Castings PLC (CGS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Castings PLC

Trifast Plc

Strategic Minerals Plc

Vulcan Industries Plc

Atlantic Lithium Ltd.

Zanaga Iron Ore Co. Ltd.

Ironveld Plc

Why is Castings PLC ?

Poor Management Efficiency with a low ROE of 7.19%

The company has been able to generate a Return on Equity (avg) of 7.19% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.19%

Poor long term growth as Operating profit has grown by an annual rate 9.08% of over the last 5 years
The company has been able to generate a Return on Equity (avg) of 7.19% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 9.08% of over the last 5 years

Flat results in Mar 26

INTEREST(HY) At GBP 0.11 MM has Grown at 52.86%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.63 times
NET SALES(Q) Lowest at GBP 85.67 MM

With ROE of 3.86%, it has a very attractive valuation with a 1.14 Price to Book Value

Over the past year, while the stock has generated a return of 6.50%, its profits have fallen by -60.1%

Underperformed the market in the last 1 year

The stock has generated a return of 6.50% in the last 1 year, much lower than market (FTSE 100) returns of 18.59%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Castings PLC should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Castings PLC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Castings PLC

6.5%

-0.60

38.85%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.33%

EBIT Growth (5y)

9.08%

EBIT to Interest (avg)

12.34

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.43

Tax Ratio

17.23%

Dividend Payout Ratio

105.99%

Pledged Shares

Institutional Holding

ROCE (avg)

12.26%

ROE (avg)

7.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.14

EV to EBIT

20.88

EV to EBITDA

8.42

EV to Capital Employed

1.16

EV to Sales

0.72

PEG Ratio

Dividend Yield

562.45%

ROCE (Latest)

5.54%

ROE (Latest)

3.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PRE-TAX PROFIT(Q)

At GBP 4.14 MM has Grown at 173.28%

NET PROFIT(Q)

At GBP 3.82 MM has Grown at 247.22%

-10What is not working for the Company

INTEREST(HY)

At GBP 0.11 MM has Grown at 52.86%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.63 times

NET SALES(Q)

Lowest at GBP 85.67 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 7,486.92

RAW MATERIAL COST(Y)

Grown by 7.48% (YoY

Here's what is working for Castings PLC

Pre-Tax Profit

At GBP 4.14 MM has Grown at 173.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 3.82 MM has Grown at 247.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Here's what is not working for Castings PLC

Interest

At GBP 0.11 MM has Grown at 52.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Net Sales

Lowest at GBP 85.67 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (GBP MM)

Interest Coverage Ratio

Lowest at 7,486.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 3.63 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.48% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales