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Crane Company (CR)
NYSE:CR
US Market

Crane Company (CR) AI Stock Analysis

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CR

Crane Company

(NYSE:CR)

Rating:72Outperform
Price Target:
$206.00
▲(10.76%Upside)
Crane Company's strong financial performance and positive earnings call results contribute significantly to the overall score. However, technical analysis suggests potential short-term overbought conditions, and the high P/E ratio raises valuation concerns. The company's strategic acquisition supports future growth, but economic uncertainties could pose challenges.
Positive Factors
Earnings Performance
Operating margin of 26.0% beat BofAe 22.1%.
Growth Opportunities
Crane remains focused on finding attractive inorganic growth opportunities, with present M&A capacity providing optionality.
Operational Excellence
Crane's focus on culture and operational excellence delivers value especially given anxiety on the broader environment.
Negative Factors
Market Uncertainty
Market uncertainty has led to a 21% correction in shares, presenting an attractive entry point for high quality and high growth.

Crane Company (CR) vs. SPDR S&P 500 ETF (SPY)

Crane Company Business Overview & Revenue Model

Company DescriptionCrane Company, together with its subsidiaries, manufactures and sells engineered industrial products in the Americas, Europe, the Middle East, Asia, and Australia. The company has four business segments: Aerospace & Electronics, Process Flow Technologies, Payment & Merchandising Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace, and the military aerospace, defense, and space markets. This segment also offers pressure sensors for aircraft engine control, aircraft braking systems for fighter jets, power conversion solutions for spacecraft, and lubrication systems. The Process Flow Technologies segment provides engineered fluid handling equipment for mission critical applications. It offers process valves and related products, commercial valves, and pumps and systems. The Payment & Merchandising Technologies segment provides electronic equipment and associated software leveraging extensive, and proprietary core capabilities, including payment verification and authentication, as well as automation solutions, field service solutions, remote diagnostics, and productivity enhancing software solutions. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils, primarily for use in the manufacturing of recreational vehicles and in commercial and industrial buildings applications. It provides products and solutions to customers across end markets, including aerospace, defense, chemical and pharmaceutical, water and wastewater, payment automation, non-residential and municipal construction, energy, and banknote design and production, as well as for a range of general industrial and consumer applications. The company was formerly known as Crane Holdings, Co. Crane Company was founded in 1855 and is based in Stamford, Connecticut.
How the Company Makes MoneyCrane Company generates revenue through the production and sale of engineered industrial products, which are segmented into several key areas: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. Each segment contributes to the company's earnings by providing specialized products and solutions tailored to meet the needs of their industrial clients. The company also engages in long-term contracts and partnerships with businesses and government entities, which provide a steady stream of income. Additionally, the company invests in research and development to innovate and maintain a competitive edge in the market, thus attracting more clients and driving sales.

Crane Company Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q1-2025)
|
% Change Since: 25.27%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
Crane reported strong growth in sales, backlog, and operating profit, with significant achievements in Aerospace & Electronics. However, there are challenges due to tariffs and economic uncertainty, which may impact future performance.
Q1-2025 Updates
Positive Updates
Strong Core Sales Growth
Crane reported a 7.5% core sales growth, driven by strength across Aerospace & Electronics and Process Flow Technologies.
Record Backlog in Aerospace & Electronics
The Aerospace & Electronics segment achieved a record backlog of $960 million, up 21% year-over-year and 11% sequentially.
Positive Core Orders Growth
Core orders were up 16% compared to last year, with growth driven by Aerospace & Electronics and slight growth in Process Flow Technologies.
Strong Adjusted Operating Profit
Adjusted operating profit increased 18%, reflecting higher volumes, solid net price, and productivity improvements.
Prospective M&A Activities
Crane has more than $1.5 billion in debt capacity for M&A and a robust pipeline of potential acquisitions, with no slowdown in activity.
Negative Updates
Tariff Exposure
Approximately $60 million impact from tariffs is expected for the year, mainly affecting Process Flow Technologies.
Economic Uncertainty
Recent economic developments and policy decisions have led to uncertainty in the balance of the year, affecting the ability to exceed guidance.
Potential Project Delays in Chemicals
Projects in the chemical sector, especially in the U.S., may shift to the right due to economic conditions.
Company Guidance
During the first quarter of 2025, Crane Company reported strong performance with an adjusted EPS of $1.39, driven by a 7.5% core sales growth, primarily fueled by the Aerospace & Electronics and Process Flow Technologies segments. Core orders rose 16%, indicating robust demand, especially within Aerospace & Electronics. The company reaffirmed its full-year adjusted EPS guidance range of $5.30 to $5.60 despite economic uncertainties and inflationary pressures. Notably, Aerospace & Electronics achieved a record 26% adjusted segment margin, supported by a 10% sales increase, with a significant backlog growth of 21% year-over-year. Process Flow Technologies also saw a 9% sales increase, including a 5% contribution from recent acquisitions. Crane is actively pursuing M&A opportunities, leveraging its $1.5 billion debt capacity, and remains optimistic about deploying capital on acquisitions this year.

Crane Company Financial Statement Overview

Summary
Crane Company presents a well-rounded financial profile characterized by strong profitability, a solid balance sheet, and robust cash flow generation. The company effectively balances growth and stability, with minimal leverage risk and efficient cash utilization. Future growth could be moderated by industry conditions, but the financial foundation remains sound.
Income Statement
78
Positive
Crane Company shows solid profitability with a TTM gross profit margin of 56.7% and a net profit margin of 15.9%, reflecting strong cost management. Revenue growth is modest, with a slight decline from the previous year, suggesting stable but cautious market activity. EBIT and EBITDA margins are healthy at 17.3% and 21.1%, respectively, indicating efficient core operations.
Balance Sheet
75
Positive
The balance sheet displays a favorable debt-to-equity ratio of 0.14, highlighting a conservative leverage approach. Return on equity stands at 19.1% for TTM, showcasing efficient use of shareholder funds. The equity ratio of 67.1% indicates a strong equity base, enhancing financial stability. Overall, the company maintains a robust financial structure with low risk of over-leverage.
Cash Flow
82
Very Positive
Crane Company demonstrates strong cash flow management with a TTM free cash flow to net income ratio of 0.72, ensuring healthy liquidity. Operating cash flow to net income ratio is 0.88, indicating effective conversion of earnings into cash. Free cash flow growth rate of 9.5% underscores improving cash generation capabilities despite moderate capital expenditure levels.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.12B2.13B2.09B3.37B3.18B2.94B
Gross Profit
884.90M867.80M805.00M1.34B1.24B1.00B
EBIT
367.50M355.80M283.80M557.30M502.30M262.90M
EBITDA
427.90M416.70M329.00M321.10M643.60M380.90M
Net Income Common Stockholders
337.00M294.70M255.90M401.10M435.40M181.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
302.80M306.70M329.60M657.60M478.60M551.00M
Total Assets
4.46B2.64B2.33B4.40B4.49B4.59B
Total Debt
1.22B319.30M315.60M1.24B842.40M1.22B
Net Debt
918.10M12.60M-14.00M585.40M363.80M667.60M
Total Liabilities
3.06B1.00B973.30M2.49B2.65B3.06B
Stockholders Equity
1.41B1.64B1.36B1.91B1.84B1.53B
Cash FlowFree Cash Flow
242.10M221.20M185.50M-210.00M446.80M275.40M
Operating Cash Flow
296.90M272.80M228.20M-151.60M498.50M309.50M
Investing Cash Flow
75.10M-230.00M-136.60M264.00M-300.00K-229.10M
Financing Cash Flow
-161.20M-49.70M-423.20M106.00M-557.90M55.10M

Crane Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price185.99
Price Trends
50DMA
160.14
Positive
100DMA
160.93
Positive
200DMA
160.44
Positive
Market Momentum
MACD
4.50
Negative
RSI
74.12
Negative
STOCH
93.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CR, the sentiment is Positive. The current price of 185.99 is above the 20-day moving average (MA) of 174.61, above the 50-day MA of 160.14, and above the 200-day MA of 160.44, indicating a bullish trend. The MACD of 4.50 indicates Negative momentum. The RSI at 74.12 is Negative, neither overbought nor oversold. The STOCH value of 93.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITITT
82
Outperform
$11.98B24.2319.27%0.86%6.99%23.25%
WTWTS
79
Outperform
$8.17B28.0117.61%0.74%3.89%8.17%
78
Outperform
$7.37B36.4615.24%10.78%30.05%
CRCR
72
Outperform
$10.22B34.4218.82%0.49%6.65%39.13%
AOAOS
70
Outperform
$9.14B17.9927.97%2.08%-1.60%-7.12%
67
Neutral
$7.56B22.2914.29%8.07%58.67%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CR
Crane Company
185.99
44.57
31.52%
GNRC
Generac Holdings
128.46
-10.83
-7.78%
ITT
ITT
151.96
25.95
20.59%
AOS
A. O. Smith Corporation
64.83
-15.27
-19.06%
SPXC
SPX
160.00
27.74
20.97%
WTS
Watts Water Technologies
245.25
60.05
32.42%

Crane Company Corporate Events

M&A TransactionsBusiness Operations and Strategy
Crane Company Acquires PSI for $1,060 Million
Positive
Jun 9, 2025

On June 6, 2025, Crane Company announced a definitive agreement to acquire Precision Sensors & Instrumentation (PSI) from Baker Hughes Holdings LLC and Bently Nevada, LLC for $1,060 million. PSI is a provider of sensor-based technologies for aerospace, nuclear, and process industries. The acquisition, expected to close by early 2026, aims to enhance Crane’s capabilities in critical applications and expand its market reach. This strategic move is anticipated to drive long-term sales growth, improve margins, and align with Crane’s focus on mission-critical applications, ultimately strengthening its industry positioning and shareholder value.

The most recent analyst rating on (CR) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Crane Company stock, see the CR Stock Forecast page.

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.