Crane Company (CR) AI Stock Analysis

Compare

158 Followers

Top Page

Crane Company

(NYSE:CR)

Rating:76Outperform

Price Target:―

Crane Company demonstrates solid financial performance with strong profitability and cash flow, supported by positive earnings call highlights. Technical analysis shows a bullish trend, though short-term caution is advised due to overbought indicators. Valuation presents a concern, as the stock may be overvalued. Overall, Crane is well-positioned for growth, but macroeconomic challenges and valuation metrics warrant careful consideration.

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)

Market Cap

$10.22B

Dividend Yield0.49%

Average Volume (3M)271.64K

Price to Earnings (P/E)34.4

Beta (1Y)1.25

Revenue Growth6.65%

EPS Growth39.13%

CountryUS

Employees7,500

SectorIndustrials

Sector Strength91

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)1.39

Shares Outstanding57,501,190

10 Day Avg. Volume198,559

30 Day Avg. Volume271,642

Financial Highlights & Ratios

PEG Ratio2.26

Price to Book (P/B)5.81

Price to Sales (P/S)0.00

P/FCF Ratio42.20

Enterprise Value/Market Cap0.98

Enterprise Value/Revenue1.15

Enterprise Value/Gross Profit11.33

Enterprise Value/Ebitda6.14

Forecast

1Y Price Target

$185.20

Price Target Upside4.23% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Crane Company Business Overview & Revenue Model

Company DescriptionCrane Company (CR) is a diversified manufacturer of highly engineered industrial products, specializing in sectors such as aerospace, electronics, and engineered materials. The company's core products and services include fluid handling systems, payment and merchandising technologies, and other industrial products that cater to a variety of industries worldwide.

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: 19.67%|

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

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

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.12B	2.13B	2.09B	3.37B	3.18B	2.94B
	Gross Profit
884.90M	867.80M	805.00M	1.34B	1.24B	1.00B
	EBIT
367.50M	355.80M	283.80M	557.30M	502.30M	262.90M
	EBITDA
427.90M	416.70M	329.00M	321.10M	643.60M	380.90M
	Net Income Common Stockholders
337.00M	294.70M	255.90M	401.10M	435.40M	181.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
302.80M	306.70M	329.60M	657.60M	478.60M	551.00M
	Total Assets
4.46B	2.64B	2.33B	4.40B	4.49B	4.59B
	Total Debt
1.22B	319.30M	315.60M	1.24B	842.40M	1.22B
	Net Debt
918.10M	12.60M	-14.00M	585.40M	363.80M	667.60M
	Total Liabilities
3.06B	1.00B	973.30M	2.49B	2.65B	3.06B
	Stockholders Equity
1.41B	1.64B	1.36B	1.91B	1.84B	1.53B
Cash Flow		Free Cash Flow
242.10M	221.20M	185.50M	-210.00M	446.80M	275.40M
	Operating Cash Flow
296.90M	272.80M	228.20M	-151.60M	498.50M	309.50M
	Investing Cash Flow
75.10M	-230.00M	-136.60M	264.00M	-300.00K	-229.10M
	Financing Cash Flow
-161.20M	-49.70M	-423.20M	106.00M	-557.90M	55.10M

Crane Company Technical Analysis

Technical Analysis Sentiment

Positive

Last Price177.68

Price Trends

50DMA

159.53

Positive

100DMA

160.57

Positive

200DMA

160.25

Positive

Market Momentum

MACD

3.79

Positive

RSI

65.76

Neutral

STOCH

89.52

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 177.68 is above the 20-day moving average (MA) of 173.78, above the 50-day MA of 159.53, and above the 200-day MA of 160.25, indicating a bullish trend. The MACD of 3.79 indicates Positive momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 89.52 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
ITT	82 Outperform	$11.98B	24.23	19.27%	0.86%	6.99%	23.25%
SPXC	80 Outperform	$7.37B	36.46	15.24%	―	10.78%	30.05%
WTS	79 Outperform	$8.17B	28.01	17.61%	0.74%	3.89%	8.17%
CR	76 Outperform	$10.22B	34.42	18.82%	0.49%	6.65%	39.13%
AOS	70 Outperform	$9.14B	17.99	27.97%	2.08%	-1.60%	-7.12%
GNRC	67 Neutral	$7.56B	22.29	14.29%	―	8.07%	58.67%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%

* Industrials Sector Average

Performance Comparison

Crane Company

177.68

35.95

25.37%

GNRC

Generac Holdings

127.96

-12.70

-9.03%

ITT

152.24

25.92

20.52%

AOS

A. O. Smith Corporation

64.34

-15.66

-19.57%

SPXC

SPX

157.70

25.31

19.12%

WTS

Watts Water Technologies

244.65

59.71

32.29%

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.