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Market Cap

UK£161.9m

Last Updated

2021/05/16 02:48 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Castings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CGS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CGS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

CGS

-3.0%

GB Metals and Mining

-1.2%

GB Market


1 Year Return

14.5%

CGS

72.3%

GB Metals and Mining

27.6%

GB Market

Return vs Industry: CGS underperformed the UK Metals and Mining industry which returned 72.3% over the past year.

Return vs Market: CGS underperformed the UK Market which returned 27.6% over the past year.


Shareholder returns

CGSIndustryMarket
7 Day1.4%-3.0%-1.2%
30 Day-0.3%3.7%0.6%
90 Day-1.6%9.7%5.3%
1 Year19.3%14.5%81.2%72.3%33.1%27.6%
3 Year-1.0%-14.7%58.6%36.3%11.1%-1.6%
5 Year3.1%-21.9%271.4%184.5%48.7%20.7%

Long-Term Price Volatility Vs. Market

How volatile is Castings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGS (£3.71) is trading below our estimate of fair value (£6.79)

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 (44.9x) compared to the UK Metals and Mining industry average (12x).

PE vs Market: CGS is poor value based on its PE Ratio (44.9x) compared to the UK market (25.7x).


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 (1.3x) compared to the GB Metals and Mining industry average (2.2x).


Future Growth

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

13.1%

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 (13.1% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: CGS's revenue (13.1% 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?

-13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGS has high quality earnings.

Growing Profit Margin: CGS's current net profit margins (3.4%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: CGS's earnings have declined by 13.9% per year over the past 5 years.

Accelerating Growth: CGS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CGS had negative earnings growth (-70.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (20.4%).


Return on Equity

High ROE: CGS's Return on Equity (2.9%) is considered low.


Financial Health

How is Castings's financial position?


Financial Position Analysis

Short Term Liabilities: CGS's short term assets (£84.3M) exceed its short term liabilities (£23.6M).

Long Term Liabilities: CGS's short term assets (£84.3M) exceed its long term liabilities (£3.8M).


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?

4.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CGS's dividend (4.01%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: CGS's dividend (4.01%) is low compared to the top 25% of dividend payers in the UK market (4.09%).


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 high payout ratio (181%), CGS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CGS's dividends in 3 years are forecast to be covered by earnings (54.7% payout ratio).


Next Steps

Management

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

9.1yrs

Average board tenure


CEO

Adam Vicary (52 yo)

4.17yrs

Tenure

UK£345,000

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 ($USD486.15K) is about average for companies of similar size in the UK market ($USD568.00K).

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 (9.1 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Castings P.L.C.
  • Ticker: CGS
  • Exchange: LSE
  • Founded: 1835
  • Industry: Steel
  • Sector: Materials
  • Market Cap: UK£161.875m
  • 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


Biography

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 castings, spheroidal graphite...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 02:48
End of Day Share Price2021/05/14 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.