Carpenter Technology (CRS) AI Stock Analysis

• Market Cap: $12.38B
• Dividend Yield: 0.32%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 1.42
• Revenue Growth: 4.25%
• EPS Growth: 100.26%
• Country: US
• Employees: 4,600
• Sector: Industrials
• Sector Strength: 84
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 2.21
• Shares Outstanding: 49,779,343
• 10 Day Avg. Volume: 1,044,478
• 30 Day Avg. Volume: 1,134,507
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 4.99
• Enterprise Value/Gross Profit: 18.69
• Enterprise Value/Ebitda: 24.33
• 1Y Price Target: $312.67
• Price Target Upside: 25.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $286.00 ▲(14.98% Upside)

Carpenter Technology's robust financial performance and positive earnings call outlook are the primary drivers of its score. However, technical indicators suggest caution due to bearish momentum, and valuation concerns limit the stock's attractiveness.

Positive Factors

Earnings

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

Operational Efficiency

The continuous improvement culture at Carpenter Technology Corp has reached a high level of efficiency, contributing to improved margins, safety, and operational flow.

Pricing Power

Pricing power remains a pillar of the analyst's Overweight thesis for CRS, supported by an attractive outlook for more than 75% of the company’s end market exposure, steep barriers to entry, and expectations of a forthcoming high-purity nickel alloy shortfall.

Negative Factors

Industry Competition

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

Supply Constraints

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.

Carpenter Technology Business Overview & Revenue Model

Company Description

Carpenter Technology Corporation (CRS) is a leading manufacturer and distributor of specialty alloys and engineered products, primarily serving the aerospace, defense, energy, medical, and industrial markets. The company specializes in high-performance materials, including titanium, nickel, and cobalt-based alloys, which are critical in the production of components that require superior strength and corrosion resistance. Carpenter Technology operates through various segments, including Specialty Alloys Operations and Carpenter Powder Products, providing both traditional and advanced manufacturing solutions.

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 shows strong financial health with consistent revenue growth, improved profitability, and robust cash flow management. The solid equity base and manageable debt levels further support its 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	768.50M	768.60M	584.30M	337.30M	149.80M	1.00M
EBITDA	590.50M	654.90M	397.20M	257.60M	113.60M	-141.20M
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	695.40M	695.40M	741.40M	693.00M	701.70M	694.50M
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: 248.74
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 248.74 is below the 20-day moving average (MA) of 269.98, below the 50-day MA of 263.51, and above the 200-day MA of 207.03, indicating a neutral trend. The MACD of -3.79 indicates Positive momentum. The RSI at 37.87 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 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
AZZ	82 Outperform	$3.31B	12.79	23.85%	0.64%	1.70%	684.20%
MLI	81 Outperform	$9.86B	14.14	25.98%	1.01%	19.42%	30.15%
ATI	73 Outperform	$10.07B	25.25	26.95%	―	6.64%	3.23%
WOR	73 Outperform	$3.15B	32.99	10.52%	1.08%	-60.43%	-14.19%
CRS	72 Outperform	$12.38B	33.52	21.38%	0.32%	4.25%	100.26%
ESAB	71 Outperform	$6.75B	26.57	14.81%	0.31%	-1.06%	1.56%
Sector *	64 Neutral	€15.12B	19.93	1.57%	3.13%	4.81%	5.42%

Carpenter Technology Corporate Events

Carpenter Technology Appoints Julie Beck to Board

On February 20, 2025, Carpenter Technology Corporation appointed Julie A. Beck to its Board of Directors, effective immediately. Ms. Beck, who has extensive experience in finance and manufacturing, will serve as a Class II director until the 2027 annual meeting. Her appointment is expected to enhance the company’s growth and shareholder returns, as highlighted by Martin Inglis, Chairman of the Board.