Goodwin (GDWN) AI Stock Analysis

• Market Cap: £1.46B
• Dividend Yield: 1.03%
• Average Volume (3M): 10.30K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 0.45
• Revenue Growth: 24.42%
• EPS Growth: 103.25%
• Country: UK
• Employees: 1,225
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.52
• Shares Outstanding: 7,509,600
• 10 Day Avg. Volume: 9,680
• 30 Day Avg. Volume: 10,300
• PEG Ratio: 0.45
• Price to Book (P/B): 3.65
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 12.04
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 21,910.00p ▲(9.00% Upside)

Goodwin's strong financial performance and positive corporate events significantly bolster its stock score. However, the high P/E ratio suggests overvaluation, and technical indicators show mixed momentum, tempering the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Goodwin's ability to expand its market reach and enhance product adoption, supporting long-term business sustainability.

Cash Generation

Strong cash generation enhances Goodwin's financial flexibility, enabling reinvestment in growth initiatives and providing a buffer against economic downturns.

Profitability Margins

Robust profitability margins reflect Goodwin's efficient operational management and competitive pricing power, supporting long-term financial health.

Negative Factors

Return on Equity

Lack of return on equity data limits the assessment of profitability from shareholders' perspective, potentially impacting investor confidence.

Valuation Concerns

A high P/E ratio suggests potential overvaluation, which may lead to investor caution and affect stock performance if growth expectations are not met.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially impacting the attractiveness of Goodwin's stock in the market.

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 generates revenue through multiple streams including the sale of manufactured products, engineering services, and long-term contracts with key clients in various industries. The company’s primary revenue comes from its manufacturing operations, where it produces precision-engineered components that are sold to original equipment manufacturers (OEMs) and other industrial clients. Additionally, Goodwin has established strategic partnerships with leading firms in the aerospace and energy sectors, enabling it to secure long-term contracts that provide a steady stream of income. The company also invests in research and development to innovate and expand its product offerings, which helps to capture new market opportunities and enhance profitability.

Goodwin Financial Statement Overview

Summary

Goodwin exhibits strong financial health with impressive revenue growth and profitability margins. The balance sheet is stable with low leverage, and cash flow metrics highlight efficient cash management. The company is well-positioned for future growth, although monitoring of return on equity is suggested for a comprehensive view of shareholder returns.

Income Statement

Goodwin has demonstrated strong revenue growth, with a 9.82% increase in the latest year. The company maintains healthy profitability metrics, with a gross profit margin of 41.70% and a net profit margin of 11.18%. EBIT and EBITDA margins are also robust at 16.94% and 21.31%, respectively, indicating efficient operational management.

Balance Sheet

The balance sheet shows a solid financial position with a low debt-to-equity ratio of 0.23, reflecting conservative leverage. The equity ratio is strong, indicating a stable capital structure. However, the return on equity is not available for the latest period, which limits a full assessment of profitability from shareholders' perspective.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, with a growth rate of 62.10%. The operating cash flow to net income ratio is 0.65, suggesting good cash conversion efficiency. The free cash flow to net income ratio of 0.72 indicates strong cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	248.93M	219.71M	191.26M	185.74M	144.11M	131.23M
Gross Profit	112.80M	91.61M	77.89M	46.22M	42.70M	39.00M
EBITDA	66.41M	46.81M	37.87M	29.04M	30.17M	25.44M
Net Income	39.65M	24.57M	16.90M	15.90M	12.98M	12.49M
Balance Sheet
Total Assets	298.81M	285.87M	284.23M	262.83M	218.98M	202.41M
Cash, Cash Equivalents and Short-Term Investments	19.89M	18.46M	32.12M	19.66M	11.65M	15.16M
Total Debt	28.33M	32.13M	75.93M	53.98M	43.14M	34.67M
Total Liabilities	192.91M	143.66M	157.58M	133.68M	99.24M	84.38M
Stockholders Equity	101.24M	138.16M	122.28M	124.75M	115.31M	113.14M
Cash Flow
Free Cash Flow	50.84M	41.90M	9.72M	8.38M	-8.00K	7.33M
Operating Cash Flow	70.16M	58.19M	27.12M	29.13M	17.99M	21.21M
Investing Cash Flow	-14.74M	-16.01M	-16.88M	-20.52M	-18.09M	-11.92M
Financing Cash Flow	-19.61M	-55.92M	987.00K	-281.00K	-3.79M	-3.48M

Goodwin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20100.00
• 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 20100 is above the 20-day moving average (MA) of 19905.00, above the 50-day MA of 19291.57, and above the 200-day MA of 10950.08, indicating a bullish trend. The MACD of 76.44 indicates Positive momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 33.80 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
GDWN	73 Outperform	£1.46B	36.94	35.23%	1.03%	24.42%	103.25%
AVG	70 Outperform	£159.03M	24.22	5.87%	1.02%	14.49%	76.33%
RNO	70 Outperform	£164.10M	10.76	25.68%	―	1.53%	-7.99%
BOY	69 Neutral	£1.22B	44.46	4.10%	3.26%	-6.95%	-52.08%
MGAM	67 Neutral	£589.38M	21.52	8.04%	4.86%	-7.30%	-59.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MPAC	61 Neutral	£93.68M	-7.50	-17.46%	―	21.17%	-237.25%

Goodwin Corporate Events

Goodwin PLC Directors Consolidate Shareholdings

Goodwin PLC announced a series of share transactions involving its executive and former executive directors, including members of the Goodwin family. These transactions have resulted in the Goodwin Concert Party, which includes both current and former directors and their wider family members, holding a total of 53.73% of the company’s share capital. This consolidation of shares among the Goodwin family members may impact the company’s governance and decision-making processes, potentially influencing its strategic direction and stakeholder interests.

Goodwin PLC Reports Doubling of Profitability and Announces Special Dividend

Goodwin PLC has announced a significant increase in profitability, expecting trading profit before tax to exceed £71 million for the financial year ending April 2026, doubling from the previous year. This growth is supported by strong performance across all divisions, a solid order book, and enhanced visibility in key programs. The company has declared a special interim dividend of 532 pence per share to reward shareholders, reflecting its strong financial position and cash generation capabilities. Additionally, the appointments of Adam Deeth as Finance Director and Anthony Thomas as Director strengthen the Board as the company continues to pursue its strategic objectives.

Goodwin PLC Announces Strong Growth and Strategic Defense Partnership

Goodwin PLC reports significant growth across its divisions, with a 24% increase in workload and substantial profitability improvements in its Refractory Engineering Division. The company has secured major contracts, including a £5 million deal for surveillance systems and a follow-on order for nuclear storage racks. A strategic collaboration with Northrop Grumman positions Goodwin as a key supplier in defense, with potential orders exceeding $200 million, enhancing its reputation in delivering advanced components for critical applications.