Crane Company (CR) AI Stock Analysis

• Market Cap: $8.10B
• Dividend Yield: 0.6%
• Average Volume (3M): 385.34K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 1.22
• Revenue Growth: 9.65%
• EPS Growth: N/A
• Country: US
• Employees: 7,300
• Sector: Industrials
• Sector Strength: 70
• Industry: Industrial - Machinery
• EPS (TTM): 5.06
• Shares Outstanding: 57,484,764
• 10 Day Avg. Volume: 391,191
• 30 Day Avg. Volume: 385,343
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.11
• Price to Cash Flow (P/CF): 11.30
• P/FCF Ratio: 11.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $182.50
• Price Target Upside: 29.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Crane Company's overall stock score reflects a balanced view of its strong financial performance and positive earnings outlook, offset by technical weakness and a moderate valuation premium. The company's robust profit margins and strategic focus on growth platforms provide a solid foundation. However, technical indicators suggest caution with current market momentum, and the valuation premium may limit upside potential in the near term.

Positive Factors

Earnings

Crane reported 3Q2024 earnings with adj. EPS of $1.38 beating expectations.

Financial Performance

The company raised its dividend by 12% for 2025, signaling a stronger commitment to capital allocation.

Mergers and Acquisitions

Crane has ample upside opportunity driven by continuous operational excellence and significant resources available for mergers and acquisitions.

Negative Factors

Cash Flow

Crane lowered its expectations for 2024 free cash flow due to working capital pressures.

Crane Company Business Overview & Revenue Model

Company Description

Crane Company, together with its subsidiaries, manufactures and sells engineered industrial products in the Americas, Europe, the Middle East, Asia, and Australia. The company has four business segments: Aerospace & Electronics, Process Flow Technologies, Payment & Merchandising Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace, and the military aerospace, defense, and space markets. This segment also offers pressure sensors for aircraft engine control, aircraft braking systems for fighter jets, power conversion solutions for spacecraft, and lubrication systems. The Process Flow Technologies segment provides engineered fluid handling equipment for mission critical applications. It offers process valves and related products, commercial valves, and pumps and systems. The Payment & Merchandising Technologies segment provides electronic equipment and associated software leveraging extensive, and proprietary core capabilities, including payment verification and authentication, as well as automation solutions, field service solutions, remote diagnostics, and productivity enhancing software solutions. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils, primarily for use in the manufacturing of recreational vehicles and in commercial and industrial buildings applications. It provides products and solutions to customers across end markets, including aerospace, defense, chemical and pharmaceutical, water and wastewater, payment automation, non-residential and municipal construction, energy, and banknote design and production, as well as for a range of general industrial and consumer applications. The company was formerly known as Crane Holdings, Co. Crane Company was founded in 1855 and is based in Stamford, Connecticut.

How the Company Makes Money

Crane Company generates revenue through the sale of its diverse range of industrial products and solutions. The Fluid Handling segment provides valves, pumps, and related products to industries such as chemical processing and energy, generating revenue through product sales and service contracts. The Payment & Merchandising Technologies segment earns income from the sale of payment and merchandising solutions, including vending equipment and point-of-sale systems. The Aerospace & Electronics segment provides products and systems for commercial aircraft, military aircraft, and other electronic applications, earning revenue through both product sales and long-term contracts. Finally, the Engineered Materials segment contributes to revenue by supplying fiberglass-reinforced plastic panels used in transportation and building applications. Crane's earnings are bolstered by key partnerships and contracts with major corporations and government entities, as well as through continuous innovation and expansion into new markets.

Crane Company Financial Statement Overview

Summary

Crane Company presents a solid financial standing with strong profit margins and efficient capital management. The income statement demonstrates impressive growth and profitability metrics, while the balance sheet confirms financial stability with low leverage. The cash flow analysis supports strong operational cash generation. While recent revenue volatility and reduced cash reserves are concerns, the overall outlook remains positive, bolstered by steady margins and financial prudence.

Income Statement

The income statement shows a strong gross profit margin of 53.6% for TTM, indicating efficient cost management relative to revenue. The net profit margin improved to 12.9%, showcasing enhanced profitability. Revenue growth rate is notable at 9.6% from the previous year, reflecting positive business expansion. EBIT and EBITDA margins are solid at 16.5% and 19.2%, respectively, indicating robust operating efficiency. However, the significant decline in revenue from 2022 to 2023 highlights potential volatility.

Balance Sheet

The company's balance sheet reflects a strong equity position with an equity ratio of 62.7% for TTM, suggesting financial stability. The debt-to-equity ratio is favorable at 0.15, indicating low leverage and reduced financial risk. Return on equity stands strong at 17.95%, showcasing effective use of equity to generate profits. Cash reserves have decreased, which could impact liquidity management.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 0.88, indicating good cash generation relative to profitability. Free cash flow growth is positive, reflecting effective capital management. However, the free cash flow to net income ratio is slightly lower at 0.72, suggesting room for improvement in converting profits into free cash flow. Despite consistent free cash flow generation, cash outflows from investing activities could strain future liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.13B	2.09B	3.37B	3.18B	2.94B
	Gross Profit
867.80M	805.00M	1.34B	1.24B	1.00B
	EBIT
355.80M	283.80M	557.30M	502.30M	262.90M
	EBITDA
416.70M	329.00M	321.10M	643.60M	380.90M
	Net Income Common Stockholders
294.70M	255.90M	401.10M	435.40M	181.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
306.70M	329.60M	657.60M	478.60M	551.00M
	Total Assets
2.64B	2.33B	4.40B	4.49B	4.59B
	Total Debt
319.30M	315.60M	1.24B	842.40M	1.22B
	Net Debt
12.60M	-14.00M	585.40M	363.80M	667.60M
	Total Liabilities
1.00B	973.30M	2.49B	2.65B	3.06B
	Stockholders Equity
1.64B	1.36B	1.91B	1.84B	1.53B
Cash Flow		Free Cash Flow
221.20M	185.50M	-210.00M	446.80M	275.40M
	Operating Cash Flow
257.80M	228.20M	-151.60M	498.50M	309.50M
	Investing Cash Flow
-230.00M	-136.60M	264.00M	-300.00K	-229.10M
	Financing Cash Flow
-49.70M	-423.20M	106.00M	-557.90M	55.10M

Crane Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 140.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CR, the sentiment is Negative. The current price of 140.89 is below the 20-day moving average (MA) of 149.03, below the 50-day MA of 157.52, and below the 200-day MA of 157.41, indicating a bearish trend. The MACD of -4.83 indicates Positive momentum. The RSI at 41.93 is Neutral, neither overbought nor oversold. The STOCH value of 45.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CR.

Crane Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	78 Outperform	$10.17B	19.94	19.60%	1.04%	10.59%	27.04%
WTS	77 Outperform	$6.53B	22.50	18.08%	0.89%	9.53%	10.98%
GNRC	73 Outperform	$6.57B	20.43	13.46%	―	6.79%	64.30%
SPXC	71 Outperform	$6.13B	30.58	15.65%	―	13.94%	37.49%
CR	67 Neutral	$8.10B	27.87	18.96%	0.60%	9.65%	―
AOS	63 Neutral	$9.36B	17.97	28.63%	2.05%	-0.90%	-1.69%
Sector *	62 Neutral	$7.70B	13.14	3.53%	3.32%	3.90%	-14.25%