James Cropper (CRPR) AI Stock Analysis

• Market Cap: £20.54M
• Dividend Yield: N/A
• Average Volume (3M): 5.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -22.64%
• EPS Growth: -294.72%
• Country: UK
• Employees: 600
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.05
• Shares Outstanding: 9,554,803
• 10 Day Avg. Volume: 4,625
• 30 Day Avg. Volume: 5,703
• PEG Ratio: -1.85
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -34.43
• 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

• Rating: 51 Neutral
• Price Target: ―

James Cropper's stock is currently facing significant challenges due to declining revenues, negative profit margins, and unfavorable valuation metrics. The bearish technical outlook further compounds these challenges. However, the company's positive cash flow management and recent strategic corporate events provide some optimism for future growth. To improve its overall position, the company needs to address its operational inefficiencies and focus on enhancing profitability.

James Cropper Business Overview & Revenue Model

Company Description

James Cropper PLC manufactures and sells papers products and advanced materials. It operates through Paper, Colourform, and Technical Fibre Products segments. The company offers specialty papers and boards; and moulded fiber products, as well as converts paper. It also manufactures nonwovens material used in zero solutions, aerospace and defense, fire protection, construction, and transportation. It has operations in the United Kingdom, other European countries, Asia, the Americas, Australasia, and Africa. James Cropper PLC was founded in 1845 and is headquartered in Kendal, the United Kingdom.

How the Company Makes Money

James Cropper generates revenue primarily through the manufacture and sale of high-quality paper products and advanced materials. The company serves various industries, including luxury packaging, publishing, and technical fibers, by providing customized paper solutions and innovative materials. Significant revenue streams include the sale of bespoke paper products, technical fibers, and sustainable packaging solutions. Partnerships with global brands and a focus on sustainability and innovation contribute significantly to its earnings, helping to differentiate its products in a competitive market.

James Cropper Financial Statement Overview

Summary

James Cropper is facing profitability challenges, as evidenced by declining revenues and negative profit margins. Despite a solid gross profit margin, operational inefficiencies are impacting overall profitability. The balance sheet is moderately leveraged, but negative returns on equity highlight the current financial struggles. On a positive note, cash flow management has improved, allowing for positive free cash flow generation. The company should focus on improving operational efficiency and profitability to enhance financial stability.

Income Statement

The company experienced a significant decline in revenue from the previous year, with a revenue growth rate of -20.6%. Gross profit margin is relatively strong at 63.7%, but the company is facing challenges with profitability, as indicated by a negative net profit margin of -3.9%. The negative EBIT and EBITDA margins further highlight the operational difficulties.

Balance Sheet

The debt-to-equity ratio is 0.97, suggesting a moderate level of leverage. The equity ratio stands at 29.7%, indicating a balanced approach to equity financing. However, the return on equity is negative, reflecting the company's current unprofitability.

Cash Flow

The company managed to generate positive free cash flow of 2.99 million, showcasing an improvement from the previous year's negative free cash flow. The operating cash flow to net income ratio is high, indicating strong cash generation relative to net income, but this is primarily due to the negative net income.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	96.38M	102.97M	129.66M	104.92M	78.77M	104.67M
Gross Profit	16.90M	65.58M	28.03M	23.72M	15.09M	26.26M
EBITDA	-1.51M	-22.00K	7.03M	7.86M	6.70M	9.58M
Net Income	-6.34M	-4.00M	516.00K	1.36M	1.57M	4.83M
Balance Sheet
Total Assets	85.24M	85.95M	98.47M	92.60M	81.05M	82.83M
Cash, Cash Equivalents and Short-Term Investments	10.87M	9.21M	8.11M	7.75M	7.27M	8.96M
Total Debt	23.65M	24.75M	24.27M	20.04M	14.27M	20.02M
Total Liabilities	59.98M	60.38M	66.40M	58.09M	51.15M	48.43M
Stockholders Equity	25.26M	25.57M	32.06M	34.51M	29.90M	34.40M
Cash Flow
Free Cash Flow	2.88M	2.98M	-1.70M	-3.14M	4.46M	3.66M
Operating Cash Flow	5.30M	7.17M	4.69M	3.06M	7.59M	12.86M
Investing Cash Flow	-3.52M	-4.32M	-6.64M	-6.60M	-4.49M	-9.20M
Financing Cash Flow	-3.02M	-1.48M	1.48M	4.41M	-4.64M	2.86M

James Cropper Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.15
• 50DMA: Negative
• 100DMA: Positive
• 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:CRPR, the sentiment is Negative. The current price of 2.15 is below the 20-day moving average (MA) of 2.39, below the 50-day MA of 2.34, and below the 200-day MA of 2.20, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 33.53 is Neutral, neither overbought nor oversold. The STOCH value of 43.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRPR.

James Cropper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTHM	72 Outperform	£226.75M	12.65	8.33%	1.39%	-6.27%	-30.09%
TET	69 Neutral	£146.21M	13.44	8.02%	2.10%	1.12%	-0.70%
ZTF	64 Neutral	£157.09M	14.46	-2.45%	1.58%	16.39%	-129.71%
MNDI	60 Neutral	£5.19B	28.37	4.17%	6.66%	-1.55%	-65.03%
Sector *	57 Neutral	£2.51B	4.74	-9.53%	4.25%	5.28%	-6.27%
CRPR	51 Neutral	£20.54M	―	-21.46%	―	-22.64%	-294.72%
EVR		£1.18B	―		―	―	―

James Cropper Corporate Events

James Cropper Sells Non-Core IP Assets to Boost Growth Strategy

James Cropper has announced the sale of certain non-core intellectual property assets related to a manufacturing process developed by its Centre for Innovation for €1.75 million, with the potential for additional deferred payments. This strategic move allows the company to invest in its growth strategy while retaining the ability to generate further income through royalties, enhancing its financial flexibility and industry positioning.

Spark’s Take on GB:CRPR Stock

According to Spark, TipRanks’ AI Analyst, GB:CRPR is a Neutral.

James Cropper is currently facing financial challenges with declining revenues and negative margins. The technical outlook is bearish, and valuation metrics are unfavorable due to the lack of profitability. However, recent corporate events, including strategic partnerships and leadership changes, provide a positive outlook for future growth. The company must focus on improving operational efficiency and profitability to enhance its financial stability.

To see Spark’s full report on GB:CRPR stock, click here.

James Cropper and HOERBIGER Partner for Hydrogen Production Innovation

James Cropper has announced a strategic collaboration with HOERBIGER to introduce Ready2Stack™, an integrated solution for hydrogen production through proton exchange membrane electrolysers. This partnership aims to streamline the production process, enhance quality, and reduce costs, thereby making green hydrogen more accessible and commercially viable. By leveraging James Cropper’s expertise in electrochemistry and HOERBIGER’s manufacturing capabilities, the collaboration seeks to address key challenges in the hydrogen industry and accelerate the transition to sustainable energy.

James Cropper Chair Increases Personal Stake with Share Purchase

James Cropper plc, a paper and advanced materials company, announced that Mark Cropper, its Non-Executive Chair, purchased 117,022 ordinary shares at £1.975 per share. Following this transaction, his total shareholding stands at 27% of the company’s share capital. This purchase was from another member of a Concert Party, which collectively holds 37.9% of the company’s shares, leaving the group’s overall stake unchanged.