Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Castings P.L.C. is a market-leading iron casting and machining group based in the United Kingdom, with operations dating back to 1835. The company specializes in producing high-quality ductile iron, spheroidal graphite (SG) iron, austempered ductile iron (ADI), SiMo, and Ni-resist castings ranging from 0.15 kg to 7 tonnes, supported by a foundry capacity of 70,000 tonnes per annum. It operates through two primary segments: Foundry operations, which generate the majority of revenue, and Machining operations. Facilities include foundries in Brownhills (West Midlands), Dronfield (Derbyshire), and Scunthorpe, alongside CNC Speedwell machining in Brownhills. Castings P.L.C. serves key sectors such as commercial vehicles, automotive, and others, with significant revenue from Sweden, the UK, Netherlands, rest of Europe, North and South America, and international markets. Certified to IATF16949, ISO9001, and ISO14001 standards, the group employs over 1,100 people and emphasizes investment in advanced technologies and processes for medium-batch, high-volume production, positioning it as a vital supplier in the specialty industrial machinery industry.
£3.30
£0.04 (-1.20%)
EOD Jul 3, 2026
Operating margin is thin at 5.75%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 2.1% YoY. The question is whether this is cyclical or a structural shift.
Even for strong businesses, today's 19x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
19.1x earnings, 14.1x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£173M
▼ -2.1% YoY
Net Income (TTM)
£8M
▲ +80.9% YoY
Op. Margin
5.75%
▲ +3.1pp YoY
ROIC
5.64%
▲ +3.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
£10M
▲ +235.4% YoY
Op. Cash Flow (TTM)
£23M
▲ +347.7% YoY
Net Debt
-£15M
Net Cash Position
Cash & Equiv.
£17M
3Y CAGR: -4.8%
3Y CAGR: -9.3%
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At a P/E of 19.1 and a price-to-free-cash-flow of 14.1, Castings P.L.C. (CGS.XLON) trades below a two-stage DCF intrinsic value of about £7.37 per share, so at £3.30 the stock looks undervalued (123.3% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Castings P.L.C. scores 41/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 5.6%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £7.37 per share for CGS.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £5.53. At today's £3.30, that puts the stock about 123.3% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Castings P.L.C. scores 41 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 5.8% operating margin and a 5.6% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Castings P.L.C. pays a regular dividend of about £0.18 per share per year (typically in quarterly installments), a yield of roughly 5.6% at the current price. That is a payout ratio of about 105.9% of earnings, so the dividend is stretched at this level. Castings P.L.C. has grown the dividend at roughly 4.5% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For CGS.XLON's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. CGS.XLON currently trades below its estimated intrinsic value and scores 41/100 on quality (mixed). It also yields about 5.6%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.