CARPENTER TECHNOLOGY (CRS)
US1442851036 - Common Stock
We assign a fundamental rating of 6 out of 10 to CRS. CRS was compared to 155 industry peers in the Metals & Mining industry. While CRS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CRS had positive earnings in the past year.
In the past year CRS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CRS reported negative net income in multiple years.
Each year in the past 5 years CRS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.97%, CRS is in the better half of the industry, outperforming 79.35% of the companies in the same industry.
With an excellent Return On Equity value of 13.67%, CRS belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.71%, CRS belongs to the best of the industry, outperforming 89.03% of the companies in the same industry.
| 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 78.71% of its industry peers.
In the last couple of years the Profit Margin of CRS has remained more or less at the same level.
CRS has a better Operating Margin (14.24%) than 72.90% of its industry peers.
In the last couple of years the Operating Margin of CRS has grown nicely.
CRS has a Gross Margin of 22.53%. This is in the better half of the industry: CRS outperforms 62.58% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRS is still creating some value.
CRS has more shares outstanding than it did 1 year ago.
CRS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CRS has been reduced compared to a year ago.
2.2 Solvency
CRS has an Altman-Z score of 5.60. This indicates that CRS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CRS (5.60) is better than 74.84% 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.
CRS's Debt to FCF ratio of 3.37 is fine compared to the rest of the industry. CRS outperforms 73.55% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that CRS is not too dependend on debt financing.
CRS has a worse Debt to Equity ratio (0.42) than 72.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 5.6 |
ROIC/WACC1.05
WACC11.14%
2.3 Liquidity
A Current Ratio of 3.84 indicates that CRS has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.84, CRS is doing good in the industry, outperforming 72.26% of the companies in the same industry.
A Quick Ratio of 2.00 indicates that CRS should not have too much problems paying its short term obligations.
The Quick ratio of CRS (2.00) is better than 61.29% of its industry peers.
| 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.
CRS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.69% yearly.
Looking at the last year, CRS shows a small growth in Revenue. The Revenue has grown by 5.45% in the last year.
CRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.00% yearly.
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
CRS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.63% yearly.
CRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y48.08%
EPS Next 2Y30.73%
EPS Next 3Y30.07%
EPS Next 5Y18.63%
Revenue Next Year8.7%
Revenue Next 2Y8.13%
Revenue Next 3Y8.57%
Revenue Next 5Y7.45%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.22, which means the current valuation is very expensive for CRS.
The rest of the industry has a similar Price/Earnings ratio as CRS.
CRS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
With a Price/Forward Earnings ratio of 21.50, CRS is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as CRS.
CRS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.22 | ||
| Fwd PE | 21.5 |
4.2 Price Multiples
CRS's Enterprise Value to EBITDA ratio is in line with the industry average.
65.16% of the companies in the same industry are more expensive than CRS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.18 | ||
| EV/EBITDA | 17.2 |
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.
The decent profitability rating of CRS may justify a higher PE ratio.
A more expensive valuation may be justified as CRS's earnings are expected to grow with 30.07% in the coming years.
PEG (NY)0.65
PEG (5Y)4.06
EPS Next 2Y30.73%
EPS Next 3Y30.07%
5. Dividend
5.1 Amount
CRS has a yearly dividend return of 0.47%, which is pretty low.
CRS's Dividend Yield is a higher than the industry average which is at 3.22.
Compared to an average S&P500 Dividend Yield of 2.36, CRS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of CRS decreases each year by -0.06%.
CRS has been paying a dividend for at least 10 years, so it has a reliable track record.
CRS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.06%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
17.71% of the earnings are spent on dividend by CRS. This is a low number and sustainable payout ratio.
DP17.71%
EPS Next 2Y30.73%
EPS Next 3Y30.07%
CARPENTER TECHNOLOGY
NYSE:CRS (12/24/2024, 8:04:59 PM)
After market: 174.52 0 (0%)174.52
+1.91 (+1.11%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners92.33%
Inst Owner Change0.65%
Ins Owners1.38%
Ins Owner Change2.67%
Market Cap8.70B
Analysts76.67
Price Target188.19 (7.83%)
Short Float %5.65%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)9.56%
PT rev (3m)17.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.94%
EPS NY rev (1m)1.11%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)-1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.22 | ||
| Fwd PE | 21.5 | ||
| P/S | 3.08 | ||
| P/FCF | 42.18 | ||
| P/OCF | 28.27 | ||
| P/B | 5.24 | ||
| P/tB | 6.13 | ||
| EV/EBITDA | 17.2 |
EPS(TTM)5.59
EY3.2%
EPS(NY)8.12
Fwd EY4.65%
FCF(TTM)4.14
FCFY2.37%
OCF(TTM)6.17
OCFY3.54%
SpS56.69
BVpS33.31
TBVpS28.48
PEG (NY)0.65
PEG (5Y)4.06
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 | 5.6 |
F-Score8
WACC11.14%
ROIC/WACC1.05
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 5Y18.63%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y23.21%
Revenue growth 5Y3%
Sales Q2Q%10.08%
Revenue Next Year8.7%
Revenue Next 2Y8.13%
Revenue Next 3Y8.57%
Revenue Next 5Y7.45%
EBIT growth 1Y107.53%
EBIT growth 3YN/A
EBIT growth 5Y7.96%
EBIT Next Year86.2%
EBIT Next 3Y36.05%
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%