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Crane Company (CR)
:CR
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Crane Company
(NYSE:CR)
67Neutral
Positive Factors
Capital Allocation
The company raised its dividend by 12% for 2025, signaling a stronger commitment to capital allocation.
Financial Performance
Crane's strong 4Q performance was driven by improved pricing, productivity, and volumes.
Mergers and Acquisitions
Crane has significant resources available for mergers and acquisitions, with $4 billion available for share repurchases and acquisitions through 2028.
Negative Factors
Cash Flow
Crane lowered its expectations for 2024 free cash flow due to working capital pressures.
Free Cash Flow
Working capital pressures have led Crane to adjust its free cash flow expectations for 2024.
Crane Company (CR) vs. S&P 500 (SPY)
Market Cap
$8.70B
Dividend Yield0.56%
Average Volume (3M)276.77K
Price to Earnings (P/E)30.0
Beta (1Y)1.32
Revenue Growth9.65%
EPS GrowthN/A
CountryUS
Employees7,300
SectorIndustrials
Sector Strength73
IndustryIndustrial Goods
Share Statistics
EPS (TTM)5.06
Shares Outstanding57,398,020
10 Day Avg. Volume359,148
30 Day Avg. Volume276,766
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.17
Price to Cash Flow (P/CF)11.50
P/FCF Ratio11.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$190.00Price Target Upside22.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Crane Company Business Overview & Revenue Model
Company DescriptionCrane Company (CR) is a diversified manufacturer of highly engineered industrial products. The company operates across four main business segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. Crane serves a wide range of industries, including aerospace, defense, chemical processing, power generation, and transportation. Its core products include valves, pumps, fluid control systems, vending equipment, payment systems, and fiberglass-reinforced plastic panels.
How the Company Makes MoneyCrane Company generates revenue through the sale of its diverse range of industrial products and solutions. The Fluid Handling segment provides valves, pumps, and related products to industries such as chemical processing and energy, generating revenue through product sales and service contracts. The Payment & Merchandising Technologies segment earns income from the sale of payment and merchandising solutions, including vending equipment and point-of-sale systems. The Aerospace & Electronics segment provides products and systems for commercial aircraft, military aircraft, and other electronic applications, earning revenue through both product sales and long-term contracts. Finally, the Engineered Materials segment contributes to revenue by supplying fiberglass-reinforced plastic panels used in transportation and building applications. Crane's earnings are bolstered by key partnerships and contracts with major corporations and government entities, as well as through continuous innovation and expansion into new markets.
Crane Company Financial Statement Overview
Summary
Crane Company presents a solid financial standing with strong profit margins and efficient capital management. The income statement demonstrates impressive growth and profitability metrics, while the balance sheet confirms financial stability with low leverage. The cash flow analysis supports strong operational cash generation. While recent revenue volatility and reduced cash reserves are concerns, the overall outlook remains positive, bolstered by steady margins and financial prudence.Income Statement
The income statement shows a strong gross profit margin of 53.6% for TTM, indicating efficient cost management relative to revenue. The net profit margin improved to 12.9%, showcasing enhanced profitability. Revenue growth rate is notable at 9.6% from the previous year, reflecting positive business expansion. EBIT and EBITDA margins are solid at 16.5% and 19.2%, respectively, indicating robust operating efficiency. However, the significant decline in revenue from 2022 to 2023 highlights potential volatility.78
Positive
Balance Sheet
The company's balance sheet reflects a strong equity position with an equity ratio of 62.7% for TTM, suggesting financial stability. The debt-to-equity ratio is favorable at 0.15, indicating low leverage and reduced financial risk. Return on equity stands strong at 17.95%, showcasing effective use of equity to generate profits. Cash reserves have decreased, which could impact liquidity management.75
Positive
Cash Flow
Cash flow analysis reveals a healthy operating cash flow to net income ratio of 0.88, indicating good cash generation relative to profitability. Free cash flow growth is positive, reflecting effective capital management. However, the free cash flow to net income ratio is slightly lower at 0.72, suggesting room for improvement in converting profits into free cash flow. Despite consistent free cash flow generation, cash outflows from investing activities could strain future liquidity.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.13B | 2.09B | 3.37B | 3.18B | 2.94B | Gross Profit |
| 867.80M | 805.00M | 1.34B | 1.24B | 1.00B | EBIT |
| 355.80M | 283.80M | 557.30M | 502.30M | 262.90M | EBITDA |
| 416.70M | 329.00M | 321.10M | 643.60M | 380.90M | Net Income Common Stockholders |
| 294.70M | 255.90M | 401.10M | 435.40M | 181.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 306.70M | 329.60M | 657.60M | 478.60M | 551.00M | Total Assets |
| 2.64B | 2.33B | 4.40B | 4.49B | 4.59B | Total Debt |
| 319.30M | 315.60M | 1.24B | 842.40M | 1.22B | Net Debt |
| 12.60M | -14.00M | 585.40M | 363.80M | 667.60M | Total Liabilities |
| 1.00B | 973.30M | 2.49B | 2.65B | 3.06B | Stockholders Equity |
| 1.64B | 1.36B | 1.91B | 1.84B | 1.53B |
| Cash Flow | Free Cash Flow | |||
| 221.20M | 185.50M | -210.00M | 446.80M | 275.40M | Operating Cash Flow |
| 257.80M | 228.20M | -151.60M | 498.50M | 309.50M | Investing Cash Flow |
| -230.00M | -136.60M | 264.00M | -300.00K | -229.10M | Financing Cash Flow |
| -49.70M | -423.20M | 106.00M | -557.90M | 55.10M |
Crane Company Technical Analysis
Negative
154.89
Price Trends
161.41
Negative
163.99
Negative
156.97
Negative
Market Momentum
-3.05
Positive
42.62
Neutral
31.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CR, the sentiment is Negative. The current price of 154.89 is below the 20-day moving average (MA) of 156.32, below the 50-day MA of 161.41, and below the 200-day MA of 156.97, indicating a bearish trend. The MACD of -3.05 indicates Positive momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 31.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CR.
Crane Company Risk Analysis
Crane Company disclosed 22 risk factors in its most recent earnings report. Crane Company reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Crane Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.94B | 21.34 | 19.60% | 0.95% | 10.59% | 27.04% | |
77 Outperform | $24.81B | 9.30 | 24.30% | 1.14% | -2.99% | 159.26% | |
73 Outperform | $14.40B | 23.34 | 18.45% | 1.07% | -0.53% | 0.13% | |
72 Outperform | $40.63B | 29.71 | 14.97% | 0.64% | 5.22% | 4.46% | |
67 Neutral | $8.70B | 30.00 | 18.96% | 0.56% | 9.65% | ― | |
66 Neutral | $10.69B | 23.39 | 35.36% | 1.51% | -4.23% | -13.42% | |
62 Neutral | $8.24B | 13.35 | 1.72% | 3.06% | 3.81% | -14.27% |
* Industrials Sector Average
Performance Comparison
CR
Crane Company
153.17
18.93
14.10%
AME
Ametek
175.93
-7.78
-4.23%
DOV
Dover
181.30
5.30
3.01%
ITT
ITT
135.12
1.97
1.48%
LECO
Lincoln Electric Holdings
194.07
-59.33
-23.41%
PNR
Pentair
88.30
4.47
5.33%
Crane Company Earnings Call Summary
Earnings Call Date: Jan 27, 2025 | % Change Since: -0.85% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance with significant growth in key segments and strategic divestitures. Despite some temporary challenges like the hurricane impact and mixed industrial demand signals, the company showed resilience and confidence in its future outlook.Highlights
Strong Financial Performance
Adjusted EPS for Q4 was $1.26, driven by 8% core sales growth. Full-year adjusted EPS was $4.88, up 28% over 2023. Sales increased by 14% for 2024, with an 8% core growth and a 6% contribution from acquisitions.
Successful Divestiture and Portfolio Focus
Completion of the divestiture of the Engineered Materials segment, enabling focus on strategic growth platforms: Aerospace & Electronics and Process Flow Technologies.
Aerospace & Electronics Growth
The segment saw a 23% increase in backlog. Total orders for the F-16 brake control upgrade project reached $44 million, with a potential total life of program sales between $150 million to $200 million.
Process Flow Technologies Performance
Secured sizable orders, including a large fertilizer project in the Middle East and orders related to a facility expansion for a large chemical customer in North America.
Dividend Increase
A 12% increase in dividends was announced, reflecting confidence in future performance.
Lowlights
Hurricane Impact
Hurricane Helene impacted the Marion, North Carolina facility, causing production downtime, although recovery was ahead of schedule.
Mixed Industrial Demand Signals
Industrial demand signals remained mixed, with some markets such as Europe and China showing stagnation.
Company Guidance
During the Crane Company fourth quarter and full year 2024 earnings call, the company provided several key metrics and guidance for 2025. Crane reported an adjusted EPS of $1.26 for Q4 2024, driven by 8% core sales growth, and a full-year adjusted EPS of $4.88, up 28% over 2023. Sales for 2024 increased by 14%, with a contribution of 8% from core growth and 6% from acquisitions. Adjusted operating profit rose by 29% to $383 million. For 2025, Crane projects an adjusted EPS in the range of $5.30 to $5.60, reflecting a 12% growth at the midpoint, with total core growth anticipated at 4% to 6%. The company also expects a 1% to 2% sales benefit from acquisitions and a 1% headwind from foreign exchange. Crane aims to continue leveraging its strong balance sheet for M&A opportunities, with an expected adjusted free cash flow conversion greater than 90% as supply chain conditions improve.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.