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Alumasc Group plc (GB:ALU)
:ALU

Alumasc (ALU) AI Stock Analysis

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GB

Alumasc

(LSE:ALU)

Rating:77Outperform
Price Target:
416.00p
▲(10.93%Upside)
Alumasc's strong corporate events and technical analysis are the most significant factors driving the score. The company's solid financial performance and reasonable valuation also support a positive outlook. However, improvements in net profitability and financing stability could enhance its future prospects.

Alumasc (ALU) vs. iShares MSCI United Kingdom ETF (EWC)

Alumasc Business Overview & Revenue Model

Company DescriptionAlumasc Group plc (ALU) is a UK-based company specializing in the design, manufacture, and marketing of premium building products, systems, and solutions. The company operates primarily within the construction and engineering sectors, offering a diverse range of products including roofing systems, water management solutions, and housebuilding products. Alumasc is known for its commitment to sustainability and innovation, providing high-performance solutions that enhance the built environment.
How the Company Makes MoneyAlumasc makes money through the sale of its high-performance building products and solutions. The company operates three main business segments: Roofing & Water Management, Architectural Screening, Solar Shading & Balconies, and Housebuilding Products. Each segment generates revenue through direct sales to contractors, developers, and building owners. Key revenue streams include the sale of roofing systems, such as waterproofing products and green roofs, water management solutions like drainage systems, and specialized products for building facades and balconies. Alumasc also benefits from long-term partnerships with construction firms and distributors, as well as its focus on sustainable and energy-efficient products, which align with growing market demand for environmentally friendly building solutions.

Alumasc Financial Statement Overview

Summary
Alumasc demonstrates solid financial health with consistent revenue growth and improved profitability margins. The balance sheet shows moderate leverage, with efficient use of equity, while cash flows are strong, supporting ongoing operations and investment activities. Despite these strengths, there are areas for improvement in net profitability and financing stability to ensure long-term financial resilience.
Income Statement
75
Positive
Alumasc has shown a consistent improvement in revenue from 2020 to 2024, with the latest annual growth rate at approximately 13%. The gross profit margin improved to 38% in 2024, indicating efficient cost management. The EBIT and EBITDA margins are relatively strong at 13% and 16% respectively, suggesting operational efficiency. However, the net profit margin remains moderate at 9%, indicating room for improvement in managing expenses below the operating level.
Balance Sheet
65
Positive
The company's debt-to-equity ratio stands at 0.58, indicating a balanced approach to leveraging with moderate financial risk. Return on equity (ROE) is robust at approximately 26% for 2024, reflecting effective use of shareholders' funds. However, the equity ratio is 41%, suggesting a medium level of reliance on equity financing, which provides moderate stability.
Cash Flow
70
Positive
Operating cash flow has shown steady growth, with a notable increase in free cash flow, which grew by 31% from 2023 to 2024. The operating cash flow to net income ratio is healthy, indicating strong cash conversion from profits. The free cash flow to net income ratio also reflects a good conversion rate, suggesting efficient capital expenditure management. However, fluctuations in financing cash flow may suggest variability in funding strategies.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
100.72M89.14M89.38M77.81M75.99M
Gross Profit
38.28M32.66M33.30M29.37M22.34M
EBIT
13.20M12.04M13.24M10.54M4.29M
EBITDA
16.14M14.67M15.41M12.30M5.02M
Net Income Common Stockholders
8.75M6.60M9.61M7.59M2.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.41M6.00M8.28M5.00M16.14M
Total Assets
82.41M68.22M73.33M77.63M84.20M
Total Debt
19.51M14.08M18.13M11.54M26.40M
Net Debt
13.10M8.09M9.85M6.54M10.26M
Total Liabilities
48.88M42.47M47.60M41.49M64.36M
Stockholders Equity
33.54M25.75M25.73M36.15M19.84M
Cash FlowFree Cash Flow
10.49M8.02M944.00K6.17M2.39M
Operating Cash Flow
14.12M10.76M3.52M8.17M4.15M
Investing Cash Flow
-12.13M-4.46M-2.55M-1.95M-1.28M
Financing Cash Flow
-1.54M-8.57M2.16M-16.75M9.93M

Alumasc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price375.00
Price Trends
50DMA
353.54
Positive
100DMA
338.03
Positive
200DMA
313.82
Positive
Market Momentum
MACD
8.07
Positive
RSI
54.49
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ALU, the sentiment is Positive. The current price of 375 is below the 20-day moving average (MA) of 375.30, above the 50-day MA of 353.54, and above the 200-day MA of 313.82, indicating a neutral trend. The MACD of 8.07 indicates Positive momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ALU.

Alumasc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£139.68M8.7716.03%4.95%-6.20%83.31%
78
Outperform
£185.93M11.2629.29%5.33%-5.72%7.10%
GBALU
77
Outperform
£134.15M14.1129.95%2.88%19.86%19.09%
GBNXR
76
Outperform
£247.00M27.724.25%3.75%-10.36%-41.41%
75
Outperform
£159.41M15.929.56%3.85%-1.81%15.19%
GBGEN
73
Outperform
£975.93M29.085.24%3.19%-4.30%-13.09%
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ALU
Alumasc
375.00
190.68
103.45%
GB:EPWN
Epwin Group plc
103.00
13.40
14.96%
GB:GEN
Genuit Group
392.00
-36.38
-8.49%
GB:NXR
Norcros
275.00
73.95
36.78%
GB:ECEL
Eurocell
157.00
28.21
21.90%
GB:SRAD
Stelrad Group Plc
146.00
32.93
29.12%

Alumasc Corporate Events

Executive/Board Changes
Alumasc Appoints Andrew Barraclough as Non-executive Director
Positive
May 27, 2025

Alumasc Group PLC has announced the appointment of Andrew Barraclough as a Non-executive Director, effective from 1 August 2025. Barraclough brings 40 years of experience in the construction industry, particularly in design, having previously served as Group Design Director at Wates Group. His expertise is expected to contribute to Alumasc’s growth and strengthen its market position in sustainable building products.

Executive/Board Changes
Alumasc Appoints Andrew Barraclough as Non-executive Director
Positive
May 27, 2025

Alumasc has announced the appointment of Andrew Barraclough as a Non-executive Director, effective from August 1, 2025. Barraclough, a seasoned architect with 40 years of experience, is expected to bring valuable insights to the board, supporting Alumasc’s growth in sustainable building products and enhancing its market position.

Product-Related AnnouncementsBusiness Operations and Strategy
Alumasc Opens New Gatic Manufacturing Facility in Halstead
Positive
Apr 4, 2025

Alumasc has opened a new manufacturing and assembly facility for its Gatic access covers at its Halstead site in Essex, following a £3 million investment in infrastructure and machinery. This strategic move aims to enhance manufacturing efficiency, product sustainability, and support international sales growth, positioning Halstead as a key hub for the company’s market-leading brands. The investment is expected to drive growth, create jobs, and foster innovation, strengthening both the local economy and the wider manufacturing sector.

Business Operations and Strategy
Alumasc Appoints Cavendish as Joint Broker to Boost Market Position
Positive
Mar 21, 2025

Alumasc Group PLC has appointed Cavendish Capital Markets Limited as a joint corporate broker alongside Peel Hunt LLP. This strategic move is expected to enhance Alumasc’s market presence and strengthen its financial advisory capabilities, potentially benefiting stakeholders through improved market positioning.

Executive/Board Changes
Alumasc Group PLC Grants Share Options to Key Executive
Neutral
Mar 12, 2025

Alumasc Group PLC announced a grant of options over ordinary shares to David Adams, a person discharging managerial responsibilities. This grant, under the Executive Share Option Plan, involves 30,000 options exercisable at 324p per share, reflecting the company’s commitment to aligning management incentives with shareholder interests.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.