Crown Cap (CRWN) AI Stock Analysis

• Market Cap: C$5.28M
• Dividend Yield: N/A
• Average Volume (3M): 358.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: 3.09%
• EPS Growth: -142.42%
• Country: CA
• Employees: 7
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): -0.32
• Shares Outstanding: 5,672,646
• 10 Day Avg. Volume: 50
• 30 Day Avg. Volume: 358
• PEG Ratio: 0.02
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.12
• 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: 40 Underperform
• 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 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 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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
54.54M	72.53M	39.31M	41.94M	38.50M
	Gross Profit
19.32M	18.53M	9.30M	25.07M	27.10M
	EBIT
-30.83M	9.90M	-6.84M	2.38M	-16.07M
	EBITDA
0.00	7.53M	0.00	6.26M	12.27M
	Net Income Common Stockholders
-29.41M	-12.15M	-9.02M	8.12M	203.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.85M	4.85M	7.24M	10.84M	19.15M
	Total Assets
147.01M	176.65M	166.66M	140.12M	322.48M
	Total Debt
0.00	81.66M	73.99M	35.59M	87.03M
	Net Debt
-7.85M	76.81M	66.75M	24.75M	67.88M
	Total Liabilities
138.45M	115.44M	115.99M	71.04M	241.20M
	Stockholders Equity
8.56M	38.23M	50.67M	69.08M	81.28M
Cash Flow		Free Cash Flow
12.11M	-22.00M	-17.06M	16.21M	-4.34M
	Operating Cash Flow
29.24M	5.82M	3.10M	17.40M	13.27M
	Investing Cash Flow
-9.75M	-16.58M	-16.38M	48.71M	-15.92M
	Financing Cash Flow
-16.38M	8.36M	9.67M	-66.23M	13.44M

Crown Cap Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
ACD	50 Neutral	C$28.24M	―	-6.23%	―	-4.92%	68.05%
STX	42 Neutral	$2.56M	―	-145.14%	―	41.71%	-257.70%
MONT	41 Neutral	C$3.97M	―	-37.49%	―	-9.65%	-92.19%
CRWN	40 Underperform	C$5.28M	―	-137.71%	―	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.