Coral Products (CRU) AI Stock Analysis

• Market Cap: £7.44M
• Dividend Yield: 5.97%
• Average Volume (3M): 141.22K
• Price to Earnings (P/E): 11.6
• Beta (1Y): -0.89
• Revenue Growth: -3.74%
• EPS Growth: N/A
• Country: UK
• Employees: 179
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.02
• Shares Outstanding: 88,829,700
• 10 Day Avg. Volume: 162,454
• 30 Day Avg. Volume: 141,215
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: 8.50p ▲(1.43% Upside)

Coral Products' overall score is driven by its mixed financial performance and bearish technical indicators. While the stock is attractively valued with a high dividend yield, challenges in cash flow management and market momentum weigh on the score.

Positive Factors

Operational Efficiency

Improved EBIT and EBITDA margins indicate better operational efficiency, which can enhance profitability and competitive positioning.

Sustainability Focus

A focus on sustainable products aligns with industry trends, potentially driving long-term demand and customer loyalty.

Strategic Partnerships

Strategic partnerships enhance market reach and operational efficiency, supporting revenue growth and competitive advantage.

Negative Factors

Volatile Revenue Growth

Volatile revenue growth can lead to unpredictable financial performance, making long-term planning and investment challenging.

Rising Leverage

Rising leverage increases financial risk, potentially impacting cash flow and limiting strategic flexibility.

Cash Flow Challenges

Negative cash flows highlight inefficiencies in cash generation, which can constrain growth and operational investments.

Coral Products Business Overview & Revenue Model

Company Description

Coral Products (CRU) is a UK-based company specializing in the design, manufacture, and distribution of a diverse range of plastic products, primarily serving the packaging and consumer goods sectors. The company focuses on innovative solutions, including custom and standard plastic packaging, as well as products for horticulture and the leisure industry. With a commitment to sustainability, Coral Products aims to offer environmentally friendly alternatives in its product lines.

How the Company Makes Money

Coral Products generates revenue primarily through the sale of its plastic packaging solutions and horticultural products. The company operates on a business-to-business model, supplying a variety of industries including retail, agriculture, and manufacturing. Key revenue streams include custom packaging solutions tailored to specific client needs, as well as standard product offerings that cater to a broader market. Additionally, Coral Products benefits from strategic partnerships with suppliers and distributors, enhancing its market reach and operational efficiency. Factors contributing to the company's earnings include market demand for sustainable packaging solutions and its ability to innovate and adapt to industry trends.

Coral Products Financial Statement Overview

Summary

Coral Products faces challenges with declining revenue and profitability, reflected in negative net income and lower margins. Despite these issues, 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.83M	29.83M	30.99M	35.22M	14.39M	10.71M
Gross Profit	9.45M	9.45M	10.68M	9.96M	4.96M	3.52M
EBITDA	2.90M	2.90M	1.97M	3.39M	2.22M	1.23M
Net Income	637.00K	637.00K	-914.00K	1.26M	967.00K	475.00K
Balance Sheet
Total Assets	32.26M	32.26M	30.17M	33.91M	17.61M	17.94M
Cash, Cash Equivalents and Short-Term Investments	788.00K	788.00K	2.01M	4.77M	7.59M	3.84M
Total Debt	12.22M	12.22M	11.44M	11.80M	2.71M	2.85M
Total Liabilities	20.25M	20.25M	17.90M	20.06M	5.90M	5.20M
Stockholders Equity	12.01M	12.01M	12.27M	13.85M	11.71M	12.74M
Cash Flow
Free Cash Flow	-1.24M	-1.69M	-662.00K	-3.57M	2.46M	1.27M
Operating Cash Flow	-196.00K	-650.00K	1.48M	-1.49M	2.67M	1.72M
Investing Cash Flow	1.98M	1.98M	-2.16M	-6.39M	3.29M	6.38M
Financing Cash Flow	-3.31M	-3.31M	-2.08M	4.70M	-2.21M	-4.71M

Coral Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRU, the sentiment is Negative. The current price of 8.38 is below the 20-day moving average (MA) of 8.68, below the 50-day MA of 8.80, and below the 200-day MA of 8.83, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 26.99 is Positive, neither overbought nor oversold. The STOCH value of 15.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRU.

Coral Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MACF	72 Outperform	£113.94M	9.64	10.01%	5.15%	6.97%	-18.59%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RBN	61 Neutral	£21.36M	-8.67	-9.81%	4.71%	8.41%	-555.42%
CRU	58 Neutral	£7.44M	11.63	5.25%	5.97%	-3.74%	―
AIEA	55 Neutral	£9.10M	-30.99	-1.77%	2.73%	5.95%	-517.65%
SYM	51 Neutral	£20.09M	-14.11	―	―	3.78%	47.46%
SCE	47 Neutral	£19.86M	-1.02	-131.18%	―	34.87%	77.15%

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.