M&G Plc
🇬🇧 MNG.LSE · London · GB00BKFB1C65
Bank
GBX 285.00 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
23.2
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 285.00 ÷ 12.28 = 23.2
TTM period through: 2025-12-31
Forward P/E (estimated): 9.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 23.8
Yield (Fwd)
7.37%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 7.19%
Net Debt/EBITDA (TTM)
1.1x
Latest quarter: 2.0x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 2.0x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
171.0%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 159.6%
Cash Flow Payout (TTM): 61.2%
FCF Coverage (TTM): 1.27x
ROE
9.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
While M&G Plc offers an attractive 7.2% dividend yield and underlying cash flows remain sufficient to cover the payout, the company's complex business model and history of dividend cuts make it a poor fit for conservative income investors. The recent accounting-driven net losses create a seemingly opportunistic valuation, but the lack of predictable cash flows makes this unsuitable for a core dividend strategy. Not recommended for new positions, though existing shareholders should monitor the fundamental volatility closely.
Sector Context
M&G Plc is a UK-based financial services company primarily focused on asset management, wealth, and life insurance. In this specific sub-sector, statutory earnings can be highly volatile due to mark-to-market accounting and IFRS 17 adjustments, meaning reported net income often diverges significantly from actual cash generation and operating performance.
Temporary Opportunity Identified
Statutory net losses driven by IFRS 17 accounting mismatches and short-term mark-to-market fluctuations on investment returns, which obscure positive adjusted operating profits.
📊 Strategy Analysis
- • Attractive 7.2% dividend yield that remains covered by underlying cash generation (Cash Flow Payout of 61.3%).
- • Recent statutory net losses are primarily driven by temporary IFRS 17 accounting mismatches and unrealized fair value adjustments rather than core operating cash deterioration.
- • Forward P/E of 9.2 suggests potential undervaluation if the company can normalize its earnings profile.
⚠ What to Watch
- • Severe track record of unreliability for income investors, with three significant dividend cuts in the past ten years (2017, 2020, 2021).
- • Long-term revenue has declined 21% over the past decade alongside multiple statutory loss years (2022, 2024), highlighting chronic business volatility.
- • The complex financial model is heavily exposed to market fluctuations and interest rate sensitivity, conflicting with the strategy's preference for predictable essential services.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.