Carpenter Technology (CRS) AI Stock Analysis

• Market Cap: $11.98B
• Dividend Yield: 0.33%
• Average Volume (3M): 879.65K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.41
• Revenue Growth: 4.25%
• EPS Growth: 100.21%
• Country: US
• Employees: 4,600
• Sector: Industrials
• Sector Strength: 75
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 2.21
• Shares Outstanding: 49,850,094
• 10 Day Avg. Volume: 794,281
• 30 Day Avg. Volume: 879,649
• 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: 1.20
• Enterprise Value/Revenue: 5.01
• Enterprise Value/Gross Profit: 18.75
• Enterprise Value/Ebitda: 21.49
• 1Y Price Target: $318.00
• Price Target Upside: 32.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $268.00 ▲(11.55% Upside)

Carpenter Technology's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. However, the high valuation and mixed technical indicators temper the overall outlook. The company's growth prospects and strategic market positioning provide a solid foundation, but investors should be cautious of valuation concerns and market volatility.

Positive Factors

Competitive Advantage

CRS's operational competitive moat is expanding, limiting long-term threats and is evident from the unique process knowledge and continuous improvement culture at the Athens facility.

Financial Performance

CRS's high conviction 2-year EPS CAGR of 25%+ is seen as a buying opportunity.

Market Demand

Even with the Athens expansion, there isn't enough alloy material to meet the needs of Boeing, Airbus, aftermarket, defense, and medical sectors into the next decade, signifying strong demand for CRS products.

Negative Factors

Competitive Pressure

Investors are worried that ATI's capacity increase will attenuate the pricing power of Ni alloy mills like CRS.

Pricing Power Concerns

Investors are worried that increased Ni melt capacity will attenuate the pricing power of Ni alloy mills.

Carpenter Technology Business Overview & Revenue Model

Company Description

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.

How the Company Makes Money

Carpenter Technology generates revenue through the sale of its specialty alloys and engineered products to various industries, with a significant focus on aerospace and medical markets. The company employs a diversified revenue model that includes direct sales to original equipment manufacturers (OEMs) and distributors. Key revenue streams comprise the sale of raw materials, custom manufacturing services, and powder metal products. Additionally, Carpenter Technology benefits from long-term contracts and partnerships with major companies in the aerospace and defense sectors, which provide stability and predictable revenue. The company's investments in research and development also enable it to innovate and offer new products that meet the evolving needs of its customers, further contributing to its earnings. Market trends, such as the increasing demand for lightweight materials in aerospace and automotive applications, also bolster Carpenter's financial performance.

Carpenter Technology Financial Statement Overview

Summary

Carpenter Technology demonstrates strong financial performance with consistent revenue growth, improved profitability, and effective cash flow management. The company maintains a solid equity base and balanced leverage, contributing to its financial stability.

Income Statement

Carpenter Technology has shown strong revenue growth over the past few years, with the latest year achieving a 4.26% increase. The gross profit margin stands at 26.72%, and the net profit margin has improved significantly to 13.07%, indicating enhanced profitability. The EBIT and EBITDA margins of 18.26% and 22.76%, respectively, reflect efficient operational management.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 54.11%, indicating strong financial health. The debt-to-equity ratio is 0.37, which is manageable, showcasing effective leverage management. The ROE of 19.93% demonstrates a strong return on equity, highlighting the company's ability to generate profits from its equity base.

Cash Flow

Carpenter Technology's free cash flow has grown by 60.45%, indicating robust financial flexibility. The operating cash flow to net income ratio is 1.17, and the free cash flow to net income ratio is 0.76, suggesting good cash generation relative to net income, ensuring liquidity and operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.88B	2.88B	2.76B	2.55B	1.84B	1.48B
Gross Profit	768.60M	768.60M	584.30M	337.30M	149.80M	1.00M
EBITDA	670.50M	670.40M	411.60M	267.60M	113.20M	-140.70M
Net Income	376.00M	376.00M	186.50M	56.40M	-49.10M	-229.60M
Balance Sheet
Total Assets	3.49B	3.49B	3.29B	3.05B	2.93B	2.97B
Cash, Cash Equivalents and Short-Term Investments	315.50M	315.50M	199.10M	44.50M	154.20M	287.40M
Total Debt	703.40M	703.40M	703.00M	702.10M	701.70M	739.00M
Total Liabilities	1.60B	1.60B	1.66B	1.66B	1.60B	1.58B
Stockholders Equity	1.89B	1.89B	1.63B	1.40B	1.33B	1.39B
Cash Flow
Free Cash Flow	286.10M	286.10M	178.30M	-67.60M	-85.30M	149.50M
Operating Cash Flow	440.40M	440.40M	274.90M	14.70M	6.00M	250.00M
Investing Cash Flow	-152.90M	-152.90M	-95.90M	-82.30M	-89.10M	-78.90M
Financing Cash Flow	-167.10M	-167.10M	-23.30M	-40.10M	-52.80M	-76.10M

Carpenter Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 240.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRS, the sentiment is Negative. The current price of 240.26 is below the 20-day moving average (MA) of 244.04, below the 50-day MA of 261.48, and above the 200-day MA of 214.03, indicating a neutral trend. The MACD of -5.80 indicates Negative momentum. The RSI at 41.90 is Neutral, neither overbought nor oversold. The STOCH value of 42.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRS.

Carpenter Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLI	81 Outperform	$10.78B	15.13	25.98%	0.98%	19.42%	30.15%
AZZ	80 Outperform	$3.50B	13.09	23.85%	0.61%	1.70%	684.20%
ATI	77 Outperform	$10.80B	26.45	26.95%	―	6.64%	3.23%
WOR	74 Outperform	$3.25B	33.58	10.52%	1.04%	-60.43%	-14.19%
CRS	71 Outperform	$11.98B	31.80	21.37%	0.33%	4.25%	100.21%
ESAB	70 Neutral	$7.07B	27.27	14.81%	0.29%	-1.06%	1.56%
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%

Carpenter Technology Corporate Events

Carpenter Technology Announces New Chairman Appointment

On August 12, 2025, Carpenter Technology Corporation announced the retirement of I. Martin Inglis as Chairman of the Board, with Tony R. Thene, the current President and CEO, appointed as his successor. Additionally, Brian J. Malloy was promoted to President and COO, effective October 7, 2025, as part of the company’s succession plans, highlighting Carpenter Technology’s commitment to strategic growth and leadership continuity.