Cranswick (CWK) AI Stock Analysis

• Market Cap: £2.64B
• Dividend Yield: 1.87%
• Average Volume (3M): 82.94K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.56
• Revenue Growth: 8.74%
• EPS Growth: -8.69%
• Country: UK
• Employees: 11,038
• Sector: Consumer Defensive
• Sector Strength: 79
• Industry: Consumer Products - Foods
• EPS (TTM): 2.15
• Shares Outstanding: 54,095,615
• 10 Day Avg. Volume: 105,808
• 30 Day Avg. Volume: 82,939
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.00
• Price to Cash Flow (P/CF): 12.50
• P/FCF Ratio: 21.60
• 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: 5,398.00p
• Price Target Upside: 9.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Cranswick's strong financial performance, highlighted by solid revenue growth and robust cash flows, is the primary driver of its favorable stock score. The positive corporate events, including strategic acquisitions and market expansion, further support its growth outlook. However, the technical analysis indicates a neutral to slightly bearish trend, and the stock's valuation suggests a premium pricing, which could limit upside potential in the near term.

Positive Factors

Profit Forecast

With trading ahead of expectations, CWK has indicated that its outlook for FY25 PBT is now 'towards the upper end' of market expectations.

Revenue Growth

CWK has announced Q2 trading 'stronger than previously expected', underpinned by continued robust volume growth in core UK food, and a positive contribution from the expanding pig farming operations.

Negative Factors

Geopolitical and Economic Conditions

There is a note of caution regarding 'wider geopolitical and economic conditions' and no further upgrade.

Cranswick Business Overview & Revenue Model

Company Description

Cranswick PLC is a British supplier of fresh pork, sausages, cooked meats, pastry, and sandwiches through retail, food-service, and manufacturing channels. The company operates through its food segment, which manufactures and supplies products to United Kingdom grocery retailers, the food-service sector, and other food producers. Retail customers contribute about three fourths of the company's total revenue, primarily through retailer own-label products. Cranswick's operations are focused on the production and supply of premium food products and are primarily located in the U.K., with small proportion of exports. The company also owns pig-breeding and -rearing operations.

How the Company Makes Money

Cranswick makes money by producing and selling a diverse range of fresh and value-added food products, primarily in the pork and poultry categories. The company's revenue streams are predominantly from supplying its products to major UK supermarkets, foodservice providers, and other retailers. Cranswick benefits from long-term supply agreements and partnerships with key customers, which help ensure a stable demand for its products. Additionally, the company invests in its own farming operations and processing facilities to maintain control over quality and costs, thereby enhancing its profitability. Cranswick's commitment to sustainability and innovation further supports its revenue growth by aligning its offerings with consumer trends towards ethically sourced and health-focused products.

Cranswick Financial Statement Overview

Summary

Cranswick demonstrates strong financial performance with robust revenue growth, improving profitability, and effective balance sheet management. The income statement shows an 11.9% revenue increase and improved margins. The balance sheet is stable with a low debt-to-equity ratio of 0.14, and cash flow is supported by a significant free cash flow growth of nearly 100% year-over-year. However, liabilities should be monitored.

Income Statement

Cranswick's income statement shows strong revenue growth with an 11.9% increase in the most recent year, which underscores robust market demand. The gross profit margin improved to 14.5%, indicating enhanced cost efficiency. Net profit margin also increased slightly to 4.35%. EBITDA margin stands at a healthy 9.75%, reflecting solid operating performance. Overall, the income statement reveals a positive growth trajectory and profitability improvements.

Balance Sheet

The balance sheet is stable, with a debt-to-equity ratio of 0.14, which suggests a low leverage risk. Return on Equity (ROE) is at 12.4%, showing effective use of shareholder funds to generate profits. The equity ratio remains strong at 65.8%, indicating a solid asset base supported by equity. However, the rising liabilities should be monitored.

Cash Flow

Cash flows are robust, with a significant free cash flow growth of nearly 100% year-over-year, reflecting efficient capital management. Operating cash flow to net income ratio is strong at 2.02, indicating healthy cash generation relative to profits. The company demonstrates effective cash flow management, supporting its growth and investment strategies.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.60B	2.32B	2.01B	1.90B	1.67B
	Gross Profit
376.90M	295.70M	276.80M	265.70M	217.60M
	EBIT
166.90M	130.80M	136.70M	128.10M	101.30M
	EBITDA
253.60M	220.00M	199.00M	185.50M	155.20M
	Net Income Common Stockholders
113.10M	111.40M	103.50M	92.50M	82.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.00M	20.40M	200.00K	39.90M	23.00M
	Total Assets
1.38B	1.26B	1.14B	1.04B	995.50M
	Total Debt
127.40M	121.70M	106.20M	131.40M	168.40M
	Net Debt
100.40M	101.40M	106.00M	92.40M	146.90M
	Total Liabilities
472.50M	421.50M	373.60M	355.00M	380.20M
	Stockholders Equity
911.50M	842.90M	768.90M	686.10M	614.50M
Cash Flow		Free Cash Flow
127.90M	64.10M	64.70M	109.00M	14.60M
	Operating Cash Flow
228.40M	149.20M	158.40M	180.90M	115.80M
	Investing Cash Flow
-123.30M	-83.80M	-130.90M	-81.80M	-164.30M
	Financing Cash Flow
-93.40M	-45.30M	-66.30M	-81.60M	49.50M

Cranswick Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4935.00
• 50DMA: Positive
• 100DMA: Negative
• 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:CWK, the sentiment is Positive. The current price of 4935 is below the 20-day moving average (MA) of 4936.00, above the 50-day MA of 4915.00, and above the 200-day MA of 4781.40, indicating a neutral trend. The MACD of -2.00 indicates Positive momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 60.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CWK.

Cranswick Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABF	81 Outperform	£13.95B	9.89	13.06%	3.26%	1.64%	44.38%
CWK	76 Outperform	£2.64B	22.87	12.70%	1.87%	8.74%	-8.69%
BAG	75 Outperform	£676.39M	18.77	12.60%	2.55%	11.02%	7.44%
PFD	71 Outperform	£1.53B	14.05	8.03%	0.98%	5.90%	11.24%
Sector *	63 Neutral	$20.77B	13.57	-10.67%	7.41%	1.45%	9.35%
TATE	63 Neutral	£2.29B	12.51	12.23%	3.71%	-11.03%	-2.05%

Cranswick Corporate Events

Cranswick’s Alan Williams Joins Nichols as Non-Executive Director

Cranswick plc has announced that Alan Williams, a Non-Executive Director at the company, has been appointed to the same position at Nichols plc, effective from March 11, 2025. This appointment may strengthen the relationship between the two companies and could potentially impact Cranswick’s strategic positioning within the industry.

Cranswick Announces Total Voting Rights Update

Cranswick plc has announced that as of March 4, 2025, the total number of ordinary shares in the company is 54,095,614, with each share carrying one vote. This information is crucial for shareholders to calculate their interests in the company’s share capital under the Financial Conduct Authority’s Disclosure and Transparency Rules.

Cranswick PLC Announces Change in Major Holdings

Cranswick PLC has announced a change in its major holdings, with BlackRock, Inc. adjusting its voting rights to below 5% as of February 27, 2025. This adjustment in holdings may influence Cranswick’s shareholder dynamics, reflecting a strategic move by BlackRock which could impact the company’s market perception and investor relations.

Cranswick Director Acquires Shares Under Incentive Plan

Cranswick plc announced that its Director, Christopher Aldersley, has acquired ordinary shares as ‘Partnership Shares’ under the company’s 2024 Buy As You Earn Share Incentive Plan. This acquisition, part of a regular monthly purchase program, was executed on 21 February 2025 on the London Stock Exchange, reflecting the company’s ongoing efforts to align management interests with shareholder value.

Cranswick Seeks Additional Listing for 200,000 Shares

Cranswick plc has applied for an additional listing on the London Stock Exchange, seeking admission of 200,000 shares under its Savings Related Share Option Scheme (SAYE). These shares will be incorporated into the company’s existing share structure, maintaining equal standing with current ordinary shares, with the listing expected to be effective from February 12, 2025.

Cranswick Announces Total Voting Shares as of January 2025

Cranswick plc has announced that as of January 31, 2025, the total number of ordinary shares in its capital stands at 54,095,614, each carrying one voting right. This figure is significant for shareholders as it serves as the denominator for calculating notifications regarding changes in their interest under the Disclosure and Transparency Rules.

Schroders Adjusts Stake in Cranswick PLC

Schroders Plc has acquired or disposed of voting rights in Cranswick PLC, reaching a threshold of 5.063752% as of January 21, 2025. This acquisition or disposal indicates a potentially significant movement in Cranswick’s shareholder structure, reflecting changes in stakeholder interests and possibly affecting the company’s strategic decisions.

Cranswick Reports Strong Q3 Growth and Acquires JSR Genetics

Cranswick has reported strong revenue growth in its third quarter, driven by increased volume in its core UK food business, particularly in pork and poultry categories. The company has announced the acquisition of JSR Genetics, aiming to enhance its pig farming operations and secure supply for its customers, with the reinstatement of its China export license further strengthening its market position. This strategic move is expected to improve production efficiency and product quality, while capital investment will continue to drive capacity and efficiency improvements.

Cranswick plc Discloses Total Voting Rights

Cranswick plc has disclosed its total voting rights in accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules. As of January 6, 2025, the company has 54,095,614 ordinary shares in issue, each carrying one vote, and no shares are held in treasury. This figure aids shareholders in determining the necessity to notify any changes in their share capital interest under the specified rules.

Cranswick Director Acquires Shares Under Incentive Plan

Cranswick plc has announced that its Director, Christopher Aldersley, acquired ordinary shares as ‘Partnership Shares’ under the company’s 2024 Buy As You Earn Share Incentive Plan. This transaction reflects the company’s ongoing efforts to align management interests with shareholder value and indicates a commitment to internal investment, potentially strengthening Cranswick’s market position and stakeholder confidence.