Crawford & Company A (CRD.A) AI Stock Analysis

• Market Cap: $498.16M
• Dividend Yield: 2.75%
• Average Volume (3M): 60.63K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.09
• Revenue Growth: 2.79%
• EPS Growth: -13.37%
• Country: US
• Employees: 9,438
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Brokers
• EPS (TTM): 0.54
• Shares Outstanding: 30,215,256
• 10 Day Avg. Volume: 56,790
• 30 Day Avg. Volume: 60,629
• PEG Ratio: 1.69
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.41
• Price to Cash Flow (P/CF): 3.40
• P/FCF Ratio: 3.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.00
• Price Target Upside: 37.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Crawford & Company A's stock score is supported by strong revenue growth and operational efficiency. However, concerns about low profitability, high leverage, and overvaluation temper the outlook. Positive corporate events add some optimism, but financial risks remain a key consideration.

Positive Factors

Business Expansion

Strategic growth investments have been paying off, with Crawford winning new and enhanced business at an annualized pace of approximately $100-125 million.

Revenue Growth

Q4/24 revenue increased 17.3% YOY to $347.3 million, which exceeded estimates, benefiting from insurance claims activity driven by hurricanes.

Technology and Innovation

Crawford is competitively differentiated through its technology innovation, service quality, global scale, deep claims expertise, and robust privacy and data security.

Negative Factors

Earnings Decline

Operating earnings declined -27% YOY to $21.8 million, although this was slightly better than the estimate.

Revenue Impact

Revenue was negatively impacted by a decline in weather-driven insurance claims due to fewer severe weather events.

Crawford & Company A Business Overview & Revenue Model

Company Description

Crawford & Company is a global provider of claims management solutions and services. It operates in sectors including insurance, risk management, and loss adjusting, offering a broad array of services such as claims administration, catastrophe management, and consulting. With a strong international presence, Crawford & Company serves clients in over 70 countries, delivering specialized expertise to manage complex claims and enhance the insurance process.

How the Company Makes Money

Crawford & Company generates revenue primarily through its claims management services, which include handling insurance claims for various sectors such as property and casualty, workers compensation, and liability. The company earns fees from insurance carriers, brokers, and corporate clients for managing and adjusting claims. Additionally, Crawford & Company offers consulting and outsourcing services that contribute to its revenue streams. The company also benefits from strategic partnerships with insurance firms and participation in catastrophic event response, which can lead to increased claims volume and associated fees.

Crawford & Company A Financial Statement Overview

Summary

Crawford & Company A demonstrates solid revenue growth and operational efficiency. However, profitability is a concern due to a low net profit margin, and the high leverage poses financial risks. Cash flow is positive but declining, indicating potential liquidity challenges.

Income Statement

Crawford & Company A has shown consistent revenue growth, with a 5.8% increase from 2023 to 2024. The gross profit margin has significantly improved, indicating effective cost management. However, the net profit margin is relatively low at 2.0%, suggesting challenges in converting revenue into profit. The EBIT margin is strong at 77.7%, showing efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is high, indicating a leveraged balance sheet which may pose financial risk. The equity ratio is not calculable due to missing total assets data for 2024, but the declining stockholders' equity over time suggests potential financial instability. Return on equity is reasonably positive, driven by improved net income.

Cash Flow

Operating cash flow decreased significantly from the previous year, impacting liquidity. While free cash flow is positive, indicating good cash management, the free cash flow growth rate dropped by 23.2%. The cash flow metrics show adequate but not strong cash generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.34B	1.27B	1.23B	1.14B	1.02B
	Gross Profit
367.55M	359.07M	306.35M	291.80M	278.88M
	EBIT
3.44M	67.82M	52.16M	50.42M	59.05M
	EBITDA
97.61M	102.91M	88.26M	73.93M	99.17M
	Net Income Common Stockholders
26.60M	30.61M	-18.53M	30.69M	28.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.41M	58.36M	46.01M	53.23M	44.66M
	Total Assets
803.75M	799.20M	791.51M	852.64M	752.98M
	Total Debt
309.49M	311.53M	346.40M	288.67M	239.57M
	Net Debt
254.08M	253.16M	300.39M	235.44M	194.91M
	Total Liabilities
648.20M	659.37M	668.13M	641.24M	566.06M
	Stockholders Equity
70.09M	141.62M	124.54M	211.97M	186.94M
Cash Flow		Free Cash Flow
9.97M	67.19M	-6.96M	23.37M	55.80M
	Operating Cash Flow
51.62M	103.79M	27.63M	54.32M	93.18M
	Investing Cash Flow
-41.65M	-36.60M	-57.88M	-70.83M	-27.04M
	Financing Cash Flow
-12.86M	-54.68M	25.94M	24.66M	-74.37M

Crawford & Company A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRD.A, the sentiment is Negative. The current price of 10.17 is below the 20-day moving average (MA) of 11.06, below the 50-day MA of 11.61, and below the 200-day MA of 10.80, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 77.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRD.A.

Crawford & Company A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AJG	79 Outperform	$81.64B	49.11	9.46%	0.77%	15.21%	46.99%
ERIE	76 Outperform	$19.63B	37.00	32.89%	1.31%	16.38%	34.58%
BRO	76 Outperform	$32.97B	33.30	16.35%	0.49%	12.89%	13.50%
MMC	76 Outperform	$113.47B	28.12	31.80%	1.37%	7.60%	8.66%
AON	73 Outperform	$81.16B	30.09	100.25%	0.72%	17.51%	1.31%
Sector *	63 Neutral	$12.86B	9.17	9.14%	4.78%	16.41%	-10.11%
CRD.A	63 Neutral	$498.16M	19.02	17.80%	2.75%	2.79%	-13.37%

Crawford & Company A Corporate Events

Crawford & Company A Achieves Record Annual Revenues

Crawford & Company reported its financial results for the fourth quarter and full year ending December 31, 2024, achieving record revenues for the year. The company’s revenues before reimbursements increased by 17% in the fourth quarter and 2% for the full year, with significant growth in all business segments, particularly in North America and international operations. The fourth quarter saw increased claims activity due to Hurricanes Helene and Milton, contributing to revenue growth. Despite a decrease in full-year net income compared to 2023, the company remains committed to operational excellence and innovation to maintain its market leadership.