| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 46.72 | 434 |
| Intrinsic value (DCF) | 9.07 | 4 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.03 | -100 |
Coral Products plc (CRU.L) is a UK-based manufacturer and distributor of plastic injection, extruded, and vacuum-formed products, serving diverse sectors including personal care, household, healthcare, automotive, telecoms, and rail. Headquartered in Wythenshawe, the company operates as a trade molder and also distributes specialized packaging components such as trigger sprays, nozzles, lotion pumps, and aerosol caps. With a presence in the UK, Europe, and international markets, Coral Products leverages its expertise in plastic fabrication to provide customized solutions for industrial and consumer applications. The company’s broad product portfolio and sector diversification position it as a key player in the packaging and containers industry, catering to both B2B and B2C demand. Despite challenges in profitability, Coral Products maintains a niche in high-value plastic components, supported by its manufacturing capabilities and distribution network.
Coral Products plc presents a mixed investment case. On the positive side, its diversified client base across multiple industries provides revenue stability, while its specialized plastic manufacturing capabilities offer a competitive edge in niche markets. The company’s low beta (0.399) suggests lower volatility relative to the broader market, which may appeal to risk-averse investors. However, the company reported a net loss of £914,000 in the latest fiscal year, with negative diluted EPS (-0.0102), raising concerns about profitability. Operating cash flow (£1.48M) is overshadowed by significant capital expenditures (£2.15M), indicating ongoing investment but straining liquidity. The dividend yield (1p per share) offers modest income, but high total debt (£11.44M) relative to cash reserves (£2.01M) could limit financial flexibility. Investors should weigh its sector diversification against operational inefficiencies and debt levels.
Coral Products plc competes in the fragmented plastic packaging and components market, where differentiation hinges on manufacturing expertise, customization, and cost efficiency. The company’s strength lies in its diversified product range and ability to serve multiple industries, reducing dependency on any single sector. Its trade molder operations provide steady demand from UK-based clients, while its distribution network for specialized packaging components (e.g., trigger sprays) adds value. However, Coral Products faces intense competition from larger global players with greater economies of scale and broader geographic reach. Its profitability challenges (-£914K net income) suggest inefficiencies in cost management or pricing power. The company’s competitive positioning is further strained by high capital expenditures, which may not immediately translate into revenue growth. To sustain competitiveness, Coral Products must focus on operational efficiency, debt reduction, and leveraging its niche expertise in high-margin plastic solutions. Its smaller size limits R&D and expansion capabilities compared to multinational peers, but agility in serving specialized markets remains a potential advantage.