We update our forecasts following last week’s FY19 results; the stock now trades on 13.2x FY20 P/E and offers a 3.4% yield. Our upgraded forecasts see a return to profitability within Machining and a continuation of productivity gains in Foundry. Combined, we forecast an increase in ROCE from 11% to 13% (14% to 17% ex-cash) that is well supported by the dividend or internal investment optionality that the 9.4% FY21 FCF yield and £46.7m FY21 net cash afford. We re-iterate our Buy r
19 Jun 2019
Updated forecasts; 21% EPS growth
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Updated forecasts; 21% EPS growth
Castings Public Limited Company (CGS:LON) | 331 0 0.0% | Mkt Cap: 143.8m
- Published:
19 Jun 2019 -
Author:
Michael White -
Pages:
4
We update our forecasts following last week’s FY19 results; the stock now trades on 13.2x FY20 P/E and offers a 3.4% yield. Our upgraded forecasts see a return to profitability within Machining and a continuation of productivity gains in Foundry. Combined, we forecast an increase in ROCE from 11% to 13% (14% to 17% ex-cash) that is well supported by the dividend or internal investment optionality that the 9.4% FY21 FCF yield and £46.7m FY21 net cash afford. We re-iterate our Buy r