| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2101.35 | -60 |
| Intrinsic value (DCF) | 2087.70 | -60 |
| Graham-Dodd Method | 13.26 | -100 |
| Graham Formula | 31.89 | -99 |
Cranswick plc (LSE: CWK) is a leading UK-based food manufacturer and supplier specializing in fresh pork, poultry, charcuterie, gourmet sausages, cooked meats, and Mediterranean foods. The company serves major grocery retailers, food service providers, and international markets, with brands like Bodega, Cypressa, Ramona's Kitchen, and Vitalin. Cranswick operates across the UK, Continental Europe, and export markets, emphasizing high-quality, sustainable food production. As a key player in the Packaged Foods sector (Consumer Defensive), Cranswick benefits from stable demand, vertical integration, and a diversified product portfolio. The company's focus on innovation, food safety, and ethical sourcing strengthens its reputation among retailers and consumers. With a market cap of £2.88 billion, Cranswick is well-positioned in the competitive UK food industry, supported by strong cash flow and consistent dividend payouts.
Cranswick plc presents a stable investment opportunity in the defensive food sector, with consistent revenue growth (£2.6B in FY2024) and profitability (net income of £113.1M). The company's low beta (0.61) suggests resilience to market volatility, while its dividend yield (~3.2%) appeals to income-focused investors. Risks include exposure to commodity price fluctuations (pork, poultry) and UK retail margin pressures. However, Cranswick's vertical integration, export growth potential, and ESG commitments (e.g., sustainable sourcing) provide competitive insulation. Capital expenditures (£100.5M) indicate ongoing capacity investments, supporting long-term growth. Debt levels (£127.4M) are manageable relative to operating cash flow (£228.4M).
Cranswick competes in the UK packaged foods market through differentiated branding, vertical integration (own pig rearing operations), and retailer partnerships. Its competitive edge lies in premium product categories (gourmet bacon, charcuterie) and private-label manufacturing for major supermarkets. Unlike larger global peers, Cranswick focuses on UK/European fresh food, allowing faster supply chain responsiveness. The company's 'farm-to-fork' control over pork production reduces input cost volatility vs. competitors reliant on third-party suppliers. However, it faces pricing pressure from discount retailers and imported EU meats post-Brexit. Cranswick's export business (~15% of sales) provides diversification, though it trails multinational rivals in emerging markets. ESG initiatives (carbon-neutral eggs, antibiotic-free pork) align with UK retailer sustainability targets, a growing differentiator. Operational efficiency (strong operating margins ~5.5%) compensates for smaller scale vs. global giants.