Goodwin (GDWN) AI Stock Analysis

• Market Cap: £576.74M
• Dividend Yield: 1.73%
• Average Volume (3M): 3.78K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.30
• Revenue Growth: 3.13%
• EPS Growth: 24.54%
• Country: UK
• Employees: 1,225
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Machinery
• EPS (TTM): 2.60
• Shares Outstanding: 7,509,600
• 10 Day Avg. Volume: 4,811
• 30 Day Avg. Volume: 3,781
• PEG Ratio: 0.85
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.45
• 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: 74 Outperform
• Price Target: 7,728.00p ▲(0.63%Upside)

Goodwin PLC's overall stock score reflects its strong financial performance and positive corporate events, indicating robust growth potential. The technical analysis suggests some caution due to mixed signals, while the valuation points to potential overvaluation concerns. However, the strategic growth initiatives and positive corporate developments bolster the company's prospects.

Goodwin Business Overview & Revenue Model

Company Description

Goodwin PLC, together with its subsidiaries, provides mechanical and refractory engineering solutions primarily in the United Kingdom, rest of Europe, the United States, the Pacific Basin, and internationally. The company designs, manufactures, and sells dual plate check, axial nozzle check, and axial piston control and isolation valves for large construction projects, including the construction of naval vessels, nuclear waste treatment, nuclear power generation, liquefied natural gas, gas, oil, petrochemical, mining, and water markets; submersible slurry pumps; and radar surveillance systems for defense contractors, civil aviation authorities, and border security agencies. It also provides alloy casting and machining products for use in defence industry, nuclear decommissioning, and the oil and gas industry. In addition, the company designs, manufactures, and sells investment casting powders, injection moulding rubbers, and waxes for jewelry casting, tire mold, and aerospace industries. Further, it produces exfoliated vermiculite that is used in insulation, brake linings, fire protection products, and technical textiles. Additionally, the company is involved in selling consumable refractories to the shell molding casting industry. Goodwin PLC was founded in 1883 and is headquartered in Stoke-on-Trent, the United Kingdom.

How the Company Makes Money

Goodwin PLC generates revenue through the design, manufacture, and sale of engineering components and products to multiple industries. The company has a diversified revenue model with key streams including the sale of precision-engineered castings and machined components to sectors such as oil and gas, defense, and nuclear. Additionally, Goodwin benefits from long-term contracts and partnerships with major industry players, which help secure a steady income stream. The company's focus on high-quality, bespoke engineering solutions allows it to maintain competitive pricing and sustain profitability in its markets.

Goodwin Financial Statement Overview

Summary

Goodwin's financial performance is robust with strong revenue growth, efficient operations, and prudent financial management. The company maintains a healthy balance sheet and generates solid cash flows, positioning it well for future growth opportunities. While debt levels have risen, they remain manageable within the company's financial structure.

Income Statement

Goodwin shows strong revenue growth, with a consistent increase in total revenue over the years. The gross profit margin has also improved, indicating efficient cost management. Net profit margin has remained stable, while EBIT and EBITDA margins demonstrate strong operational efficiency. Overall, the company exhibits a solid financial performance with growth and profitability.

Balance Sheet

The balance sheet reflects a stable financial position with an improving debt-to-equity ratio, indicating prudent financial leverage. Return on equity has increased, highlighting effective use of shareholder funds. The equity ratio is solid, showing a well-capitalized structure, although debt levels have increased, necessitating careful debt management.

Cash Flow

Operating cash flow is strong and exceeds net income, indicating good cash conversion. Free cash flow is positive and growing, reflecting efficient capital expenditure management. The company has shown a robust free cash flow to net income ratio, ensuring liquidity and operational flexibility.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	200.07M	191.26M	185.74M	144.11M	131.23M	144.51M
Gross Profit	97.52M	77.89M	46.22M	42.70M	39.00M	34.77M
EBITDA	40.06M	37.87M	32.32M	30.17M	25.44M	20.89M
Net Income	19.51M	16.90M	15.90M	12.98M	12.49M	7.87M
Balance Sheet
Total Assets	287.01M	284.23M	262.83M	218.98M	202.41M	192.27M
Cash, Cash Equivalents and Short-Term Investments	15.06M	32.12M	19.66M	11.65M	15.16M	9.84M
Total Debt	55.95M	75.93M	53.98M	43.14M	34.67M	30.22M
Total Liabilities	158.66M	157.58M	133.68M	99.24M	84.38M	82.67M
Stockholders Equity	123.86M	122.28M	124.75M	115.31M	113.14M	105.02M
Cash Flow
Free Cash Flow	25.85M	9.72M	8.38M	-8.00K	7.33M	10.15M
Operating Cash Flow	43.22M	27.12M	29.13M	17.99M	21.21M	19.17M
Investing Cash Flow	-19.10M	-16.88M	-20.52M	-18.09M	-11.92M	-8.97M
Financing Cash Flow	-20.18M	987.00K	-281.00K	-3.79M	-3.48M	-716.00K

Goodwin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7680.00
• 50DMA: Positive
• 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:GDWN, the sentiment is Positive. The current price of 7680 is above the 20-day moving average (MA) of 7579.00, above the 50-day MA of 7151.60, and above the 200-day MA of 6994.91, indicating a bullish trend. The MACD of 154.44 indicates Positive momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 70.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GDWN.

Goodwin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNO	75 Outperform	£181.53M	11.23	27.26%	0.62%	-6.48%	―
GDWN	74 Outperform	£576.74M	29.57	16.39%	1.73%	3.13%	24.54%
BOY	73 Outperform	£1.05B	55.30	2.74%	4.04%	-5.66%	-76.42%
AVG	72 Outperform	£138.98M	32.16	3.87%	0.67%	14.30%	-25.58%
MGAM	70 Outperform	£618.76M	12.53	14.06%	4.51%	-1.26%	6.56%
Sector *	68 Neutral	£2.96B	10.47	8.40%	3.15%	2.88%	-10.00%
MPAC	58 Neutral	£129.32M	45.31	1.63%	―	7.18%	-28.05%

Goodwin Corporate Events

Goodwin PLC Announces Changes to Audit Committee

Goodwin PLC has announced changes to its Audit Committee, effective from April 30, 2025. Former Executive Directors Mr. R. S. Goodwin and Mr. J. W. Goodwin, along with former Company Secretary Mrs. P. Ashley, have stepped down from the committee but will continue to support the company with their extensive experience. Mrs. J.E. Kelly will remain as Chair of the Audit Committee, joined by Mr. T. J.W. Goodwin and Ms C.A. McNamara. These changes are expected to maintain the continuity and expertise within the committee, ensuring robust oversight of the company’s financial practices.

Goodwin PLC Announces Executive Directors’ Shareholding Changes

Goodwin PLC has announced changes in the shareholdings of its executive directors, including transactions involving Mr. T. J. W. Goodwin and Mr. B. R. E. Goodwin. The transactions, which include both purchases and sales of shares, have resulted in a slight increase in the total shareholding percentage of the concert party members, who are current or former executive directors of the company. This adjustment in shareholdings reflects ongoing internal financial strategies and may influence the company’s governance dynamics.

Goodwin PLC Reports Record Order Book and Strategic Growth

Goodwin PLC has reported a record forward order book of £300 million, driven by robust contracts and business activities. A notable contributor to this success is Noreva, a subsidiary that secured a $15 million contract for an LNG project, highlighting the company’s strategic positioning in the growing LNG market. The company’s vertical integration, particularly through Goodwin Steel Castings, provides a competitive edge, allowing it to support national defense procurements in the UK and USA. The Mechanical Division is set for future growth, supported by significant past investments and a skilled workforce. Meanwhile, the Refractory Division benefits from expanding investment casting markets, particularly in the jewelry sector. Reduced capital expenditure and improved profitability have enabled a £10 million reduction in net debt, and the company is on track to pay its final dividend installment for the fiscal year. The board expresses confidence in sustaining growth and profitability.