Crown Cap (CRWN) AI Stock Analysis

• Market Cap: C$6.81M
• Dividend Yield: N/A
• Average Volume (3M): 744.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• Revenue Growth: 1.69%
• EPS Growth: -291.55%
• Country: CA
• Employees: 7
• Sector: Financial
• Sector Strength: 84
• Industry: Financial - Credit Services
• EPS (TTM): -5.26
• Shares Outstanding: 5,672,646
• 10 Day Avg. Volume: 1,370
• 30 Day Avg. Volume: 744
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.17
• Price to Cash Flow (P/CF): 0.10
• P/FCF Ratio: 0.10
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Crown Cap's overall stock score reflects its financial challenges, especially in profitability, despite some positive technical indicators. The low valuation score due to negative earnings highlights the risk, though the technical analysis suggests potential for short-term gains. The company must improve profitability and revenue stability to boost investor confidence.

Crown Cap Business Overview & Revenue Model

Company Description

Crown Capital Partners Inc. is a private equity firm specializing in acquisitions, special situations, management and leveraged buyouts, subordinated debt, recapitalizations, PIPES, industry consolidation, mezzanine, alternative debts, bridge loans, mezzanine debt, and growth capital investments in private and public middle market companies. The firm also provides leveraged working capital loan and also invests in the form of royalties. It prefers to invest in telecommunication service, broadband, industrial and commercial businesses, recreational facilities, and condominiums. It prefers to invest in niche market. It targets investments in companies based in Canada and select companies in the North America and United States. It seeks to invest in all sectors. The firm typically makes investments between $1 million and $25 million in companies with sales value between $10 million and $200 million, enterprise value between $5 million and $200 million, and EBITDA between $2 million and $50 million. However, it may finance significantly larger transactions as well. The firm typically, invests in the form of subordinated debentures with or without equity participation rights as well as in debt with a single debt facility, combining senior and junior debt terms into a single senior debt facility. It also seeks to invest in distressed loans and acquires senior security position on the portfolio company's balance sheet. It prefers to take control and majority stake in the companies. The firm seeks to exit its investments in less than five years. Crown Capital Partners Inc. was founded in 2000 and is based in Toronto, Canada with an additional office in Calgary, Canada.

How the Company Makes Money

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Crown Cap Financial Statement Overview

Summary

Crown Cap's financials highlight significant challenges with profitability and asset management, despite improvements in cash flow and debt reduction. The company needs to address operational inefficiencies and stabilize revenue growth to enhance financial health and investor confidence.

Income Statement

Crown Cap's income statement reveals challenges in profitability with consistent net losses over recent years. The TTM data shows a negative EBIT and EBITDA, indicating operational inefficiencies. Revenue growth is erratic, with a significant drop in the latest TTM period. Gross profit margin remains steady but insufficient to cover operating expenses, affecting net profit margins negatively.

Balance Sheet

The balance sheet presents a mixed picture with zero debt in the latest period, improving leverage. However, stockholders' equity has decreased significantly, impacting the equity ratio negatively. Return on Equity is not meaningful due to negative net income. The company's assets have declined, reflecting potential challenges in asset management.

Cash Flow

Cash flow statements indicate improvement, with positive operating cash flow in the TTM period and a return to positive free cash flow. The operating cash flow to net income ratio is strong, reflecting better cash management. However, the cash flow performance remains volatile, with previous periods showing significant free cash flow deficits.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
51.14M	72.53M	39.31M	41.94M	38.50M	22.97M
	Gross Profit
18.50M	18.53M	9.30M	25.07M	27.10M	19.51M
	EBIT
-12.21M	9.90M	-6.84M	2.38M	-16.07M	272.00K
	EBITDA
-5.90M	7.53M	0.00	6.26M	12.27M	0.00
	Net Income Common Stockholders
-26.97M	-12.15M	-9.02M	8.12M	203.00K	5.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.31M	4.85M	7.24M	10.84M	19.15M	8.36M
	Total Assets
275.92M	176.65M	166.66M	140.12M	322.48M	299.65M
	Total Debt
35.95M	81.66M	73.99M	35.59M	87.03M	69.80M
	Net Debt
24.64M	76.81M	66.75M	24.75M	67.88M	61.44M
	Total Liabilities
171.03M	115.44M	115.99M	71.04M	241.20M	202.18M
	Stockholders Equity
104.89M	38.23M	50.67M	69.08M	81.28M	97.48M
Cash Flow		Free Cash Flow
9.74M	-22.00M	-17.06M	16.21M	-4.34M	5.44M
	Operating Cash Flow
29.35M	5.82M	3.10M	17.40M	13.27M	13.66M
	Investing Cash Flow
-14.73M	-16.58M	-16.38M	48.71M	-15.92M	-25.93M
	Financing Cash Flow
-1.30M	8.36M	9.67M	-66.23M	13.44M	9.32M

Crown Cap Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRWN, the sentiment is Negative. The current price of 1.2 is below the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.46, and below the 200-day MA of 1.61, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 32.62 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CRWN.

Crown Cap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATD	77 Outperform	C$69.23B	19.44	18.66%	1.01%	11.62%	-8.08%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
KPT	59 Neutral	C$77.95M	31.98	3.53%	9.08%	―	―
CRWN	58 Neutral	C$6.81M	―	-125.70%	―	1.69%	-291.55%

Crown Cap Corporate Events

Crown Capital Sets Record Date for Deferred Payment

Crown Capital Partners has announced December 30, 2024, as the record date for debenture holders entitled to receive a deferred interest payment. This payment, amounting to $50 per $1,000 of principal, will be made on December 31, 2024, covering interest due from December 31, 2023, to June 30, 2024.

Crown Capital Secures New Credit Facility

Crown Capital Partners has secured a new C$15 million credit facility with Sandton Capital Solutions, replacing their previous arrangement with Canadian Western Bank. The funds will be used to repay existing senior debt, enabling Crown to focus on growth and balance sheet deleveraging. Additionally, Crown plans to address a deferred interest payment on its debentures, facilitated by this new credit agreement.

Crown Capital Reports Increased Loss Amid Mixed Segment Performance

Crown Capital Partners posted a net loss of $2.7 million in Q3 2024, compared to a $1.8 million loss in the same period last year, despite improvements in certain segments like Distribution Services and Network Services. The company saw an increase in adjusted EBITDA to $0.8 million, partly due to operational efficiencies and increased capacity utilization. However, challenges remain in other areas, such as Distributed Power and Real Estate, contributing to a significant reduction in total equity.