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Crown Cap Partners J (TSE:CRWN)
TSX:CRWN
Canadian Market

Crown Cap (CRWN) AI Stock Analysis

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Crown Cap

(TSX:CRWN)

Rating:40Underperform
Price Target:
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 (CRWN) vs. iShares MSCI Canada ETF (EWC)

Crown Cap Business Overview & Revenue Model

Company DescriptionCrown 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 MoneyCrown 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 faces significant financial challenges, including declining revenues and negative profitability margins, indicating operational inefficiencies. While debt elimination and improved free cash flow are positive signs, the substantial drop in equity raises concerns about financial stability.
Income Statement
35
Negative
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
45
Neutral
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
50
Neutral
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
54.54M72.53M39.31M41.94M38.50M
Gross Profit
19.32M18.53M9.30M25.07M27.10M
EBIT
-30.83M9.90M-6.84M2.38M-16.07M
EBITDA
0.007.53M0.006.26M12.27M
Net Income Common Stockholders
-29.41M-12.15M-9.02M8.12M203.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.85M4.85M7.24M10.84M19.15M
Total Assets
147.01M176.65M166.66M140.12M322.48M
Total Debt
0.0081.66M73.99M35.59M87.03M
Net Debt
-7.85M76.81M66.75M24.75M67.88M
Total Liabilities
138.45M115.44M115.99M71.04M241.20M
Stockholders Equity
8.56M38.23M50.67M69.08M81.28M
Cash FlowFree Cash Flow
12.11M-22.00M-17.06M16.21M-4.34M
Operating Cash Flow
29.24M5.82M3.10M17.40M13.27M
Investing Cash Flow
-9.75M-16.58M-16.38M48.71M-15.92M
Financing Cash Flow
-16.38M8.36M9.67M-66.23M13.44M

Crown Cap Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.93
Price Trends
50DMA
0.97
Negative
100DMA
1.23
Negative
200DMA
1.28
Negative
Market Momentum
MACD
-0.01
Negative
RSI
43.10
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRWN, the sentiment is Neutral. The current price of 0.93 is above the 20-day moving average (MA) of 0.91, below the 50-day MA of 0.97, and below the 200-day MA of 1.28, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CRWN.

Crown Cap Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
TSACD
50
Neutral
C$28.24M-6.23%-4.92%68.05%
TSSTX
42
Neutral
$2.56M-145.14%41.71%-257.70%
41
Neutral
C$3.97M-37.49%-9.65%-92.19%
40
Underperform
C$5.28M-137.71%3.09%-142.42%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CRWN
Crown Cap
0.93
-2.83
-75.27%
TSE:ACD
Accord Financial
3.28
-0.83
-20.19%
TSE:MONT
TIMIA Capital
0.04
-0.08
-66.67%
TSE:STX
Starrex International
0.16
0.04
33.33%

Crown Cap Corporate Events

Business Operations and StrategyFinancial Disclosures
Crown Capital Partners Reports Increased Net Loss for 2024 Amid Operational Challenges
Negative
Mar 31, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Crown Capital Completes Private Placement Offering to Enhance Capital Structure
Positive
Feb 18, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.