Crane Company (CR) AI Stock Analysis

• Market Cap: $10.48B
• Dividend Yield: 0.49%
• Average Volume (3M): 329.01K
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.15
• Revenue Growth: 3.01%
• EPS Growth: 27.13%
• Country: US
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.49
• Shares Outstanding: 57,546,840
• 10 Day Avg. Volume: 372,005
• 30 Day Avg. Volume: 329,010
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.76
• Enterprise Value/Gross Profit: 11.53
• Enterprise Value/Ebitda: 24.04
• 1Y Price Target: $223.00
• Price Target Upside: 22.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: $205.00 ▲(12.61% Upside)

Crane Company's strong financial performance and positive earnings call are the main strengths, supported by robust profitability and strategic growth initiatives. However, technical indicators suggest potential short-term weakness, and the high valuation may limit upside potential.

Positive Factors

Strong Core Sales Growth

The 6.5% core sales growth indicates robust demand and effective market penetration, particularly in Aerospace & Electronics and Process Flow Technologies, which supports long-term revenue expansion.

Strategic Acquisition

The acquisition of PSI businesses enhances Crane's technology portfolio and capabilities, positioning the company for future growth and competitive advantage in high-tech sectors.

Strong Balance Sheet

A low Debt-to-Equity Ratio indicates financial stability and flexibility, allowing Crane to pursue further strategic investments and withstand economic fluctuations.

Negative Factors

Revenue Growth Challenges

A decrease in total revenue suggests potential challenges in maintaining growth momentum, which could impact long-term financial performance if not addressed.

Decline in Operating Cash Flow

A decline in operating cash flow may affect liquidity and limit the company's ability to invest in growth opportunities or manage debt effectively.

Chemical Market Challenges

Challenges in the chemical market, especially in Europe, could hinder Crane's growth in this segment, affecting revenue and profitability in the long term.

Crane Company Business Overview & Revenue Model

Company Description

Crane 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 Money

Crane Company generates revenue through multiple streams, primarily by selling its engineered products to customers in key markets such as aerospace, marine, and industrial applications. The company earns money from direct sales of its products, which include valves, pumps, and payment systems. Additionally, Crane benefits from long-term contracts and agreements with major clients in the aerospace and defense sectors, providing stable revenue. The company also engages in aftermarket services, offering maintenance and replacement parts, which contribute to recurring revenue. Strategic partnerships with other firms in related industries enhance its market reach and innovation capabilities, thus driving further earnings.

Crane Company Financial Statement Overview

Summary

Crane Company is financially strong, with robust profitability and a solid equity foundation, which reduces risk and enhances stability. Although revenue growth is a concern, the company maintains efficient operations and good cash flow management. The low leverage and high equity ratio position it well against potential downturns.

Income Statement

The company exhibits strong profitability with a significant Gross Profit Margin of 42.62% and a robust Net Profit Margin of 16.60% for TTM (Trailing-Twelve-Months). However, there is a slight decrease in total revenue compared to the previous year, indicating potential revenue growth challenges. The EBIT Margin of 17.63% and EBITDA Margin of 20.19% suggest effective operational management.

Balance Sheet

The balance sheet reflects a strong equity position with an Equity Ratio of 75.05%, indicating financial stability. The Debt-to-Equity Ratio of 0.03 is notably low, suggesting low financial leverage and reduced risk. Return on Equity (ROE) stands at an impressive 18.63%, showcasing efficient use of shareholders' equity.

Cash Flow

The cash flow statement shows a positive Free Cash Flow of $184.6 million with a notable Free Cash Flow to Net Income Ratio of 0.52, indicating good cash conversion. Operating Cash Flow to Net Income Ratio is 0.67, suggesting moderate operational cash generation. However, there is a decline in Operating Cash Flow compared to the previous year, which may impact liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.28B	2.13B	1.86B	1.78B	2.06B	2.94B
Gross Profit	940.40M	867.80M	751.00M	661.20M	688.80M	1.01B
EBITDA	450.80M	391.90M	312.90M	187.40M	237.90M	417.90M
Net Income	351.80M	294.70M	255.90M	401.10M	435.40M	181.00M
Balance Sheet
Total Assets	2.52B	2.64B	2.33B	4.40B	4.49B	4.59B
Cash, Cash Equivalents and Short-Term Investments	332.20M	306.70M	329.60M	657.60M	478.60M	551.00M
Total Debt	47.20M	319.30M	315.60M	1.24B	842.40M	1.22B
Total Liabilities	628.00M	1.00B	973.30M	2.49B	2.65B	3.06B
Stockholders Equity	1.89B	1.64B	1.36B	1.91B	1.84B	1.53B
Cash Flow
Free Cash Flow	184.60M	221.20M	185.50M	-210.00M	446.80M	275.40M
Operating Cash Flow	235.00M	257.80M	228.20M	-151.60M	498.50M	309.50M
Investing Cash Flow	124.50M	-230.00M	-136.60M	264.00M	-300.00K	-229.10M
Financing Cash Flow	-384.60M	-49.70M	-423.20M	106.00M	-557.90M	55.10M

Crane Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 182.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 182.05 is below the 20-day moving average (MA) of 185.91, below the 50-day MA of 189.18, and above the 200-day MA of 170.40, indicating a neutral trend. The MACD of -2.19 indicates Positive momentum. The RSI at 42.51 is Neutral, neither overbought nor oversold. The STOCH value of 38.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CR.

Crane Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTS	79 Outperform	9.37B	30.21	16.46%	0.68%	2.96%	12.62%
DCI	78 Outperform	9.45B	26.58	25.25%	1.41%	2.92%	-9.78%
GNRC	77 Outperform	10.70B	30.28	14.02%	―	9.69%	54.29%
AOS	76 Outperform	10.24B	20.39	28.09%	1.86%	-3.53%	-7.46%
CR	70 Outperform	$10.48B	34.35	18.23%	0.49%	3.01%	27.13%
RRX	65 Neutral	9.52B	38.14	3.74%	0.98%	-7.88%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%