Crown Cap (CRWN) AI Stock Analysis

• Market Cap: C$5.02M
• Dividend Yield: N/A
• Average Volume (3M): 1.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: 18.59%
• EPS Growth: 39.04%
• Country: CA
• Employees: 7
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.05
• Shares Outstanding: 5,977,832
• 10 Day Avg. Volume: 2,252
• 30 Day Avg. Volume: 1,017
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 0.74
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: C$0.56 ▼(-4.92% Downside)

Crown Cap's overall stock score is low due to significant financial challenges, including high leverage and negative profitability margins. The technical analysis provides mixed signals, and the valuation is unattractive with a negative P/E ratio. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, which can drive long-term business sustainability.

Gross Profit Margin

A strong gross profit margin suggests effective cost management and pricing power, supporting profitability as the company scales.

Cash Generation

Positive cash flow from operations relative to net income indicates the company's ability to generate cash, crucial for reinvestment and debt management.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and may hinder the company's ability to sustain long-term growth without restructuring.

Cash Flow Constraints

Negative free cash flow growth indicates cash constraints, which can impact the company's ability to fund operations and invest in future opportunities.

Crown Cap Business Overview & Revenue Model

Company Description

Crown Cap (CRWN) is a leading manufacturer and distributor of premium headwear and accessories, catering primarily to the fashion and sports industries. The company operates across various sectors, including retail, wholesale, and e-commerce, providing a diverse range of products such as caps, hats, and custom headwear solutions. With a focus on quality, innovation, and sustainability, Crown Cap has established itself as a go-to brand for consumers and businesses seeking stylish and functional headwear.

How the Company Makes Money

Crown Cap generates revenue through multiple channels, including direct sales to consumers via its e-commerce platform, wholesale distribution to retailers, and custom orders for corporate clients. The company's revenue model is built on the sale of both standard and personalized headwear products, which often command a premium price due to their quality and customization options. Additionally, strategic partnerships with sports teams and fashion brands allow Crown Cap to expand its market reach and enhance brand visibility, contributing to its overall revenue. Seasonal promotions, collaborations, and active marketing campaigns further bolster sales, driving customer engagement and repeat business.

Crown Cap Financial Statement Overview

Summary

Crown Cap faces significant financial challenges, with declining revenues and substantial net losses impacting profitability. The company's 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	82.55M	61.33M	72.53M	42.05M	45.16M	43.68M
Gross Profit	74.56M	54.54M	18.53M	39.31M	41.94M	38.50M
EBITDA	-4.54M	-18.55M	9.90M	-4.96M	12.37M	2.87M
Net Income	-16.52M	-29.41M	-12.15M	-7.47M	2.01M	-13.40M
Balance Sheet
Total Assets	149.66M	147.01M	176.65M	166.66M	140.12M	322.48M
Cash, Cash Equivalents and Short-Term Investments	5.18M	7.85M	4.85M	7.24M	10.84M	19.15M
Total Debt	65.39M	67.73M	81.66M	73.99M	35.59M	87.03M
Total Liabilities	146.19M	118.65M	115.44M	115.99M	71.04M	241.20M
Stockholders Equity	3.46M	8.56M	38.23M	50.67M	69.08M	81.28M
Cash Flow
Free Cash Flow	-2.77M	12.11M	-22.00M	-17.06M	16.21M	-4.34M
Operating Cash Flow	12.81M	29.24M	5.82M	3.10M	17.40M	13.27M
Investing Cash Flow	-10.50M	-9.75M	-16.58M	-16.38M	48.71M	-15.92M
Financing Cash Flow	-17.04M	-16.38M	8.36M	9.67M	-66.23M	13.44M

Crown Cap Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRWN, the sentiment is Positive. The current price of 0.59 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.58, and below the 200-day MA of 0.81, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 66.62 is Neutral, neither overbought nor oversold. The STOCH value of 99.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRWN.

Crown Cap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACD	44 Neutral	C$13.18M	-2.03	-8.15%	―	-19.88%	26.76%
CRWN	40 Underperform	C$5.02M	-0.29	-142.84%	―	18.59%	39.04%

Crown Cap Corporate Events

Crown Capital Partners Reports Improved Q3 2025 Results and Announces Financial Year-End Change

Crown Capital Partners reported a net loss of $0.3 million in Q3 2025, a significant improvement from the $2.7 million loss in Q3 2024. The company’s adjusted EBITDA increased to $3.9 million, driven by higher earnings from network and distribution services. The company also announced a change in its financial year-end to March 31 to enhance operational efficiencies and align with audit service availability. This change will result in a transition year ending March 31, 2026, and includes the resignation of its auditor, KPMG LLP, with a new auditor under review.