CARPENTER TECHNOLOGY (CRS) Stock Fundamental Analysis
NYSE:CRS - New York Stock Exchange, Inc. - US1442851036 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CRS. CRS was compared to 152 industry peers in the Metals & Mining industry. CRS has an excellent profitability rating, but there are some minor concerns on its financial health. CRS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CRS was profitable.
CRS had a positive operating cash flow in the past year.
In multiple years CRS reported negative net income over the last 5 years.
In the past 5 years CRS always reported a positive cash flow from operatings.
1.2 Ratios
CRS has a better Return On Assets (6.97%) than 80.69% of its industry peers.
CRS's Return On Equity of 13.67% is amongst the best of the industry. CRS outperforms 84.14% of its industry peers.
CRS's Return On Invested Capital of 11.71% is amongst the best of the industry. CRS outperforms 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 13.67% | ||
| ROIC | 11.71% |
ROA(3y)1.94%
ROA(5y)-0.38%
ROE(3y)3.92%
ROE(5y)-0.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CRS (8.03%) is better than 77.93% of its industry peers.
In the last couple of years the Profit Margin of CRS has remained more or less at the same level.
The Operating Margin of CRS (14.24%) is better than 73.10% of its industry peers.
In the last couple of years the Operating Margin of CRS has grown nicely.
Looking at the Gross Margin, with a value of 22.53%, CRS is in the better half of the industry, outperforming 60.69% of the companies in the same industry.
In the last couple of years the Gross Margin of CRS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.24% | ||
| PM (TTM) | 8.03% | ||
| GM | 22.53% |
OM growth 3YN/A
OM growth 5Y4.82%
PM growth 3YN/A
PM growth 5Y-0.55%
GM growth 3Y291.66%
GM growth 5Y2.53%
2. Health
2.1 Basic Checks
CRS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CRS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CRS has been increased compared to 5 years ago.
CRS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.25 indicates that CRS is not in any danger for bankruptcy at the moment.
CRS has a Altman-Z score of 6.25. This is in the better half of the industry: CRS outperforms 76.55% of its industry peers.
CRS has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as CRS would need 3.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.37, CRS is in the better half of the industry, outperforming 73.79% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that CRS is not too dependend on debt financing.
CRS's Debt to Equity ratio of 0.42 is on the low side compared to the rest of the industry. CRS is outperformed by 71.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 6.25 |
ROIC/WACC1.07
WACC10.99%
2.3 Liquidity
A Current Ratio of 3.84 indicates that CRS has no problem at all paying its short term obligations.
CRS's Current ratio of 3.84 is fine compared to the rest of the industry. CRS outperforms 73.10% of its industry peers.
CRS has a Quick Ratio of 2.00. This is a normal value and indicates that CRS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 2.00, CRS is doing good in the industry, outperforming 63.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.84 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 156.42% over the past year.
Measured over the past 5 years, CRS shows a small growth in Earnings Per Share. The EPS has been growing by 7.69% on average per year.
CRS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
The Revenue has been growing slightly by 3.00% on average over the past years.
EPS 1Y (TTM)156.42%
EPS 3YN/A
EPS 5Y7.69%
EPS Q2Q%94.38%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y23.21%
Revenue growth 5Y3%
Sales Q2Q%10.08%
3.2 Future
The Earnings Per Share is expected to grow by 18.52% on average over the next years. This is quite good.
CRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.34% yearly.
EPS Next Y48.08%
EPS Next 2Y30.73%
EPS Next 3Y30.07%
EPS Next 5Y18.52%
Revenue Next Year9.06%
Revenue Next 2Y8.5%
Revenue Next 3Y8.71%
Revenue Next 5Y7.34%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.64, the valuation of CRS can be described as expensive.
CRS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CRS to the average of the S&P500 Index (28.51), we can say CRS is valued slightly more expensively.
CRS is valuated rather expensively with a Price/Forward Earnings ratio of 23.85.
The rest of the industry has a similar Price/Forward Earnings ratio as CRS.
The average S&P500 Price/Forward Earnings ratio is at 93.88. CRS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.64 | ||
| Fwd PE | 23.85 |
4.2 Price Multiples
CRS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CRS is valued a bit cheaper than the industry average as 63.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.81 | ||
| EV/EBITDA | 20.4 |
4.3 Compensation for Growth
CRS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CRS has a very decent profitability rating, which may justify a higher PE ratio.
CRS's earnings are expected to grow with 30.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)4.51
EPS Next 2Y30.73%
EPS Next 3Y30.07%
5. Dividend
5.1 Amount
CRS has a yearly dividend return of 0.38%, which is pretty low.
CRS's Dividend Yield is comparable with the industry average which is at 3.17.
With a Dividend Yield of 0.38, CRS pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
The dividend of CRS decreases each year by -0.06%.
CRS has paid a dividend for at least 10 years, which is a reliable track record.
CRS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.06%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
CRS pays out 17.71% of its income as dividend. This is a sustainable payout ratio.
DP17.71%
EPS Next 2Y30.73%
EPS Next 3Y30.07%
CARPENTER TECHNOLOGY
NYSE:CRS (1/30/2025, 6:40:00 PM)
After market: 193.65 0 (0%)193.65
-15.46 (-7.39%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners92.33%
Inst Owner Change-1.47%
Ins Owners1.38%
Ins Owner Change2.67%
Market Cap9.65B
Analysts76.67
Price Target192.44 (-0.62%)
Short Float %4.89%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.81
Dividend Growth(5Y)-0.06%
DP17.71%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.96%
Min EPS beat(2)8.27%
Max EPS beat(2)19.65%
EPS beat(4)3
Avg EPS beat(4)13.07%
Min EPS beat(4)-0.99%
Max EPS beat(4)25.34%
EPS beat(8)7
Avg EPS beat(8)14.22%
EPS beat(12)11
Avg EPS beat(12)20.7%
EPS beat(16)15
Avg EPS beat(16)19.69%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-4.37%
Max Revenue beat(2)3.54%
Revenue beat(4)1
Avg Revenue beat(4)-2.74%
Min Revenue beat(4)-5.95%
Max Revenue beat(4)3.54%
Revenue beat(8)4
Avg Revenue beat(8)-0.63%
Revenue beat(12)7
Avg Revenue beat(12)1.61%
Revenue beat(16)8
Avg Revenue beat(16)0.68%
PT rev (1m)2.26%
PT rev (3m)12.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.84%
EPS NY rev (1m)0%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.64 | ||
| Fwd PE | 23.85 | ||
| P/S | 3.42 | ||
| P/FCF | 46.81 | ||
| P/OCF | 31.37 | ||
| P/B | 5.81 | ||
| P/tB | 6.8 | ||
| EV/EBITDA | 20.4 |
EPS(TTM)5.59
EY2.89%
EPS(NY)8.12
Fwd EY4.19%
FCF(TTM)4.14
FCFY2.14%
OCF(TTM)6.17
OCFY3.19%
SpS56.69
BVpS33.31
TBVpS28.48
PEG (NY)0.72
PEG (5Y)4.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 13.67% | ||
| ROCE | 14.12% | ||
| ROIC | 11.71% | ||
| ROICexc | 12.37% | ||
| ROICexgc | 13.58% | ||
| OM | 14.24% | ||
| PM (TTM) | 8.03% | ||
| GM | 22.53% | ||
| FCFM | 7.3% |
ROA(3y)1.94%
ROA(5y)-0.38%
ROE(3y)3.92%
ROE(5y)-0.94%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y7.85%
ROICexc growth 3YN/A
ROICexc growth 5Y9.08%
OM growth 3YN/A
OM growth 5Y4.82%
PM growth 3YN/A
PM growth 5Y-0.55%
GM growth 3Y291.66%
GM growth 5Y2.53%
F-Score8
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 75.02% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.25% | ||
| Profit Quality | 90.84% | ||
| Current Ratio | 3.84 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 6.25 |
F-Score8
WACC10.99%
ROIC/WACC1.07
Cap/Depr(3y)68.03%
Cap/Depr(5y)84.74%
Cap/Sales(3y)3.9%
Cap/Sales(5y)5.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)156.42%
EPS 3YN/A
EPS 5Y7.69%
EPS Q2Q%94.38%
EPS Next Y48.08%
EPS Next 2Y30.73%
EPS Next 3Y30.07%
EPS Next 5Y18.52%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y23.21%
Revenue growth 5Y3%
Sales Q2Q%10.08%
Revenue Next Year9.06%
Revenue Next 2Y8.5%
Revenue Next 3Y8.71%
Revenue Next 5Y7.34%
EBIT growth 1Y107.53%
EBIT growth 3YN/A
EBIT growth 5Y7.96%
EBIT Next Year88.47%
EBIT Next 3Y36.65%
EBIT Next 5YN/A
FCF growth 1Y278.68%
FCF growth 3Y6.05%
FCF growth 5Y27.9%
OCF growth 1Y1330.8%
OCF growth 3Y3.22%
OCF growth 5Y3.42%