CRAWFORD & COMPANY -CL A (CRD.A) Stock Fundamental Analysis
NYSE:CRD.A - New York Stock Exchange, Inc. - US2246332066 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CRD.A. CRD.A was compared to 143 industry peers in the Insurance industry. While CRD.A has a great profitability rating, there are some minor concerns on its financial health. CRD.A has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CRD.A had positive earnings in the past year.
In the past year CRD.A had a positive cash flow from operations.
Of the past 5 years CRD.A 4 years were profitable.
CRD.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.84%, CRD.A is doing good in the industry, outperforming 79.72% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.96%, CRD.A belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
CRD.A's Return On Invested Capital of 8.08% is amongst the best of the industry. CRD.A outperforms 90.91% of its industry peers.
CRD.A had an Average Return On Invested Capital over the past 3 years of 7.40%. This is above the industry average of 4.07%.
The 3 year average ROIC (7.40%) for CRD.A is below the current ROIC(8.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 18.96% | ||
| ROIC | 8.08% |
ROA(3y)1.61%
ROA(5y)2.44%
ROE(3y)7.94%
ROE(5y)10.69%
ROIC(3y)7.4%
ROIC(5y)7.11%
1.3 Margins
CRD.A's Profit Margin of 2.25% is on the low side compared to the rest of the industry. CRD.A is outperformed by 76.22% of its industry peers.
CRD.A's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 4.72%, CRD.A is not doing good in the industry: 79.72% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CRD.A has declined.
The Gross Margin of CRD.A (27.41%) is better than 88.81% of its industry peers.
CRD.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.72% | ||
| PM (TTM) | 2.25% | ||
| GM | 27.41% |
OM growth 3Y-0.78%
OM growth 5Y-6.8%
PM growth 3Y-9.71%
PM growth 5Y10.7%
GM growth 3Y2.28%
GM growth 5Y-0.53%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRD.A is destroying value.
The number of shares outstanding for CRD.A has been increased compared to 1 year ago.
The number of shares outstanding for CRD.A has been reduced compared to 5 years ago.
CRD.A has a worse debt/assets ratio than last year.
2.2 Solvency
CRD.A has an Altman-Z score of 3.00. This indicates that CRD.A is financially healthy and has little risk of bankruptcy at the moment.
CRD.A has a better Altman-Z score (3.00) than 95.10% of its industry peers.
The Debt to FCF ratio of CRD.A is 15.33, which is on the high side as it means it would take CRD.A, 15.33 years of fcf income to pay off all of its debts.
CRD.A has a worse Debt to FCF ratio (15.33) than 77.62% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that CRD.A has dependencies on debt financing.
CRD.A has a Debt to Equity ratio of 1.28. This is amonst the worse of the industry: CRD.A underperforms 88.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 15.33 | ||
| Altman-Z | 3 |
ROIC/WACC0.86
WACC9.37%
2.3 Liquidity
A Current Ratio of 1.30 indicates that CRD.A should not have too much problems paying its short term obligations.
CRD.A has a better Current ratio (1.30) than 85.31% of its industry peers.
CRD.A has a Quick Ratio of 1.30. This is a normal value and indicates that CRD.A is financially healthy and should not expect problems in meeting its short term obligations.
CRD.A has a Quick ratio of 1.30. This is amongst the best in the industry. CRD.A outperforms 85.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
CRD.A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.54%, which is quite good.
Measured over the past 5 years, CRD.A shows a small growth in Earnings Per Share. The EPS has been growing by 4.30% on average per year.
The Revenue has been growing slightly by 3.51% in the past year.
The Revenue has been growing slightly by 5.06% on average over the past years.
EPS 1Y (TTM)11.54%
EPS 3Y2.67%
EPS 5Y4.3%
EPS Q2Q%61.54%
Revenue 1Y (TTM)3.51%
Revenue growth 3Y5.59%
Revenue growth 5Y5.06%
Sales Q2Q%-0.33%
3.2 Future
The Earnings Per Share is expected to grow by 19.76% on average over the next years. This is quite good.
Based on estimates for the next years, CRD.A will show a small growth in Revenue. The Revenue will grow by 5.91% on average per year.
EPS Next Y32.55%
EPS Next 2Y19.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.49%
Revenue Next 2Y5.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.52 indicates a reasonable valuation of CRD.A.
The rest of the industry has a similar Price/Earnings ratio as CRD.A.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CRD.A is valued rather cheaply.
A Price/Forward Earnings ratio of 8.84 indicates a reasonable valuation of CRD.A.
Based on the Price/Forward Earnings ratio, CRD.A is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, CRD.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 8.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRD.A indicates a somewhat cheap valuation: CRD.A is cheaper than 68.53% of the companies listed in the same industry.
75.52% of the companies in the same industry are cheaper than CRD.A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.82 | ||
| EV/EBITDA | 6.83 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CRD.A has a very decent profitability rating, which may justify a higher PE ratio.
CRD.A's earnings are expected to grow with 19.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)2.68
EPS Next 2Y19.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CRD.A has a Yearly Dividend Yield of 2.81%.
CRD.A's Dividend Yield is a higher than the industry average which is at 3.31.
Compared to an average S&P500 Dividend Yield of 2.40, CRD.A has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of CRD.A has a limited annual growth rate of 2.90%.
CRD.A has paid a dividend for at least 10 years, which is a reliable track record.
CRD.A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.9%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
CRD.A pays out 45.22% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CRD.A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.22%
EPS Next 2Y19.76%
EPS Next 3YN/A
10.02
-0.44 (-4.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners26.57%
Inst Owner Change1.13%
Ins Owners67.98%
Ins Owner ChangeN/A
Market Cap495.49M
Analysts87.27
Price Target15.05 (50.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend0.28
Dividend Growth(5Y)2.9%
DP45.22%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.93%
Min EPS beat(2)-19.8%
Max EPS beat(2)1.94%
EPS beat(4)2
Avg EPS beat(4)0.21%
Min EPS beat(4)-19.8%
Max EPS beat(4)24.47%
EPS beat(8)4
Avg EPS beat(8)-8.22%
EPS beat(12)6
Avg EPS beat(12)-1.29%
EPS beat(16)8
Avg EPS beat(16)-1%
Revenue beat(2)1
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-5.63%
Max Revenue beat(2)1.78%
Revenue beat(4)1
Avg Revenue beat(4)-4.58%
Min Revenue beat(4)-10.09%
Max Revenue beat(4)1.78%
Revenue beat(8)1
Avg Revenue beat(8)-4.26%
Revenue beat(12)2
Avg Revenue beat(12)-2.93%
Revenue beat(16)5
Avg Revenue beat(16)-1.22%
PT rev (1m)0.18%
PT rev (3m)12.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 8.84 | ||
| P/S | 0.37 | ||
| P/FCF | 30.82 | ||
| P/OCF | 8.62 | ||
| P/B | 3.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.83 |
EPS(TTM)0.87
EY8.68%
EPS(NY)1.13
Fwd EY11.31%
FCF(TTM)0.33
FCFY3.25%
OCF(TTM)1.16
OCFY11.6%
SpS27.33
BVpS3.25
TBVpS-2.05
PEG (NY)0.35
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 18.96% | ||
| ROCE | 12.59% | ||
| ROIC | 8.08% | ||
| ROICexc | 9.12% | ||
| ROICexgc | 21.91% | ||
| OM | 4.72% | ||
| PM (TTM) | 2.25% | ||
| GM | 27.41% | ||
| FCFM | 1.19% |
ROA(3y)1.61%
ROA(5y)2.44%
ROE(3y)7.94%
ROE(5y)10.69%
ROIC(3y)7.4%
ROIC(5y)7.11%
ROICexc(3y)8.28%
ROICexc(5y)7.91%
ROICexgc(3y)19.19%
ROICexgc(5y)17.62%
ROCE(3y)11.52%
ROCE(5y)11.07%
ROICexcg growth 3Y8.36%
ROICexcg growth 5Y3.89%
ROICexc growth 3Y8.29%
ROICexc growth 5Y-1.08%
OM growth 3Y-0.78%
OM growth 5Y-6.8%
PM growth 3Y-9.71%
PM growth 5Y10.7%
GM growth 3Y2.28%
GM growth 5Y-0.53%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 15.33 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 113.35% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.35% | ||
| Profit Quality | 52.82% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3 |
F-Score7
WACC9.37%
ROIC/WACC0.86
Cap/Depr(3y)104.43%
Cap/Depr(5y)96.71%
Cap/Sales(3y)2.9%
Cap/Sales(5y)3.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.54%
EPS 3Y2.67%
EPS 5Y4.3%
EPS Q2Q%61.54%
EPS Next Y32.55%
EPS Next 2Y19.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.51%
Revenue growth 3Y5.59%
Revenue growth 5Y5.06%
Sales Q2Q%-0.33%
Revenue Next Year6.49%
Revenue Next 2Y5.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.92%
EBIT growth 3Y4.76%
EBIT growth 5Y-2.08%
EBIT Next Year71.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y135.87%
FCF growth 3Y-24.71%
FCF growth 5Y-28.7%
OCF growth 1Y35.48%
OCF growth 3Y-1.69%
OCF growth 5Y-7.25%