Castings (CGS) AI Stock Analysis

• Market Cap: £119.13M
• Dividend Yield: 6.69%
• Average Volume (3M): 33.27K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.29
• Revenue Growth: -13.30%
• EPS Growth: -60.03%
• Country: UK
• Employees: 1,224
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.09
• Shares Outstanding: 43,476,772
• 10 Day Avg. Volume: 24,490
• 30 Day Avg. Volume: 33,265
• PEG Ratio: -0.35
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.62
• P/FCF Ratio: -14.49
• 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: £335.00
• Price Target Upside: 32.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 295.00p ▲(16.60% Upside)

The score is primarily held back by weaker recent operating performance and negative free cash flow, partially offset by a very strong, low-leverage balance sheet. Technicals are constructive with the price above major moving averages and positive MACD, while valuation is mixed (high yield but a relatively high P/E). Capacity expansion and profit growth despite softer revenue provide an additional positive offset.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt provides financial stability and flexibility, allowing the company to invest in growth opportunities and withstand economic downturns.

Improved Profit Margins

Improved profit margins indicate efficient cost management and enhanced profitability, which can lead to better returns for shareholders and reinvestment into the business.

Strategic Shareholder Changes

Increased stake by a major shareholder like Ameriprise Financial can lead to strategic support and influence in decision-making, potentially driving long-term growth and stability.

Negative Factors

Demand Fluctuations

Significant demand fluctuations in a major revenue segment can lead to volatility in earnings and profitability, posing a risk to consistent financial performance.

Increased Power Costs

Rising power costs can erode profit margins and increase operational expenses, impacting the company's ability to maintain cost efficiency and profitability.

Decreased Revenue Growth

A significant decline in revenue growth can hinder the company's ability to expand its market presence and invest in future growth initiatives, affecting long-term prospects.

Castings Business Overview & Revenue Model

Company Description

Castings (CGS) is a UK-based company that specializes in the manufacturing and supply of iron castings and machined components for the automotive, commercial vehicle, and other industrial sectors. The company operates through its foundry operations and machining and assembly businesses, providing high-quality engineered solutions to its clients.

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

Balance sheet strength (very low leverage and stable equity) supports resilience, but operating results and cash conversion weakened: revenue fell (-12.5%), margins compressed sharply, and free cash flow turned negative despite positive operating cash flow.

Income Statement

Revenue and profitability have been volatile. After strong revenue expansion in 2022–2024, the latest year shows a meaningful revenue decline (-12.5%) alongside a sharp drop in operating and net margins (net margin down to ~2.4% from ~7.5% prior year). Profitability remains positive, but the recent compression in gross, operating, and net profitability signals weaker pricing/mix and/or cost pressure versus the prior two years.

Balance Sheet

The balance sheet is a clear strength, with very low leverage (debt-to-equity ~0.02 in the latest year and near-zero in prior years). Equity is sizable and stable relative to assets, providing financial flexibility. The main weakness is the lower recent return on equity (~3.3% latest year versus ~12.5% prior year), reflecting the earnings downturn rather than balance sheet stress.

Cash Flow

Cash generation weakened in the latest year: operating cash flow fell and free cash flow turned negative, despite previously positive free cash flow in 2020–2024. Operating cash flow is still positive, but it covered a smaller portion of reported profitability than in prior years, and negative free cash flow suggests heavier investment and/or working-capital drag that increases near-term funding pressure (even if leverage is currently low).

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	175.35M	176.97M	224.41M	200.99M	148.58M	114.70M
Gross Profit	28.29M	27.49M	43.29M	38.91M	30.48M	19.83M
EBITDA	15.62M	14.63M	28.61M	25.36M	20.62M	13.08M
Net Income	4.83M	4.17M	16.72M	13.79M	8.55M	4.15M
Balance Sheet
Total Assets	165.81M	168.27M	174.06M	174.43M	165.19M	157.59M
Cash, Cash Equivalents and Short-Term Investments	15.53M	15.56M	32.53M	35.57M	35.74M	36.09M
Total Debt	2.14M	2.13M	0.00	0.00	0.00	0.00
Total Liabilities	40.76M	40.83M	40.06M	42.77M	33.70M	28.13M
Stockholders Equity	125.05M	127.44M	133.99M	131.66M	131.50M	129.46M
Cash Flow
Free Cash Flow	4.57M	-7.62M	10.96M	13.66M	6.02M	7.20M
Operating Cash Flow	26.72M	12.14M	20.55M	19.86M	10.40M	12.45M
Investing Cash Flow	-19.59M	-18.06M	-8.98M	-6.20M	-3.97M	-3.22M
Financing Cash Flow	-7.96M	-11.04M	-14.61M	-13.83M	-6.78M	-6.53M

Castings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 253.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 253 is below the 20-day moving average (MA) of 272.10, below the 50-day MA of 271.93, and below the 200-day MA of 261.36, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 64.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CGS.

Castings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEIR	75 Outperform	£8.31B	27.14	17.68%	1.26%	-1.97%	40.55%
GDWN	73 Outperform	£1.88B	47.54	35.23%	1.01%	24.42%	103.25%
AVG	70 Outperform	£192.98M	29.39	5.87%	1.02%	14.49%	76.33%
BOY	69 Neutral	£1.28B	46.95	4.10%	3.30%	-6.95%	-52.08%
MGAM	67 Neutral	£632.65M	23.13	8.04%	4.87%	-7.30%	-59.71%
CGS	65 Neutral	£119.13M	24.68	3.82%	6.69%	-13.30%	-60.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Castings Corporate Events

Castings PLC Sees Profit Growth Amidst Revenue Dip and Expands Capacity

Castings PLC reported a slight decrease in revenue for the six months ending September 2025, but saw an increase in profit before tax, aligning with management expectations. The company has completed the commissioning of a new foundry production line, enhancing its capacity and positioning it for future growth in new market areas. Despite lower demand in the heavy truck sector, the company maintains a strong balance sheet and is poised to capitalize on opportunities in the US and other sectors.

The most recent analyst rating on (GB:CGS) stock is a Buy with a £335.00 price target. To see the full list of analyst forecasts on Castings stock, see the GB:CGS Stock Forecast page.

Castings PLC to Announce Half-Year Results

Castings PLC has announced that it will release its half-year results for the period ending 30 September 2025 on 12 November 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning within the European heavy truck market and other sectors it serves.

The most recent analyst rating on (GB:CGS) stock is a Buy with a £335.00 price target. To see the full list of analyst forecasts on Castings stock, see the GB:CGS Stock Forecast page.