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Crane Company (CR)
NYSE:CR
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Crane Company (CR) AI Stock Analysis

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CR

Crane Company

(NYSE:CR)

Rating:74Outperform
Price Target:
$222.00
▲(13.31%Upside)
Crane Company's strong financial stability and positive earnings call are significant strengths. The bullish technical indicators support short-term momentum, but overvaluation concerns and overbought signals limit upside potential. The strategic acquisition of PSI further enhances long-term growth prospects.
Positive Factors
Acquisition Impact
The acquisition of PSI bolsters existing sensor-based technologies across key end markets for Crane, including aerospace, nuclear, and process industries.
Aerospace and Defense Growth
The company's management is confident in achieving long-term growth targets in the Aerospace and Defense segment, with expectations of growth acceleration driven by US Defense program ramps.
Merger and Acquisition Opportunities
Mergers and acquisitions are viewed as a key potential upside driver to future earnings and stock outperformance, with the company having significant capacity for deals.
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.
Tariff Challenges
Crane's strong margin performance during global supply chain chaos, including net positive price/cost, instills confidence in its ability to handle current tariff challenges.

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:Jul 28, 2025
(Q2-2025)
|
% Change Since: 3.13%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with strong financial performance, strategic acquisitions, and a robust backlog. However, there are some challenges, such as market sluggishness in the Process Flow Technologies segment and tariff impacts. The positive aspects appear to outweigh the negatives, indicating a strong position for future growth.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EPS was reported at $1.49, driven by a 6.5% core sales growth. Core orders increased nearly 20% in the quarter, reflecting strength across Aerospace & Electronics and Process Flow Technologies segments.
Significant Acquisition
Crane announced the acquisition of Precision Sensors & Instrumentation businesses from Baker Hughes, which is expected to enhance long-term performance and broaden unique capabilities.
Robust Backlog
Aerospace & Electronics segment reported a record backlog of just over $1 billion, up 29% year-over-year and 9% sequentially, indicating strong future sales potential.
Raised Full Year Earnings Outlook
The full-year adjusted earnings outlook was raised to a range of $5.50 to $5.80, up from the prior view of $5.30 to $5.60, reflecting confidence in future performance.
Continued M&A Opportunities
The company maintains a strong balance sheet with capacity for additional M&A, and a robust pipeline of potential acquisition opportunities.
Negative Updates
Market Challenges in Process Flow Technologies
The Process Flow Technologies segment is experiencing a stable yet sluggish market, particularly in the chemical sector where projects are being delayed.
Tariff Impacts
The company anticipates a gross cost increase of roughly $30 million for the year due to tariffs, although this is down from $60 million noted last quarter.
Pressure on Aerospace & Electronics Margins
Despite strong performance, there is anticipation of lower operating margins in the Aerospace & Electronics segment in the second half due to a less favorable mix between commercial OEM and aftermarket.
Company Guidance
During Crane Company's second quarter 2025 earnings call, Max Mitchell, CEO, highlighted an adjusted EPS of $1.49, driven by a 6.5% core sales growth, largely attributed to the Aerospace & Electronics and Process Flow Technologies sectors. Core orders surged nearly 20%, with Aerospace & Electronics leading this growth. The company announced an acquisition agreement for the Precision Sensors & Instrumentation (PSI) businesses from Baker Hughes, aimed at enhancing Crane's technological capabilities. Despite an unpredictable macroeconomic environment, Crane raised its full-year adjusted earnings outlook to a range of $5.50 to $5.80, up from the previous $5.30 to $5.60. Additionally, the robust pipeline of potential mergers and acquisitions (M&A) remains a focus, with leverage expected to be roughly 1x net debt to EBITDA post-PSI acquisition.

Crane Company Financial Statement Overview

Summary
Crane Company presents a well-rounded financial profile characterized by strong profitability with a TTM gross profit margin of 56.7% and net profit margin of 15.9%. The balance sheet displays a favorable debt-to-equity ratio of 0.14, while cash flow management is strong with a TTM free cash flow to net income ratio of 0.72.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.13B2.09B3.37B3.18B2.94B
Gross Profit867.80M805.00M1.34B1.24B1.00B
EBITDA416.70M329.00M321.10M643.60M380.90M
Net Income294.70M255.90M401.10M435.40M181.00M
Balance Sheet
Total Assets2.64B2.33B4.40B4.49B4.59B
Cash, Cash Equivalents and Short-Term Investments306.70M329.60M657.60M478.60M551.00M
Total Debt319.30M315.60M1.24B842.40M1.22B
Total Liabilities1.00B973.30M2.49B2.65B3.06B
Stockholders Equity1.64B1.36B1.91B1.84B1.53B
Cash Flow
Free Cash Flow221.20M185.50M-210.00M446.80M275.40M
Operating Cash Flow257.80M228.20M-151.60M498.50M309.50M
Investing Cash Flow-230.00M-136.60M264.00M-300.00K-229.10M
Financing Cash Flow-49.70M-423.20M106.00M-557.90M55.10M

Crane Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price195.93
Price Trends
50DMA
183.58
Positive
100DMA
168.91
Positive
200DMA
166.51
Positive
Market Momentum
MACD
2.78
Negative
RSI
64.70
Neutral
STOCH
70.98
Neutral
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 195.93 is above the 20-day moving average (MA) of 189.85, above the 50-day MA of 183.58, and above the 200-day MA of 166.51, indicating a bullish trend. The MACD of 2.78 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 70.98 is Neutral, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$8.43B28.9117.61%0.69%3.89%8.17%
77
Outperform
$8.42B41.9115.24%10.78%30.05%
76
Outperform
$12.69B25.6619.27%0.84%6.99%23.25%
76
Outperform
$10.04B19.9827.60%1.92%-3.53%-7.46%
74
Outperform
$10.92B35.1618.22%0.44%3.01%30.34%
73
Outperform
$8.94B30.0814.59%9.69%54.29%
61
Neutral
C$6.54B7.692.76%2.70%6.30%-23.25%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CR
Crane Company
195.93
42.06
27.33%
GNRC
Generac Holdings
181.00
35.50
24.40%
ITT
ITT
159.61
21.67
15.71%
AOS
A. O. Smith Corporation
70.83
-10.51
-12.92%
SPXC
SPX
181.26
37.97
26.50%
WTS
Watts Water Technologies
260.91
59.44
29.50%

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
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: Jul 30, 2025