Coral Products (CRU) AI Stock Analysis

• Market Cap: £6.23M
• Dividend Yield: 7.14%
• Average Volume (3M): 87.10K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.49
• Revenue Growth: -14.90%
• EPS Growth: -329.10%
• Country: UK
• Employees: 179
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Packaging & Containers
• EPS (TTM): -0.03
• Shares Outstanding: 89,032,700
• 10 Day Avg. Volume: 103,304
• 30 Day Avg. Volume: 87,102
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Coral Products' overall score reflects a balance of financial challenges and positive future prospects. Key weaknesses include declining revenue and profitability, as well as high leverage. However, improvements in cash flow management and positive corporate events, such as insider share purchases and strategic acquisitions, provide optimism. Technical indicators show moderate upward momentum, while the attractive dividend yield offers some compensation for the current valuation concerns.

Coral Products Business Overview & Revenue Model

Company Description

Coral Products (CRU) is a UK-based company that specializes in the design, manufacture, and supply of plastic injection, extruded, and blow-moulded products. Operating within the packaging and storage solutions sectors, Coral Products serves a broad range of industries, including food and beverage, personal care, automotive, and telecommunications. The company's core offerings include containers, lids, and caps, as well as custom plastic solutions tailored to specific client needs.

How the Company Makes Money

Coral Products generates revenue primarily through the sale of its plastic products to a diverse client base. Its key revenue streams are derived from contracts and purchase orders from companies in various industries that require specialized packaging and storage solutions. The company benefits from its ability to offer custom manufacturing services, which allows it to cater to niche markets and build long-term relationships with clients. Additionally, Coral Products may engage in strategic partnerships or collaborations with other businesses to enhance its product offerings or expand its market reach, though specific details on such partnerships are not provided.

Coral Products Financial Statement Overview

Summary

Coral Products faces challenges with declining revenue and profitability, reflected in negative net income and lower margins. Despite these issues, the company has shown improvement in cash flow management, with a significant increase in free cash flow. The balance sheet remains leveraged, with rising debt levels impacting financial stability.

Income Statement

Coral Products has experienced a significant decline in revenue from 2023 to 2024, decreasing by approximately 12%. Gross profit margin improved slightly from 28.3% in 2023 to 34.4% in 2024, indicating better cost management. However, the company faced a negative net profit margin of -2.9% in 2024 due to a net loss, contrasting with a positive margin of 3.6% in 2023. EBIT and EBITDA margins also declined, highlighting reduced operational efficiency.

Balance Sheet

The company exhibits a relatively high debt-to-equity ratio, rising to 0.93 in 2024 from 0.85 in 2023, indicating increased leverage. Return on Equity (ROE) dropped to -7.4% in 2024, reflecting the net loss and reduced profitability. The equity ratio slightly decreased from 40.8% to 40.6%, maintaining some stability in the capital structure despite financial challenges.

Cash Flow

Free cash flow improved significantly, with a positive growth rate of 81.4% from 2023 to 2024. Operating cash flow turned positive in 2024, improving from a negative cash flow in 2023, indicating better cash management. However, the free cash flow to net income ratio remains negative due to the net loss, highlighting concerns in generating free cash flow relative to earnings.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
30.99M	35.22M	14.39M	10.71M	8.70M
	Gross Profit
10.68M	9.96M	4.96M	3.52M	2.63M
	EBIT
74.00K	1.84M	1.19M	488.00K	39.00K
	EBITDA
1.97M	3.52M	2.00M	1.23M	1.65M
	Net Income Common Stockholders
-914.00K	1.26M	967.00K	-658.00K	-821.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.01M	4.77M	7.59M	3.84M	453.00K
	Total Assets
30.17M	33.91M	17.61M	17.94M	24.70M
	Total Debt
11.44M	11.80M	2.71M	2.85M	6.68M
	Net Debt
9.43M	7.03M	-4.88M	-996.00K	6.22M
	Total Liabilities
17.90M	20.06M	5.90M	5.20M	12.59M
	Stockholders Equity
12.27M	13.85M	11.71M	12.74M	12.11M
Cash Flow		Free Cash Flow
-662.00K	-3.57M	2.46M	1.27M	2.13M
	Operating Cash Flow
1.48M	-1.49M	2.67M	1.72M	2.45M
	Investing Cash Flow
-2.16M	-6.39M	3.29M	6.38M	-322.00K
	Financing Cash Flow
-2.08M	5.06M	-2.21M	-4.71M	-1.65M

Coral Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRU, the sentiment is Negative. The current price of 7 is below the 20-day moving average (MA) of 7.07, above the 50-day MA of 6.52, and below the 200-day MA of 7.89, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 40.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRU.

Coral Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRU	65 Neutral	£6.23M	―	-21.69%	7.14%	-14.90%	-329.10%
MNDI	62 Neutral	£5.04B	27.53	4.17%	5.21%	-1.55%	-65.03%
Sector *	61 Neutral	$6.66B	11.71	2.96%	4.01%	2.64%	-20.91%

Coral Products Corporate Events

Coral Products Directors Increase Shareholdings

Coral Products plc announced that directors Ian Hillman and Paul Rice have purchased additional ordinary shares in the company, with Hillman acquiring 70,000 shares and Rice acquiring 89,169 shares. This move indicates a potential increase in confidence from the management in the company’s future prospects and could have implications for investor sentiment and market perception.

Coral Products Chairman Increases Stake in Company

Coral Products plc announced that Joe Grimmond, the Non-Executive Chairman, has purchased 100,000 ordinary shares at 7.4 pence each, increasing his beneficial interest to 7.53% of the company’s issued share capital. This transaction, deemed inside information under UK MAR, highlights Grimmond’s confidence in the company’s future prospects and could influence market perceptions and stakeholder decisions.

Coral Products Expands with Acquisition of Arrow Film Converters

Coral Products plc has acquired the business and certain assets of Arrow Film Converters Limited for £502,899 in cash through its subsidiary, Film & Foil Solutions Limited. This acquisition enhances Coral’s capabilities in the flexible packaging sector and aligns with its medium-term production goals, while also integrating Arrow’s workforce and maintaining operations at the Castleford facility.

Coral Products Secures New Supply Agreement and Boosts Manufacturing Efficiency

Coral Products plc has announced a three-year exclusive supply agreement through its subsidiary, Tatra Rotalac Limited, with a leading UK distributor for ice cream and food containers, expected to generate annual sales of £1.5 million to £2.0 million. Additionally, the company has completed the commissioning of in-house manufacturing for ECODECK floor grids, enhancing operational efficiency and resilience, and is projected to positively impact margins and cash flow.

Coral Products Secures Three-Year Contract Renewal with Telecom Giant

Coral Products plc announced the renewal of a three-year supply contract with a major international telecommunications group, secured by its subsidiary Tatra Rotalac Limited. The contract, which does not guarantee sales volumes, is expected to generate an aggregate turnover of approximately £12m to £15m by March 2028, reflecting the company’s competitive positioning in the international market.

Coral Products COO Increases Stake in Company

Coral Products plc announced that its Group Chief Operating Officer, Ian Hillman, has purchased 162,000 ordinary shares, increasing his beneficial interest to 5.62% of the company’s issued share capital. This transaction, considered inside information under UK MAR, may indicate confidence in the company’s future prospects and could impact stakeholder perceptions positively.

Coral Products Finance Director Increases Stake in Company

Coral Products plc announced that Paul Rice, the Group Finance Director, has purchased 93,672 ordinary shares in the company at 5.5 pence per share, representing 0.11% of the company’s issued share capital. This transaction, considered inside information under UK MAR regulations, may indicate confidence in the company’s future prospects and could impact stakeholder perceptions positively.

Coral Products Chairman Increases Stake with New Share Purchase

Coral Products plc announced that its Non-Executive Chairman, Joe Grimmond, has purchased 15,000 ordinary shares in the company, increasing his stake to 7.42% of the company’s issued share capital. This transaction highlights the chairman’s confidence in the company’s prospects, which may positively influence stakeholder sentiment and affirm the company’s position in the market.

Coral Products Strengthens Financial Position and Executive Team with Strategic Moves

Coral Products plc announced the completion of a Sale and Leaseback transaction for two freehold properties, generating gross proceeds of £1.7 million to reduce debt and strengthen working capital. Additionally, Paul Rice was appointed as Group Finance Director following compliance checks, enhancing the company’s executive team.

Coral Products Appoints New Financial Adviser and Broker

Coral Products plc has announced the appointment of Cairn Financial Advisers LLP as its new nominated adviser and sole broker, effective immediately. This strategic change is expected to enhance the company’s advisory and brokerage capabilities, potentially impacting its operations and positioning within the industry.