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Castings
(LSE:CGS)
Select Model
Select Model
Rating:72Outperform
Price Target:
336.00 p
▲(12.75% 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
Minimal leverage and substantial, stable equity give Castings resilience through industrial cyclicality. The low debt burden preserves financial flexibility for investment, capacity expansion, dividends or buybacks while limiting refinancing risk.
Negative Factors
Declining revenue
A two-year top-line decline signals weaker underlying demand despite operational improvements. Continued softness in European heavy trucks or uncertainty in the U.S. could limit utilization, dilute fixed-cost absorption and constrain sustainable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Minimal leverage and substantial, stable equity give Castings resilience through industrial cyclicality. The low debt burden preserves financial flexibility for investment, capacity expansion, dividends or buybacks while limiting refinancing risk.
Read all positive factors
Castings (CGS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£131.35M
Dividend Yield6.17%
Average Volume (3M)54.92K
Price to Earnings (P/E)17.4
Beta (1Y)0.08
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. Volume24,213
30 Day Avg. Volume54,924
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)£181.10M
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 Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £272.55M | 35.38 | 6.13% | 0.68% | 3.36% | 63.32% | |
72 Outperform | £131.35M | 17.40 | 5.98% | 6.17% | -2.11% | 80.71% | |
67 Neutral | £1.61B | 27.90 | 9.30% | 2.43% | 1.68% | 111.96% | |
65 Neutral | £7.03B | 26.71 | 13.45% | 1.53% | 5.84% | -14.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £1.51B | 37.90 | 34.20% | 4.04% | 24.42% | 103.25% | |
61 Neutral | £682.74M | 37.09 | 5.79% | 4.93% | -5.58% | -32.73% |
* Industrials Sector Average
GB:CGS
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19.44%
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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....
Executive/Board ChangesRegulatory Filings and Compliance
Castings executives exercise options as company updates voting rights
Neutral
Jul 1, 2026
Castings plc, a leading supplier of iron castings and machined components to European heavy truck manufacturers and other industrial sectors, has reported the exercise of share options by senior executives under its 2020 Restricted Share Plan. The...
Business Operations and StrategyDividendsFinancial Disclosures
Castings Doubles Profit as New Foundry Capacity Positions Group for Growth
Positive
Jun 17, 2026
Castings reported a 2.1% decline in group revenue to £173.2m for the year to 31 March 2026, reflecting subdued heavy truck demand in Europe and ongoing uncertainty in the U.S., but operating profit more than doubled to £10.0m as the busi...
Business Operations and StrategyFinancial Disclosures
Castings PLC Sets Date for Full-Year 2026 Results
Neutral
Jun 2, 2026
Castings PLC, a leading UK iron casting and machining specialist, focuses on supplying high-mix, low-volume components to European heavy truck manufacturers and other industrial sectors, supported by substantial foundry capacity and advanced autom...
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.