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

• Market Cap: $526.38M
• Dividend Yield: 2.9%
• Average Volume (3M): 3.13K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.22
• Revenue Growth: 5.58%
• EPS Growth: 28.75%
• Country: US
• Employees: 9,134
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Brokers
• EPS (TTM): 0.22
• Shares Outstanding: 19,144,928
• 10 Day Avg. Volume: 3,923
• 30 Day Avg. Volume: 3,129
• 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: 1.46
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 2.05
• Enterprise Value/Ebitda: 7.08
• 1Y Price Target: $11.00
• Price Target Upside: 10.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $11.00 ▲(10.55% Upside)

Crawford & Company B's overall stock score is driven primarily by its strong financial performance, particularly in revenue and cash flow growth. However, high leverage and a bearish technical outlook weigh on the score. The valuation is moderate, with a reasonable P/E ratio and a decent dividend yield, providing some support to the stock's attractiveness.

Positive Factors

Revenue Growth

Crawford & Company B's strong revenue growth indicates effective market penetration and increased demand for its claims management services, supporting long-term business expansion.

Cash Flow Generation

The impressive growth in free cash flow demonstrates Crawford's ability to efficiently convert revenue into cash, enhancing financial stability and providing resources for future investments.

Market Position

Crawford's partnerships with major insurers strengthen its market position, ensuring steady demand for its services and providing a competitive edge in the insurance sector.

Negative Factors

High Leverage

The high leverage poses a risk to Crawford's financial health, potentially limiting its ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Operational Efficiency

Moderate operational efficiency suggests there is room for improvement in cost management, which could enhance profitability and competitiveness over time.

Debt Management

Effective debt management is crucial for Crawford to maintain financial flexibility and avoid potential liquidity issues, impacting long-term sustainability.

Crawford & Company B Business Overview & Revenue Model

Company Description

Crawford & Company provides claims management and outsourcing solutions for carriers, brokers, and corporations in the United States, the United Kingdom, Europe, Canada, Australia, and internationally. The company's Crawford Loss Adjusting provides claims management services to insurance companies and self-insured entities risk including property, public liability, automobile, and marine insurances. Its Crawford TPA Solutions segment provides claims and risk management services for corporations in the self-insured or commercially-insured marketplace; desktop claim adjusting and claims evaluation services; initial loss reporting services for claimants; and loss mitigation and risk management information services, as well as administers loss funds established to pay claims. This segment also offers third party administration for workers' compensation, auto and liability, disability absence and medical management, and accident and health products. The company's Crawford Platform Solutions segment offers insurance through service lines, such as Contractor Connection and Networks, including losses caused by natural disasters, such as fires, hailstorms, hurricanes, earthquakes, floods, as well as man-made disasters, such as oil spills, and chemical releases. It also provides customer-centric solutions for various loss types comprising high-frequency and low-complexity claims to large complex repairs; and outsourced contractor management services to personal and commercial insurance carriers and consumer markets. The company was founded in 1941 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Crawford & Company generates revenue primarily through fees for its claims management services, which include loss adjusting, subrogation, and consulting services. The company charges clients based on the volume and complexity of claims handled, along with service level agreements that stipulate specific deliverables. Key revenue streams include the handling of insurance claims for property damage, liability, and workers' compensation. Additionally, Crawford has established significant partnerships with major insurance carriers, enhancing its market reach and driving consistent revenue growth. Factors contributing to its earnings include the increasing demand for outsourced claims management services and the company's ability to leverage technology to improve service delivery and operational efficiency.

Crawford & Company B Financial Statement Overview

Summary

Crawford & Company B exhibits strong financial performance with robust revenue and cash flow growth. However, high leverage poses a potential risk, and there is room for improvement in operational efficiency.

Income Statement

Crawford & Company B has shown consistent revenue growth with a TTM revenue growth rate of 51.2%. The gross profit margin is stable at 27.7%, and the net profit margin has improved to 2.18%. However, the EBIT and EBITDA margins indicate moderate operational efficiency, suggesting room for improvement in cost management.

Balance Sheet

The company has a high debt-to-equity ratio of 1.75, indicating significant leverage, which could pose risks if not managed properly. However, the return on equity is strong at 18.08%, showing effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

Crawford & Company B has demonstrated impressive free cash flow growth of 127.37% in the TTM period. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. The free cash flow to net income ratio of 71.34% suggests strong cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.34B	1.27B	1.23B	1.14B	1.02B
Gross Profit	376.73M	367.55M	359.07M	306.35M	291.80M	278.88M
EBITDA	108.89M	97.61M	102.91M	88.26M	73.93M	99.17M
Net Income	29.64M	26.60M	30.61M	-18.53M	30.69M	28.30M
Balance Sheet
Total Assets	799.37M	803.75M	799.20M	791.51M	852.64M	752.98M
Cash, Cash Equivalents and Short-Term Investments	58.92M	55.41M	58.36M	46.01M	53.23M	44.66M
Total Debt	309.49M	309.49M	311.53M	346.40M	288.67M	239.57M
Total Liabilities	624.02M	648.20M	659.37M	668.13M	641.24M	566.06M
Stockholders Equity	176.89M	157.21M	141.62M	124.54M	211.97M	186.94M
Cash Flow
Free Cash Flow	57.76M	9.97M	67.19M	-6.96M	23.37M	55.80M
Operating Cash Flow	80.95M	51.62M	103.79M	27.63M	54.32M	93.18M
Investing Cash Flow	-41.48M	-41.65M	-36.60M	-57.88M	-70.83M	-27.04M
Financing Cash Flow	-29.59M	-12.86M	-54.68M	25.94M	24.66M	-74.37M

Crawford & Company B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRD.B, the sentiment is Negative. The current price of 9.95 is below the 20-day moving average (MA) of 10.43, below the 50-day MA of 10.11, and below the 200-day MA of 10.56, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.74 is Neutral, neither overbought nor oversold. The STOCH value of 27.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRD.B.

Crawford & Company B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRD.B	69 Neutral	$526.38M	16.34	18.06%	2.90%	5.58%	28.75%
CRD.A	69 Neutral	$526.38M	17.37	18.06%	2.68%	5.58%	28.75%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
SLQT	61 Neutral	$362.92M	―	10.66%	―	15.50%	―
EHTH	54 Neutral	$124.06M	―	4.45%	―	16.19%	89.75%
HUIZ	52 Neutral	$28.55M	11.44	-3.92%	―	0.48%	-127.19%
GOCO	45 Neutral	$77.70M	―	-13.38%	―	17.46%	60.17%