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Crown Holdings (CCK)
NYSE:CCK
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Crown Holdings
(NYSE:CCK)65Neutral
Positive Factors
Earnings
Crown Holdings reported a big beat on 3Q24 earnings per share, surpassing consensus expectations.
Financial Performance
BevCan operating income of $416M (up 23% Y/Y) exceeded expectations and benefited from 5% higher can shipments.
Negative Factors
Operating Income
Transit Packaging operating income of $70M significantly lagged expectations, showing a decline in performance.
Crown Holdings (CCK) vs. S&P 500 (SPY)
Market Cap
$10.56B
Dividend Yield1.13%
Average Volume (3M)1.40M
Price to Earnings (P/E)24.9
Beta (1Y)0.68
Revenue Growth-1.53%
EPS Growth-5.16%
CountryUS
Employees25,000
SectorConsumer Cyclical
Sector Strength53
IndustryContainers & Packaging
Share Statistics
EPS (TTM)3.56
Shares Outstanding119,632,290
10 Day Avg. Volume1,318,416
30 Day Avg. Volume1,401,480
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.90
Price to Cash Flow (P/CF)4.80
P/FCF Ratio5.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$108.18Price Target Upside25.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Crown Holdings Business Overview & Revenue Model
Company DescriptionCrown Holdings, Inc. is a global leader in the design, manufacture, and sale of packaging products for consumer goods. Specializing in metal packaging for food, beverage, household, and personal care products, Crown Holdings operates across various sectors with a strong emphasis on sustainability and innovation. The company serves a diverse customer base, including some of the world's leading brands, by providing high-quality and environmentally friendly packaging solutions.
How the Company Makes MoneyCrown Holdings makes money primarily through the production and sale of metal packaging products. Its revenue streams are diversified across several sectors, with a significant portion coming from the beverage can segment, which serves the global beverage industry. The company also generates income through its food can and closures business, providing packaging solutions to food manufacturers. Crown Holdings' revenue model is supported by long-term contracts with major consumer goods companies, strategic global manufacturing facilities, and a focus on innovation to meet customer demands for sustainable and efficient packaging solutions.
Crown Holdings Financial Statement Overview
Summary
Crown Holdings shows operational efficiency with strong gross margins and consistent EBITDA performance. However, revenue volatility and high leverage present financial risks. The company’s ability to generate cash flow is a significant strength, providing a buffer against income variability.Income Statement
Crown Holdings demonstrated fluctuating revenue over the years, with recent declines from previous levels. The gross profit margin has been strong, indicating effective cost management, but the net profit margin has seen volatility, reflecting challenges in maintaining consistent profitability. The EBIT and EBITDA margins have been relatively stable, suggesting operational efficiency despite revenue fluctuations.67
Positive
Balance Sheet
The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses potential financial risk. Stockholders' equity has fluctuated but remains relatively small compared to total liabilities, impacting the equity ratio. The return on equity has varied, reflecting inconsistent profitability and equity levels.55
Neutral
Cash Flow
Crown Holdings has demonstrated a strong cash flow generation capability, with positive free cash flow in most years. The operating cash flow has consistently supported net income, showing efficient cash management. Free cash flow growth has been positive, although it varies year by year, reflecting fluctuations in capital expenditure and operating performance.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.80B | 12.01B | 12.94B | 11.39B | 11.57B | Gross Profit |
| 11.80B | 2.46B | 2.30B | 2.37B | 2.39B | EBIT |
| 1.42B | 1.27B | 1.34B | -171.00M | 1.26B | EBITDA |
| 1.51B | 1.73B | 1.75B | 281.00M | 1.45B | Net Income Common Stockholders |
| 424.00M | 450.00M | 727.00M | -362.00M | 579.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 0.00 | 1.31B | 550.00M | 531.00M | 1.17B | Total Assets |
| 0.00 | 15.03B | 14.30B | 13.88B | 16.67B | Total Debt |
| 0.00 | 7.70B | 6.98B | 6.26B | 8.21B | Net Debt |
| 0.00 | 6.39B | 6.43B | 5.73B | 7.04B | Total Liabilities |
| 0.00 | 12.17B | 12.01B | 11.55B | 14.07B | Stockholders Equity |
| 0.00 | 2.41B | 1.85B | 1.91B | 2.20B |
| Cash Flow | Free Cash Flow | |||
| 789.00M | 660.00M | -36.00M | 89.00M | 728.00M | Operating Cash Flow |
| 1.19B | 1.45B | 803.00M | 905.00M | 1.31B | Investing Cash Flow |
| -12.00M | -804.00M | -642.00M | 1.51B | -535.00M | Financing Cash Flow |
| -1.53B | 116.00M | -25.00M | -2.94B | -239.00M |
Crown Holdings Technical Analysis
Negative
86.01
Price Trends
85.71
Positive
88.88
Negative
86.72
Negative
Market Momentum
0.30
Positive
44.25
Neutral
48.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCK, the sentiment is Negative. The current price of 86.01 is below the 20-day moving average (MA) of 87.77, above the 50-day MA of 85.71, and below the 200-day MA of 86.72, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 48.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCK.
Crown Holdings Risk Analysis
Crown Holdings disclosed 35 risk factors in its most recent earnings report. Crown Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Crown Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.49B | 19.91 | 13.89% | 1.44% | -2.23% | -13.56% | |
71 Outperform | $18.16B | 22.64 | 18.28% | 2.39% | 7.45% | 5.43% | |
68 Neutral | $4.55B | 28.02 | 7.22% | 4.40% | -6.93% | -65.66% | |
65 Neutral | $10.56B | 24.86 | 0.00% | 1.13% | -1.53% | -5.16% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
52 Neutral | $1.64B | ― | -42.06% | ― | -8.09% | -1.97% | |
43 Neutral | $14.43B | ― | 67.59% | 1.53% | -15.64% | -186.66% |
* Consumer Cyclical Sector Average
Performance Comparison
CCK
Crown Holdings
86.01
10.91
14.53%
BALL
Ball
51.03
-12.20
-19.29%
OI
O-I Glass
10.63
-5.57
-34.38%
PKG
Packaging
202.27
23.47
13.13%
SLGN
Silgan Holdings
51.37
8.98
21.18%
SON
Sonoco Products
46.27
-8.03
-14.79%
Crown Holdings Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 1.07% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with record EBITDA, significant cash flow generation, and growth in key segments like beverage cans. However, challenges in transit packaging and subdued consumer demand in Asia Pacific were noted. The potential impact of tariffs on consumer demand was also a concern.Highlights
Strong Earnings Performance
Earnings for the quarter were $3.02 per share, including a $2.32 per share gain from the sale of Eviosus, compared to $0.27 per share in the prior year quarter. Adjusted earnings per share were $1.59 compared to $1.24 in the prior year quarter.
Record EBITDA Achievement
The company delivered record adjusted EBITDA of $1.942 billion for 2024, surpassing the previous record of $1.882 billion from 2023.
Beverage Can Volume Growth
Global beverage can volumes increased by 4%, with significant growth in North American and Brazilian markets.
Debt Reduction and Improved Leverage
Net debt was reduced by $878 million, bringing the net leverage ratio down to 2.7 times at year-end.
Significant Cash Flow Generation
The company generated $814 million in free cash flow and returned $336 million to shareholders through dividends and share repurchases.
European Beverage Segment Growth
European beverage volumes increased 8% in the fourth quarter, leading to a record income performance for the segment.
Lowlights
Transit Packaging Challenges
Lower volumes in transit packaging due to macroeconomic headwinds. The business is expected to see flat to marginally up income performance in 2025.
Subdued Consumer Demand in Asia Pacific
Volumes in Asia Pacific were down 4% in the fourth quarter. While income performance increased by 27% for the full year, consumer purchasing power remains subdued.
Potential Impact of Tariffs
The company expressed concerns about the potential inflationary impact of tariffs on consumer demand, particularly in North America.
Company Guidance
During Crown Holdings' Fourth Quarter 2024 conference call, the company provided guidance for the upcoming fiscal year. They projected first-quarter 2025 adjusted earnings per diluted share to be between $1.20 and $1.30. For the full year, the adjusted earnings are expected to range from $6.60 to $7.00 per share. Key financial assumptions include a net interest expense of approximately $355 million to $360 million, a full-year tax rate of about 25%, and depreciation around $310 million. The company also anticipates non-controlling interest expense to be approximately $150 million, with dividends to non-controlling interests expected to be around $130 million. Additionally, Crown Holdings estimates their 2025 full-year adjusted free cash flow at approximately $800 million after $450 million of capital expenditures. The year-end net leverage is forecasted to be closer to their target ratio of 2.5.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.