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Crown Holdings (CCK)
:CCK
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Crown Holdings
(NYSE:CCK)
Rating:68Neutral
Price Target:
$107.00
▲(9.09% Upside)
Positive Factors
Earnings Performance
CCK's Q2 results exceeded even elevated expectations, with beverage can volumes growing and adjusted EBITDA increasing by 8% due to operational excellence and support from food cans.
Financial Guidance
The 2025 EPS guidance was raised, reflecting a belief that it includes a conservative view on potential challenges, such as tariff headwinds.
Market Position
Shares should continue to benefit from exposure to the defensive beverage can end market and increased shareholder return outlook.
Negative Factors
Regional Performance
APAC volumes were down significantly, with management noting slumping consumer sentiment due to tariffs.
Volume Growth Concerns
Light NA volume growth and potentially soft implied Q4 are concerns for investors worried about a deceleration in beverage can fundamentals.
Crown Holdings (CCK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.41B
Dividend Yield1.04%
Average Volume (3M)1.17M
Price to Earnings (P/E)20.6
Beta (1Y)0.53
Revenue Growth2.07%
EPS Growth32.37%
CountryUS
Employees23,000
SectorConsumer Cyclical
Sector Strength64
IndustryPackaging & Containers
Share Statistics
EPS (TTM)2.15
Shares Outstanding116,375,595
10 Day Avg. Volume1,366,141
30 Day Avg. Volume1,169,292
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit7.36
Enterprise Value/Ebitda10.15
Forecast
1Y Price Target
$122.91Price Target Upside25.32% Upside
Rating ConsensusModerate 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 packaging products to a diverse range of industries, including beverage, food, and consumer goods. The company's key revenue streams include the manufacturing and selling of aluminum and steel cans, which are used extensively for beverages and food products worldwide. Crown Holdings benefits from long-term supply agreements with major beverage and food producers, ensuring stable demand for its products. Additionally, the Transit Packaging segment provides protective packaging solutions that cater to various industries, further diversifying the company's income sources. Crown Holdings' global presence and strategic partnerships with leading consumer goods companies significantly contribute to its earnings.
Crown Holdings Earnings Call Summary
Earnings Call Date:Jul 21, 2025
(Q2-2025)
| % Change Since: -6.37%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
Crown Holdings reported strong earnings growth, increased net sales, and record free cash flow, with positive performance in its beverage segments across North America and Europe. The company raised its full-year earnings guidance, showing confidence in future performance. However, challenges remain, particularly in the Asia Pacific region, where volumes declined due to tariff impacts. The company also faces potential tariff exposure and incurred restructuring charges during the quarter.Q2-2025 Updates
Positive Updates
Strong Earnings Growth
Earnings for the quarter were $1.81 per share compared to $1.45 per share in the prior year quarter. Adjusted earnings per share were $2.15 compared to $1.81 in the prior year quarter.
Increase in Net Sales
Net sales were up 3.6% compared to the prior year quarter, primarily reflecting 1% higher shipments in North American beverage, a 7% increase across European beverage, and a 5% increase in North American food can volumes.
Record Free Cash Flow
Free cash flow improved to $387 million from $178 million in the prior year, reflecting higher income and lower capital spending.
Positive Segment Income
Segment income was $476 million in the quarter compared to $437 million in the prior year, reflecting increased volumes and improved operations across the global manufacturing footprint.
Raising Guidance
Crown Holdings raised its guidance for the full year adjusted EPS to $7.10 to $7.50 per share, projecting strong performance for the third quarter as well.
Strong Performance in European Beverage
Across European Beverage, unit volumes advanced 6%, following 7% growth in the prior year, leading to another quarter of record income.
Negative Updates
Challenges in Asia Pacific
Income in Asia Pacific declined as Southeast Asian market volumes were down high single digits to the prior year, with the impact of tariffs on various Asian industries ultimately affecting consumer confidence and buying power.
Tariff Concerns
While the company expects little direct tariff impact on its business, there remains a cautious outlook on potential exposure estimated to be approximately $25 million.
Restructuring Charges
The company took a restructuring charge of approximately $40 million, mainly due to the write-down of the carrying value of assets in one of the Chinese plants and further severance in Signode.
Company Guidance
During the call, Crown Holdings reported significant improvements in various financial metrics for the second quarter of 2025. Earnings per share increased to $1.81 from $1.45 year-over-year, while adjusted earnings per share rose to $2.15 from $1.81. Net sales grew by 3.6%, driven by a 1% increase in North American beverage shipments, a 7% rise in European beverage, and a 5% increase in North American food can volumes. Segment income climbed to $476 million, up from $437 million in the previous year, with free cash flow significantly improving to $387 million from $178 million. The company returned $269 million to shareholders in the first half of the year. Crown Holdings raised its full-year adjusted EPS guidance to between $7.10 and $7.50, projecting third-quarter adjusted EBITDA between $1.95 and $2.05 per share. Assumptions for the year included net interest expense of approximately $360 million, a 25% tax rate, and $310 million in depreciation, among others. The company anticipates ending the year with an estimated adjusted free cash flow of $900 million and a net leverage ratio of approximately 2.5x.Crown Holdings Financial Statement Overview
Summary
Crown Holdings displays strong financial fundamentals with stable profitability margins and an improving balance sheet. Despite robust cash flow generation, the company faces challenges with revenue fluctuations. Overall, it maintains a stable financial position with potential for growth.Income Statement
The company has demonstrated a stable gross profit margin and an improvement in net profit margin on a TTM basis, indicating enhanced operational efficiency. However, revenue growth has been inconsistent, showing a decline over the past years. EBIT and EBITDA margins are relatively strong, reflecting efficient cost management despite fluctuating revenues.67
Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging while maintaining a solid equity position. The equity ratio is reasonable, suggesting a stable financial structure. Return on equity has improved, highlighting better returns for shareholders.72
Positive
Cash Flow
Cash flow analysis reveals positive free cash flow growth and a healthy operating cash flow to net income ratio. The company has managed to convert a significant portion of its earnings into cash, although fluctuations in free cash flow indicate potential volatility.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.80B | 12.01B | 12.94B | 11.39B | 11.57B |
| Gross Profit | 2.54B | 2.46B | 2.30B | 2.37B | 2.39B |
| EBITDA | 1.64B | 1.73B | 1.75B | 281.00M | 1.45B |
| Net Income | 424.00M | 450.00M | 727.00M | -362.00M | 579.00M |
Balance Sheet | |||||
| Total Assets | 13.85B | 15.03B | 14.30B | 13.88B | 16.67B |
| Cash, Cash Equivalents and Short-Term Investments | 918.00M | 1.31B | 550.00M | 531.00M | 1.17B |
| Total Debt | 6.42B | 7.70B | 6.98B | 6.26B | 8.21B |
| Total Liabilities | 10.62B | 12.17B | 12.01B | 11.55B | 14.07B |
| Stockholders Equity | 2.76B | 2.41B | 1.85B | 1.91B | 2.20B |
Cash Flow | |||||
| Free Cash Flow | 789.00M | 660.00M | -36.00M | 89.00M | 728.00M |
| Operating Cash Flow | 1.19B | 1.45B | 803.00M | 905.00M | 1.31B |
| Investing Cash Flow | -12.00M | -804.00M | -642.00M | 1.51B | -535.00M |
| Financing Cash Flow | -1.53B | 116.00M | -25.00M | -2.94B | -239.00M |
Crown Holdings Technical Analysis
Neutral
98.08
Price Trends
102.48
Negative
96.60
Positive
92.41
Positive
Market Momentum
-1.41
Positive
27.97
Positive
7.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCK, the sentiment is Neutral. The current price of 98.08 is below the 20-day moving average (MA) of 103.63, below the 50-day MA of 102.48, and above the 200-day MA of 92.41, indicating a neutral trend. The MACD of -1.41 indicates Positive momentum. The RSI at 27.97 is Positive, neither overbought nor oversold. The STOCH value of 7.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $21.62B | 16.83 | 20.71% | 5.46% | -2.29% | 24.05% | |
69 Neutral | $4.97B | 16.49 | 14.54% | 1.71% | 5.49% | -1.00% | |
68 Neutral | $11.41B | 20.59 | 20.64% | 1.04% | 2.07% | 32.37% | |
67 Neutral | $7.83B | 14.54 | 21.42% | 1.73% | -8.26% | 10.64% | |
65 Neutral | $6.59B | 12.59 | 17.71% | 1.96% | -5.05% | -24.52% | |
61 Neutral | $15.06B | 25.35 | 9.59% | 1.40% | -3.12% | ― | |
57 Neutral | HK$24.67B | 3.83 | -3.22% | 5.89% | 0.28% | -59.63% |
* Consumer Cyclical Sector Average
Performance Comparison
CCK
Crown Holdings
98.08
12.89
15.13%
BALL
Ball
54.30
-8.03
-12.88%
GPK
Graphic Packaging
22.24
-5.45
-19.68%
SLGN
Silgan Holdings
45.81
-2.58
-5.33%
BERY
Berry Global Group
67.58
10.06
17.49%
AMCR
Amcor
9.38
-0.71
-7.04%
Crown Holdings Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Crown Holdings Completes $700M Note Offering
Neutral
May 28, 2025
On May 27, 2025, Crown Holdings, Inc. completed a note offering of $700 million in senior unsecured notes due 2033, with an interest rate of 5.875%. The proceeds will be used to repay existing debt and cover related expenses. This financial maneuver is expected to impact the company’s debt structure and financial strategy, potentially affecting its market positioning and stakeholder interests.
The most recent analyst rating on (CCK) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Crown Holdings stock, see the CCK Stock Forecast page.
Private Placements and FinancingBusiness Operations and Strategy
Crown Holdings Announces Conditional Redemption of Senior Notes
Neutral
May 16, 2025
Crown Holdings, Inc. has announced a conditional notice of redemption for the 4.750% Senior Notes due 2026, with an aggregate principal amount of $875 million, to be redeemed on June 15, 2025. This redemption is contingent upon the issuance of $700 million in 5.875% Senior Notes due 2033, with no guarantee that the condition will be met, potentially affecting the company’s financial strategy and stakeholders.
The most recent analyst rating on (CCK) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Crown Holdings stock, see the CCK Stock Forecast page.
Private Placements and Financing
Crown Holdings Announces $500M Senior Notes Offering
Neutral
May 12, 2025
Crown Holdings, Inc. announced its intention to offer $500 million in senior unsecured notes through its subsidiary, Crown Americas LLC, in a private placement. The proceeds from this offering will be used to repay existing senior notes due in 2026 and cover related fees and expenses, potentially impacting the company’s financial structure and debt management strategy.
The most recent analyst rating on (CCK) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Crown Holdings stock, see the CCK Stock Forecast page.
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.