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CGS

Castings LSE:CGS Stock Report

Last Price

UK£3.20

Market Cap

UK£139.4m

7D

7.0%

1Y

-17.5%

Updated

17 Aug, 2022

Data

Company Financials +
CGS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends4/6

CGS Stock Overview

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

Castings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Castings
Historical stock prices
Current Share PriceUK£3.20
52 Week HighUK£3.87
52 Week LowUK£2.82
Beta0.50
1 Month Change-3.03%
3 Month Change3.90%
1 Year Change-17.53%
3 Year Change-16.23%
5 Year Change-30.89%
Change since IPO407.94%

Recent News & Updates

Jul 14
Castings (LON:CGS) Has Announced That It Will Be Increasing Its Dividend To £0.1257

Castings (LON:CGS) Has Announced That It Will Be Increasing Its Dividend To £0.1257

Castings P.L.C.'s ( LON:CGS ) dividend will be increasing from last year's payment of the same period to £0.1257 on...

Jun 18
Castings (LON:CGS) Is Paying Out A Larger Dividend Than Last Year

Castings (LON:CGS) Is Paying Out A Larger Dividend Than Last Year

Castings P.L.C. ( LON:CGS ) will increase its dividend on the 19th of August to UK£0.13. This takes the annual payment...

Shareholder Returns

CGSGB Metals and MiningGB Market
7D7.0%1.0%0.9%
1Y-17.5%-10.1%-8.2%

Return vs Industry: CGS underperformed the UK Metals and Mining industry which returned -10.1% over the past year.

Return vs Market: CGS underperformed the UK Market which returned -8.2% over the past year.

Price Volatility

Is CGS's price volatile compared to industry and market?
CGS volatility
CGS Average Weekly Movement5.6%
Metals and Mining Industry Average Movement7.5%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: CGS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CGS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18351,188Adam 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£139.39m
Earnings (TTM)UK£8.55m
Revenue (TTM)UK£148.58m

16.3x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGS income statement (TTM)
RevenueUK£148.58m
Cost of RevenueUK£118.11m
Gross ProfitUK£30.48m
Other ExpensesUK£21.93m
EarningsUK£8.55m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.20
Gross Margin20.51%
Net Profit Margin5.76%
Debt/Equity Ratio0.0%

How did CGS perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

83%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CGS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA5x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

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

CGS PE Ratio vs Peers
The above table shows the PE ratio for CGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.9x
APF Anglo Pacific Group
13.4x-29.4%UK£416.6m
HILS Hill & Smith Holdings
18.9x7.4%UK£931.4m
FXPO Ferrexpo
3.5x3.3%UK£850.3m
SML Strategic Minerals
43xn/aUK£5.0m
CGS Castings
16.3x12.7%UK£139.4m

Price-To-Earnings vs Peers: CGS is good value based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (19.7x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: CGS is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the UK Metals and Mining industry average (6.2x)


Price to Earnings Ratio vs Fair Ratio

What is CGS'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.

CGS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.3x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: CGS is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).


Share Price vs Fair Value

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

Below Fair Value: CGS (£3.2) is trading below our estimate of fair value (£9.03)

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


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGS's forecast earnings growth (12.7% per year) is above the savings rate (0.9%).

Earnings vs Market: CGS's earnings (12.7% per year) are forecast to grow faster than the UK market (9.8% per year).

High Growth Earnings: CGS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CGS's revenue (4.5% per year) is forecast to grow slower than the UK market (4.6% per year).

High Growth Revenue: CGS's revenue (4.5% 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


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Past Performance

How has Castings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CGS has high quality earnings.

Growing Profit Margin: CGS's current net profit margins (5.8%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: CGS's earnings have declined by 13% per year over the past 5 years.

Accelerating Growth: CGS's earnings growth over the past year (106.1%) exceeds its 5-year average (-13% per year).

Earnings vs Industry: CGS earnings growth over the past year (106.1%) exceeded the Metals and Mining industry 9.8%.


Return on Equity

High ROE: CGS's Return on Equity (6.5%) is considered low.


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Financial Health

How is Castings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CGS's short term assets (£102.0M) exceed its short term liabilities (£28.5M).

Long Term Liabilities: CGS's short term assets (£102.0M) exceed its long term liabilities (£5.2M).


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


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CGS's dividend (5.07%) is higher than the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: CGS's dividend (5.07%) is low compared to the top 25% of dividend payers in the UK market (5.13%).


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (82.8%), CGS's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (117.8%), CGS's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

10.3yrs

Average board tenure


CEO

Adam Vicary (54 yo)

5.42yrs

Tenure

UK£376,000

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 ($USD452.91K) is below average for companies of similar size in the UK market ($USD711.48K).

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 seasoned and experienced ( 10.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CGS 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£139.386m
  • Shares outstanding: 43.56m
  • 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 Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.