Goodwin (GDWN) AI Stock Analysis

• Market Cap: £983.76M
• Dividend Yield: 1.58%
• Average Volume (3M): 6.70K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 0.11
• Revenue Growth: 14.88%
• EPS Growth: 45.73%
• Country: UK
• Employees: 1,225
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.76
• Shares Outstanding: 7,509,600
• 10 Day Avg. Volume: 8,838
• 30 Day Avg. Volume: 6,702
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £10,789.00
• Price Target Upside: -17.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: 10,789.00p ▼(-17.64% Downside)

Goodwin's strong financial performance is the most significant factor, supported by robust revenue growth and profitability margins. Technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The valuation suggests the stock is relatively expensive, which tempers the overall score.

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 a diversified model that includes software licensing, subscription services, and consulting fees. The company offers software products that are sold under a licensing model, allowing clients to purchase the right to use the software for a specified period. Additionally, Goodwin provides subscription services that offer clients ongoing access to software updates, support, and new features. Consulting services are another significant revenue stream, where the company leverages its expertise to assist clients in implementing data solutions and optimizing their data strategies. Key partnerships with major technology providers and industry leaders also enhance Goodwin's market presence and contribute to its earnings through collaborative projects and joint ventures.

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	219.71M	219.71M	191.26M	185.74M	144.11M	131.23M
Gross Profit	91.61M	91.61M	77.89M	46.22M	42.70M	39.00M
EBITDA	46.38M	46.81M	37.87M	32.32M	30.17M	25.44M
Net Income	24.57M	24.57M	16.90M	15.90M	12.98M	12.49M
Balance Sheet
Total Assets	285.87M	285.87M	284.23M	262.83M	218.98M	202.41M
Cash, Cash Equivalents and Short-Term Investments	18.46M	18.46M	32.12M	19.66M	11.65M	15.16M
Total Debt	32.13M	32.13M	75.93M	53.98M	43.14M	34.67M
Total Liabilities	143.66M	143.66M	157.58M	133.68M	99.24M	84.38M
Stockholders Equity	138.16M	138.16M	122.28M	124.75M	115.31M	113.14M
Cash Flow
Free Cash Flow	44.95M	41.90M	9.72M	8.38M	-8.00K	7.33M
Operating Cash Flow	58.13M	58.19M	27.12M	29.13M	17.99M	21.21M
Investing Cash Flow	-18.41M	-16.01M	-16.88M	-20.52M	-18.09M	-11.92M
Financing Cash Flow	-69.00M	-55.92M	987.00K	-281.00K	-3.79M	-3.48M

Goodwin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 13100 is above the 20-day moving average (MA) of 10747.01, above the 50-day MA of 9539.69, and above the 200-day MA of 7659.01, indicating a bullish trend. The MACD of 855.19 indicates Negative momentum. The RSI at 72.58 is Negative, neither overbought nor oversold. The STOCH value of 80.24 is Negative, 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
BOY	74 Outperform	1.11B	40.11	2.99%	2.69%	-6.95%	-52.08%
GDWN	72 Outperform	£983.76M	39.73	18.87%	1.58%	14.88%	45.73%
AVG	72 Outperform	155.52M	23.71	―	0.86%	14.49%	76.33%
RNO	70 Outperform	161.37M	10.66	22.40%	―	1.53%	-7.99%
MGAM	66 Neutral	602.44M	21.87	14.22%	4.14%	-7.30%	-59.71%
MPAC	64 Neutral	96.99M	-7.76	1.30%	―	21.17%	-237.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.