M&G (LON:MNG) Releases Earnings Results

M&G (LON:MNG) announced its earnings results on Thursday. The company reported GBX 12.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. M&G had a negative net margin of 0.52% and a negative return on equity of 1.69%.

Here are the key takeaways from M&G’s conference call:

• M&G reported strong net inflows and scale gains, citing GBP 7.8bn of net flows from open business and AUM rising to around GBP 376bn, driven by private markets and public equity mandates.
• Management is shifting life new business to a capital‑light, fee‑based model (moving with‑profits business to fees) and targets at least GBP 50bn of assets in these fee‑based products by 2030, which should boost recurring, transparent fee income.
• The balance sheet and capital generation remain strong — operating capital generation excluding new business strain was GBP 928m, Solvency II ratio closed at 242% with a GBP 5bn surplus, supporting a proposed progressive dividend of 20.5p.
• Some profitability headwinds and one‑offs: shareholder annuities profit fell ~8% (lower returns), new business strain from BPA activity was elevated (c. GBP 163m total), a GBP 26m Polish provision, and corporate center investment income weakened — risks that could pressure near‑term earnings.

M&G Price Performance

LON MNG opened at GBX 292.71 on Friday. M&G has a 12 month low of GBX 171.55 and a 12 month high of GBX 324.50. The company has a market cap of £6.95 billion, a P/E ratio of -117.08, a P/E/G ratio of -2.76 and a beta of 0.90. The company has a 50-day moving average of GBX 306.26 and a 200-day moving average of GBX 279.71.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. JPMorgan Chase & Co. upped their price objective on M&G from GBX 305 to GBX 320 and gave the company a “neutral” rating in a research note on Wednesday, February 4th. UBS Group lowered shares of M&G to a “neutral” rating and increased their target price for the stock from GBX 275 to GBX 290 in a research note on Wednesday, December 17th. Berenberg Bank restated a “buy” rating and set a GBX 342 price target on shares of M&G in a research note on Monday, February 9th. Finally, The Goldman Sachs Group upped their price objective on shares of M&G from GBX 300 to GBX 328 and gave the stock a “buy” rating in a report on Wednesday, January 21st. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, M&G has an average rating of “Hold” and an average target price of GBX 300.83.

M&G Company Profile

M&G plc is a leading savings and investments business, managing investments for both individuals and for large institutional investors, such as pension funds, around the world.

We have a single corporate identity, M&G plc, and two customer-facing brands: Prudential and M&G Investments. Prudential offers savings and insurance for customers in the UK and Europe and for asset management in South Africa. M&G Investments manages assets for clients globally.

With roots stretching back more than 170 years, we have a long history of finding innovative solutions for our customers’ changing needs.