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Castings
(LSE:CGS)
Select Model
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Rating:72Outperform
Price Target:
301.00 p
▲(1.01% Upside)
Action:Reiterated
Date:08/24/26
The score is driven mainly by strong underlying financial health (low leverage plus a FY2026 rebound in profit and cash flow) and supportive recent corporate updates. These positives are tempered by the recent revenue decline and only mixed technical momentum, while valuation is reasonable and supported by a high dividend yield.
Positive Factors
Conservative Balance Sheet
Very low leverage and substantial, stable equity provide financial resilience through business cyclicality. The limited debt burden preserves flexibility to fund operations, invest in capacity, or withstand weaker demand without heavy interest or refinancing pressure.
Negative Factors
Declining Revenue
The reversal from multi-year revenue growth to declines in FY2025 and FY2026 is a durable concern because it can limit operating leverage and constrain future earnings expansion. Continued top-line weakness would make the recent profit rebound harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage and substantial, stable equity provide financial resilience through business cyclicality. The limited debt burden preserves flexibility to fund operations, invest in capacity, or withstand weaker demand without heavy interest or refinancing pressure.
Read all positive factors
Castings (CGS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£120.91M
Dividend Yield6.79%
Average Volume (3M)38.08K
Price to Earnings (P/E)15.6
Beta (1Y)0.05
Revenue Growth-2.11%
EPS Growth80.71%
CountryUK
Employees1,041
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.17
Shares Outstanding43,493,810
10 Day Avg. Volume22,943
30 Day Avg. Volume38,080
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)0.79
Price to Sales (P/S)0.58
P/FCF Ratio9.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£390.00Price Target Upside30.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.22
Revenue Forecast (FY)£181.09M
Castings Business Overview & Revenue Model
Company Description
Castings P.L.C. is a long-established company specializing in the production of iron castings and precision machining. Its operations are structured around two key divisions: Foundry Operations and Machining Operations. The company manufactures a ...
Castings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
71
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 173.23M | 176.97M | 224.41M | 200.99M | 148.58M |
| Gross Profit | 31.27M | 27.49M | 43.29M | 38.91M | 30.48M |
| EBITDA | 18.27M | 14.63M | 28.61M | 25.36M | 20.62M |
| Net Income | 7.55M | 4.17M | 16.72M | 13.79M | 8.55M |
Balance Sheet | |||||
| Total Assets | 164.95M | 168.27M | 174.06M | 174.43M | 165.19M |
| Cash, Cash Equivalents and Short-Term Investments | 17.39M | 15.56M | 32.53M | 35.57M | 35.74M |
| Total Debt | 2.15M | 2.13M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 37.68M | 40.83M | 40.06M | 42.77M | 33.70M |
| Stockholders Equity | 127.27M | 127.44M | 133.99M | 131.66M | 131.50M |
Cash Flow | |||||
| Free Cash Flow | 10.18M | -7.62M | 10.96M | 13.66M | 6.02M |
| Operating Cash Flow | 24.02M | 12.14M | 20.55M | 19.86M | 10.40M |
| Investing Cash Flow | -14.07M | -18.06M | -8.98M | -6.20M | -3.97M |
| Financing Cash Flow | -8.12M | -11.04M | -14.61M | -13.83M | -6.78M |
Castings Technical Analysis
Negative
298.00
Price Trends
296.58
Negative
298.99
Negative
274.21
Negative
Market Momentum
-6.87
Positive
39.33
Neutral
23.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CGS, the sentiment is Negative. The current price of 298 is above the 20-day moving average (MA) of 286.55, above the 50-day MA of 296.58, and above the 200-day MA of 274.21, indicating a bearish trend. The MACD of -6.87 indicates Positive momentum. The RSI at 39.33 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CGS.
Castings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £120.91M | 15.61 | 5.98% | 6.79% | -2.11% | 80.71% | |
70 Outperform | £276.98M | 37.88 | 5.57% | 0.68% | 4.43% | 2.22% | |
67 Neutral | £1.54B | 26.78 | 9.30% | 2.56% | 1.68% | 111.96% | |
65 Neutral | £6.87B | 25.10 | 13.45% | 1.64% | 5.84% | -14.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £764.29M | 40.54 | 5.79% | 4.60% | -5.58% | -32.73% | |
60 Neutral | £1.04B | 26.84 | 34.20% | 6.89% | 24.42% | 103.25% |
* Industrials Sector Average
GB:CGS
Castings
271.00
34.24
14.46%
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Castings Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and ComplianceShareholder Meetings
Castings Wins Shareholder Backing for Capital Flexibility at AGM
Positive
Aug 20, 2026
Castings plc has confirmed that all resolutions proposed at its annual general meeting were approved by shareholders, underscoring broad investor support for the board’s agenda and governance measures. The company will publish detailed proxy...
Business Operations and StrategyFinancial Disclosures
Castings PLC Sees Demand Recovery as It Manages Operational Headwinds
Positive
Aug 20, 2026
Castings PLC reports improving order books and forward schedules from its traditional European heavy truck customer base as well as new business linked to wind energy, highlighting stronger demand across core and adjacent markets. This trend under...
Regulatory Filings and Compliance
Castings finance director completes neutral Bed & ISA share transaction
Neutral
Jul 23, 2026
Castings plc has disclosed a routine share dealing by finance director Steve Mant, who executed a Bed ISA transaction involving 6,006 ordinary shares on the London Stock Exchange. The transactions comprised a sale and near-equivalent repurchase, ...
Business Operations and StrategyExecutive/Board Changes
Castings awards restricted share options to top executives
Positive
Jul 9, 2026
Castings plc has awarded nominal value share options over 50,780 ordinary shares to its chief executive officer, Adam Vicary, and finance director, Steven Mant, under the Castings 2020 Restricted Share Plan. The options, which account for about 0....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.