Boeing to address the transparency, communication and oversight issues that allowed the Max’s shortcomings to morph into a full-blown crisis. Meanwhile, a good chunk of Airbus’s orders were for the freshly rolled-out XLR, with American Airlines Group Inc. agreeing to buy 20 of the planes and convert existing orders into 30 more. Boeing’s sales chief Ihssane Mounir said in a closing press conference that the XLR addressed only a “sliver” of the middle market and that there’s still an untapped opportunity for a rival offering it’s contemplating. That was backed up by comments from the CEOs of JetBlue Airways Corp. (which ordered 13 XLRs) and Norwegian Air Shuttle ASA (which is thinking about buying the Airbus jet), with both advocating for the range advantages of a possible Boeing new middle-market aircraft. But while Boeing CEO Dennis Muilenburg said there was no plan to accelerate the development of a successor to the 737 model, the Max crisis and advances in manufacturing and engine technology may force it to give that kind of project precedence over a middle-market jet. MEGADEAL SHOWCASEFor all the optimism about continuing growth, I thought it was interesting that Raytheon Co.’s CEO Tom Kennedy and CFO Toby O’Brien chose to cast their company’s merger with United Technologies Corp. as a bet on the long-term value of resiliency. Eventually, the booming growth the aerospace and defense sector have enjoyed simultaneously the past few years is going to come to an end; it’s rare that the two sectors move in tandem. Revenue for the combined United Technologies-Raytheon will split nearly equally between commercial and defense products and between domestic and international markets. “We didn’t have to do this,” O’Brien said. But the combination “makes for a really resilient company through all cycles. If you’re in it for the long haul, why wouldn’t you want that?” Kennedy said he’s not concerned about a slowdown in defense spending in the near-term, given governments’ continuing concerns about geopolitical turmoil. He pointed to backing from both the U.S. House of Representatives and the Senate for more increases in the Defense Department’s budget for research, development, test and evaluation. The deal with United Technologies will help Raytheon compete more aggressively for the next generation of military franchises by giving it new technological capabilities, Kennedy and O’Brien said. The potential for advancements in compact, high-energy power generation, thermal management and hypersonics is intriguing, and the combined company’s $8 billion annual R&D budget will give it an exorbitant amount of money to play with. But revenue synergies are notoriously more fungible than cold hard cost cuts. So the companies’ willingness to share about half of the $1 billion-plus in annual cost savings they’re targeting with the U.S. government may prove the bigger competitive advantage.The synergies number struck analysts as quite low at only about 1% of the combined company’s $74 billion in sales. O’Brien acknowledged the figure is conservative but said the deal was light on integration work because the Raytheon businesses will continue largely as their own units rather than having their contents strewn about between existing United Technologies operations. While that limits the cost savings, it also makes it harder for United Technologies to foul up the deal as it juggles the Raytheon purchase with the continuing integration of Rockwell Collins Inc. and a pending three-way split. With plenty of time and opportunity for something to go wrong here, United Technologies’ wager on scale is relatively untested and GE and Honeywell aren’t so sure that a bigger aerospace and defense company is necessarily going to be a better one. Both argue they have technology advantages that will keep them competitive. But GE again made interesting noises about possible M&A, with aviation head David Joyce noting that he didn’t feel compelled to act by the United Technologies-Raytheon tie-up but “wouldn’t rule out anything.” SOMETHING TO PROVEWith the United Technologies-Raytheon merger looming large and questions mounting about cash flow for GE’s aviation unit, Joyce used the Paris Air Show to strike back at critics. GE Aviation and its CFM engine joint venture tallied $55 billion orders for engines and services at the event. Not all of that was technically new, but the haul was anchored by a legitimately impressive $20 billion order for Leap engines and services from Indian budget carrier IndiGo, which had previously relied exclusively on United Technologies jet engines to power its Airbus A320neo fleet. Joyce also laid out the most in-depth road map for a unit’s free cash flow that I’ve ever seen GE provide. But in what has become an unfortunate pattern for GE, what was probably a well-intentioned attempt at transparency sparked only more questions. Analysts continued to pick apart whether the aviation unit’s $4.2 billion in free cash flow last year reflects the full tax, pension and overhead cost burden it would bear if the business were to stand alone. While GE hasn’t voiced any plans to spin off the aviation unit — and I’m highly doubtful it would be able to do that given continuing challenges in the power and long-term care insurance operations — many investors rely on a sum-of-the-parts analysis to determine the stock’s appropriate valuation. So the legitimacy of that $4.2 billion number as the basis for an independent aviation unit is at the crux of the debate over where the share price goes from here. After walking through the numbers with GE, I feel more comfortable about how they arrived at the $4.2 billion number. But no one knows for sure how all the numbers would shake out if aviation was ever detached from the mothership and the financial benefits inherent in that structure. United Technologies is taking about 18 months to split itself into three parts, and its structure is arguably less difficult to untangle. So I don’t think this debate is going away.QUICK NOTE ON GECASGE’s jet-lessor arm announced a deal to lease 15 additional Boeing 737-800 converted cargo aircraft to Amazon.com Inc., expanding on an earlier agreement to provide the retail giant with five planes. Amazon aims to have 70 aircraft flying on its network by 2021 in just the latest reminder that its logistics aspirations are a real and growing threat to FedEx Corp. and United Parcel Service Inc. In a presentation announcing the latest deal with Amazon, GECAS executives said it costs about $8 million to convert a Boeing 737-800 into a cargo plane. In a separate conversation, Sarah Rhoads, the director of Amazon Air, said the company put out requests for proposals to other lessors and that its ultimate choice had to be cost-effective. She said she felt good about partnering with GECAS. In a meeting with analysts this week, Alec Burger, who heads GECAS, acknowledged that the forecast for the air-cargo market was flat in 2019 amid escalating trade tensions but said the continuing shift to online shopping will continue to support demand in the long term and he’s looking to “modestly grow” the share of the lessor’s portfolio that’s devoted to that market. He said Amazon is not a “must-win account.”DEALS, ACTIVISTS AND CORPORATE GOVERNANCECrane Co. is following through on its threat to take its $45-a-share takeover offer directly to Circor International Inc.’s shareholders. It’s rare to see a true hostile tender offer, so for the M&A nerd in me, this is exciting. Circor’s board said on Monday that it would review the offer and make a recommendation to shareholders within 10 business days. It had previously rebuffed Crane’s offer as opportunistic and said it undervalued the company, a point of view that some shareholders pushed back on, given the choppy — and lately lower — stock price. Mario Gabelli, whose Gamco Investors Inc. is the largest shareholder of Circor, has also criticized the company’s lack of transparency in disclosing Crane’s interest. We are still awaiting the release of a business plan that Circor promised would show a path to greater valuation creation, but Crane’s willingness to go hostile forces Circor into an even tighter corner. Delta Air Lines Inc. bought a 4.3% stake in Hanjin Kal Corp., the largest shareholder in Korean Air Lines Co. Delta and Korean Air have a trans-Pacific joint venture that allows the two carriers to coordinate on flights in Asia and the U.S. Delta expects to boost its stake to 10% over time. The stake purchase is the latest in a string of similar deals with other partners including Brazil’s Gol Linhas Aereas Inteligentes SA and China Eastern Airlines Corp. But the deal also puts Delta in the middle of an activist shareholder’s campaign to push Hanjin Kal to provide more transparency and improve corporate governance. Shares of Hanjin Kal, whose operations also span logistics services, plunged on news of Delta’s investment in an apparent sign that investors see the company’s stake as a roadblock to the activists’ goals. Mitsubishi Heavy Industries Ltd. appears to be moving forward with its interest in acquiring Bombardier Inc.’s CRJ regional jet program. A takeover “would make a lot of sense,” Steve Haro, vice president in charge of global marketing and strategy at Mitsubishi Aircraft Corp., told Bloomberg News at the Paris Air Show. He said news about “new strategic partnerships” would be forthcoming. Recall that Nikkei had reported earlier this month that Mitsubishi wanted to only carve out the aircraft maintenance network of the CRJ program, but Bombardier had insisted on the unit being sold in its entirety.BONUS READING New York Fed Factory Gauge Drops by Record to Two-Year Low Siemens to Cut 2,700 Jobs at Energy Unit Due for Listing Fight for Survival on Doomed Jet Came Down to Two Cockpit Wheels Southwest Pilots to Seek Recovery of 737 Max Costs From Boeing Airbus Says It Must Slash A350 Costs to Win Wide-Body Price War Craft Breweries Are Booming Even as Americans Drink Less BeerIf you’d like to get these weekly industrial insights delivered to your inbox, please email me directly at bsutherland7@bloomberg.net, and ask to join the list. Thanks!(1) Stallard excludes announcements for options or future purchase rights and planes that will be taken throughaircraft lessors.To contact the author of this story: Brooke Sutherland at bsutherland7@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Simply Wall St.
Should You Be Tempted To Sell Meggitt PLC (LON:MGGT) Because Of Its P/E Ratio?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll apply a basic P/E...
- Simply Wall St.
Here's How We Evaluate Meggitt PLC's (LON:MGGT) Dividend
Dividend paying stocks like Meggitt PLC (LON:MGGT) tend to be popular with investors, and for good reason - some...
- Simply Wall St.
What Are Analysts Saying About Meggitt PLC's (LON:MGGT) Earnings Trajectory?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift...
- Reuters
Engineer Meggitt signals softer 2019 after strong first quarter
Meggitt is a key supplier to Airbus and Boeing Co, which has said it would cut production of its 737 MAX aircraft as it struggles with the worldwide grounding of the narrowbody jet following two fatal crashes in less than five months. Meggitt, which supplies aerospace components and wheels and brakes for military fighter programmes, on Thursday said it was also mindful about the unsteady demand for defence products. Meggitt said civil aerospace revenue grew 7 percent in the quarter on an organic basis, while defence revenue rose 18 percent, boosted by demand for engine composites, brakes and training systems.
- Simply Wall St.
Estimating The Intrinsic Value Of Meggitt PLC (LON:MGGT)
Does the April share price for Meggitt PLC (LON:MGGT) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value...
- Reuters
Boeing's 737 production cut hits its shares and those of suppliers
Shares of Boeing Co fell 5 percent on Monday after the company said it would cut production of its 737 MAX aircraft, as it struggles with worldwide grounding of the narrowbody jet following two fatal crashes in less than five months. The production cut also weighed on shares of Boeing's suppliers across the globe. Spirit AeroSystems was 7 percent lower, while Triumph Group dropped 6 percent.
ReutersLondon's blue-chips end higher, aided by oil majors
The exporter-heavy FTSE 100 was up 0.1 percent at its highest closing level since early October, outshining its European and U.S. counterparts, while the midcaps dipped 0.1 percent. Sector heavyweights Shell and BP jumped more than 1 percent to their highest this year, as oil prices were driven by expectations of tighter global supply because of fighting in Libya, OPEC-led cuts and U.S. sanctions against Iran and Venezuela. The gains helped cushion steep falls in blue-chip financial stocks, which were the biggest drags on the FTSE 100.
- Simply Wall St.
What Should We Expect From Meggitt PLC's (LON:MGGT) Earnings In The Year Ahead?
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! As Meggitt PLC (LON:MGGT) announced its earnings release on 31 December 2018...
ReutersEU competition head unlikely to rule on UK tax probe this month
By Foo Yun Chee and Klaus Lauer BERLIN (Reuters) - European Union regulators are unlikely to rule by the end of March on whether a UK tax scheme for multinationals breaches EU rules on state aid, Europe's ...
- Thomson Reuters StreetEvents
Edited Transcript of MGGT.L earnings conference call or presentation 26-Feb-19 9:30am GMT
Full Year 2018 Meggitt PLC Earnings Presentation
- Simply Wall St.
Meggitt PLC’s (LON:MGGT) Investment Returns Are Lagging Its Industry
Today we'll look at Meggitt PLC (LON:MGGT) and reflect on its potential as an investment. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will informRead More...
- Reuters
FTSE 100 dips as pound rallies; Ocado surges on M&S deal talks
The FTSE 100 ended 0.5 percent lower after steep losses in the morning as the index's stocks, which book much of their earnings in dollars, were marred by the pound surging to four-month highs. The midcaps added 0.1 percent as a 10 percent surge in Travis Perkins on better-than-expected full-year adjusted earnings helped cushion a slump in Metro Bank triggered by a cash call. The pound gained on reports that British Prime Minister Theresa May would rule out a no-deal Brexit and delay the March 29 deadline for exit from the European Union.
- Reuters
Meggitt forecasts steady margin improvements, outlines Brexit plans
British engineering company Meggitt said it would take about two years before its operating margins significantly improve, sending its shares sliding after a recent strong run. A key supplier to Airbus and Boeing, Meggitt also set out its plans for Brexit, including stockpiling parts, hiring extra customs officials and applying to be recognised by the European safety body to continue operating in the bloc. It said it had made these changes in case Britain leaves the European Union on March 29 without a trade deal, and as its customers shift spare parts between its distribution centres in case a disorderly exit leads to delays at ports.
- Simply Wall St.
How Much Are Meggitt PLC (LON:MGGT) Insiders Spending On Buying Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have Read More...
