CROWN HOLDINGS INC (CCK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CCK - US2283681060 - Common Stock
103.92 USD
+1.61 (+1.57%)
103.92 USD
0 (0%)
Overall CCK gets a fundamental rating of 6 out of 10. We evaluated CCK against 22 industry peers in the Containers & Packaging industry. CCK has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CCK.
1. Profitability
1.1 Basic Checks
- In the past year CCK was profitable.
- CCK had a positive operating cash flow in the past year.
- Of the past 5 years CCK 4 years were profitable.
- In the past 5 years CCK always reported a positive cash flow from operatings.
1.2 Ratios
- CCK's Return On Assets of 6.50% is amongst the best of the industry. CCK outperforms 86.36% of its industry peers.
- CCK has a Return On Equity of 31.37%. This is amongst the best in the industry. CCK outperforms 90.91% of its industry peers.
- CCK's Return On Invested Capital of 11.54% is amongst the best of the industry. CCK outperforms 95.45% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CCK is above the industry average of 7.62%.
- The 3 year average ROIC (9.67%) for CCK is below the current ROIC(11.54%), indicating increased profibility in the last year.
| 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
- CCK's Profit Margin of 7.79% is fine compared to the rest of the industry. CCK outperforms 77.27% of its industry peers.
- CCK's Profit Margin has declined in the last couple of years.
- CCK has a Operating Margin of 13.62%. This is amongst the best in the industry. CCK outperforms 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CCK is creating some value.
- The number of shares outstanding for CCK has been reduced compared to 1 year ago.
- CCK has less shares outstanding than it did 5 years ago.
- CCK has a better debt/assets ratio than last year.
2.2 Solvency
- CCK has an Altman-Z score of 2.25. 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 has a better Altman-Z score (2.25) than 63.64% of its industry peers.
- The Debt to FCF ratio of CCK is 6.34, which is on the high side as it means it would take CCK, 6.34 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CCK (6.34) is better than 81.82% of its industry peers.
- A Debt/Equity ratio of 1.96 is on the high side and indicates that CCK has dependencies on debt financing.
- CCK's Debt to Equity ratio of 1.96 is on the low side compared to the rest of the industry. CCK is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.39
WACC8.28%
2.3 Liquidity
- A Current Ratio of 1.16 indicates that CCK should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.16, CCK is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
- A Quick Ratio of 0.76 indicates that CCK may have some problems paying its short term obligations.
- CCK has a worse Quick ratio (0.76) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.24% over the past year.
- CCK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.64% yearly.
- Looking at the last year, CCK shows a small growth in Revenue. The Revenue has grown by 3.27% in the last year.
- Measured over the past years, CCK shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.
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.
- CCK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y22.34%
EPS Next 2Y14.02%
EPS Next 3Y12.38%
EPS Next 5Y6.14%
Revenue Next Year3.91%
Revenue Next 2Y3.38%
Revenue Next 3Y3.07%
Revenue Next 5Y3.77%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- CCK is valuated correctly with a Price/Earnings ratio of 13.58.
- Based on the Price/Earnings ratio, CCK is valued a bit cheaper than 77.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CCK is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 12.47, the valuation of CCK can be described as correct.
- 77.27% of the companies in the same industry are more expensive than CCK, based on the Price/Forward Earnings ratio.
- CCK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
- 77.27% of the companies in the same industry are more expensive than CCK, based on the Enterprise Value to EBITDA ratio.
- CCK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CCK is cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.89 | ||
| EV/EBITDA | 8.05 |
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.
- The excellent profitability rating of CCK may justify a higher PE ratio.
- CCK's earnings are expected to grow with 12.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)2.93
EPS Next 2Y14.02%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.99%, CCK is not a good candidate for dividend investing.
- CCK's Dividend Yield is slightly below the industry average, which is at 2.35.
- With a Dividend Yield of 0.99, CCK pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
- CCK pays out 12.58% of its income as dividend. This is a sustainable payout ratio.
DP12.58%
EPS Next 2Y14.02%
EPS Next 3Y12.38%
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 7 / 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 22.34% 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%.