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Crown Holdings (CCK)
NYSE:CCK
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Crown Holdings
(NYSE:CCK)
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Rating:72Outperform
Price Target:
$106.00
â–²(11.98% Upside)
Crown Holdings' strong financial performance and positive earnings call guidance are significant strengths, driving the overall score. However, technical indicators suggest bearish momentum, and high leverage poses a risk, moderating the score.
Positive Factors
Strong Cash Flow Generation
The strong cash flow generation indicates robust operational efficiency and financial health, allowing for reinvestment and shareholder returns.
Growth in Beverage Segments
The growth in beverage segments highlights Crown's strong market position and ability to capitalize on demand, supporting long-term revenue stability.
Increased Full-Year Guidance
Raising guidance reflects management's confidence in sustained performance and strategic execution, enhancing investor confidence in future growth.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, especially if market conditions deteriorate, impacting long-term stability.
Challenges in Asia Pacific
Challenges in Asia Pacific, driven by tariffs, could hinder growth in a key market, affecting overall revenue diversification and expansion efforts.
Potential Tariff Exposure
Tariff exposure poses a risk to profitability and cost structures, potentially impacting margins and competitive positioning in affected regions.
Crown Holdings (CCK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.02B
Dividend Yield1.09%
Average Volume (3M)1.18M
Price to Earnings (P/E)20.0
Beta (1Y)0.48
Revenue Growth2.07%
EPS Growth32.37%
CountryUS
Employees23,000
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)2.15
Shares Outstanding116,375,595
10 Day Avg. Volume1,268,278
30 Day Avg. Volume1,175,923
Financial Highlights & Ratios
PEG Ratio-4.17
Price to Book (P/B)3.58
Price to Sales (P/S)0.84
P/FCF Ratio12.49
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit7.36
Enterprise Value/Ebitda10.15
Forecast
1Y Price Target
$122.91Price Target Upside29.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Crown Holdings Business Overview & Revenue Model
Company DescriptionCrown Holdings, Inc. designs, manufactures, and sells packaging products and equipment for consumer goods and industrial products in the Americas, Europe, and the Asia Pacific. It offers products for consumer goods, including steel and aluminum cans for food and beverage industries. The company also provides products for industrial products, such as steel and plastic strap consumables and equipment, paper-based protective packaging, and plastic film consumables and equipment to metals, food and beverage, construction, agricultural, corrugated, and general industries. In addition, it offers other consumer products, glass bottles for beverage products, steel crowns, aluminum caps, steel strap, plastic strap, industrial film, and other related products, as well as equipment and tools, such as manual, semi-automatic, and automatic equipment and tools used in end of line manufacturing applications to apply industrial solutions consumables. Crown Holdings, Inc. was founded in 1892 and is headquartered in Yardley, Pennsylvania.
How the Company Makes MoneyCrown Holdings generates revenue primarily through the sale of its metal packaging products to a diverse range of customers in the beverage, food, and consumer goods sectors. The company's revenue model is built on several key streams, including the manufacturing and distribution of aluminum and steel cans, closures, and other packaging solutions. Crown benefits from long-term contracts and relationships with major beverage and food brands, which provide a steady demand for its products. Additionally, the company is focused on expanding its product offerings and enhancing its operational efficiencies, which contribute to its profitability. Significant partnerships with global beverage companies also play a crucial role in Crown's earnings, as these relationships often lead to volume commitments and collaborative innovation in packaging design. Furthermore, the increasing emphasis on sustainable packaging solutions positions Crown favorably in a market that is progressively shifting towards eco-friendly products.
Crown Holdings Earnings Call Summary
Earnings Call Date:Jul 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
Crown Holdings reported a strong second quarter with record segment income and adjusted EBITDA, driven by growth in North American and European beverage segments. The company increased its guidance for the full year, reflecting confidence in continued strong performance. However, challenges persist in the Asia Pacific region due to tariffs, and there are concerns about potential tariff impacts and a slowdown in the Mexican market.Q2-2025 Updates
Positive Updates
Record Segment Income and Adjusted EBITDA
Crown Holdings reported a record segment income of $476 million, up from $437 million in the prior year, and adjusted EBITDA. Free cash flow also improved to $387 million compared to $178 million in the prior year.
Successful North American and European Beverage Growth
North American beverage shipments rose by 1%, while European beverage volumes increased by 7%, contributing significantly to the company's strong performance.
Increased Guidance and Strong Cash Flow
The company raised its full-year adjusted EPS guidance to $7.10 to $7.50 and projected third-quarter adjusted EBITDA to be between $1.95 and $2.05 per share. Free cash flow is estimated at $900 million for the year.
Robust Performance in North American Food Segment
North American food demand saw a significant 9% increase, driven by strong vegetable volumes, leading to a 150% improvement in income for the Other segment.
Negative Updates
Challenges in Asia Pacific
The Asia Pacific region saw a decline in income due to a high single-digit drop in Southeast Asian market volumes, impacted by tariffs that affected consumer confidence.
Potential Tariff Exposure
The company estimates a tariff impact of approximately $25 million, with $10 million in direct exposure and $15 million in indirect exposure, which could affect future financial performance.
Mexican Market Slowdown
The Mexican market appears to be slowing down, possibly due to economic factors and tariffs, which could impact future performance in the region.
Company Guidance
During the Crown Holdings' second quarter 2025 conference call, the company provided updated guidance reflecting a strong performance in the first half of the year. Key financial metrics included adjusted earnings per share (EPS) for the quarter at $2.15, up from $1.81 in the prior year, and net sales increasing by 3.6%. The company experienced notable growth in various segments, with North American beverage shipments up by 1%, European beverage volumes increasing by 7%, and North American food can volumes rising by 5%. Segment income for the quarter was $476 million, up from $437 million the previous year. Free cash flow significantly improved to $387 million for the first half of the year, compared to $178 million in the prior year, with the company returning $269 million to shareholders. Given these results, Crown Holdings raised its full-year adjusted EPS guidance to between $7.10 and $7.50 and projected third-quarter adjusted EBITDA to be between $1.95 and $2.05 per share. The company's expectations include a net interest expense of approximately $360 million, a full-year tax rate of 25%, and an adjusted free cash flow estimate of approximately $900 million after $450 million in capital spending.Crown Holdings Financial Statement Overview
Summary
Crown Holdings exhibits strong profitability and cash flow generation, with solid margins and impressive free cash flow growth. However, the high leverage poses a risk if market conditions worsen.Income Statement
Crown Holdings demonstrated solid profitability with a TTM Gross Profit Margin of 20.44% and a Net Profit Margin of 4.63%. Revenue showed a minor growth of 1.80% over the past year, reflecting a stable demand. The EBIT and EBITDA margins, at 12.91% and 14.82% respectively, indicate strong operational efficiency. However, the recent revenue growth is relatively modest compared to the historical performance.75
Positive
Balance Sheet
The company's Debt-to-Equity Ratio is 2.25, showing a high leverage which is typical for the industry but poses a risk if earnings fluctuate. The ROE at 19.23% is commendable, indicating effective use of equity. However, the Equity Ratio of 19.97% suggests a lower proportion of equity financing, which may affect financial stability under adverse conditions.68
Positive
Cash Flow
Crown Holdings has shown an impressive Free Cash Flow growth of 26.54% in the TTM, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 2.36, highlighting robust cash earnings. The Free Cash Flow to Net Income Ratio of 1.79 suggests efficient cash management despite the capital-intensive nature of the business.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.01B | 11.80B | 12.01B | 12.94B | 11.39B | 11.57B |
| Gross Profit | 2.46B | 2.54B | 2.46B | 2.30B | 2.37B | 2.39B |
| EBITDA | 1.78B | 1.64B | 1.73B | 1.75B | 281.00M | 1.45B |
| Net Income | 556.00M | 424.00M | 450.00M | 727.00M | -362.00M | 579.00M |
Balance Sheet | ||||||
| Total Assets | 14.48B | 13.85B | 15.03B | 14.30B | 13.88B | 16.67B |
| Cash, Cash Equivalents and Short-Term Investments | 936.00M | 918.00M | 1.31B | 550.00M | 531.00M | 1.17B |
| Total Debt | 6.49B | 6.42B | 7.70B | 6.98B | 6.26B | 8.21B |
| Total Liabilities | 11.11B | 10.62B | 12.17B | 12.01B | 11.55B | 14.07B |
| Stockholders Equity | 2.89B | 2.76B | 2.41B | 1.85B | 1.91B | 2.20B |
Cash Flow | ||||||
| Free Cash Flow | 998.00M | 789.00M | 660.00M | -36.00M | 89.00M | 728.00M |
| Operating Cash Flow | 1.31B | 1.19B | 1.45B | 803.00M | 905.00M | 1.31B |
| Investing Cash Flow | 87.00M | -12.00M | -804.00M | -642.00M | 1.51B | -535.00M |
| Financing Cash Flow | -1.88B | -1.53B | 116.00M | -25.00M | -2.94B | -239.00M |
Crown Holdings Technical Analysis
Negative
94.66
Price Trends
99.86
Negative
100.06
Negative
93.09
Positive
Market Momentum
-1.41
Negative
39.55
Neutral
41.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCK, the sentiment is Negative. The current price of 94.66 is below the 20-day moving average (MA) of 96.58, below the 50-day MA of 99.86, and above the 200-day MA of 93.09, indicating a neutral trend. The MACD of -1.41 indicates Negative momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 41.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCK.
Crown Holdings Risk Analysis
Crown Holdings disclosed 35 risk factors in its most recent earnings report. Crown Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Crown Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 19.01B | 21.35 | 19.53% | 2.37% | 8.98% | 25.81% | |
72 Outperform | $11.02B | 19.99 | 20.64% | 1.09% | 2.07% | 32.37% | |
68 Neutral | 13.26B | 22.97 | 68.37% | 1.64% | -3.12% | 0.00% | |
67 Neutral | 5.78B | 11.30 | 16.59% | 2.20% | -5.05% | -24.52% | |
63 Neutral | 19.07B | 25.96 | 4.36% | 6.17% | 10.03% | -28.33% | |
61 Neutral | 4.58B | 15.32 | 13.59% | 1.85% | 5.49% | -1.01% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
CCK
Crown Holdings
94.66
0.21
0.22%
BALL
Ball
48.71
-17.56
-26.50%
GPK
Graphic Packaging
19.51
-9.04
-31.66%
PKG
Packaging
211.28
1.94
0.93%
SLGN
Silgan Holdings
42.80
-7.75
-15.33%
AMCR
Amcor
8.26
-2.24
-21.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.