Castings PLC (GB:CGS)
LSE:CGS
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Castings
(LSE:CGS)
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Rating:72Outperform
Price Target:
362.00 p
▲(43.08% Upside)
Action:Upgraded
Date:06/18/26
The score is driven primarily by strong financial health (especially very low leverage) and improved FY2026 profitability/cash flow. Technicals support the trend but are tempered by overbought signals, while valuation is constrained by a high P/E despite an attractive dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage and substantial equity provide structural financial resilience across cycles. This reduces refinancing risk, preserves investment flexibility for capex or upgrades, and supports the company's ability to sustain dividends or absorb demand shocks without needing external financing.
Negative Factors
Declining revenue trend
A falling revenue trend undermines scale economics and raises questions about sustained demand or competitive positioning. Continued top-line contraction could pressure margins, limit reinvestment capacity, and make it harder to convert improved profitability into durable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and substantial equity provide structural financial resilience across cycles. This reduces refinancing risk, preserves investment flexibility for capex or upgrades, and supports the company's ability to sustain dividends or absorb demand shocks without needing external financing.
Read all positive factors
Castings (CGS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£143.47M
Dividend Yield6.69%
Average Volume (3M)33.27K
Price to Earnings (P/E)19.3
Beta (1Y)0.19
Revenue Growth-2.11%
EPS Growth81.02%
CountryUK
Employees1,224
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.18
Shares Outstanding43,476,772
10 Day Avg. Volume24,490
30 Day Avg. Volume33,265
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)0.79
Price to Sales (P/S)0.58
P/FCF Ratio9.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£390.00Price Target Upside54.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.22
Revenue Forecast (FY)£179.99M
Castings Business Overview & Revenue Model
Company Description
Castings P.L.C. is a long-established company specializing in the production of iron castings and precision machining. Its operations are structured around two key divisions: Foundry Operations and Machining Operations. The company manufactures a ...
How the Company Makes Money
Castings (CGS) generates revenue through the production and sale of iron castings and machined components. Its primary revenue streams are derived from contracts with automotive manufacturers and industrial equipment companies who require custom-e...
Castings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
71
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 173.23M | 176.97M | 224.41M | 200.99M | 148.58M |
| Gross Profit | 31.27M | 27.49M | 43.29M | 38.91M | 30.48M |
| EBITDA | 18.27M | 14.63M | 28.61M | 25.36M | 20.62M |
| Net Income | 7.55M | 4.17M | 16.72M | 13.79M | 8.55M |
Balance Sheet | |||||
| Total Assets | 164.95M | 168.27M | 174.06M | 174.43M | 165.19M |
| Cash, Cash Equivalents and Short-Term Investments | 17.39M | 15.56M | 32.53M | 35.57M | 35.74M |
| Total Debt | 2.15M | 2.13M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 37.68M | 40.83M | 40.06M | 42.77M | 33.70M |
| Stockholders Equity | 127.27M | 127.44M | 133.99M | 131.66M | 131.50M |
Cash Flow | |||||
| Free Cash Flow | 10.18M | -7.62M | 10.96M | 13.66M | 6.02M |
| Operating Cash Flow | 24.02M | 12.14M | 20.55M | 19.86M | 10.40M |
| Investing Cash Flow | -14.07M | -18.06M | -8.98M | -6.20M | -3.97M |
| Financing Cash Flow | -8.12M | -11.04M | -14.61M | -13.83M | -6.78M |
Castings Technical Analysis
Positive
253.00
Price Trends
276.04
Positive
265.82
Positive
262.72
Positive
Market Momentum
17.60
Negative
71.44
Negative
82.83
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CGS, the sentiment is Positive. The current price of 253 is below the 20-day moving average (MA) of 300.90, below the 50-day MA of 276.04, and below the 200-day MA of 262.72, indicating a bullish trend. The MACD of 17.60 indicates Negative momentum. The RSI at 71.44 is Negative, neither overbought nor oversold. The STOCH value of 82.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CGS.
Castings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £143.47M | 19.35 | 3.83% | 6.69% | -2.11% | 81.02% | |
71 Outperform | £1.22B | 31.10 | 33.12% | 1.01% | 24.42% | 103.25% | |
67 Neutral | £208.46M | 29.31 | 6.13% | 1.02% | 3.36% | 63.32% | |
64 Neutral | £6.26B | 26.35 | 13.42% | 1.26% | 2.35% | -20.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £1.21B | 22.50 | 8.58% | 3.30% | -3.96% | 192.10% | |
62 Neutral | £623.32M | 29.96 | 6.66% | 4.87% | -9.46% | -57.37% |
* Industrials Sector Average
GB:CGS
Castings
330.00
62.27
23.26%
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Castings Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Castings Doubles Profit as New Foundry Capacity Positions Group for Growth
Positive
Jun 17, 2026
Castings reported a 2.1% decline in group revenue to £173.2m for the year to 31 March 2026, reflecting subdued heavy truck demand in Europe and ongoing uncertainty in the U.S., but operating profit more than doubled to £10.0m as the busi...
Business Operations and StrategyFinancial Disclosures
Castings PLC Sets Date for Full-Year 2026 Results
Neutral
Jun 2, 2026
Castings PLC, a leading UK iron casting and machining specialist, focuses on supplying high-mix, low-volume components to European heavy truck manufacturers and other industrial sectors, supported by substantial foundry capacity and advanced autom...
Regulatory Filings and Compliance
Castings CEO Adam Vicary Increases Stake with Share Purchase
Positive
Mar 23, 2026
Castings plc disclosed that its Chief Executive Officer, Adam Vicary, has purchased 5,000 ordinary shares of 10 pence each in the company at a price of 220 pence per share. The transaction, conducted on 23 March 2026 on the London Stock Exchange M...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.