Castings P.L.C.

BATS-CHIXE:CGSL Stock Report

Market Cap: UK£113.0m

Castings Valuation

Is CGSL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CGSL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CGSL (£2.64) is trading below our estimate of fair value (£4.18)

Significantly Below Fair Value: CGSL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CGSL?

Key metric: As CGSL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CGSL. This is calculated by dividing CGSL's market cap by their current earnings.
What is CGSL's PE Ratio?
PE Ratio9.3x
EarningsUK£12.10m
Market CapUK£112.99m

Price to Earnings Ratio vs Peers

How does CGSL's PE Ratio compare to its peers?

The above table shows the PE ratio for CGSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.6x
ECOR Ecora Resources
10.5x14.9%UK£165.0m
EVR EVRAZ
0.4xn/aUK£1.2b
HILS Hill & Smith
22.5x10.9%UK£1.7b
NLMK Novolipetsk Steel
0.8xn/aUS$4.1b
CGSL Castings
9.3x-0.1%UK£113.0m

Price-To-Earnings vs Peers: CGSL is good value based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (16.5x).

Price to Earnings Ratio vs Industry

How does CGSL's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ENPL En+ Group International
2.2x8.0%US$4.67b
NLMK Novolipetsk Steel
0.8xn/aUS$4.08b
EVR EVRAZ
0.4xn/aUS$1.42b
MTL Metals Exploration
0.9x-60.3%US$126.89m
No. of Companies8PE01020304050+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CGSL is good value based on its Price-To-Earnings Ratio (9.3x) compared to the UK Metals and Mining industry average (10.3x).

Price to Earnings Ratio vs Fair Ratio

What is CGSL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CGSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CGSL's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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