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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)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$207.00
▲(8.00% Upside)
Crane Company's strong earnings call performance and strategic outlook are the most significant factors driving the score. Despite a high P/E ratio and limited dividend yield, the company's robust financial stability and positive technical indicators support a favorable stock outlook.
Positive Factors
Strong Financial Performance
The company's strong EPS growth and raised guidance indicate effective cost management and robust demand in key segments, supporting long-term profitability.
Aerospace & Electronics Growth
Significant sales growth and a strong backlog in Aerospace & Electronics highlight Crane's competitive position and potential for sustained revenue growth.
Robust M&A Pipeline
A strong M&A pipeline supported by a solid balance sheet positions Crane for strategic expansion and diversification, enhancing long-term growth prospects.
Negative Factors
Revenue Growth Decline
Negative revenue growth trends could hinder future expansion, impacting the company's ability to capitalize on market opportunities and sustain profitability.
Chemical Market Softness
Persistent softness in chemical markets, especially in key regions, may limit growth in related segments, affecting overall revenue and profitability.
Tariff Headwinds
Ongoing tariff impacts increase costs, potentially squeezing margins and reducing competitiveness in affected markets, challenging long-term financial performance.

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

Crane Company Business Overview & Revenue Model

Company DescriptionCrane Company (CR) is a diversified global manufacturer of highly engineered industrial products, serving various sectors including aerospace, electronics, and fluid handling. The company operates through several segments, including Crane Aerospace & Electronics, Crane Fluid Handling, and Crane Payment Innovations. Its core offerings include precision valves, pumps, and electronic payment systems, designed to meet the specific needs of its diverse customer base across multiple industries.
How the Company Makes MoneyCrane 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 Key Performance Indicators (KPIs)

Any
Any
Net Sales By Segment
Net Sales By Segment
Chart Insights
Data provided by:The Fly

Crane Company Earnings Call Summary

Earnings Call Date:Oct 27, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 02, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strong financial performance and optimistic outlook, with significant growth in key segments and a robust M&A pipeline. While there were challenges such as chemical market softness and tariff impacts, the company demonstrated resilience and strategic planning to mitigate these effects.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EPS was $1.64, driven by a 5.6% core sales growth. Full year adjusted EPS guidance was raised to $5.75 to $5.95, reflecting a 20% growth at the midpoint compared to 2024.
Aerospace & Electronics Growth
Sales increased by 13%, with a record backlog of over $1 billion, up 27% year-over-year. Strong performance in both OEM and aftermarket segments.
Process Flow Technologies Resilience
Despite a challenging environment, sales increased by 3%, with strength in segments such as wastewater, pharmaceuticals, and cryogenics.
Pending Acquisition of PSI
Acquisition remains on track to close by year-end, with integration planning already underway. Expected to be accretive to financial profile.
Robust M&A Pipeline
Active M&A efforts with a range of $100 million to $500 million deals in the pipeline, supported by a strong balance sheet.
Negative Updates
Chemical Market Softness
Performance in chemical markets remained soft, particularly in Europe and China, though stable year-to-date.
Tariff Headwinds
Continued impact from tariffs, with a gross cost increase expected to be roughly $30 million for the year.
Seasonal Margin Decline
Expected fourth quarter margins to be lower due to typical seasonality and less favorable mix between commercial OE and aftermarket.
Company Guidance
During the Crane Company's third quarter 2025 earnings call, several key metrics were highlighted, showcasing a strong financial performance and strategic outlook. The company reported an adjusted earnings per share (EPS) of $1.64, driven by a 5.6% core sales growth, notably in the Aerospace & Electronics and Process Flow Technologies segments. Crane also demonstrated robust operational discipline, with a record backlog increase of 16% year-over-year. The company's full-year adjusted earnings forecast was raised to a range of $5.75 to $5.95, reflecting a 20% EPS growth at the midpoint compared to 2024. Additionally, Crane remains well-positioned for future expansion, with a solid balance sheet and a pipeline of mergers and acquisitions, including the pending acquisition of Precision Sensors & Instrumentation from Baker Hughes. Looking ahead to 2026, Crane anticipates continued 4% to 6% organic growth, leveraging an average of 35%, with more details to be provided in early January following the completion of the PSI acquisition.

Crane Company Financial Statement Overview

Summary
Crane Company demonstrates strong profitability and financial stability, with effective cost management and reduced leverage. While cash flow metrics show positive trends, the recent decline in revenue growth poses a risk to future expansion.
Income Statement
75
Positive
The company exhibits strong profitability with a consistent gross profit margin above 40% in recent periods. The net profit margin has improved to over 16% in the TTM, indicating efficient cost management. However, the revenue growth rate has been negative recently, which is a concern for future growth prospects.
Balance Sheet
70
Positive
The balance sheet shows a healthy debt-to-equity ratio, significantly reduced in the TTM, indicating strong financial stability. Return on equity is robust at over 20%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.
Cash Flow
68
Positive
The cash flow statement reflects positive trends with a notable increase in free cash flow growth in the TTM. The operating cash flow to net income ratio is improving, suggesting better cash conversion. However, the free cash flow to net income ratio has slightly decreased, indicating potential challenges in cash generation relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.27B2.13B1.86B1.78B2.06B2.94B
Gross Profit953.70M867.80M751.00M661.20M688.80M1.01B
EBITDA464.90M391.90M312.90M187.40M237.90M417.90M
Net Income365.90M294.70M255.90M401.10M435.40M181.00M
Balance Sheet
Total Assets2.55B2.64B2.35B4.39B4.49B4.62B
Cash, Cash Equivalents and Short-Term Investments388.20M306.70M329.60M427.00M478.60M551.00M
Total Debt13.50M319.30M314.80M460.90M944.20M1.33B
Total Liabilities580.50M1.00B991.10M2.49B2.65B3.08B
Stockholders Equity1.97B1.64B1.36B1.90B1.83B1.53B
Cash Flow
Free Cash Flow343.20M236.20M189.20M-509.30M463.20M275.40M
Operating Cash Flow398.00M272.80M228.20M-472.20M498.50M309.50M
Investing Cash Flow118.60M-233.20M-136.60M285.30M-300.00K-229.10M
Financing Cash Flow-391.10M-49.70M-423.20M106.00M-557.90M55.10M

Crane Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price191.67
Price Trends
50DMA
185.05
Positive
100DMA
186.45
Positive
200DMA
176.54
Positive
Market Momentum
MACD
1.51
Negative
RSI
61.02
Neutral
STOCH
88.02
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 191.67 is above the 20-day moving average (MA) of 183.59, above the 50-day MA of 185.05, and above the 200-day MA of 176.54, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 61.02 is Neutral, neither overbought nor oversold. The STOCH value of 88.02 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$10.73B29.0424.96%1.27%2.37%-6.93%
77
Outperform
$9.55B18.5228.21%2.01%-1.64%-2.50%
77
Outperform
$9.27B28.6817.81%0.71%4.18%16.05%
71
Outperform
$11.11B34.8618.09%0.48%-0.37%21.77%
69
Neutral
$9.97B38.843.89%0.93%-4.99%22.16%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
$9.84B30.6012.38%5.52%9.03%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CR
Crane Company
191.67
28.12
17.19%
DCI
Donaldson Company
92.27
21.47
30.32%
GNRC
Generac Holdings
160.75
-6.42
-3.84%
RRX
Regal Rexnord
150.16
-14.08
-8.57%
AOS
A. O. Smith Corporation
68.72
-1.72
-2.44%
WTS
Watts Water Technologies
279.11
62.16
28.65%

Crane Company Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Crane Company Secures New $900M Credit Agreement
Positive
Sep 30, 2025

On September 30, 2025, Crane Company entered into a new credit agreement with JPMorgan Chase Bank, providing a $900 million term loan and a $900 million revolving facility, both maturing in 2030. This agreement supports the acquisition of Precision Sensors & Instrumentation and replaces a previous credit agreement from March 2023, indicating a strategic financial restructuring to support growth and expansion.

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: Dec 09, 2025