Crown Cap (CRWN) AI Stock Analysis

• Market Cap: C$4.82M
• Dividend Yield: N/A
• Average Volume (3M): 75.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: 6.94%
• EPS Growth: -154.26%
• Country: CA
• Employees: 7
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): -0.32
• Shares Outstanding: 5,672,646
• 10 Day Avg. Volume: 225
• 30 Day Avg. Volume: 75
• PEG Ratio: 0.04
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.77
• 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

• Rating: 38 Underperform
• Price Target: C$1.00 ▲(17.65%Upside)

Crown Cap's overall stock score is significantly impacted by financial challenges and bearish market signals. The lack of profitability and negative technical indicators present substantial risks. Positive corporate events provide some support but are insufficient to offset the broader financial and market 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 financial performance is challenged by declining revenues and profitability issues, as indicated by negative net and EBIT margins. Although there is some improvement in cash flow, the significant drop in equity and inconsistent income trends highlight financial instability.

Income Statement

Crown Cap's income statement shows a decline in revenue with a negative revenue growth rate of -26.3% TTM. The company also faces significant profitability challenges, evidenced by negative net profit margin (-55.0%) and EBIT margin (-49.2%) in the TTM, indicating operational inefficiencies and high costs relative to revenues. Although revenue increased from 2020 to 2023, the trend is inconsistent, with fluctuating net income, suggesting volatility in earnings.

Balance Sheet

The balance sheet reveals a substantial decrease in stockholders' equity from $38.2 million in 2023 to $8.6 million TTM, raising concerns about financial stability. However, Crown Cap has managed to eliminate its debt, which reduces financial risk. The equity ratio has decreased over the periods, indicating a potential decline in asset financing through equity, which may affect long-term financial health.

Cash Flow

Crown Cap's cash flow statement shows an improvement in operating cash flow to net income ratio, suggesting better cash generation relative to earnings. The free cash flow turned positive to $11.9 million in the TTM, indicating improved cash management, but volatility in free cash flow over the years highlights potential challenges in sustaining cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.42M	54.54M	72.53M	39.31M	41.94M	38.50M
Gross Profit	32.36M	19.32M	18.53M	9.30M	25.07M	27.10M
EBITDA	-5.59M	-2.02M	7.53M	0.00	6.26M	12.27M
Net Income	-30.60M	-29.41M	-12.15M	-9.02M	8.12M	203.00K
Balance Sheet
Total Assets	145.53M	147.01M	176.65M	166.66M	140.12M	322.48M
Cash, Cash Equivalents and Short-Term Investments	6.03M	7.85M	4.85M	7.24M	10.84M	19.15M
Total Debt	66.31M	67.73M	81.66M	73.99M	35.59M	87.03M
Total Liabilities	138.64M	138.45M	115.44M	115.99M	71.04M	241.20M
Stockholders Equity	6.90M	8.56M	38.23M	50.67M	69.08M	81.28M
Cash Flow
Free Cash Flow	6.09M	12.11M	-22.00M	-17.06M	16.21M	-4.34M
Operating Cash Flow	21.21M	29.24M	5.82M	3.10M	17.40M	13.27M
Investing Cash Flow	-4.26M	-9.75M	-16.58M	-16.38M	48.71M	-15.92M
Financing Cash Flow	-16.32M	-16.38M	8.36M	9.67M	-66.23M	13.44M

Crown Cap Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 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 0.85 is below the 20-day moving average (MA) of 0.88, below the 50-day MA of 0.91, and below the 200-day MA of 1.24, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 26.80 is Positive, neither overbought nor oversold. The STOCH value of 66.67 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
Sector *	61 Neutral	C$14.65B	6.39	22.27%	5.48%	30.07%	-22.51%
ACD	53 Neutral	C$30.13M	―	-6.23%	―	-4.92%	68.05%
CRWN	38 Underperform	C$4.82M	―	-137.71%	―	6.94%	-154.26%
MONT	38 Underperform	C$3.97M	―	-37.49%	―	-9.65%	-92.19%

Crown Cap Corporate Events

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.

Crown Capital Partners Reports Increased Q1 2025 Loss Amid Mixed Segment Performance

Crown Capital Partners reported a net loss of $1.8 million for Q1 2025, a significant increase from the $0.6 million loss in Q1 2024. Despite this, the company saw growth in its distribution and network services segments, with revenues increasing by 31.4% and 29.9% respectively. However, declines in the real estate and distributed power segments contributed to the overall loss. Total equity decreased to $6.9 million due to the net loss, impacting shareholder value.