Crane NXT (CXT) AI Stock Analysis

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Crane NXT

(NYSE:CXT)

Rating:66Neutral

Price Target:

$58.00

▲(7.23%Upside)

Crane NXT's stock score reflects strong financial performance with steady growth and effective cash management. Technical analysis supports a positive trend, while valuation remains fair. The recent earnings call highlights strategic progress but also underscores existing challenges, particularly related to tariffs and core sales decline.

Positive Factors

Business Diversification

Currency/Security Authentication now up to 44% of the business, with an emphasis to diversify away from cash technologies following several acquisitions to pivot the focus to authentication.

International Growth

International currency is gaining market share and they have wins that have yet to launch, leading to strong visibility and a robust backlog.

Strategic Partnerships

Talks with India have reignited and could be a major catalyst, potentially leading to a significant tender opportunity.

Negative Factors

Market Dependency

The setup for 2026 is strong with the USD launch and a better mix of higher value features in the bills.

Crane NXT (CXT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.10B

Dividend Yield1.22%

Average Volume (3M)336.48K

Price to Earnings (P/E)18.6

Beta (1Y)0.86

Revenue Growth9.28%

EPS Growth-8.45%

CountryUS

Employees4,500

SectorIndustrials

Sector Strength92

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.54

Shares Outstanding57,365,810

10 Day Avg. Volume318,729

30 Day Avg. Volume336,482

Financial Highlights & Ratios

PEG Ratio3.61

Price to Book (P/B)2.84

Price to Sales (P/S)0.00

P/FCF Ratio12.21

Enterprise Value/Market Cap1.19

Enterprise Value/Revenue0.64

Enterprise Value/Gross Profit5.53

Enterprise Value/Ebitda2.59

Forecast

1Y Price Target

$67.33

Price Target Upside24.48% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Crane NXT Business Overview & Revenue Model

Company DescriptionCrane NXT, Co. focuses on payment and merchandising technologies. It indents to offer electronic equipment and associated software leveraging extensive, and proprietary core capabilities, including payment verification and authentication, as well as automation solutions, field service solutions, remote diagnostics, and productivity enhancing software solutions. The company is based in Stamford, Connecticut.

How the Company Makes MoneyCrane NXT generates revenue through a diversified portfolio of products and services that cater to multiple industries. The company's key revenue streams include the sale of payment and merchandising solutions, such as currency handling equipment and software, which are widely used in retail and financial services sectors. Additionally, Crane NXT offers security and authentication solutions that help governments and businesses protect their assets and data, contributing significantly to its earnings. The company also benefits from strategic partnerships and long-term contracts with major clients, which provide a steady flow of income. Through continuous innovation and adaptation to market needs, Crane NXT maintains its competitive edge and drives profitability.

Crane NXT Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 13.90%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant achievements in sales growth, backlog, and strategic acquisitions, particularly the completion of De La Rue. However, challenges such as core sales decline, market-specific challenges, and tariff impacts indicate a balanced sentiment.

Q1-2025 Updates

Positive Updates

Sales Growth and EPS Achievement

Crane NXT achieved a sales growth of 5% and an adjusted EPS of $0.54 for Q1 2025, in line with expectations.

Record High Backlog in Crane Currency

Crane Currency achieved a record high backlog with a book-to-bill ratio of 2.4, driven by differentiated anticounterfeiting technology.

Completion of De La Rue Acquisition

The acquisition of De La Rue Authentication Solutions was completed, expanding Crane's security and authentication technology capabilities.

Successful Equipment Upgrade

Completed planned shutdown and upgrade of key manufacturing equipment for the U.S. Currency business, resuming full production.

New Contract in CPI Services

CPI secured a multiyear contract with a major retailer for on-site equipment repair services at approximately 450 U.S. locations.

OpSec Integration and Crane Authentication Launch

OpSec and De La Rue Authentication will be combined to form Crane Authentication, providing a unified set of products and services.

Strong International Currency Performance

International Currency business showed strong performance with a record high backlog of approximately $370 million and 5 new micro-optic wins in the quarter.

Negative Updates

Core Sales Decline

Excluding OpSec, core sales declined by 4%, reflecting lower volumes in the U.S. Currency business due to planned equipment shutdowns.

Gaming and Vending Market Challenges

CPI faced lower volumes in the gaming and vending end markets, with gaming expected to decline in the first half of the year.

Impact of Tariffs

The company faced a potential $25 million operating profit impact due to tariffs, with $20 million related to China, affecting CPI components.

Dilution from OpSec

Adjusted operating margin was impacted by dilution from OpSec, contributing to a 300 basis point decrease.

Company Guidance

In the Crane NXT Q1 2025 earnings call, the company reported a 5% sales growth with an adjusted EPS of $0.54. The core sales, excluding OpSec, declined by 4%, primarily due to reduced U.S. Currency volumes, following the planned shutdown of manufacturing equipment for updates. The update completion led to a record high backlog in Crane Currency, with a book-to-bill ratio of 2.4. The company reaffirmed its full-year adjusted EPS guidance, despite the impact of tariffs, which are expected to affect operating profit by approximately $25 million, mitigated through strategic pricing and supply chain initiatives. The acquisition of De La Rue Authentication Solutions was completed, with expectations to contribute $80 million to $90 million in revenue and an adjusted EBITDA margin of around 20% in 2025. Overall sales growth for the Security and Authentication Technologies (SAT) segment, including De La Rue, is now projected at 19% to 21%.

Crane NXT Financial Statement Overview

Summary

Crane NXT demonstrates stable financial performance with consistent revenue growth and solid profitability margins. The company maintains moderate leverage, but declining free cash flow and high capital expenditures present challenges. Strong operational efficiency and prudent financial management will be crucial for sustaining growth and improving financial health.

Income Statement

Positive

Crane NXT shows a moderate growth trajectory with a TTM revenue of $1.49 billion, reflecting a notable revenue growth rate of 6.86% from the previous year. The gross profit margin is robust at 59.44%, supported by a solid EBIT margin of 18.94% and an EBITDA margin of 22.56%. However, the net profit margin decreased slightly to 12.38% from the previous year, which indicates a slight pressure on profitability.

Balance Sheet

Positive

The company maintains a moderately leveraged balance sheet with a debt-to-equity ratio of 0.70, suggesting moderate financial risk. The return on equity (ROE) remains strong at 17.28%, indicating efficient use of equity capital. The equity ratio is 44.61%, showing a stable capital structure but with room for improvement in asset management.

Cash Flow

Neutral

Crane NXT's free cash flow has decreased from $245.2 million to $188.1 million, reflecting a decline in free cash flow growth. The operating cash flow to net income ratio is 1.29, indicating strong cash conversion from earnings. However, the negative growth in free cash flow and significant capital expenditures are areas of concern.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.49B	1.39B	3.37B	3.41B	2.94B
	Gross Profit
665.10M	654.10M	1.34B	1.29B	1.01B
	EBIT
268.80M	286.80M	369.50M	529.20M	262.90M
	EBITDA
361.00M	368.00M	383.30M	670.80M	380.90M
	Net Income Common Stockholders
184.10M	188.30M	401.10M	435.40M	181.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
165.80M	227.20M	657.60M	478.60M	551.00M
	Total Assets
2.39B	2.13B	4.39B	4.49B	4.59B
	Total Debt
813.90M	694.70M	1.34B	944.50M	1.33B
	Net Debt
648.10M	467.50M	683.00M	465.90M	777.50M
	Total Liabilities
1.32B	1.17B	2.49B	2.65B	3.06B
	Stockholders Equity
1.06B	964.00M	1.90B	1.83B	1.53B
Cash Flow		Free Cash Flow
168.70M	245.20M	-76.00M	444.60M	275.40M
	Operating Cash Flow
214.10M	276.30M	-17.60M	498.50M	309.50M
	Investing Cash Flow
-318.00M	-31.10M	264.00M	-300.00K	-229.10M
	Financing Cash Flow
62.10M	-252.50M	106.00M	-557.90M	55.10M

Crane NXT Technical Analysis

Technical Analysis Sentiment

Positive

Last Price54.09

Price Trends

50DMA

49.62

Positive

100DMA

54.03

Positive

200DMA

55.60

Negative

Market Momentum

MACD

1.01

Positive

RSI

59.63

Neutral

STOCH

68.30

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXT, the sentiment is Positive. The current price of 54.09 is above the 20-day moving average (MA) of 53.76, above the 50-day MA of 49.62, and below the 200-day MA of 55.60, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 68.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CXT.

Crane NXT Risk Analysis

Crane NXT disclosed 17 risk factors in its most recent earnings report. Crane NXT reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Crane NXT Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	82 Outperform	$11.98B	24.23	19.27%	0.86%	6.99%	23.25%
SPXC	80 Outperform	$7.37B	36.46	15.24%	―	10.78%	30.05%
NDSN	78 Outperform	$12.14B	27.62	15.54%	1.45%	1.98%	-7.66%
IEX	75 Outperform	$13.85B	29.03	12.73%	1.52%	1.66%	-17.18%
FLS	72 Outperform	$6.39B	22.92	14.00%	1.72%	4.23%	20.40%
CXT	66 Neutral	$3.10B	18.62	16.23%	1.22%	9.28%	-8.45%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%

* Industrials Sector Average

Performance Comparison

CXT

Crane NXT

54.09

-6.19

-10.27%

FLS

Flowserve

48.87

1.78

3.78%

IEX

IDEX

183.31

-16.85

-8.42%

ITT

152.24

25.92

20.52%

NDSN

Nordson

214.76

-8.16

-3.66%

SPXC

SPX

157.70

25.31

19.12%

Crane NXT Corporate Events

Shareholder MeetingsBusiness Operations and Strategy

Crane NXT Holds 2025 Annual Stockholders Meeting

Neutral

May 27, 2025

On May 22, 2025, Crane NXT, Co. held its 2025 Annual Meeting of Stockholders where three key proposals were voted on. The stockholders elected nine directors to serve until the 2026 Annual Meeting, ratified the selection of Deloitte & Touche LLP as independent auditors for 2025, and approved the compensation of the named executive officers. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future direction and stakeholder interests.

The most recent analyst rating on (CXT) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Crane NXT stock, see the CXT Stock Forecast page.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.