olivLaw · European equity research
Castings P.L.C. CGS.L
United Kingdom · London Stock Exchange · ISIN GB0001795680 · Vertical: Listed companies from United Kingdom
Castings P.L.C. is a UK iron casting and machining group that supplies mainly heavy commercial vehicle makers in Europe. In fiscal 2026 revenue fell slightly while operating profit rose sharply, and a new foundry line at William Lee could change the group's capacity structure.
At the close of 05 Nov 2026, Castings P.L.C. (CGS.L) stock was 2.79 GBP (+0.00% on the day), with market capitalisation 121.3 m GBP, P/E 16.2 on diluted EPS of 0.17 GBP over the last 12 months, dividend yield 6.59%, beta 0.30, 52-week range 2.25–3.38 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 51.1
- neutral
- Bollinger (20, 2)
- 2.64 – 2.86
- in the upper half of the band · %B 0.68 · band width 8.1%
- SMA 50 / 200
- 2.85 / 2.83
- mixed trend
- MACD (12, 26, 9)
- -0.03 / -0.04
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.4% | −0.6% | +1.0 pp | — |
| 3 months | −5.4% | −4.2% | −1.3 pp | — |
| 6 months | +7.1% | +4.3% | +2.8 pp | — |
| Year to date | +2.6% | +7.5% | −4.9 pp | — |
| 1 year | +16.3% | +9.9% | +6.3 pp | +5.8% |
| 3 years | −23.1% | +49.8% | −73.0 pp | +26.3% |
| 5 years | −21.6% | +42.8% | −64.5 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 75 percentile of its own 4-quarter history (min 8.6, median 12.2, max 26.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|
| Revenue | 201.0 m | 224.4 m | 177.0 m | 173.2 m |
| Revenue YoY | unavailable | +11.7% | −21.1% | −2.1% |
| Net income | 13.8 m | 16.7 m | 4.2 m | 7.5 m |
| Net income YoY | unavailable | +21.3% | −75.0% | +80.9% |
| Diluted EPS | 0.32 | 0.38 | 0.10 | 0.17 |
| Diluted EPS YoY | unavailable | +21.3% | −75.1% | +80.4% |
| net % | 6.9% | 7.5% | 2.4% | 4.4% |
| Free cash flow | 13.6 m | 11.0 m | -844.0 k | 10.2 m |
Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 17.4 m GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 127.3 m GBP
- Total assets
- 165.0 m GBP
- Debt / equity
- unavailable
- Current ratio
- 3.36x
- ROE
- 5.9%
- ROA
- 4.5%
- FCF margin
- 5.9%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|
| Revenue | 201.0 m | 224.4 m | 177.0 m | 173.2 m | esef· 02 Sept 2026verified |
| Cost of revenue | 162.1 m | 181.1 m | 149.5 m | 142.0 m | esef· 02 Sept 2026verified |
| Gross profit | 38.9 m | 43.3 m | 27.5 m | 31.3 m | esef· 02 Sept 2026verified |
| Operating income | 16.4 m | 19.8 m | 4.8 m | 10.0 m | esef· 02 Sept 2026verified |
| Interest expense | — | — | 107.0 k | 179.0 k | esef· 02 Sept 2026verified |
| Pre-tax income | 16.7 m | 21.3 m | 5.6 m | 10.3 m | esef· 02 Sept 2026verified |
| Income tax | 2.9 m | 4.6 m | 1.5 m | 2.8 m | esef· 02 Sept 2026verified |
| Net income | 13.8 m | 16.7 m | 4.2 m | 7.5 m | esef· 02 Sept 2026verified |
| Diluted EPS | 0.32 | 0.38 | 0.10 | 0.17 | esef· 02 Sept 2026verified |
| Dividend per share | 0.31 | 0.33 | 0.25 | 0.18 | esef· 02 Sept 2026derived |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|
| Cash | 35.6 m | 32.5 m | 15.6 m | 17.4 m | esef· 02 Sept 2026verified |
| Receivables | 51.1 m | 46.6 m | 51.7 m | 41.7 m | esef· 02 Sept 2026verified |
| Inventories | 26.1 m | 33.1 m | 32.8 m | 23.5 m | esef· 02 Sept 2026verified |
| Current assets | 113.7 m | 112.3 m | 100.1 m | 84.6 m | esef· 02 Sept 2026verified |
| Property, plant & equipment, net | 60.4 m | 61.8 m | 66.1 m | 78.4 m | esef· 02 Sept 2026verified |
| Total assets | 174.4 m | 174.1 m | 168.3 m | 165.0 m | esef· 02 Sept 2026verified |
| Current liabilities | 37.1 m | 34.0 m | 31.9 m | 25.2 m | esef· 02 Sept 2026verified |
| Total liabilities | 42.8 m | 40.1 m | 40.8 m | 37.7 m | esef· 02 Sept 2026verified |
| Equity | 131.7 m | 134.0 m | 127.4 m | 127.3 m | esef· 02 Sept 2026verified |
| Shares outstanding at year end | 43.6 m | 43.5 m | 43.5 m | 43.5 m | esef· 02 Sept 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|
| Operating cash flow | 19.8 m | 20.5 m | 12.2 m | 24.0 m | esef· 02 Sept 2026verified |
| Capex | 6.2 m | 9.6 m | 13.1 m | 13.8 m | esef· 02 Sept 2026verified |
| Free cash flow | 13.6 m ≈ | 11.0 m ≈ | -844.0 k ≈ | 10.2 m ≈ | esef· 02 Sept 2026derived |
| Investing cash flow | -6.2 m | -9.0 m | -18.1 m | -14.1 m | esef· 02 Sept 2026verified |
| Financing cash flow | -13.8 m | -14.6 m | -11.1 m | -8.1 m | esef· 02 Sept 2026verified |
| Dividends paid | 13.7 m | 14.2 m | 11.0 m | 8.0 m | esef· 02 Sept 2026verified |
| Share repurchases | 152.0 k | 396.0 k | — | — | esef· 28 Aug 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 59 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 121.3 m GBP
Key indicators
Coverage and freshness
Score by group
- Growth0
- Returns80
- Balance sheet100
- Valuation72
- Quality69
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Neutral profile · Score 59/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 4.4% | 37 (vs peers) | 9% |
| FCF conversion · Quality | 134.9% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | -4.8% | 0 (on a fixed band) | 12% |
| EPS CAGR 3Y · Growth | -18.3% | 0 (on a fixed band) | 12% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 55.7x | 100 (on a fixed band) | 9% |
| Current ratio · Balance sheet | 3.4x | 100 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 16.2x | 50 (vs peers) | 15% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 8.4% | 100 (on a fixed band) | 12% |
| Shareholder yield (distributions) · Returns | 6.6% | 94 (on a fixed band) | 9% |
| Payout ratio (FCF) · Returns | 78.5% | 59 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet100/100 · 2/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality69/100 · 2/3 factors with a value
- Returns80/100 · 2/2 factors with a value
- Valuation72/100 · 2/3 factors with a value
Memo
CASTINGS PUBLIC LIMITED COMPANY (CGS.L). Latest full fiscal year: 2026; data up to 2026-03-31.
Figures computed from the financial statements: revenue 173.2 m GBP in 2026; YoY growth -2.1%; net margin 4.4%; ROE 5.9%.
The estimated value range is 1.88–2.62 GBP per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 2.24 GBP, the price of 2.79 GBP leaves a potential of -19.7% (value / price − 1) and a margin of safety of -24.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 59/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 134.9%
- Interest coverage: 55.7x
- Current ratio: 3.4x
- FCF yield: 8.4%
- Shareholder yield (distributions): 6.6%
What contradicts it
- Revenue CAGR 3Y: -4.8%
- EPS CAGR 3Y: -18.3%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| CGS.LCastings Public Limited Company | 121.3 m | 16.2 | 5.9% | 4.4% | −2.1% | +0% / −27% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for CGS.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 1.50 Total return -42% · Per year -42% | 2.67 Total return 2% · Per year 2% | 4.04 Total return 52% · Per year 52% |
| 3 years | 1.20 Total return -45% · Per year -18% | 2.42 Total return 4% · Per year 1% | 4.06 Total return 67% · Per year 19% |
| 5 years | 0.96 Total return -48% · Per year -12% | 2.19 Total return 5% · Per year 1% | 4.07 Total return 82% · Per year 13% |
- Exit P/E± 0.60
- Net margin± 0.42
- Annual revenue growth± 0.38
- Annual dilution± 0.04
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Castings P.L.C. is a UK iron casting and machining group that supplies mainly heavy commercial vehicle makers in Europe. In fiscal 2026 revenue fell slightly while operating profit rose sharply, and a new foundry line at William Lee could change the group's capacity structure.1
SWOT
Strengths
- The group has a customer base concentrated in commercial vehicles and modern equipment with flexibility in small and medium batch production.
- The company generated solid operating cash flows and has a stable balance sheet that supports strategic investment.
- The new foundry line and larger casting capability extend the product range offered to existing customers.
Weaknesses
- Dependence on a small number of major heavy-truck customers makes revenue sensitive to industry cycles.
- Margins remain modest, and the machining segment's revenue declined.
- The new foundry line initially suffered early-stage inefficiencies, and a power supply restriction limited output in the early part of the new year.
Opportunities
- Rising customer schedules and expansion into wind energy and agriculture could support volumes.
- The new casting capacity could allow quotes for parts previously outside the group's scope.
- If demand in the US market recovers, the group could benefit from its existing positioning there.
Threats
- The transition to electric and hydrogen vehicles could reduce demand for cast iron components.
- Price pressure and production shifts to low-cost suppliers could erode market share.
- Volatile energy and scrap steel prices could affect margins, especially where not covered by contracts.
Risks
- Dependence on the heavy truck markethigh
Revenue is dominated by a cyclical commercial vehicle sector exposed to macroeconomic trends, and demand could change rapidly.
- Customer concentrationhigh
Loss or deterioration of a major customer relationship could have a material impact on results.
- Technological changemedium
The shift to electric and hydrogen vehicles could reduce demand for cast iron powertrain components.
- Energy and commodity costsmedium
Volatility in gas, electricity and steel scrap prices could reduce margins if not mitigated.
- Supply and infrastructure disruptionlow
Reliance on key suppliers and specialist equipment could lead to disruptions that affect on-time delivery.
Investment thesis
What would need to be true (bull case)
- If customer schedules materialise, the expected increase could lift volumes quickly, and the new capacity could support that development.
- Operating profit rose significantly and strong operating cash flow could allow the dividend to be maintained.
- Expansion into larger castings and new sectors could reduce dependence on heavy trucks over time.
What would break the thesis
- Heavy truck demand remains below the normalised level, and a slower recovery could limit revenue growth.
- The shift to electric and hydrogen vehicles could reduce demand for cast iron components over the medium term.
- Early inefficiencies in the new foundry line and power interruptions could weigh on returns if not corrected quickly.
What to watch
- Whether customer schedule increases of 5% - 10% materialise in OEM deliveries2027
- Output performance of the new William Lee foundry linenext 10-K
- Demand trends in the US market after tariff uncertainty2027
- Foundry segment margin and energy cost developmentnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Castings P.L.C. is a UK-based iron casting and machining group with four trading businesses and about 1,000 employees in the UK.1 It operates three iron foundries at Brownhills, Dronfield and Scunthorpe, plus the CNC Speedwell machining operation, producing SG iron, ADI, SiMo and Ni-resist castings.1 Its main customers are original equipment manufacturers in the commercial vehicle sector.1
The business model rests on design collaboration with customers, flexible production of small and medium batches with zero-time changeovers, and invested logistics that manage strict delivery deadlines in domestic and export markets.1 Strategy targets long-term sustainable revenues, above-average margins, higher OEM market share and a strong balance sheet.1
In fiscal 2026 operating profit rose while revenue declined slightly, and operating cash flow was strong, partly helped by inventory reduction.1 The group invested in the new William Lee foundry line and in capacity for larger castings through Ductile Castings in Scunthorpe.1
Market context
The main market is European heavy trucks, which make up over 70% of group revenue; demand remains below the normalised trend, with OEMs estimating European heavy-truck demand about 10% below that level.1 Forward schedules suggest an increase of 5% - 10%, including new wind energy work.1 The US market is affected by tariff uncertainty.1
Europe accounts for nearly three-quarters of group revenue, and 81% of revenue was exported in fiscal 2026.1 The company says it is well positioned to take advantage of any increases in the US market as and when they come through.1
Trends
- Electrification and combustion enginesmixed
Customer investment in electric and hydrogen vehicles could reduce demand for cast iron powertrain parts, which make up about 30% of revenue; the company notes this also creates room to evolve its product offering.1
- Longer diesel engine lifetailwind
Regulatory changes in the USA and EU have deferred emissions targets and extended the lifecycle of diesel engines for heavy commercial vehicles, which could support demand over the medium term.1
- Energy and raw material costsheadwind
Conflicts in the Middle East and Ukraine have made gas and power prices more volatile, and steel scrap availability is affected by steel producers shifting to electric arc furnaces; these could reduce margins if not offset.1
- Transition to green irontailwind
Customers are investing in green iron supply chains with a commitment by 2030, and the group, now fully powered by renewable electricity, could benefit if demand for such parts grows.1
Competitive position
The group reports strong competitive pressure that could lead to lower prices, and some customers move production to low-cost economies.1 The company says it stays competitive through investment in productivity and a focus on customer value.1
Many customers now source common base engine parts and modular chassis components globally, so the group must keep this work in-house against international competition.1 The source does not name US-listed competitors, so no tickers are given.1
- Global heavy-vehicle foundry producers
The source refers to low-cost overseas suppliers as an alternative sourcing option without naming specific companies.
- Low-cost economy suppliers
Customers may shift production to such suppliers, which puts pressure on pricing.
- Aluminium light-weight component makers
Management considers lighter alternative metals as a possible direction for diversification.
- Hydrogen fuel cell system producers
The group sees hydrogen technology as the most likely replacement for heavy-duty trucks, with effects on demand.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202602 Sept 2026
- Annual report 202428 Aug 2024
Sources
- [1] Annual report, fiscal year ended 2026-03-31 (ESEF) · SEC / Castings P.L.C. · 31 Mar 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.