Carclo plc (CAR) AI Stock Analysis

• Market Cap: £20.89M
• Dividend Yield: N/A
• Average Volume (3M): 160.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -8.33%
• EPS Growth: 74.38%
• Country: UK
• Employees: 1,059
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Parts
• EPS (TTM): -0.02
• Shares Outstanding: 73,419,190
• 10 Day Avg. Volume: 114,421
• 30 Day Avg. Volume: 160,038
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.13
• Price to Cash Flow (P/CF): 1.00
• 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

Carclo plc's overall stock score is mainly affected by significant financial challenges such as high leverage and declining revenues, which weigh heavily on its prospects. Technical analysis suggests some short-term stability, but the valuation remains poor due to negative earnings. The recent refinancing and appointment of a new CFO offer a positive outlook for potential improvement in financial stability.

Carclo plc Business Overview & Revenue Model

Company Description

Carclo plc is a leading technology-led plastics company headquartered in the United Kingdom. It operates primarily in the medical, optics, and aerospace sectors, providing high-precision injection molded plastic components and products. The company is known for its advanced engineering and manufacturing capabilities, offering services that range from design and development to full-scale production for a diverse range of industries.

How the Company Makes Money

Carclo plc generates revenue through its three main divisions: Technical Plastics, LED Technologies, and Aerospace. The Technical Plastics division is the primary source of income, focusing on the production of high-precision plastic components for medical and industrial applications. This division serves clients who require complex and high-tolerance parts, which are essential in the manufacture of diagnostic devices, medical equipment, and other industrial applications. The LED Technologies division offers products and solutions related to LED lighting and optics, catering to both automotive and consumer electronics markets. The Aerospace division provides manufacturing solutions for the aerospace industry, including the production of control cables and other components. Carclo plc's revenue model is heavily reliant on long-term contracts and partnerships with leading companies in these sectors, ensuring a stable and recurring income stream. The company's focus on high-quality, specialized manufacturing allows it to maintain a competitive edge and secure significant business relationships.

Carclo plc Financial Statement Overview

Summary

Carclo plc faces several financial challenges, including declining revenues, profitability pressures, and high leverage, which pose risks to financial stability. Despite some improvements in cash flow, the overall financial position remains weak.

Income Statement

Carclo plc's income statement shows declining revenue growth with a negative net income trend over recent years, impacting profitability. Gross profit margin is relatively stable, but the EBIT and EBITDA margins have declined, indicating efficiency challenges.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio suggesting significant risk. The company's equity has declined substantially, reducing the equity ratio, indicating financial vulnerability.

Cash Flow

Carclo plc's cash flow performance is mixed, with recent improvements in free cash flow. However, the operating cash flow to net income ratio is volatile, highlighting inconsistencies in cash flow relative to earnings.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
132.67M	143.44M	128.58M	107.56M	110.51M
	Gross Profit
72.10M	25.86M	27.87M	25.09M	33.75M
	EBIT
1.79M	4.12M	6.31M	5.58M	6.99M
	EBITDA
10.15M	12.15M	15.28M	14.51M	8.06M
	Net Income Common Stockholders
-3.30M	-3.96M	5.80M	7.41M	-8.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.97M	10.35M	12.35M	15.48M	19.31M
	Total Assets
100.94M	122.67M	128.20M	116.02M	118.50M
	Total Debt
35.43M	44.71M	44.75M	43.08M	46.67M
	Net Debt
29.46M	34.36M	32.41M	27.60M	27.36M
	Total Liabilities
97.28M	111.07M	103.78M	108.11M	109.77M
	Stockholders Equity
3.69M	11.63M	24.44M	7.94M	8.76M
Cash Flow		Free Cash Flow
7.33M	1.57M	-1.89M	1.12M	10.88M
	Operating Cash Flow
10.37M	3.99M	3.05M	8.44M	19.41M
	Investing Cash Flow
-2.40M	-1.03M	-4.23M	-6.05M	-825.00K
	Financing Cash Flow
-12.14M	-4.67M	-2.49M	5.05M	-3.13M

Carclo plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CAR, the sentiment is Positive. The current price of 28.45 is above the 20-day moving average (MA) of 24.71, above the 50-day MA of 23.55, and above the 200-day MA of 28.44, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 70.06 is Negative, neither overbought nor oversold. The STOCH value of 61.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CAR.

Carclo plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BREE	77 Outperform	£1.55B	15.97	8.44%	3.12%	5.97%	-9.81%
SMIN	76 Outperform	£6.13B	20.42	13.99%	2.41%	6.10%	33.05%
MGNS	74 Outperform	£1.59B	12.03	21.67%	3.53%	10.41%	11.04%
SFR	68 Neutral	£66.98M	22.90	1.55%	16.23%	6.00%	-84.54%
Sector *	60 Neutral	$6.86B	11.61	3.16%	4.15%	2.41%	-21.45%
CAR	49 Neutral	£20.89M	―	-44.37%	―	-8.33%	74.38%

Carclo plc Corporate Events

Carclo plc Secures New Refinancing and Pension Scheme Agreement

Carclo plc has secured new refinancing arrangements with BZ Commercial Finance DAC, including a £27m Term Loan and a £9m Revolving Credit Facility, replacing its existing facility with an increased margin. Additionally, Carclo has agreed on a revised funding schedule for its pension scheme, reducing its actuarial deficit from £82.8m in 2021 to £64.5m in 2024. This financial restructuring is expected to strengthen Carclo’s operational capabilities and support its strategic growth, enhancing value for stakeholders.

Spark’s Take on GB:CAR Stock

According to Spark, TipRanks’ AI Analyst, GB:CAR is a Neutral.

Carclo plc’s overall stock score reflects significant financial challenges, including high leverage and declining revenues, which weigh heavily on its prospects. While technical indicators suggest some short-term stability, the company’s valuation remains poor due to negative earnings. The appointment of a new CFO offers potential for improvement, but substantial strategic changes are necessary for long-term success.

To see Spark’s full report on GB:CAR stock, click here.

Carclo plc Announces Change in Voting Rights

Carclo plc, a UK-based company, has announced a change in its voting rights structure following an acquisition or disposal by First Equity Limited. The notification indicates that First Equity Limited’s voting rights in Carclo plc have decreased from 4.161037% to 3.650272%, with a total of 2,680,000 voting rights now held. This adjustment in voting rights may impact Carclo plc’s governance and decision-making processes, influencing its strategic direction and potentially affecting shareholder interests.

Carclo plc Sees Increased Stake by First Equity Limited

Carclo plc, a UK-based company, announced a change in the major shareholding of First Equity Limited, which now holds 4.161037% of the voting rights, up from a previous 3.221229%. This change in voting rights, reported on February 18, 2025, highlights an increased stake in Carclo plc, potentially impacting company decisions and signaling confidence in its future prospects.

Carclo plc Appoints Ian Tichias as New CFO

Carclo plc has announced the appointment of Ian Tichias as its new Chief Financial Officer, succeeding Eric Hutchinson, who will retire on 31 March 2025. Ian, with a strong track record in financial leadership and turnaround expertise from his tenure at Xaar PLC, is expected to contribute significantly to Carclo’s ongoing growth and stability in the manufacturing sector.