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Crane NXT (CXT)
NYSE:CXT
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Crane NXT
(NYSE:CXT)
62Neutral
Positive Factors
Market Expansion
Talks with India have reignited and could be a major catalyst, potentially leading to a significant tender opportunity.
Strategic Acquisitions
The acquisition of De La Rue's authentication solutions business and smart packaging assets from TruTag Technologies are strong strategic and financial fits.
Negative Factors
Earnings Outlook
Initial 2025 commentary suggests downside to consensus due to negative US currency print order.
Crane NXT (CXT) vs. S&P 500 (SPY)
Market Cap
$3.05B
Dividend Yield1.23%
Average Volume (3M)509.92K
Price to Earnings (P/E)16.7
Beta (1Y)0.90
Revenue Growth-21.96%
EPS Growth-27.05%
CountryUS
Employees4,500
SectorIndustrials
Sector Strength73
IndustryIndustrial Goods
Share Statistics
EPS (TTM)3.18
Shares Outstanding57,236,300
10 Day Avg. Volume506,583
30 Day Avg. Volume509,916
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.04
Price to Cash Flow (P/CF)9.30
P/FCF Ratio10.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$85.67Price Target Upside64.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Crane NXT Business Overview & Revenue Model
Company DescriptionCrane NXT (CXT) is a leading provider of advanced automation and payment solutions that cater to various industries including retail, transportation, and financial services. The company specializes in developing cutting-edge technologies that enhance operational efficiency and security, focusing on payment processing systems, vending solutions, and connectivity devices. With a commitment to innovation, Crane NXT aims to deliver high-quality, reliable products and services that meet the evolving needs of its global clientele.
How the Company Makes MoneyCrane NXT generates revenue through the sale of its automation and payment solutions, which include hardware, software, and integrated systems. Key revenue streams for the company include product sales, service contracts, and licensing fees. Additionally, Crane NXT forms strategic partnerships with industry leaders to expand its market reach and enhance its product offerings. The company also focuses on providing comprehensive support services, including maintenance and repair, which contribute to its recurring revenue. By leveraging its expertise in technology and innovation, Crane NXT is able to maintain a competitive edge and ensure sustained financial growth.
Crane NXT Financial Statement Overview
Summary
Crane NXT shows stable financial performance with consistent revenue growth and solid profitability margins. However, declining free cash flow and significant capital expenditures present challenges.Income Statement
Crane NXT shows a moderate growth trajectory with a TTM revenue of $1.49 billion, reflecting a notable revenue growth rate of 6.86% from the previous year. The gross profit margin is robust at 59.44%, supported by a solid EBIT margin of 18.94% and an EBITDA margin of 22.56%. However, the net profit margin decreased slightly to 12.38% from the previous year, which indicates a slight pressure on profitability.70
Positive
Balance Sheet
The company maintains a moderately leveraged balance sheet with a debt-to-equity ratio of 0.70, suggesting moderate financial risk. The return on equity (ROE) remains strong at 17.28%, indicating efficient use of equity capital. The equity ratio is 44.61%, showing a stable capital structure but with room for improvement in asset management.65
Positive
Cash Flow
Crane NXT's free cash flow has decreased from $245.2 million to $188.1 million, reflecting a decline in free cash flow growth. The operating cash flow to net income ratio is 1.29, indicating strong cash conversion from earnings. However, the negative growth in free cash flow and significant capital expenditures are areas of concern.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.49B | 1.39B | 3.37B | 3.41B | 2.94B | Gross Profit |
| 665.10M | 654.10M | 1.34B | 1.29B | 1.01B | EBIT |
| 268.80M | 286.80M | 369.50M | 529.20M | 262.90M | EBITDA |
| 361.00M | 368.00M | 383.30M | 670.80M | 380.90M | Net Income Common Stockholders |
| 184.10M | 188.30M | 401.10M | 435.40M | 181.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 165.80M | 227.20M | 657.60M | 478.60M | 551.00M | Total Assets |
| 2.39B | 2.13B | 4.39B | 4.49B | 4.59B | Total Debt |
| 750.60M | 694.70M | 1.34B | 944.50M | 1.33B | Net Debt |
| 584.80M | 467.50M | 683.00M | 465.90M | 777.50M | Total Liabilities |
| 1.32B | 1.17B | 2.49B | 2.65B | 3.06B | Stockholders Equity |
| 1.06B | 964.00M | 1.90B | 1.83B | 1.53B |
| Cash Flow | Free Cash Flow | |||
| 168.70M | 245.20M | -76.00M | 444.60M | 275.40M | Operating Cash Flow |
| 214.10M | 276.30M | -17.60M | 498.50M | 309.50M | Investing Cash Flow |
| -318.00M | -31.10M | 264.00M | -300.00K | -229.10M | Financing Cash Flow |
| 62.10M | -252.50M | 106.00M | -557.90M | 55.10M |
Crane NXT Technical Analysis
Negative
52.11
Price Trends
59.81
Negative
58.74
Negative
58.45
Negative
Market Momentum
-2.04
Positive
26.28
Positive
10.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXT, the sentiment is Negative. The current price of 52.11 is below the 20-day moving average (MA) of 56.21, below the 50-day MA of 59.81, and below the 200-day MA of 58.45, indicating a bearish trend. The MACD of -2.04 indicates Positive momentum. The RSI at 26.28 is Positive, neither overbought nor oversold. The STOCH value of 10.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CXT.
Crane NXT Risk Analysis
Crane NXT disclosed 17 risk factors in its most recent earnings report. Crane NXT reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Crane NXT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.90B | 21.26 | 19.60% | 0.96% | 10.59% | 27.04% | |
77 Outperform | $24.81B | 9.30 | 24.30% | 1.13% | -2.99% | 159.26% | |
74 Outperform | $30.05B | 33.83 | 8.55% | 1.20% | 16.23% | 34.42% | |
67 Neutral | $78.70B | 25.29 | 25.87% | 1.06% | 0.41% | 19.76% | |
62 Neutral | $3.05B | 16.73 | 18.15% | 1.23% | -21.96% | -27.05% | |
62 Neutral | $33.41B | 40.25 | 8.40% | 0.10% | 5.22% | 8.01% | |
62 Neutral | $8.17B | 12.76 | 0.49% | 3.07% | 3.84% | -16.79% |
* Industrials Sector Average
Performance Comparison
CXT
Crane NXT
52.11
-7.13
-12.04%
DOV
Dover
177.09
3.89
2.25%
ITT
ITT
129.93
4.20
3.34%
PH
Parker Hannifin
591.65
60.97
11.49%
XYL
Xylem
121.00
-5.54
-4.38%
IR
Ingersoll Rand
80.00
-10.93
-12.02%
Crane NXT Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -10.79% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed view, with strong sales growth and successful strategic initiatives providing positive momentum, but challenges in gaming, US currency, and retail markets presenting significant headwinds. The company is actively addressing these with strategic acquisitions and cost management.Highlights
Strong Sales Growth
Sales growth was approximately 12% in Q4 and 7% for the full year 2024. Core sales growth was nearly 3% in Q4 driven by international currency.
Robust Free Cash Flow
Adjusted free cash flow conversion was 109% in Q4 and 76% for the full year, indicating strong cash generation capabilities.
Successful Strategic Initiatives
Completion of acquisitions such as OpSec and TruTag Smart Packaging, with further acquisition of De La Rue Authentication Solutions expected to close in Q2 2025.
Recurring Revenue Increase
Increase in recurring revenue through contracts like the micro-optics agreement with a luxury perfume company, showcasing successful integration of OpSec.
Record Backlogs
CPI ended the year with a backlog of $146 million, while security and authentication technologies finished with a segment backlog of $248 million.
Lowlights
Decline in Gaming Revenue
Gaming revenue faced continued softness, with expectations of further declines in the first half of 2025 as customers work through inventories.
Challenges in US Currency Business
US currency sales expected to decline by approximately 20% in 2025 due to production stoppages and actions by the Federal Reserve to prepare for new banknote designs.
Retail End Market Difficulties
Retail orders continued to see softness, with expected high single-digit decline in retail sales year-over-year due to changing retail dynamics.
Impact of Segment Mix and Acquisition Dilution
Adjusted segment operating margin decreased by 130 basis points year-over-year, reflecting segment mix and dilution impacts from OpSec.
Company Guidance
In the earnings call, Crane NXT, Co. provided detailed guidance for 2025, highlighting expected sales growth of 1% to 3%, factoring in FX headwinds of 1 to 2 points. The company anticipates an adjusted EPS range of $4.00 to $4.30, with segment margins projected between 26% to 27%, primarily due to disciplined pricing and productivity measures. Key drivers include low single-digit growth in the CPI segment, mid-single-digit growth in the security and authentication technologies segment, and a 20% decline in U.S. government-related sales. The company also expects adjusted free cash flow conversion to be between 90% and 110%, with a stronger performance anticipated in the second half of the year following a softer first quarter due to ongoing upgrades and market dynamics.Crane NXT Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Crane NXT Announces Departure of HR Chief
Neutral
Feb 12, 2025
Crane NXT announced that Jennifer Kartono, the Senior Vice President and Chief Human Resources Officer, will be leaving her role effective March 1, 2025, and her employment will officially end on April 25, 2025. As part of her departure, a separation agreement has been arranged, providing her with a total compensation package, including a lump-sum cash payment equivalent to her one-year base salary, an annual incentive plan payout, and coverage for COBRA expenses. This transition may impact the company’s human resources strategy and stakeholder dynamics as they prepare for leadership changes.
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.