We assign a fundamental rating of 6 out of 10 to CCK. CCK was compared to 22 industry peers in the Containers & Packaging industry. While CCK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CCK scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CCK was profitable.
CCK had a positive operating cash flow in the past year.
CCK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CCK had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 6.50%, CCK belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
CCK's Return On Equity of 31.37% is amongst the best of the industry. CCK outperforms 90.91% of its industry peers.
CCK has a Return On Invested Capital of 11.54%. This is amongst the best in the industry. CCK outperforms 95.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CCK is above the industry average of 7.62%.
The last Return On Invested Capital (11.54%) for CCK is above the 3 year average (9.67%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	6.5%
ROE	31.37%
ROIC	11.54%

ROA(3y)3.71%

ROA(5y)2.11%

ROE(3y)24.46%

ROE(5y)14.09%

ROIC(3y)9.67%

ROIC(5y)9.08%

1.3 Margins

With a decent Profit Margin value of 7.79%, CCK is doing good in the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Profit Margin of CCK has declined.
CCK has a better Operating Margin (13.62%) than 86.36% of its industry peers.
In the last couple of years the Operating Margin of CCK has grown nicely.
CCK has a Gross Margin of 22.34%. This is in the better half of the industry: CCK outperforms 63.64% of its industry peers.
In the last couple of years the Gross Margin of CCK has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	13.62%
PM (TTM)	7.79%
GM	22.34%

OM growth 3Y2.61%

OM growth 5Y3.95%

PM growth 3YN/A

PM growth 5Y-7.6%

GM growth 3Y1.2%

GM growth 5Y0.72%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CCK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CCK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CCK has been reduced compared to 5 years ago.
CCK has a better debt/assets ratio than last year.

2.2 Solvency

CCK has an Altman-Z score of 2.26. This is not the best score and indicates that CCK is in the grey zone with still only limited risk for bankruptcy at the moment.
CCK's Altman-Z score of 2.26 is fine compared to the rest of the industry. CCK outperforms 63.64% of its industry peers.
CCK has a debt to FCF ratio of 6.34. This is a slightly negative value and a sign of low solvency as CCK would need 6.34 years to pay back of all of its debts.
CCK has a better Debt to FCF ratio (6.34) than 81.82% of its industry peers.
CCK has a Debt/Equity ratio of 1.96. This is a high value indicating a heavy dependency on external financing.
CCK has a Debt to Equity ratio of 1.96. This is amonst the worse of the industry: CCK underperforms 81.82% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.96
Debt/FCF	6.34
Altman-Z	2.26

ROIC/WACC1.39

WACC8.3%

2.3 Liquidity

CCK has a Current Ratio of 1.16. This is a normal value and indicates that CCK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, CCK is doing worse than 77.27% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that CCK may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, CCK is not doing good in the industry: 72.73% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.16
Quick Ratio	0.76

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CCK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.24%, which is quite impressive.
CCK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.64% yearly.
CCK shows a small growth in Revenue. In the last year, the Revenue has grown by 3.27%.
The Revenue has been growing slightly by 4.30% on average over the past years.

EPS 1Y (TTM)26.24%

EPS 3Y-5.77%

EPS 5Y4.64%

EPS Q2Q%12.56%

Revenue 1Y (TTM)3.27%

Revenue growth 3Y1.18%

Revenue growth 5Y4.3%

Sales Q2Q%4.16%

3.2 Future

CCK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.14% yearly.
Based on estimates for the next years, CCK will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.

EPS Next Y22.26%

EPS Next 2Y13.76%

EPS Next 3Y12.23%

EPS Next 5Y6.14%

Revenue Next Year3.91%

Revenue Next 2Y3.37%

Revenue Next 3Y3.06%

Revenue Next 5Y3.77%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.62, CCK is valued correctly.
77.27% of the companies in the same industry are more expensive than CCK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CCK to the average of the S&P500 Index (28.82), we can say CCK is valued rather cheaply.
CCK is valuated correctly with a Price/Forward Earnings ratio of 12.56.
72.73% of the companies in the same industry are more expensive than CCK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CCK to the average of the S&P500 Index (25.95), we can say CCK is valued rather cheaply.

		Industry Rank	Sector Rank
PE	13.62
Fwd PE	12.56

4.2 Price Multiples

CCK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CCK is cheaper than 77.27% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CCK indicates a rather cheap valuation: CCK is cheaper than 86.36% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	11.93
EV/EBITDA	8.13

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CCK has an outstanding profitability rating, which may justify a higher PE ratio.
CCK's earnings are expected to grow with 12.23% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.61

PEG (5Y)2.94

EPS Next 2Y13.76%

EPS Next 3Y12.23%

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5. Dividend

5.1 Amount

CCK has a Yearly Dividend Yield of 1.02%.
CCK's Dividend Yield is slightly below the industry average, which is at 2.38.
Compared to an average S&P500 Dividend Yield of 1.82, CCK's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	1.02%

5.2 History

CCK has paid a dividend for at least 10 years, which is a reliable track record.
CCK has not decreased its dividend in the last 3 years.

Dividend Growth(5Y)N/A

Div Incr Years3

Div Non Decr Years3

5.3 Sustainability

12.58% of the earnings are spent on dividend by CCK. This is a low number and sustainable payout ratio.

DP12.58%

EPS Next 2Y13.76%

EPS Next 3Y12.23%

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CROWN HOLDINGS INC / CCK FAQ

What is the fundamental rating for CCK stock?

ChartMill assigns a fundamental rating of 6 / 10 to CCK.

Can you provide the valuation status for CROWN HOLDINGS INC?

ChartMill assigns a valuation rating of 8 / 10 to CROWN HOLDINGS INC (CCK). This can be considered as Undervalued.

What is the profitability of CCK stock?

CROWN HOLDINGS INC (CCK) has a profitability rating of 8 / 10.

What is the expected EPS growth for CROWN HOLDINGS INC (CCK) stock?

The Earnings per Share (EPS) of CROWN HOLDINGS INC (CCK) is expected to grow by 22.26% in the next year.

How sustainable is the dividend of CROWN HOLDINGS INC (CCK) stock?

The dividend rating of CROWN HOLDINGS INC (CCK) is 3 / 10 and the dividend payout ratio is 12.58%.