Coral Products (CRU) AI Stock Analysis

• Market Cap: £8.46M
• Dividend Yield: 5.26%
• Average Volume (3M): 109.22K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.46
• Revenue Growth: -14.90%
• EPS Growth: -329.10%
• Country: UK
• Employees: 179
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Packaging & Containers
• EPS (TTM): -0.03
• Shares Outstanding: 89,032,700
• 10 Day Avg. Volume: 178,543
• 30 Day Avg. Volume: 109,215
• PEG Ratio: 0.01
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.87
• 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: 65 Neutral
• Price Target: 10.00p ▲(5.26%Upside)

Coral Products exhibits strong technical momentum, suggesting investor optimism despite financial challenges. The significant improvement in cash flow management is a positive, but high leverage and negative profitability weigh on the valuation. The technical analysis and recent corporate events, while not directly scored, hint at potential recovery and future growth.

Coral Products Business Overview & Revenue Model

Company Description

Coral Products (CRU) is a UK-based company that specializes in the design, manufacture, and distribution of plastic products. The company operates in several sectors including food packaging, recycling, and personal care. Coral Products is known for producing a wide range of plastic products such as containers, lids, and other packaging solutions catering to various industries.

How the Company Makes Money

Coral Products generates revenue through the sale of its plastic products to a diverse range of customers across different sectors. The company's key revenue streams include contracts with food packaging companies, partnerships with recycling organizations, and supplying products to the personal care industry. By offering customized solutions and maintaining strong relationships with its clients, Coral Products ensures a steady flow of income. Additionally, the company may benefit from collaborations with other manufacturers and distributors to expand its market reach and enhance its product offerings.

Coral Products Financial Statement Overview

Summary

Coral Products faces challenges with declining revenue and profitability, reflected in negative net income and lower margins. However, the company has shown improvement in cash flow management, with a significant increase in free cash flow. The balance sheet remains leveraged, with rising debt levels impacting financial stability. The company needs to address revenue growth and profitability to enhance its financial health.

Income Statement

Coral Products has experienced a significant decline in revenue from 2023 to 2024, decreasing by approximately 12%. Gross profit margin improved slightly from 28.3% in 2023 to 34.4% in 2024, indicating better cost management. However, the company faced a negative net profit margin of -2.9% in 2024 due to a net loss, contrasting with a positive margin of 3.6% in 2023. EBIT and EBITDA margins also declined, highlighting reduced operational efficiency.

Balance Sheet

The company exhibits a relatively high debt-to-equity ratio, rising to 0.93 in 2024 from 0.85 in 2023, indicating increased leverage. Return on Equity (ROE) dropped to -7.4% in 2024, reflecting the net loss and reduced profitability. The equity ratio slightly decreased from 40.8% to 40.6%, maintaining some stability in the capital structure despite financial challenges.

Cash Flow

Free cash flow improved significantly, with a positive growth rate of 81.4% from 2023 to 2024. Operating cash flow turned positive in 2024, improving from a negative cash flow in 2023, indicating better cash management. However, the free cash flow to net income ratio remains negative due to the net loss, highlighting concerns in generating free cash flow relative to earnings.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
29.62M	30.99M	35.22M	14.39M	10.71M	8.70M
	Gross Profit
9.51M	10.68M	9.96M	4.96M	3.52M	2.63M
	EBIT
-1.86M	74.00K	1.84M	1.19M	488.00K	39.00K
	EBITDA
77.00K	1.97M	3.52M	2.00M	1.23M	1.65M
	Net Income Common Stockholders
-2.75M	-914.00K	1.26M	967.00K	-658.00K	-821.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
858.00K	2.01M	4.77M	7.59M	3.84M	453.00K
	Total Assets
28.05M	30.17M	33.91M	17.61M	17.94M	24.70M
	Total Debt
11.17M	11.44M	11.80M	2.71M	2.85M	6.68M
	Net Debt
10.31M	9.43M	7.03M	-4.88M	-996.00K	6.22M
	Total Liabilities
17.13M	17.90M	20.06M	5.90M	5.20M	12.59M
	Stockholders Equity
10.92M	12.27M	13.85M	11.71M	12.74M	12.11M
Cash Flow		Free Cash Flow
-544.00K	-662.00K	-3.57M	2.46M	1.27M	2.13M
	Operating Cash Flow
1.11M	1.48M	-1.49M	2.67M	1.72M	2.45M
	Investing Cash Flow
1.22M	-2.16M	-6.39M	3.29M	6.38M	-322.00K
	Financing Cash Flow
-4.39M	-2.08M	5.06M	-2.21M	-4.71M	-1.65M

Coral Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRU, the sentiment is Positive. The current price of 9.5 is above the 20-day moving average (MA) of 8.05, above the 50-day MA of 7.45, and above the 200-day MA of 7.43, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 82.94 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CRU.

Coral Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MACF	82 Outperform	£186.72M	11.99	13.06%	3.06%	-3.66%	3.28%
AIEA	67 Neutral	£11.37M	147.06	-1.85%	2.18%	0.63%	-136.68%
CRU	65 Neutral	£8.46M	―	-21.69%	5.26%	-14.90%	-329.10%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
RBN	55 Neutral	£21.36M	36.38	-13.52%	4.31%	13.57%	-304.69%

Coral Products Corporate Events

Coral Products Director Increases Shareholding

Coral Products plc announced that David Low, the Senior Non-Executive Director, purchased 25,000 ordinary shares at 8.26 pence each, increasing his total holding to 1,400,000 shares, which represents 1.57% of the issued ordinary shares. This transaction, deemed inside information under UK MAR, reflects a vote of confidence in the company’s prospects and could influence stakeholder perceptions positively.

Coral Products Appoints New CEO and Plans Operational Leadership Change

Coral Products plc has appointed Ian Hillman as the new Group Chief Executive Officer, following his successful tenure as Group Chief Operating Officer. His leadership has been instrumental in restructuring the company for sustainable growth. The company also plans to appoint Rob David as Group Operations Director, recognizing his significant contributions to operational improvements. These changes are expected to strengthen Coral’s market position and drive future success.

Coral Products Directors Increase Shareholdings

Coral Products plc announced that directors Ian Hillman and Paul Rice have purchased additional ordinary shares in the company, with Hillman acquiring 70,000 shares and Rice acquiring 89,169 shares. This move indicates a potential increase in confidence from the management in the company’s future prospects and could have implications for investor sentiment and market perception.

Coral Products Chairman Increases Stake in Company

Coral Products plc announced that Joe Grimmond, the Non-Executive Chairman, has purchased 100,000 ordinary shares at 7.4 pence each, increasing his beneficial interest to 7.53% of the company’s issued share capital. This transaction, deemed inside information under UK MAR, highlights Grimmond’s confidence in the company’s future prospects and could influence market perceptions and stakeholder decisions.

Coral Products Expands with Acquisition of Arrow Film Converters

Coral Products plc has acquired the business and certain assets of Arrow Film Converters Limited for £502,899 in cash through its subsidiary, Film & Foil Solutions Limited. This acquisition enhances Coral’s capabilities in the flexible packaging sector and aligns with its medium-term production goals, while also integrating Arrow’s workforce and maintaining operations at the Castleford facility.

Coral Products Secures New Supply Agreement and Boosts Manufacturing Efficiency

Coral Products plc has announced a three-year exclusive supply agreement through its subsidiary, Tatra Rotalac Limited, with a leading UK distributor for ice cream and food containers, expected to generate annual sales of £1.5 million to £2.0 million. Additionally, the company has completed the commissioning of in-house manufacturing for ECODECK floor grids, enhancing operational efficiency and resilience, and is projected to positively impact margins and cash flow.

Coral Products Secures Three-Year Contract Renewal with Telecom Giant

Coral Products plc announced the renewal of a three-year supply contract with a major international telecommunications group, secured by its subsidiary Tatra Rotalac Limited. The contract, which does not guarantee sales volumes, is expected to generate an aggregate turnover of approximately £12m to £15m by March 2028, reflecting the company’s competitive positioning in the international market.