Carpenter Technology (CRS) AI Stock Analysis

• Market Cap: $11.46B
• Dividend Yield: 0.35%
• Average Volume (3M): 873.58K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.46
• Revenue Growth: 7.40%
• EPS Growth: 168.67%
• Country: US
• Employees: 4,600
• Sector: Industrials
• Sector Strength: 92
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.88
• Shares Outstanding: 49,779,343
• 10 Day Avg. Volume: 835,128
• 30 Day Avg. Volume: 873,581
• PEG Ratio: 0.90
• Price to Book (P/B): 5.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.31
• 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: $245.00
• Price Target Upside: 6.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: ―

Carpenter Technology scores highly due to its strong financial performance, robust earnings report, and strategic corporate actions. While the stock's valuation appears high, its positive market momentum and favorable corporate developments support a solid overall investment outlook.

Positive Factors

Earnings Outlook

The company raised its FY2025 operating income outlook, expecting $520-527mn, which is above prior expectations.

Financial Performance

Carpenter Technology reported adjusted EPS above consensus estimates due to productivity, improved mix, and higher pricing.

Industry Position

CRS continues to be one of the strongest/most durable plays in the aerospace industry given ~60 week lead-times for engine materials, fungibility of high value alloys across critical markets such as defense, OEM, aftermarket, medical, and a ramping FCF profile +80% conversion.

Negative Factors

Cash Flow

Free cash flow was weaker year-over-year due to higher discretionary pension contributions and increased capital expenditures.

Tariff Risk

Tariff uncertainty remains a near-term risk for Carpenter Technology Corporation.

Carpenter Technology Business Overview & Revenue Model

Company Description

Carpenter Technology Corporation (CRS) is a leading producer and distributor of premium specialty alloys, including titanium, nickel, and cobalt, as well as stainless steels. The company serves various sectors, including aerospace, defense, medical, transportation, energy, and industrial applications. Carpenter Technology is committed to providing high-quality materials that meet exacting performance standards, assisting its customers in optimizing their manufacturing processes and product performance.

How the Company Makes Money

Carpenter Technology makes money primarily through the manufacturing and sale of premium specialty alloys and stainless steels. The company generates revenue by supplying materials that are critical for high-performance applications in industries such as aerospace, defense, medical, energy, and transportation. Key revenue streams include the sale of engineered products that meet specific customer requirements, often involving high-precision and high-strength specifications. Carpenter Technology also engages in strategic partnerships and collaborations that enhance its product offerings and expand its market reach. Additionally, the company invests in research and development to innovate and improve its product lines, which helps maintain its competitive edge and attract new business opportunities.

Carpenter Technology Financial Statement Overview

Summary

Carpenter Technology exhibits strong financial health with substantial revenue growth, improved profit margins, and robust cash flow generation. While the balance sheet is stable, decreasing cash reserves and increasing capital expenditures warrant some caution.

Income Statement

The income statement shows strong revenue growth with a 5.8% increase in TTM compared to the previous year. Gross profit margin improved to 25.6% in TTM, indicating better cost management or pricing strategies. Net profit margin has risen significantly to 12.3%, highlighting improved profitability. Both EBIT and EBITDA margins have shown robust growth, reaching 17.1% and 18.7% respectively, reinforcing operational efficiency.

Balance Sheet

The balance sheet is stable with a moderate debt-to-equity ratio of 0.39 in TTM, indicating manageable leverage. Return on Equity (ROE) improved significantly to 20.1%, showcasing increased returns on shareholder investment. The equity ratio remains healthy at 53.0%, reflecting a strong capital structure. However, the decrease in cash reserves could pose liquidity concerns.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth of 27.7% in TTM, driven by improved operating cash flows. The operating cash flow to net income ratio of 0.98 indicates efficient conversion of net income into cash. Additionally, free cash flow to net income ratio of 0.64 suggests healthy cash generation relative to profitability. However, capital expenditures are increasing, which could impact future cash flows.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.92B	2.76B	2.55B	1.84B	1.48B	2.18B
	Gross Profit
748.80M	584.30M	337.30M	149.80M	1.00M	358.70M
	EBIT
499.10M	323.10M	133.10M	-12.20M	-179.20M	158.30M
	EBITDA
581.40M	397.20M	257.60M	113.60M	-141.20M	150.90M
	Net Income Common Stockholders
357.90M	186.50M	56.40M	-49.10M	-229.60M	1.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
151.50M	199.10M	44.50M	154.20M	287.40M	193.10M
	Total Assets
3.36B	3.29B	3.05B	2.93B	2.97B	3.23B
	Total Debt
702.70M	741.40M	693.00M	701.70M	694.50M	721.80M
	Net Debt
551.20M	542.30M	648.50M	547.50M	407.10M	528.70M
	Total Liabilities
1.58B	1.66B	1.66B	1.60B	1.58B	1.78B
	Stockholders Equity
1.78B	1.63B	1.40B	1.33B	1.39B	1.45B
Cash Flow		Free Cash Flow
227.80M	178.30M	-67.60M	-85.30M	149.50M	60.40M
	Operating Cash Flow
351.80M	274.90M	14.70M	6.00M	250.00M	231.80M
	Investing Cash Flow
-123.30M	-95.90M	-82.30M	-89.10M	-78.90M	-171.20M
	Financing Cash Flow
-127.40M	-23.30M	-40.10M	-52.80M	-76.10M	107.80M

Carpenter Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 230.16
• 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 230.16 is above the 20-day moving average (MA) of 217.42, above the 50-day MA of 194.23, and above the 200-day MA of 177.20, indicating a bullish trend. The MACD of 11.60 indicates Negative momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 68.29 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
CRS	80 Outperform	$11.46B	32.61	21.78%	0.35%	7.40%	168.67%
ESAB	77 Outperform	$7.47B	27.67	16.64%	0.26%	-1.85%	16.06%
ATI	76 Outperform	$10.67B	27.37	25.42%	―	6.82%	3.49%
MLI	74 Outperform	$8.39B	13.82	24.51%	1.12%	18.81%	10.05%
AZZ	70 Outperform	$2.66B	49.80	13.01%	0.76%	2.61%	-53.74%
WOR	66 Neutral	$2.87B	48.16	6.56%	1.16%	-69.82%	-78.10%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.39%	3.96%	-12.36%

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.