Carclo plc (CAR) AI Stock Analysis

• Market Cap: £35.97M
• Dividend Yield: N/A
• Average Volume (3M): 307.20K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 1.43
• Revenue Growth: -7.27%
• EPS Growth: N/A
• Country: UK
• Employees: 1,059
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): <0.01
• Shares Outstanding: 73,419,190
• 10 Day Avg. Volume: 277,288
• 30 Day Avg. Volume: 307,200
• PEG Ratio: -0.16
• Price to Book (P/B): -1.47
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 1.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): £118.60M

• Rating: 49 Neutral
• Price Target: 49.00 p ▼(-16.10% Downside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Carclo plc's overall stock score is primarily impacted by its financial instability and bearish technical indicators. While the earnings call and corporate events provide positive sentiment and confidence, the company's financial challenges and valuation concerns weigh heavily on the score.

Positive Factors

Achievement of transformation targets

Meeting and exceeding medium-term ROS and ROCE targets reflects durable operating improvement and stronger capital allocation. Higher returns imply the business can generate sustained operating profits from invested capital, supporting reinvestment, resilience across cycles and long-term shareholder value creation.

Portfolio repositioning to higher-margin areas

Shifting portfolio away from low-margin, capital-intensive activities toward regulated, higher-growth markets (medical, aerospace, specialty) improves structural margin profile and reduces cyclicality. This strategic repositioning should support steadier margins and recurring program revenue over multiple years.

Improved cash generation and debt reduction

Substantially stronger free cash flow and demonstrable net debt reduction enhance financial flexibility. Improved cash conversion supports ongoing deleveraging, funds investment in higher-return segments, and lowers refinancing risk—durable drivers of balance-sheet stability and strategic optionality.

Negative Factors

Negative shareholders' equity

A negative equity position is a structural weakness that limits borrowing capacity and investor confidence. It indicates retained losses or balance-sheet strain, making the company more vulnerable to shocks, constraining capital investment and increasing dependence on cash generation or external recapitalisation.

Significant pension scheme deficit

A multi-decade pension deficit is a persistent cash and accounting obligation that can require ongoing contributions, increasing fixed outflows and complicating capital allocation. It can also affect covenant headroom and reduce available cash for growth or shareholder returns over the medium term.

Low net margin and declining revenue

Very low net margins combined with recent revenue contraction suggest limited ability to convert sales into retained earnings. This constrains investment capacity and makes the company reliant on structural cost or mix improvements to sustain profitability, posing medium-term execution risk.

Carclo plc Business Overview & Revenue Model

Company Description

Carclo plc, together with its subsidiaries, manufactures and sells fine tolerance injection molded plastic parts. It operates in two segments, Technical Plastics and Aerospace. The Technical Plastics segment offers fine tolerance and injection molded plastic components for use in the medical, diagnostics, optical, and electronic products. This segment also designs, develops, and manufactures bespoke injection moulded optical components and assembled devices for various applications. The Aerospace segment manufactures various specialist components, such as control cables, specialist machined components, mechanical assemblies, aerofoil blading, streamline wires, and tie rods for the commercial and military aerospace industries. The company operates in the United Kingdom, North America, the Czech Republic, China, India, and internationally. Carclo plc was incorporated in 1924 and is based in Ossett, the United Kingdom.

How the Company Makes Money

Carclo makes money primarily by manufacturing and supplying engineered products to business customers under contract, generating revenue from (1) LED technologies and (2) technical plastics. 1) LED technologies (Wipac Technology): Revenue is earned from designing and manufacturing LED-based lighting and related electronic solutions for OEM and tiered suppliers, particularly in automotive and other demanding industrial uses. Income is typically generated through the sale of production parts and assemblies (and associated tooling/engineering activity where contracted), with earnings influenced by customer program wins, production volumes over the life of a platform, product mix, and long-term supply arrangements common in automotive supply chains. 2) Precision injection moulding (Carclo Technical Plastics): Revenue is earned by producing precision-moulded plastic components and assemblies for customers in markets such as medical devices, aerospace/defence, and industrial. The model generally combines (a) payments for design-for-manufacture/engineering support and tooling where applicable, and (b) recurring revenue from serial manufacture of moulded parts and assemblies. Profitability is driven by manufacturing utilisation, process yields, customer mix, and the ability to meet stringent quality/regulatory requirements (notably in medical). Across both areas, Carclo’s earnings are supported by its specialist manufacturing capabilities, quality systems, and customer relationships that can lead to repeat business and multi-year production programs. Specific major partnerships, customer identities, or contract terms are not provided here: null.

Carclo plc Financial Statement Overview

Summary

Carclo plc's financial performance is mixed. While operational efficiency and cash flow generation have improved, significant challenges remain with profitability and financial stability. The negative equity position and low net profit margin are concerning.

Income Statement

Carclo plc's income statement shows a mixed performance. The gross profit margin has improved to 60.67% in the latest year, indicating strong cost management. However, the net profit margin remains low at 0.72%, reflecting challenges in converting revenue into profit. Revenue has declined by 4.33% compared to the previous year, highlighting potential market or operational challenges. The EBIT and EBITDA margins have improved, suggesting better operational efficiency, but the overall profitability remains weak.

Balance Sheet

The balance sheet reveals significant financial instability. The company has a negative stockholders' equity, resulting in a negative debt-to-equity ratio, which is concerning. The return on equity is also negative, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is negative, suggesting that liabilities exceed assets, posing a risk to financial stability.

Cash Flow

Carclo plc's cash flow statement shows positive trends. The free cash flow has grown significantly by 148.91%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.24, suggesting that cash flow from operations is covering net income. The free cash flow to net income ratio is high at 0.90, reflecting strong cash flow relative to net income. However, the overall cash flow position needs to be monitored given the company's financial challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	117.50M	121.22M	132.67M	143.44M	128.58M	107.56M
Gross Profit	66.68M	73.54M	72.10M	25.86M	27.87M	25.09M
EBITDA	13.00M	14.69M	10.15M	8.81M	15.28M	14.51M
Net Income	1.85M	872.00K	-3.30M	-3.96M	5.80M	7.41M
Balance Sheet
Total Assets	93.94M	97.03M	100.94M	122.67M	128.20M	116.02M
Cash, Cash Equivalents and Short-Term Investments	7.77M	10.74M	5.97M	10.35M	12.35M	15.48M
Total Debt	32.23M	29.95M	39.91M	44.71M	44.75M	43.08M
Total Liabilities	103.43M	108.88M	97.28M	111.07M	103.78M	108.11M
Stockholders Equity	-9.46M	-11.81M	3.69M	11.63M	24.44M	7.94M
Cash Flow
Free Cash Flow	7.04M	10.38M	7.43M	1.57M	-1.89M	1.12M
Operating Cash Flow	8.54M	11.48M	10.37M	3.99M	3.05M	8.44M
Investing Cash Flow	-1.54M	-447.00K	-2.40M	-1.03M	-4.23M	-6.05M
Financing Cash Flow	-7.20M	-7.00M	-12.14M	-4.67M	-2.49M	5.05M

Carclo plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CAR, the sentiment is Negative. The current price of 58.4 is above the 20-day moving average (MA) of 54.23, above the 50-day MA of 54.90, and above the 200-day MA of 55.18, indicating a bearish trend. The MACD of -1.30 indicates Positive momentum. The RSI at 35.10 is Neutral, neither overbought nor oversold. The STOCH value of 7.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CAR.

Carclo plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRT	65 Neutral	£10.35M	1,307.96	12.05%	―	32.78%	-8.69%
CTA	62 Neutral	£17.66M	4.36	30.82%	―	-18.51%	-13.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CAR	49 Neutral	£35.97M	29.31	―	―	-7.27%	―
SCE	47 Neutral	£1.43M	-0.62	-131.18%	―	34.87%	77.15%
AUTG	46 Neutral	£4.64M	-2.08	-11.38%	―	-15.55%	-25.85%
STG	40 Underperform	£3.83M	-0.86	-139.52%	―	-11.86%	-16.21%

Carclo plc Corporate Events

Carclo Discloses Transfer of Vested LTIP Shares to Divisional CEO

Carclo plc has disclosed a transfer of vested shares under its 2022 Long-Term Incentive Plan to divisional chief executive Alan Hook, a person discharging managerial responsibilities, following the vesting of awards on 3 August 2025. The Carclo Employee Share Ownership Trust transferred 5,770 shares to Hook after selling a portion of his 13,223 vested shares to cover PAYE and National Insurance liabilities, underscoring the company’s ongoing use of equity-based incentives to align senior management interests with shareholders and comply with UK Market Abuse Regulation disclosure requirements.

The most recent analyst rating on (GB:CAR) stock is a Hold with a £55.00 price target. To see the full list of analyst forecasts on Carclo plc stock, see the GB:CAR Stock Forecast page.