CROWN HOLDINGS INC (CCK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CCK - US2283681060 - Common Stock
104.33 USD
+0.1 (+0.1%)
104.33 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. CCK may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- CCK had positive earnings in the past year.
- CCK had a positive operating cash flow in the past year.
- CCK had positive earnings in 4 of the past 5 years.
- CCK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CCK has a better Return On Assets (6.50%) than 86.36% of its industry peers.
- Looking at the Return On Equity, with a value of 31.37%, CCK belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 11.54%, CCK belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
- 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.
- With an excellent Operating Margin value of 13.62%, CCK belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- CCK's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 22.34%, CCK is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- 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
- CCK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 2.26. 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.
- Looking at the Altman-Z score, with a value of 2.26, CCK is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- 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.
- A Debt/Equity ratio of 1.96 is on the high side and indicates that CCK has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.96, CCK is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.39
WACC8.33%
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.
- 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.
- CCK has a Quick Ratio of 1.16. This is a bad value and indicates that CCK is not financially healthy enough and could expect problems in meeting 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 |
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
- The Earnings Per Share is expected to grow by 6.14% on average over the next years.
- The Revenue is expected to grow by 3.77% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.64, CCK is valued correctly.
- CCK's Price/Earnings ratio is a bit cheaper when compared to the industry. CCK is cheaper than 77.27% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. CCK is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 12.58, CCK is valued correctly.
- 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 (25.83), we can say CCK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 12.58 |
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.
- Based on the Price/Free Cash Flow ratio, CCK is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 8.15 |
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.
- A more expensive valuation may be justified as CCK's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)0.61
PEG (5Y)2.94
EPS Next 2Y13.76%
EPS Next 3Y12.23%
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.
- With a Dividend Yield of 1.02, CCK pays less dividend than the S&P500 average, which is at 1.82.
| 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
- CCK pays out 12.58% of its income as dividend. This is a sustainable payout ratio.
DP12.58%
EPS Next 2Y13.76%
EPS Next 3Y12.23%
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%.