Carpenter Technology (CRS) AI Stock Analysis

• Market Cap: $16.73B
• Dividend Yield: 0.24%
• Average Volume (3M): 750.32K
• Price to Earnings (P/E): 41.1
• Beta (1Y): 1.51
• Revenue Growth: 2.40%
• EPS Growth: 81.54%
• Country: US
• Employees: 4,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 2.43
• Shares Outstanding: 49,818,820
• 10 Day Avg. Volume: 612,011
• 30 Day Avg. Volume: 750,317
• PEG Ratio: 0.37
• Price to Book (P/B): 7.35
• Price to Sales (P/S): 4.82
• P/FCF Ratio: 48.49
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 6.17
• Enterprise Value/Gross Profit: 22.08
• Enterprise Value/Ebitda: 25.09
• 1Y Price Target: $378.25
• Price Target Upside: 12.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $378.00 ▲(12.58% Upside)

Carpenter Technology's strong financial performance and positive earnings outlook are the most significant factors driving the stock score. The technical analysis presents a mixed picture, while the valuation suggests the stock may be overvalued. Recent corporate events positively impact the company's financial flexibility.

Positive Factors

Robust Revenue Growth

A 56% TTM revenue increase signals durable demand gains and expanding market share across key end markets. Sustained top-line growth supports capacity investment, R&D and long-term customer relationships, providing a structural tailwind for earnings over the next 2–6 months.

High Margins and Profitability

Robust gross and net margins, plus a 32% SAO segment margin, indicate persistent pricing power and operational efficiency. These margin levels create durable buffer against input cost swings and support reinvestment, debt reduction, and shareholder returns over the medium term.

Strong Balance Sheet and Cash Generation

Low leverage (D/E 0.36) and operating cash flow exceeding net income demonstrate financial flexibility. Solid cash generation underpins debt refinancing, share repurchases and capex, reducing refinancing risk and enabling strategic investments across economic cycles.

Negative Factors

Declining Free Cash Flow Growth

A nearly 6% decline in free cash flow growth erodes the company's ability to self-fund growth initiatives, buybacks and accelerated debt paydown. If the trend persists, it could constrain capital allocation flexibility and increase reliance on external financing over the medium term.

Medical End-Market Weakness

A sharp sequential and year-over-year decline in medical sales highlights end-market volatility and distribution customer working-capital sensitivities. Reduced demand in a traditionally higher-margin market can pressure overall revenue diversification and margin sustainability.

Exposure to Cyclical End Markets

Sequential declines in PEP and energy revenues show sensitivity to cyclical order patterns. Such volatility can reduce capacity utilization and make it harder to maintain margins and forecast cash flows, posing a structural risk across 2–6 month planning horizons.

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 primarily through the sale of specialty alloys and metal products to various industries, including aerospace, defense, and medical sectors. The company has a diversified revenue model that includes direct sales, long-term contracts, and agreements with key customers. Significant revenue streams come from the production of high-performance materials that are often used in critical applications. Additionally, Carpenter Technology benefits from strategic partnerships with major players in its target industries, enabling it to access a wider market and enhance its product offerings. The company also invests in research and development to innovate and improve its product lines, further driving revenue growth through the introduction of new, high-demand materials.

Carpenter Technology Financial Statement Overview

Summary

Carpenter Technology exhibits strong financial health with robust revenue growth and profitability metrics. The company has effectively managed its leverage, maintaining a stable balance sheet. While cash flow generation is solid, attention to free cash flow growth is necessary to sustain long-term financial stability.

Income Statement

Carpenter Technology has demonstrated strong revenue growth with a 56% increase in TTM (Trailing-Twelve-Months), indicating robust demand and market expansion. The company maintains healthy profitability with a gross profit margin of 27.95% and a net profit margin of 14.30% in TTM, reflecting efficient cost management and operational effectiveness. EBIT and EBITDA margins are also strong at 19.71% and 24.60% respectively, showcasing solid operational performance. However, the rapid revenue growth may pose challenges in maintaining these margins if costs rise or market conditions change.

Balance Sheet

The balance sheet of Carpenter Technology is stable with a manageable debt-to-equity ratio of 0.36 in TTM, indicating prudent financial leverage. The return on equity (ROE) is impressive at 22.68%, highlighting effective use of shareholder funds to generate profits. The equity ratio stands at 56.18%, suggesting a strong equity base relative to total assets. While the company has reduced its debt levels over time, maintaining this trajectory will be crucial to mitigate financial risks.

Cash Flow

Carpenter Technology's cash flow position is solid, with an operating cash flow to net income ratio of 1.17 in TTM, indicating strong cash generation relative to earnings. However, the free cash flow growth rate has declined by 5.84%, which may impact future investment capabilities. The free cash flow to net income ratio is healthy at 0.61, suggesting good conversion of profits into cash. Continued focus on improving free cash flow will be essential to support growth and debt reduction.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.89B	2.88B	2.76B	2.55B	1.84B	1.48B
Gross Profit	808.70M	768.60M	584.30M	337.30M	149.80M	1.00M
EBITDA	711.60M	670.40M	411.60M	267.60M	113.20M	-140.70M
Net Income	413.70M	376.00M	186.50M	56.40M	-49.10M	-229.60M
Balance Sheet
Total Assets	3.40B	3.49B	3.29B	3.05B	2.93B	2.97B
Cash, Cash Equivalents and Short-Term Investments	208.00M	315.50M	199.10M	44.50M	154.20M	287.40M
Total Debt	704.20M	738.30M	741.40M	745.70M	744.40M	739.00M
Total Liabilities	1.49B	1.60B	1.66B	1.66B	1.60B	1.58B
Stockholders Equity	1.91B	1.89B	1.63B	1.40B	1.33B	1.39B
Cash Flow
Free Cash Flow	269.40M	286.10M	178.30M	-67.60M	-85.30M	149.50M
Operating Cash Flow	439.40M	440.40M	274.90M	14.70M	6.00M	250.00M
Investing Cash Flow	-168.60M	-152.90M	-95.90M	-82.30M	-89.10M	-78.90M
Financing Cash Flow	-210.30M	-167.10M	-23.30M	-40.10M	-52.80M	-76.10M

Carpenter Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 335.77
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 335.77 is above the 20-day moving average (MA) of 330.67, above the 50-day MA of 323.73, and above the 200-day MA of 266.14, indicating a bullish trend. The MACD of 3.83 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 66.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRS.

Carpenter Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	80 Outperform	$3.69B	11.62	27.38%	0.67%	1.55%	701.41%
ATI	78 Outperform	$16.79B	39.84	25.43%	―	7.75%	6.84%
MLI	78 Outperform	$14.73B	19.83	26.06%	0.85%	15.71%	29.60%
CRS	75 Outperform	$16.73B	41.07	23.16%	0.24%	2.40%	81.54%
WOR	70 Outperform	$2.63B	24.97	11.31%	1.27%	7.43%	148.83%
ESAB	69 Neutral	$7.33B	30.49	13.86%	0.33%	1.19%	-7.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Carpenter Technology Corporate Events

Carpenter Technology Completes $700 Million Senior Notes Offering

On November 20, 2025, Carpenter Technology Corporation completed a $700 million private offering of 5.625% senior notes due 2034, intending to use the proceeds to redeem its 6.375% and 7.625% senior notes due 2028 and 2030, respectively. Additionally, the company amended its credit agreement, increasing its revolving commitments to $500 million and extending the maturity date to 2030, which could enhance its financial flexibility and operational capacity.

The most recent analyst rating on (CRS) stock is a Buy with a $380.00 price target. To see the full list of analyst forecasts on Carpenter Technology stock, see the CRS Stock Forecast page.

Carpenter Technology Announces $700M Senior Notes Offering

On November 10, 2025, Carpenter Technology announced the pricing of a $700 million private offering of 5.625% senior notes due 2034. The proceeds will be used to redeem existing senior notes due in 2028 and 2030, as well as for general corporate purposes. This strategic financial move is expected to optimize the company’s debt structure and support its operational goals.

The most recent analyst rating on (CRS) stock is a Buy with a $388.00 price target. To see the full list of analyst forecasts on Carpenter Technology stock, see the CRS Stock Forecast page.

Carpenter Technology Announces $700M Senior Notes Offering

On November 10, 2025, Carpenter Technology announced its intention to offer $700 million in senior notes due 2034 through a private offering, aiming to use the proceeds to redeem and repay existing senior notes and for general corporate purposes. Additionally, the company is working on amending its credit facility with Bank of America, potentially increasing revolving commitments and extending the maturity date, which could impact its financial flexibility and stakeholder interests.

The most recent analyst rating on (CRS) stock is a Buy with a $388.00 price target. To see the full list of analyst forecasts on Carpenter Technology stock, see the CRS Stock Forecast page.