Castings (CGS) AI Stock Analysis

• Market Cap: £106.04M
• Dividend Yield: 7.54%
• Average Volume (3M): 15.90K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.08
• Revenue Growth: -10.79%
• EPS Growth: -21.64%
• Country: UK
• Employees: 1,224
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 0.28
• Shares Outstanding: 43,458,070
• 10 Day Avg. Volume: 7,656
• 30 Day Avg. Volume: 15,897
• PEG Ratio: 0.81
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.30
• 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: £325.00
• Price Target Upside: 30.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Castings PLC maintains a solid financial foundation with robust revenue and profit growth, supported by a strong balance sheet. However, technical indicators suggest a bearish trend, and recent corporate events indicate challenges in demand and profitability. Despite these challenges, the stock's attractive valuation and high dividend yield provide some upside potential.

Castings Business Overview & Revenue Model

Company Description

Castings P.L.C. engages in the iron casting and machining activities. It operates through Foundry Operations and Machining Operations segments. The company offers ductile iron, spheroidal graphite iron, austempered ductile iron, SiMo, grey iron, and Ni-resist castings. It also provides fertilising solution annealing, pearlitic quench and temper, temper softening, and austempering heat treatment services; automotive standard e-coat and powder coating, galvanising, plating, gas based surface treatment, and plastic and metal spray coating services; and assembly and insulation services. The company primarily serves the commercial vehicle, automotive, and other markets in the United Kingdom, Sweden, the Netherlands, Germany, rest of Europe, North and South America, and internationally. Castings P.L.C. was founded in 1835 and is based in Brownhills, the United Kingdom.

How the Company Makes Money

Castings (CGS) generates revenue primarily through the sale of its iron castings and machined components. The company's key revenue streams include contracts with automotive manufacturers and other industrial clients who require custom-engineered metal components. Additionally, Castings benefits from its machining and assembly services, which add value to its core casting operations. Strategic partnerships with automotive and industrial firms help the company maintain a steady flow of orders, while its focus on high-quality production and engineering capabilities ensures competitive positioning in the market.

Castings Financial Statement Overview

Summary

Castings demonstrates solid revenue growth, strong profitability, and a robust balance sheet with no debt. Operating cash flow generation is commendable, though the decrease in free cash flow warrants attention. Overall, the company is financially stable and well-positioned for growth.

Income Statement

Castings has demonstrated strong revenue growth over the years, with a notable 11.7% increase from 2023 to 2024. The gross profit margin improved slightly from 19.4% in 2023 to 19.3% in 2024, indicating efficient cost management. The net profit margin also increased from 6.9% to 7.5%, reflecting improved profitability. EBIT and EBITDA margins have shown a positive trajectory, indicating robust operational performance.

Balance Sheet

The company maintains a healthy balance sheet with zero debt, resulting in a favorable debt-to-equity ratio of 0. The return on equity improved from 10.5% in 2023 to 12.5% in 2024, showcasing effective utilization of equity. The equity ratio remains strong at 77%, indicating financial stability and low leverage.

Cash Flow

Operating cash flow increased by 3.5% from 2023 to 2024, supporting the company's ability to generate cash from operations. The free cash flow to net income ratio is healthy, ensuring sufficient cash generation relative to profit. However, the free cash flow decreased slightly by 19.8%, requiring attention to capital expenditure management.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
224.41M	200.99M	148.58M	114.70M	138.67M
	Gross Profit
43.29M	38.91M	30.48M	19.83M	29.48M
	EBIT
19.76M	16.37M	12.02M	4.32M	12.45M
	EBITDA
28.61M	25.02M	20.62M	13.73M	21.39M
	Net Income Common Stockholders
16.72M	13.79M	8.55M	4.15M	10.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.53M	35.57M	35.74M	36.09M	33.40M
	Total Assets
174.06M	174.43M	165.19M	157.59M	155.68M
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-19.30M	-15.57M	-18.68M	-23.03M	-4.79M
	Total Liabilities
40.06M	42.77M	33.70M	28.13M	24.02M
	Stockholders Equity
133.99M	131.66M	131.50M	129.46M	131.66M
Cash Flow		Free Cash Flow
10.96M	13.66M	6.02M	7.20M	14.88M
	Operating Cash Flow
20.55M	19.86M	10.40M	12.45M	23.04M
	Investing Cash Flow
-8.98M	-6.20M	-3.97M	-3.22M	-2.37M
	Financing Cash Flow
-14.61M	-13.83M	-6.78M	-6.53M	-13.04M

Castings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 249.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CGS, the sentiment is Negative. The current price of 249 is below the 20-day moving average (MA) of 253.55, below the 50-day MA of 256.65, and below the 200-day MA of 277.86, indicating a bearish trend. The MACD of -2.04 indicates Positive momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 49.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CGS.

Castings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDWN	78 Outperform	£510.65M	26.18	16.39%	1.96%	3.13%	24.54%
RNO	75 Outperform	£118.92M	7.35	27.26%	0.98%	-6.48%	―
CGS	71 Outperform	£106.04M	8.79	9.51%	7.54%	-10.79%	-21.64%
AVG	70 Outperform	£125.74M	29.10	3.87%	1.27%	14.30%	-25.58%
MGAM	67 Neutral	£571.23M	11.54	14.06%	5.98%	-1.26%	6.56%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
MPAC	59 Neutral	£112.77M	39.52	1.63%	―	7.18%	-28.05%

Castings Corporate Events

Ameriprise Financial Increases Stake in Castings PLC

Castings PLC, a UK-based company, has experienced a change in its shareholder structure. Ameriprise Financial, Inc., through its subsidiary Threadneedle Asset Management Limited, has increased its voting rights in Castings PLC to 15.078% as of February 26, 2025. This change signifies a notable shift in the company’s shareholder dynamics, potentially impacting its strategic decisions and stakeholder interests.

Aberforth Partners LLP Increases Stake in Castings PLC

Castings PLC, a company in the manufacturing sector, has announced a change in its major holdings. Aberforth Partners LLP, based in London, UK, has increased its voting rights in Castings PLC from 14.14% to 15.32% as of February 26, 2025. This acquisition of voting rights signifies a strategic move by Aberforth Partners LLP, potentially impacting the company’s governance and decision-making processes.

Ameriprise Financial Alters Stake in Castings PLC

Ameriprise Financial, Inc., a US-based financial services firm, has adjusted its holdings in Castings PLC, crossing a significant threshold on February 17, 2025. This change, where Ameriprise’s voting rights in Castings have decreased from 15.495% to 14.664%, may impact the company’s shareholder dynamics and influence its decisions in the market.

Castings PLC Faces Profitability Challenges Amid Demand Fluctuations

Castings PLC has announced a trading update for the year ending March 31, 2025, indicating a drop in demand for heavy trucks, which make up 75% of its revenue, leading to lower than expected profitability. The company also faced increased power costs due to unused electricity volumes and incurred start-up costs from a new business in Scunthorpe. However, improvements are anticipated with the Scunthorpe business expected to turn profitable and increased sales orders from major customers likely to boost sales volumes in the next financial year. The company’s balance sheet remains strong despite significant investments and dividends.

Ameriprise Financial Acquires Significant Stake in Castings PLC

Castings PLC, a UK-based company, has announced a significant change in its shareholder structure. Ameriprise Financial, Inc., a financial services company headquartered in Minneapolis, USA, now holds 15.495% of the voting rights in Castings PLC through its subsidiary, Threadneedle Asset Management Limited. This acquisition indicates a strategic investment by Ameriprise Financial, potentially impacting Castings PLC’s future decisions and market positioning.