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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)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$215.00
▲(13.16% Upside)
Crane Company demonstrates strong financial performance and a positive outlook from its earnings call, which are the most significant factors driving the score. Technical analysis supports a bullish trend, although valuation concerns due to a high P/E ratio and modest dividend yield slightly temper the overall score.
Positive Factors
Revenue Growth
The increase in revenue growth forecast indicates strong demand and effective business strategies, suggesting sustained market expansion.
M&A Pipeline
A robust M&A pipeline supports strategic growth and diversification, enhancing Crane's competitive position and long-term profitability.
Balance Sheet Strength
A strong balance sheet with low leverage provides financial stability and flexibility, enabling Crane to invest in growth opportunities.
Negative Factors
Chemical Market Softness
Weakness in the chemical markets could limit growth in these regions, affecting Crane's revenue potential in the short to medium term.
Tariff Headwinds
Tariff-related cost increases can pressure margins and reduce profitability, challenging Crane's ability to maintain competitive pricing.
Seasonal Margin Decline
Seasonal margin declines may impact short-term profitability, requiring effective cost management to sustain long-term financial health.

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 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 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
82
Very Positive
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
76
Positive
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
70
Positive
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.
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 Debt0.00319.30M314.80M460.90M944.20M1.33B
Total Liabilities580.50M1.00B991.10M2.49B2.65B3.08B
Stockholders Equity1.97B1.64B1.36B1.90B1.83B1.53B
Cash Flow
Free Cash Flow245.20M236.20M185.50M-210.00M446.80M275.40M
Operating Cash Flow300.00M272.80M228.20M-151.60M498.50M309.50M
Investing Cash Flow118.60M-233.20M-136.60M264.00M-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 Price190.00
Price Trends
50DMA
184.62
Positive
100DMA
186.96
Positive
200DMA
174.01
Positive
Market Momentum
MACD
2.49
Negative
RSI
56.93
Neutral
STOCH
46.63
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 190 is above the 20-day moving average (MA) of 185.12, above the 50-day MA of 184.62, and above the 200-day MA of 174.01, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$9.77B27.6424.94%1.35%2.92%-9.78%
$9.09B29.3217.75%0.70%2.96%12.62%
$10.94B34.3318.09%0.47%-0.37%21.77%
$9.29B17.7128.21%2.09%-1.64%-2.50%
$9.35B36.443.89%0.99%-4.99%22.16%
$9.86B31.9712.38%5.52%9.03%
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CR
Crane Company
190.00
30.68
19.26%
DCI
Donaldson Company
84.25
11.07
15.13%
GNRC
Generac Holdings
168.02
-2.72
-1.59%
RRX
Regal Rexnord
140.89
-27.62
-16.39%
AOS
A. O. Smith Corporation
65.99
-7.63
-10.36%
WTS
Watts Water Technologies
272.60
78.50
40.44%

Crane Company Corporate Events

Crane Company Reports Strong Q3 2025 Earnings
Oct 29, 2025

Crane Company is a leading manufacturer specializing in highly engineered components for aerospace, defense, space, and process industry applications. In its latest earnings report for the third quarter of 2025, Crane Company announced a significant increase in earnings per diluted share (EPS) from continuing operations, reporting a 25% rise to $1.56, with adjusted EPS up by 27% to $1.64. The company also reported a 7.5% increase in sales, driven by core sales growth of 5.6%. Notably, the Aerospace & Electronics segment showed robust performance with a 13% increase in net sales.

Crane Company Showcases Strong Earnings and Growth Prospects
Oct 29, 2025

Crane Company Reports Strong Financial Performance and Optimistic Outlook

Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
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.

The most recent analyst rating on (CR) stock is a Buy with a $201.00 price target. To see the full list of analyst forecasts on Crane Company stock, see the CR Stock Forecast page.

Crane Company Reports Strong Q2 2025 Results
Jul 30, 2025

Looking ahead, Crane Company remains optimistic about its growth prospects, supported by strong demand trends and a robust acquisition pipeline. The company’s management is confident in its ability to drive above-market growth through both organic initiatives and strategic acquisitions, despite an unpredictable macroeconomic environment.

Crane Company Earnings Call Highlights Strong Growth and Strategic Moves
Jul 30, 2025

Crane Company’s recent earnings call paints a generally positive picture, underscored by strong financial performance and strategic acquisitions. Despite facing some challenges like market sluggishness in the Process Flow Technologies segment and tariff impacts, the overall sentiment suggests a strong position for future growth.

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: Oct 28, 2025