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. CRD.A scores excellent on profitability, but there are some minor concerns on its financial health. CRD.A is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CRD.A was profitable.
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
CRD.A has a Return On Assets of 3.84%. This is in the better half of the industry: CRD.A outperforms 79.72% of its industry peers.
CRD.A has a better Return On Equity (18.96%) than 88.81% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for CRD.A 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
With a Profit Margin value of 2.25%, CRD.A is not doing good in the industry: 76.22% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of CRD.A has grown nicely.
CRD.A has a Operating Margin of 4.72%. This is in the lower half of the industry: CRD.A underperforms 79.72% of its industry peers.
CRD.A's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 27.41%, CRD.A belongs to the best of the industry, outperforming 88.81% of the companies in the same industry.
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
CRD.A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CRD.A has been increased compared to 1 year ago.
CRD.A has less shares outstanding than it did 5 years ago.
CRD.A has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.04 indicates that CRD.A is not in any danger for bankruptcy at the moment.
CRD.A has a Altman-Z score of 3.04. This is amongst the best in the industry. CRD.A outperforms 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.
The Debt to FCF ratio of CRD.A (15.33) is worse 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 | 3.04 |
ROIC/WACC0.99
WACC8.2%
2.3 Liquidity
CRD.A has a Current 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's Current ratio of 1.30 is amongst the best of the industry. CRD.A outperforms 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.
The Quick ratio of CRD.A (1.30) is better than 85.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.54% over the past year.
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.
Looking at the last year, CRD.A shows a small growth in Revenue. The Revenue has grown by 3.51% in the last 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
Based on estimates for the next years, CRD.A will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.76% on average per year.
CRD.A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.91% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.49 indicates a correct valuation of CRD.A.
The rest of the industry has a similar Price/Earnings ratio as CRD.A.
CRD.A is valuated cheaply when we compare the Price/Earnings ratio to 26.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.59 indicates a reasonable valuation of CRD.A.
CRD.A's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CRD.A to the average of the S&P500 Index (22.27), we can say CRD.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRD.A is valued a bit cheaper than the industry average as 66.43% of the companies are valued more expensively.
76.22% 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 | 33.43 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
CRD.A'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 CRD.A may justify a higher PE ratio.
A more expensive valuation may be justified as CRD.A's earnings are expected to grow with 19.76% in the coming years.
PEG (NY)0.38
PEG (5Y)2.9
EPS Next 2Y19.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CRD.A has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
CRD.A's Dividend Yield is a higher than the industry average which is at 3.10.
Compared to an average S&P500 Dividend Yield of 2.39, CRD.A has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of CRD.A has a limited annual growth rate of 2.90%.
CRD.A has been paying a dividend for at least 10 years, so it has 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.
CRD.A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.22%
EPS Next 2Y19.76%
EPS Next 3YN/A
10.87
-0.11 (-1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners26.59%
Inst Owner Change1.13%
Ins Owners68.09%
Ins Owner ChangeN/A
Market Cap537.52M
Analysts87.27
Price Target15.05 (38.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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)-2%
EPS NQ rev (3m)-2%
EPS NY rev (1m)4.81%
EPS NY rev (3m)-2.56%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.4 | ||
| P/FCF | 33.43 | ||
| P/OCF | 9.35 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.25 |
EPS(TTM)0.87
EY8%
EPS(NY)1.13
Fwd EY10.42%
FCF(TTM)0.33
FCFY2.99%
OCF(TTM)1.16
OCFY10.7%
SpS27.33
BVpS3.25
TBVpS-2.05
PEG (NY)0.38
PEG (5Y)2.9
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 | 3.04 |
F-Score7
WACC8.2%
ROIC/WACC0.99
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%