M&G plc (MNG.L) stock analysis

In our weekly check, M&G plc is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 7.

About M&G plc

M&G plc is a Financial Services company (Asset Management) based in the United Kingdom, listed on LSE as MNG.L.

What our checks show for MNG.L

Red flags

• Net debt is 1x a year of EBITDA (debt/equity 2.47). That limits room in a downturn and raises refinancing risk.
• Analysts expect revenue to shrink about 16.7% a year.
• The net margin is only 1.4%: little room if costs rise.
• The dividend takes 119% of profit: little cushion if profit falls.
• The stock has fallen as much as 63% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.1 years.
• Return on capital (ROCE) is only 0.5%.

Warning signs

• Operating profit covers interest only 3.8 times: a weak year could make the payments hard.
• Earnings per share fell 41.8% a year over the last 3 years.
• Free cash flow is only 2.8% of revenue.

Strengths

• The net margin rose by 0.9 points over 5 years, to 1.4%.
• Operating cash flow is 2.61x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 36.3% a year over the next years.
• Analysts expect the net margin to improve by 5 points from today's 1.4%.
• Actively traded: about 5.8 million shares a day.
• Pay in shares is only 0% of free cash flow.

Similar companies

VCTR · GBLB.BR · BXSL · STEP · MGRE

Questions

What grade does M&G plc (MNG.L) have?

In our weekly check, M&G plc is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of MNG.L stock?

This week's biggest flags for M&G plc: High debt, Weak revenue forecast, Thin margins. In total 10 of 22 checks show a warning or a red flag.

What does M&G plc do?

M&G plc is a Financial Services company (Asset Management) based in the United Kingdom, listed on LSE as MNG.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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