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Crown Holdings (CCK)
NYSE:CCK

Crown Holdings (CCK) AI Stock Analysis

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Crown Holdings

(NYSE:CCK)

Rating:73Outperform
Price Target:
Crown Holdings demonstrates a solid financial foundation with strong profitability and an improving balance sheet. Technical indicators are favorable but caution is warranted due to potential overbought conditions. Valuation is reasonable, and the positive earnings outlook further supports the stock's potential. However, challenges remain in certain segments and external factors like tariffs could pose risks.
Positive Factors
Earnings
Crown Holdings reported better-than-expected earnings across most segments, with 'robust' volumes in Brazil and Europe, and increased volumes and manufacturing efficiencies in the food can business.
Financial Performance
Crown Holdings raised its 2025 adjusted EPS guidance to a range that is ahead of consensus expectations.
Market Position
CCK is better positioned from a mix standpoint compared to its peers, with the vast majority of its sales in CSD, and is over-indexed to flavored seltzer & aligned with market leaders in growth categories like RTDs and non-alcoholic beer.
Negative Factors
Headwinds
There are mounting headwinds to select beverage categories, including reflation and MAHA.
Industrial Activity
Transit Packaging EBIT declined 21% on lower volumes as industrial activity remains sluggish.
Medium-term Challenges
There is concern about rising medium-term headwinds in the beverage can space, such as struggling consumers, global trade, and MAHA.

Crown Holdings (CCK) vs. SPDR S&P 500 ETF (SPY)

Crown Holdings Business Overview & Revenue Model

Company DescriptionCrown Holdings, Inc. (CCK) is a global leader in the design, manufacture, and sale of packaging products for consumer goods. The company operates through three primary segments: Americas Beverage, European Beverage, and Transit Packaging. Crown Holdings specializes in the production of aluminum and steel cans for beverages, food, household products, and personal care items, as well as transit and protective packaging solutions.
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:Apr 28, 2025
(Q1-2025)
|
% Change Since: 15.59%|
Next Earnings Date:Jul 21, 2025
Earnings Call Sentiment Positive
Crown Holdings delivered a strong first quarter with significant improvements in earnings and segment income, driven by increased beverage and food can volumes. The company achieved record EBITDA and continued shareholder returns. However, challenges in the transit packaging segment and potential tariff impacts present areas of concern.
Q1-2025 Updates
Positive Updates
Strong Earnings Improvement
Earnings for the quarter were $1.65 per share compared to $0.56 per share in the prior year quarter. Adjusted earnings per share were $1.67 compared to $1.02 in the prior year quarter.
Record Segment Income
Segment income was $398 million in the quarter, up from $308 million in the prior year, reflecting a 29% increase over the prior year.
Increased Beverage Can Volumes
Beverage Cans segment income improved 24% over the prior year, led by higher than expected shipments in the Americas and Europe.
North American Food Can Volume Surge
North American food can volumes increased 16% due to increased demand from vegetable and pet food customers.
Return to Shareholders
The company returned $233 million to shareholders in the first quarter of 2025, including $203 million of share repurchases.
EBITDA Milestone
Trailing 12 months EBITDA is now above $2 billion for the first time with EBITDA margins up 260 basis points in the quarter.
Negative Updates
Transit Packaging Challenges
Subdued industrial demand continues in the transit packaging segment, most notably impacting the higher margin equipment and tools business.
Potential Tariff Impacts
Potential impact of tariffs could create a slowdown in consumer industrial activities, with a potential income exposure below $30 million for the year.
Company Guidance
In the first quarter of 2025, Crown Holdings experienced significant financial growth, with earnings per share rising to $1.65 from $0.56 in the previous year, and adjusted earnings per share increasing to $1.67 from $1.02. Net sales grew by 3.7%, driven by a 1% rise in global beverage can volumes and a 16% increase in North American food can volumes, despite lower volumes in transit packaging. Segment income surged to $398 million from $308 million the prior year, supported by higher beverage can volumes and improved manufacturing performance. Crown Holdings returned $233 million to shareholders, including $203 million in share repurchases. Anticipating strong demand, the company raised its full-year adjusted EPS guidance to $6.70-$7.10, with a second quarter EPS projection of $1.80-$1.90. The guidance accounts for potential impacts of tariffs, with expectations for net interest expense at $360 million, a €108 exchange rate to the dollar, and non-controlling interest expenses at $160 million. The company maintains a full-year tax rate of 25% and adjusted free cash flow of $800 million after $450 million in capital spending, with an end-of-year net leverage target of approximately 2.5 times.

Crown Holdings Financial Statement Overview

Summary
Crown Holdings exhibits strong financial fundamentals with good profitability margins and an improving balance sheet structure. While cash flow generation is robust, revenue fluctuations pose a challenge. Overall, the company maintains a stable financial position with potential for growth.
Income Statement
67
Positive
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.
Balance Sheet
72
Positive
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.
Cash Flow
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.92B11.80B12.01B12.94B11.39B11.57B
Gross Profit2.29B2.54B2.46B2.30B2.37B2.39B
EBITDA1.73B1.64B1.73B1.75B281.00M1.45B
Net Income550.00M424.00M450.00M727.00M-362.00M579.00M
Balance Sheet
Total Assets13.84B13.85B15.03B14.30B13.88B16.67B
Cash, Cash Equivalents and Short-Term Investments779.00M918.00M1.31B550.00M531.00M1.17B
Total Debt6.64B6.42B7.70B6.98B6.26B8.21B
Total Liabilities10.67B10.62B12.17B12.01B11.55B14.07B
Stockholders Equity2.69B2.76B2.41B1.85B1.91B2.20B
Cash Flow
Free Cash Flow966.00M789.00M660.00M-36.00M89.00M728.00M
Operating Cash Flow1.31B1.19B1.45B803.00M905.00M1.31B
Investing Cash Flow70.00M-12.00M-804.00M-642.00M1.51B-535.00M
Financing Cash Flow-1.69B-1.53B116.00M-25.00M-2.94B-239.00M

Crown Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price103.50
Price Trends
50DMA
97.30
Positive
100DMA
92.30
Positive
200DMA
90.88
Positive
Market Momentum
MACD
1.98
Negative
RSI
62.84
Neutral
STOCH
76.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCK, the sentiment is Positive. The current price of 103.5 is above the 20-day moving average (MA) of 101.01, above the 50-day MA of 97.30, and above the 200-day MA of 90.88, indicating a bullish trend. The MACD of 1.98 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 76.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$5.82B20.1614.52%1.47%1.99%-5.30%
CCCCK
73
Outperform
$12.05B22.2421.30%1.00%0.90%34.40%
67
Neutral
$21.19B16.4920.71%5.55%-2.29%24.05%
67
Neutral
¥253.98B13.046.57%2.83%5.07%-11.36%
65
Neutral
$15.65B29.938.23%1.42%-9.79%
GPGPK
64
Neutral
$6.34B10.3020.62%2.08%-6.28%-7.43%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CCK
Crown Holdings
103.50
31.07
42.90%
BALL
Ball
56.41
-2.32
-3.95%
GPK
Graphic Packaging
21.02
-4.47
-17.54%
SLGN
Silgan Holdings
54.40
13.15
31.88%
AMCR
Amcor
9.19
0.06
0.66%

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.Date of analysis: May 02, 2025