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Castings
(LSE:CGS)
Select Model
Select Model
Rating:72Outperform
Price Target:
300.00 p
▲(0.67% 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
Very low leverage
A conservatively financed balance sheet gives Castings resilience through industrial cyclicality and preserves financial flexibility. Minimal debt limits interest and refinancing pressure, while substantial stable equity supports continued investment and the ability to withstand weaker operating periods.
Negative Factors
Declining revenue trend
A two-year revenue decline is a durable concern because it points to weaker demand or reduced business activity rather than merely an isolated earnings fluctuation. Continued top-line pressure could limit operating leverage, constrain investment capacity, and make the recent profit recovery harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
A conservatively financed balance sheet gives Castings resilience through industrial cyclicality and preserves financial flexibility. Minimal debt limits interest and refinancing pressure, while substantial stable equity supports continued investment and the ability to withstand weaker operating periods.
Read all positive factors
Castings (CGS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£118.30M
Dividend Yield6.76%
Average Volume (3M)24.24K
Price to Earnings (P/E)15.7
Beta (1Y)0.02
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. Volume31,016
30 Day Avg. Volume24,236
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)£179.99M
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
287.18
Negative
299.50
Negative
275.35
Negative
Market Momentum
-4.25
Negative
45.37
Neutral
58.16
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 275.80, above the 50-day MA of 287.18, and above the 200-day MA of 275.35, indicating a bearish trend. The MACD of -4.25 indicates Negative momentum. The RSI at 45.37 is Neutral, neither overbought nor oversold. The STOCH value of 58.16 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 | £118.30M | 15.67 | 5.98% | 6.76% | -2.11% | 80.71% | |
70 Outperform | £280.68M | 38.38 | 5.57% | 0.66% | 4.43% | 2.67% | |
67 Neutral | £1.55B | 26.93 | 9.30% | 2.55% | 1.68% | 111.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £6.59B | 25.06 | 13.45% | 1.65% | 5.84% | -14.62% | |
61 Neutral | £721.44M | 39.19 | 5.79% | 4.67% | -5.58% | -32.73% | |
60 Neutral | £1.10B | 27.64 | 34.20% | 6.70% | ― | ― |
* Industrials Sector Average
GB:CGS
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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...
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.