Crown Cap (CRWN) AI Stock Analysis

• Market Cap: C$5.22M
• Dividend Yield: N/A
• Average Volume (3M): 647.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: 3.09%
• EPS Growth: -142.42%
• Country: CA
• Employees: 7
• Sector: Financial
• Sector Strength: 85
• Industry: Financial - Credit Services
• EPS (TTM): -5.26
• Shares Outstanding: 5,672,646
• 10 Day Avg. Volume: 281
• 30 Day Avg. Volume: 647
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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 score reflects critical financial and operational difficulties, with significant challenges in profitability and declining equity. The bearish technical indicators and negative valuation metrics further contribute to a low stock score. While the elimination of debt and strategic financing efforts are positive, they are overshadowed by broader financial and operational concerns.

Crown Cap Business Overview & Revenue Model

Company Description

Crown Cap (CRWN) is a company specializing in the design, manufacture, and distribution of premium headwear and accessories. Operating within the textile and apparel sector, Crown Cap is renowned for its high-quality products that blend traditional craftsmanship with contemporary fashion trends. The company's offerings include a wide range of headgear, such as hats, caps, and toques, crafted from materials like fur, wool, and leather, catering to a diverse clientele seeking both style and functionality.

How the Company Makes Money

Crown Cap generates revenue primarily through the sale of its premium headwear and accessories to various markets, including retail, wholesale, and direct-to-consumer channels. The company's key revenue streams include domestic and international sales, with a focus on expanding its market presence through strategic partnerships with retailers and distributors. Crown Cap's ability to maintain high-quality standards and adapt to fashion trends plays a significant role in its earnings. Additionally, the company may engage in collaborations with designers or brands to create exclusive product lines, further enhancing its revenue potential.

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

Crown Cap Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 0.92 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.27, and below the 200-day MA of 1.45, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 26.35 is Positive, neither overbought nor oversold. The STOCH value of 31.94 is Neutral, 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	78 Outperform	C$68.66B	19.28	18.66%	1.02%	11.62%	-8.08%
MG	72 Outperform	$13.35B	9.83	8.62%	5.62%	1.58%	-15.57%
LNR	71 Outperform	$3.02B	12.02	4.98%	1.99%	8.72%	-48.78%
CTC	69 Neutral	$8.56B	13.51	15.17%	3.30%	-1.79%	318.70%
Sector *	63 Neutral	$12.38B	9.57	7.87%	79.17%	12.62%	-4.94%
KPT	59 Neutral	C$79.85M	32.76	3.53%	8.97%	―	―
CRWN	40 Underperform	C$5.22M	―	-125.70%	―	3.09%	-142.42%

Crown Cap Corporate Events

Crown Capital Partners Reports Increased Net Loss for 2024 Amid Operational Challenges

Crown Capital Partners reported a net loss of $29.4 million for 2024, a significant increase from the previous year’s loss, primarily due to impairment charges and losses from investments in associates. Despite an increase in adjusted EBITDA to $5.1 million, driven by improved performance in distribution services and real estate, the company faced challenges in network services and distributed power segments. The decline in total equity and equity per share reflects the financial strain from these losses, impacting stakeholders and the company’s market positioning.

Crown Capital Completes Private Placement Offering to Enhance Capital Structure

Crown Capital Partners Inc. has successfully closed a non-brokered private placement offering of 84,000 common shares at $1.50 each, generating gross proceeds of $126,000. The proceeds will be used for working capital, with all shares purchased by insider John Brussa, marking a related party transaction. Additionally, Crown paid a $126,000 cash commitment fee to Brussa, who used the funds to buy the shares. This transaction, subject to regulatory approval, reflects strategic financial maneuvers to strengthen the company’s capital structure.