CARPENTER TECHNOLOGY (CRS) Stock Fundamental Analysis
USA - NYSE:CRS - US1442851036 - Common Stock
330.5 USD
+5.79 (+1.78%)
330.5 USD
0 (0%)
CRS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 72 industry peers in the Aerospace & Defense industry. CRS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CRS has a correct valuation and a medium growth rate. This makes CRS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
CRS had positive earnings in the past year.
CRS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CRS reported negative net income in multiple years.
CRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CRS has a Return On Assets of 12.15%. This is amongst the best in the industry. CRS outperforms 94.44% of its industry peers.
Looking at the Return On Equity, with a value of 21.64%, CRS belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
CRS has a better Return On Invested Capital (15.64%) than 95.83% of its industry peers.
CRS had an Average Return On Invested Capital over the past 3 years of 9.88%. This is in line with the industry average of 8.50%.
The 3 year average ROIC (9.88%) for CRS is below the current ROIC(15.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.15% | ||
| ROE | 21.64% | ||
| ROIC | 15.64% |
ROA(3y)6.09%
ROA(5y)1.77%
ROE(3y)11.79%
ROE(5y)3.03%
ROIC(3y)9.88%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 14.29%, CRS belongs to the best of the industry, outperforming 90.28% of the companies in the same industry.
CRS's Profit Margin has improved in the last couple of years.
CRS's Operating Margin of 19.40% is amongst the best of the industry. CRS outperforms 90.28% of its industry peers.
CRS's Operating Margin has improved in the last couple of years.
CRS's Gross Margin of 27.95% is fine compared to the rest of the industry. CRS outperforms 61.11% of its industry peers.
CRS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.4% | ||
| PM (TTM) | 14.29% | ||
| GM | 27.95% |
OM growth 3YN/A
OM growth 5Y20.36%
PM growth 3YN/A
PM growth 5Y203.85%
GM growth 3Y48.5%
GM growth 5Y10.19%
2. Health
2.1 Basic Checks
CRS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CRS remains at a similar level compared to 1 year ago.
CRS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CRS has an improved debt to assets ratio.
2.2 Solvency
CRS has an Altman-Z score of 9.12. This indicates that CRS is financially healthy and has little risk of bankruptcy at the moment.
CRS has a Altman-Z score of 9.12. This is amongst the best in the industry. CRS outperforms 86.11% of its industry peers.
CRS has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as CRS would need 2.58 years to pay back of all of its debts.
The Debt to FCF ratio of CRS (2.58) is better than 90.28% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that CRS is not too dependend on debt financing.
CRS has a Debt to Equity ratio of 0.36. This is in the better half of the industry: CRS outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 9.12 |
ROIC/WACC1.58
WACC9.88%
2.3 Liquidity
A Current Ratio of 4.44 indicates that CRS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.44, CRS belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
CRS has a Quick Ratio of 2.37. This indicates that CRS is financially healthy and has no problem in meeting its short term obligations.
CRS's Quick ratio of 2.37 is fine compared to the rest of the industry. CRS outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.44 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.33% over the past year.
The Earnings Per Share has been growing by 27.85% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.40% in the past year.
The Revenue has been growing slightly by 5.70% on average over the past years.
EPS 1Y (TTM)46.33%
EPS 3YN/A
EPS 5Y27.85%
EPS Q2Q%40.46%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y16.15%
Revenue growth 5Y5.7%
Sales Q2Q%2.24%
3.2 Future
Based on estimates for the next years, CRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.01% on average per year.
CRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.66% yearly.
EPS Next Y35.86%
EPS Next 2Y26.44%
EPS Next 3Y22.11%
EPS Next 5Y15.01%
Revenue Next Year5.88%
Revenue Next 2Y7.87%
Revenue Next 3Y6.76%
Revenue Next 5Y5.66%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
CRS is valuated quite expensively with a Price/Earnings ratio of 40.40.
Compared to the rest of the industry, the Price/Earnings ratio of CRS indicates a somewhat cheap valuation: CRS is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, CRS is valued quite expensively.
The Price/Forward Earnings ratio is 27.64, which means the current valuation is very expensive for CRS.
Based on the Price/Forward Earnings ratio, CRS is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, CRS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.4 | ||
| Fwd PE | 27.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRS is valued a bit cheaper than 61.11% of the companies in the same industry.
CRS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.16 | ||
| EV/EBITDA | 23.73 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CRS has an outstanding profitability rating, which may justify a higher PE ratio.
CRS's earnings are expected to grow with 22.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)1.45
EPS Next 2Y26.44%
EPS Next 3Y22.11%
5. Dividend
5.1 Amount
CRS has a yearly dividend return of 0.25%, which is pretty low.
CRS's Dividend Yield is a higher than the industry average which is at 1.12.
Compared to an average S&P500 Dividend Yield of 2.36, CRS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
The dividend of CRS decreases each year by -0.08%.
CRS has paid a dividend for at least 10 years, which is a reliable track record.
CRS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.08%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
CRS pays out 9.75% of its income as dividend. This is a sustainable payout ratio.
DP9.75%
EPS Next 2Y26.44%
EPS Next 3Y22.11%
330.5
+5.79 (+1.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.01%
Inst Owner Change-0.03%
Ins Owners2.37%
Ins Owner Change5.08%
Market Cap16.48B
Revenue(TTM)2.89B
Net Income(TTM)413.50M
Analysts80
Price Target343.16 (3.83%)
Short Float %6.5%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly Dividend0.81
Dividend Growth(5Y)-0.08%
DP9.75%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.39%
Min EPS beat(2)5.81%
Max EPS beat(2)10.98%
EPS beat(4)4
Avg EPS beat(4)6.6%
Min EPS beat(4)2.34%
Max EPS beat(4)10.98%
EPS beat(8)7
Avg EPS beat(8)9.84%
EPS beat(12)11
Avg EPS beat(12)11.68%
EPS beat(16)15
Avg EPS beat(16)17.18%
Revenue beat(2)0
Avg Revenue beat(2)-4.21%
Min Revenue beat(2)-5.61%
Max Revenue beat(2)-2.81%
Revenue beat(4)0
Avg Revenue beat(4)-4.21%
Min Revenue beat(4)-7.04%
Max Revenue beat(4)-1.38%
Revenue beat(8)1
Avg Revenue beat(8)-3.48%
Revenue beat(12)4
Avg Revenue beat(12)-1.82%
Revenue beat(16)7
Avg Revenue beat(16)0.16%
PT rev (1m)14.15%
PT rev (3m)15.77%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)3.37%
EPS NY rev (1m)2.62%
EPS NY rev (3m)8.64%
Revenue NQ rev (1m)-1.42%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-1.45%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.4 | ||
| Fwd PE | 27.64 | ||
| P/S | 5.69 | ||
| P/FCF | 61.16 | ||
| P/OCF | 37.5 | ||
| P/B | 8.62 | ||
| P/tB | 9.83 | ||
| EV/EBITDA | 23.73 |
EPS(TTM)8.18
EY2.48%
EPS(NY)11.96
Fwd EY3.62%
FCF(TTM)5.4
FCFY1.64%
OCF(TTM)8.81
OCFY2.67%
SpS58.04
BVpS38.34
TBVpS33.62
PEG (NY)1.13
PEG (5Y)1.45
Graham Number84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.15% | ||
| ROE | 21.64% | ||
| ROCE | 18.56% | ||
| ROIC | 15.64% | ||
| ROICexc | 16.8% | ||
| ROICexgc | 18.33% | ||
| OM | 19.4% | ||
| PM (TTM) | 14.29% | ||
| GM | 27.95% | ||
| FCFM | 9.31% |
ROA(3y)6.09%
ROA(5y)1.77%
ROE(3y)11.79%
ROE(5y)3.03%
ROIC(3y)9.88%
ROIC(5y)N/A
ROICexc(3y)10.75%
ROICexc(5y)N/A
ROICexgc(3y)11.84%
ROICexgc(5y)N/A
ROCE(3y)11.72%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y26.78%
ROICexc growth 3YN/A
ROICexc growth 5Y27.82%
OM growth 3YN/A
OM growth 5Y20.36%
PM growth 3YN/A
PM growth 5Y203.85%
GM growth 3Y48.5%
GM growth 5Y10.19%
F-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 120.23% | ||
| Cap/Sales | 5.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.52% | ||
| Profit Quality | 65.15% | ||
| Current Ratio | 4.44 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z | 9.12 |
F-Score8
WACC9.88%
ROIC/WACC1.58
Cap/Depr(3y)81.81%
Cap/Depr(5y)79.25%
Cap/Sales(3y)4.03%
Cap/Sales(5y)4.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)46.33%
EPS 3YN/A
EPS 5Y27.85%
EPS Q2Q%40.46%
EPS Next Y35.86%
EPS Next 2Y26.44%
EPS Next 3Y22.11%
EPS Next 5Y15.01%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y16.15%
Revenue growth 5Y5.7%
Sales Q2Q%2.24%
Revenue Next Year5.88%
Revenue Next 2Y7.87%
Revenue Next 3Y6.76%
Revenue Next 5Y5.66%
EBIT growth 1Y39.58%
EBIT growth 3YN/A
EBIT growth 5Y27.21%
EBIT Next Year59.09%
EBIT Next 3Y30.03%
EBIT Next 5Y27.04%
FCF growth 1Y2796.77%
FCF growth 3YN/A
FCF growth 5Y36.49%
OCF growth 1Y338.96%
OCF growth 3Y318.7%
OCF growth 5Y13.7%
CARPENTER TECHNOLOGY / CRS FAQ
Can you provide the ChartMill fundamental rating for CARPENTER TECHNOLOGY?
ChartMill assigns a fundamental rating of 7 / 10 to CRS.
Can you provide the valuation status for CARPENTER TECHNOLOGY?
ChartMill assigns a valuation rating of 5 / 10 to CARPENTER TECHNOLOGY (CRS). This can be considered as Fairly Valued.
What is the profitability of CRS stock?
CARPENTER TECHNOLOGY (CRS) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for CRS stock?
The Price/Earnings (PE) ratio for CARPENTER TECHNOLOGY (CRS) is 40.4 and the Price/Book (PB) ratio is 8.62.
How financially healthy is CARPENTER TECHNOLOGY?
The financial health rating of CARPENTER TECHNOLOGY (CRS) is 8 / 10.