Crown Cap (CRWN) AI Stock Analysis

• Market Cap: C$3.41M
• Dividend Yield: N/A
• Average Volume (3M): 1.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 8.45%
• EPS Growth: 27.43%
• Country: CA
• Employees: 7
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Financial - Credit Services
• EPS (TTM): -0.62
• Shares Outstanding: 5,977,832
• 10 Day Avg. Volume: 1,430
• 30 Day Avg. Volume: 1,654
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: C$0.50
• Price Target Upside: -12.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: C$0.50 ▼(-12.28% Downside)

Crown Cap's overall stock score is primarily impacted by its poor financial performance and weak valuation metrics. The technical analysis indicates a bearish trend, further weighing down the score. Improvements in cash flow provide a slight positive aspect, but the overall outlook remains challenging.

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

Crown Cap generates revenue through multiple key streams. The primary source of income is from the direct sale of its headwear products to retailers and wholesalers, which includes both off-the-shelf and custom-designed items for businesses and organizations. Additionally, the company has established significant partnerships with sports leagues and events, allowing it to produce officially licensed merchandise that drives brand recognition and sales. Another revenue stream comes from online sales through its e-commerce platform, which has seen growth due to the increasing trend of direct-to-consumer shopping. Furthermore, Crown Cap benefits from collaborations with influencers and promotional campaigns that enhance its visibility and attract a wider audience, contributing to overall sales growth.

Crown Cap Financial Statement Overview

Summary

Crown Cap faces significant financial challenges with declining revenues and substantial net losses impacting profitability. The high leverage and declining equity raise concerns about financial stability. However, improvements in cash flow generation provide some optimism.

Income Statement

Crown Cap's income statement reveals significant challenges. The company has experienced a substantial decline in revenue from 2023 to 2024, with a negative revenue growth rate of approximately -24.8%. Additionally, the net profit margin is deeply negative at -53.9% for 2024, indicating significant losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Despite these challenges, gross profit margin remains relatively stable, suggesting some control over cost of goods sold.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 7.91 in 2024, indicating a heavily leveraged position. Stockholders' equity has decreased significantly, leading to a low equity ratio of 5.8%. Return on equity is negative due to the net losses. The company's high leverage poses financial risks, although it maintains a reasonable level of cash and short-term investments.

Cash Flow

Crown Cap's cash flow statement presents a mixed picture. The company has achieved a positive free cash flow in 2024, a significant improvement from previous years. The operating cash flow to net income ratio is positive, indicating that the company generates cash from operations despite net losses. However, the free cash flow to net income ratio is not favorable, reflecting ongoing financial challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.57M	71.70M	72.53M	39.31M	41.94M	38.50M
Gross Profit	54.69M	19.32M	18.53M	9.30M	25.07M	27.10M
EBITDA	4.13M	14.92M	7.53M	0.00	6.26M	12.27M
Net Income	-18.96M	-29.41M	-12.15M	-9.02M	8.12M	203.00K
Balance Sheet
Total Assets	142.67M	147.01M	176.65M	166.66M	140.12M	322.48M
Cash, Cash Equivalents and Short-Term Investments	4.85M	7.85M	4.85M	7.24M	10.84M	19.15M
Total Debt	65.69M	67.73M	81.66M	73.99M	35.59M	87.03M
Total Liabilities	138.83M	118.65M	115.44M	115.99M	71.04M	241.20M
Stockholders Equity	3.84M	8.56M	38.23M	50.67M	69.08M	81.28M
Cash Flow
Free Cash Flow	10.73M	12.11M	-22.00M	-17.06M	16.21M	-4.34M
Operating Cash Flow	24.64M	29.24M	5.82M	3.10M	17.40M	13.27M
Investing Cash Flow	-5.32M	-9.75M	-16.58M	-16.38M	48.71M	-15.92M
Financing Cash Flow	-18.16M	-16.38M	8.36M	9.67M	-66.23M	13.44M

Crown Cap Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.57 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.72, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 29.83 is Positive, neither overbought nor oversold. The STOCH value of 17.06 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
ACD	46 Neutral	29.27M	-6.04	-3.88%	―	-11.69%	71.34%
CRWN	44 Neutral	C$3.41M	―	-144.73%	―	8.45%	27.43%
MONT	39 Underperform	1.32M	-0.11	-199.85%	―	-9.65%	-92.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Crown Cap Corporate Events

Crown Capital Partners Reports Improved Q2 2025 Financials Amidst Segment Challenges

Crown Capital Partners reported a net loss of $3.5 million for Q2 2025, an improvement from the $15.2 million loss in Q2 2024. Despite a decline in adjusted EBITDA due to decreased earnings in several segments, distribution services revenue increased by 15.7%. The company faced challenges in its real estate and distributed power segments, with decreased revenues attributed to reduced leasing activity and softer power prices in Alberta. Total equity decreased significantly, impacting shareholder value.

Crown Capital Completes $1.5M Insider Debenture Offering

Crown Capital Partners Inc. has successfully closed a private placement offering of $1.5 million in debentures to its insiders, addressing the maturity of previous debentures. This strategic move, which includes convertible options for insiders, strengthens the company’s financial position and reflects its commitment to maintaining strong relationships with key stakeholders. The issuance is considered a related party transaction but has received necessary approvals, indicating a well-managed approach to corporate governance.

Crown Capital Partners Announces Strong Shareholder Support at Annual Meeting

Crown Capital Partners announced the results of its Annual and Special Meeting of Shareholders, where approximately 44.8% of the company’s issued and outstanding common shares were voted. Shareholders approved all items of business, including the election of directors with a 99.9% approval rate. This outcome reflects strong shareholder support and may reinforce Crown’s strategic direction and stability in its market operations.