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CGS

CastingsLSE:CGS Stock Report

Last Price

UK£3.53

Market Cap

UK£154.0m

7D

-2.5%

1Y

-2.5%

Updated

21 Jan, 2022

Data

Company Financials +
CGS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends6/6

CGS Stock Overview

Castings P.L.C. engages in the iron casting and machining activities.

Castings Competitors

Melrose Industries

LSE:MRO

UK£6.9b

Smiths Group

LSE:SMIN

UK£6.1b

Severfield

LSE:SFR

UK£212.8m

Renold

AIM:RNO

UK£68.2m

Price History & Performance

Summary of all time highs, changes and price drops for Castings
Historical stock prices
Current Share PriceUK£3.53
52 Week HighUK£4.20
52 Week LowUK£3.30
Beta0.70
1 Month Change0.28%
3 Month Change-1.94%
1 Year Change-2.49%
3 Year Change-8.31%
5 Year Change-21.12%
Change since IPO460.32%

Recent News & Updates

Shareholder Returns

CGSGB Metals and MiningGB Market
7D-2.5%1.1%-0.5%
1Y-2.5%3.1%8.7%

Return vs Industry: CGS underperformed the UK Metals and Mining industry which returned 3.1% over the past year.

Return vs Market: CGS underperformed the UK Market which returned 8.7% over the past year.

Price Volatility

Is CGS's price volatile compared to industry and market?
CGS volatility
CGS Average Weekly Movement3.5%
Metals and Mining Industry Average Movement7.5%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: CGS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CGS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18351,191Adam Vicaryhttps://www.castings.plc.uk

Castings P.L.C. engages in the iron casting and machining activities. It operates through Foundry Operations and Machining Operations segments. The company offers ductile iron, spheroidal graphite iron, austempered ductile iron, SiMo, grey iron, and Ni-resist castings.

Castings Fundamentals Summary

How do Castings's earnings and revenue compare to its market cap?
CGS fundamental statistics
Market CapUK£154.02m
Earnings (TTM)UK£9.04m
Revenue (TTM)UK£142.70m

17.0x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGS income statement (TTM)
RevenueUK£142.70m
Cost of RevenueUK£114.08m
Gross ProfitUK£28.63m
ExpensesUK£19.59m
EarningsUK£9.04m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.21
Gross Margin20.06%
Net Profit Margin6.33%
Debt/Equity Ratio0.0%

How did CGS perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

74%

Payout Ratio

Valuation

Is Castings undervalued compared to its fair value and its price relative to the market?

39.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGS (£3.53) is trading below our estimate of fair value (£5.82)

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


Price To Earnings Ratio

PE vs Industry: CGS is poor value based on its PE Ratio (17x) compared to the UK Metals and Mining industry average (8.6x).

PE vs Market: CGS is good value based on its PE Ratio (17x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CGS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CGS is good value based on its PB Ratio (1.2x) compared to the GB Metals and Mining industry average (2x).


Future Growth

How is Castings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CGS's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if CGS's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CGS's revenue (3.5% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: CGS's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CGS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Castings performed over the past 5 years?

-16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGS has high quality earnings.

Growing Profit Margin: CGS's current net profit margins (6.3%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: CGS's earnings have declined by 16.2% per year over the past 5 years.

Accelerating Growth: CGS's earnings growth over the past year (150.4%) exceeds its 5-year average (-16.2% per year).

Earnings vs Industry: CGS earnings growth over the past year (150.4%) underperformed the Metals and Mining industry 150.4%.


Return on Equity

High ROE: CGS's Return on Equity (7%) is considered low.


Financial Health

How is Castings's financial position?


Financial Position Analysis

Short Term Liabilities: CGS's short term assets (£91.2M) exceed its short term liabilities (£24.5M).

Long Term Liabilities: CGS's short term assets (£91.2M) exceed its long term liabilities (£3.6M).


Debt to Equity History and Analysis

Debt Level: CGS is debt free.

Reducing Debt: CGS has not had any debt for past 5 years.

Debt Coverage: CGS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CGS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Castings's current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CGS's dividend (4.35%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: CGS's dividend (4.35%) is in the top 25% of dividend payers in the UK market (4.04%)


Stability and Growth of Payments

Stable Dividend: CGS's dividends per share have been stable in the past 10 years.

Growing Dividend: CGS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.1%), CGS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CGS's dividends in 3 years are forecast to be covered by earnings (55.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average board tenure


CEO

Adam Vicary (53 yo)

4.83yrs

Tenure

UK£319,000

Compensation

Mr. Adam Vicary, BEng, MSc, FICME has been the Managing Director of the Brownhills Site since April 3, 2012. Mr. Vicary has been the Chief Executive Officer and Executive Director for Castings Public Limit...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD432.54K) is about average for companies of similar size in the UK market ($USD573.76K).

Compensation vs Earnings: Adam's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: CGS's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Castings P.L.C.'s employee growth, exchange listings and data sources


Key Information

  • Name: Castings P.L.C.
  • Ticker: CGS
  • Exchange: LSE
  • Founded: 1835
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: UK£154.021m
  • Shares outstanding: 43.63m
  • Website: https://www.castings.plc.uk

Number of Employees


Location

  • Castings P.L.C.
  • Lichfield Road
  • Brownhills
  • West Midlands
  • WS8 6JZ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:17
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.