CARPENTER TECHNOLOGY (CRS) Stock Fundamental Analysis
NYSE:CRS - New York Stock Exchange, Inc. - US1442851036 - Common Stock - Currency: USD
Taking everything into account, CRS scores 6 out of 10 in our fundamental rating. CRS was compared to 154 industry peers in the Metals & Mining industry. While CRS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CRS was profitable.
In the past year CRS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CRS reported negative net income in multiple years.
In the past 5 years CRS always reported a positive cash flow from operatings.
1.2 Ratios
CRS's Return On Assets of 8.07% is amongst the best of the industry. CRS outperforms 86.36% of its industry peers.
The Return On Equity of CRS (15.63%) is better than 89.61% of its industry peers.
With an excellent Return On Invested Capital value of 12.94%, CRS belongs to the best of the industry, outperforming 92.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 15.63% | ||
| ROIC | 12.94% |
ROA(3y)1.94%
ROA(5y)-0.38%
ROE(3y)3.92%
ROE(5y)-0.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 9.33%, CRS is doing good in the industry, outperforming 79.22% of the companies in the same industry.
CRS's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 15.68%, CRS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of CRS has grown nicely.
The Gross Margin of CRS (24.02%) is better than 63.64% of its industry peers.
CRS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.68% | ||
| PM (TTM) | 9.33% | ||
| GM | 24.02% |
OM growth 3YN/A
OM growth 5Y4.82%
PM growth 3YN/A
PM growth 5Y-0.55%
GM growth 3Y291.66%
GM growth 5Y2.53%
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.
Compared to 1 year ago, CRS has more shares outstanding
Compared to 5 years ago, CRS has more shares outstanding
The debt/assets ratio for CRS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.56 indicates that CRS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CRS (7.56) is better than 80.52% of its industry peers.
The Debt to FCF ratio of CRS is 2.72, which is a good value as it means it would take CRS, 2.72 years of fcf income to pay off all of its debts.
CRS has a better Debt to FCF ratio (2.72) than 78.57% of its industry peers.
CRS has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CRS (0.40) is worse than 69.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 7.56 |
ROIC/WACC1.3
WACC9.95%
2.3 Liquidity
A Current Ratio of 3.80 indicates that CRS has no problem at all paying its short term obligations.
CRS's Current ratio of 3.80 is fine compared to the rest of the industry. CRS outperforms 74.68% of its industry peers.
A Quick Ratio of 1.92 indicates that CRS should not have too much problems paying its short term obligations.
CRS has a Quick ratio of 1.92. This is comparable to the rest of the industry: CRS outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.8 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.11% over the past year.
The Earnings Per Share has been growing slightly by 7.69% on average over the past years.
CRS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.39%.
The Revenue has been growing slightly by 3.00% on average over the past years.
EPS 1Y (TTM)91.11%
EPS 3YN/A
EPS 5Y7.69%
EPS Q2Q%57.98%
Revenue 1Y (TTM)7.39%
Revenue growth 3Y23.21%
Revenue growth 5Y3%
Sales Q2Q%6.15%
3.2 Future
Based on estimates for the next years, CRS will show a very strong growth in Earnings Per Share. The EPS will grow by 23.48% on average per year.
The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y55.75%
EPS Next 2Y40.33%
EPS Next 3Y35.27%
EPS Next 5Y23.48%
Revenue Next Year5.42%
Revenue Next 2Y7.68%
Revenue Next 3Y8.97%
Revenue Next 5Y7.1%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.29, which means the current valuation is very expensive for CRS.
The rest of the industry has a similar Price/Earnings ratio as CRS.
When comparing the Price/Earnings ratio of CRS to the average of the S&P500 Index (27.19), we can say CRS is valued slightly more expensively.
The Price/Forward Earnings ratio is 29.78, which means the current valuation is very expensive for CRS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, CRS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.29 | ||
| Fwd PE | 29.78 |
4.2 Price Multiples
CRS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CRS is valued a bit cheaper than 66.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.25 | ||
| EV/EBITDA | 24.51 |
4.3 Compensation for Growth
CRS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CRS has a very decent profitability rating, which may justify a higher PE ratio.
CRS's earnings are expected to grow with 35.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)5.11
EPS Next 2Y40.33%
EPS Next 3Y35.27%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, CRS is not a good candidate for dividend investing.
CRS's Dividend Yield is comparable with the industry average which is at 2.90.
Compared to an average S&P500 Dividend Yield of 2.35, CRS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
5.2 History
The dividend of CRS decreases each year by -0.06%.
CRS has been paying a dividend for at least 10 years, so it has a reliable track record.
CRS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.06%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
CRS pays out 15.05% of its income as dividend. This is a sustainable payout ratio.
DP15.05%
EPS Next 2Y40.33%
EPS Next 3Y35.27%
278.55
+0.12 (+0.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners99.56%
Inst Owner Change0%
Ins Owners1.38%
Ins Owner Change-0.64%
Market Cap13.87B
Analysts80
Price Target271.32 (-2.6%)
Short Float %7.58%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.81
Dividend Growth(5Y)-0.06%
DP15.05%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.31%
Min EPS beat(2)2.34%
Max EPS beat(2)8.27%
EPS beat(4)4
Avg EPS beat(4)13.9%
Min EPS beat(4)2.34%
Max EPS beat(4)25.34%
EPS beat(8)7
Avg EPS beat(8)13.88%
EPS beat(12)11
Avg EPS beat(12)20.31%
EPS beat(16)15
Avg EPS beat(16)19.49%
Revenue beat(2)0
Avg Revenue beat(2)-5.71%
Min Revenue beat(2)-7.04%
Max Revenue beat(2)-4.37%
Revenue beat(4)1
Avg Revenue beat(4)-3.01%
Min Revenue beat(4)-7.04%
Max Revenue beat(4)3.54%
Revenue beat(8)3
Avg Revenue beat(8)-2.7%
Revenue beat(12)6
Avg Revenue beat(12)0.43%
Revenue beat(16)8
Avg Revenue beat(16)0.54%
PT rev (1m)12.24%
PT rev (3m)14.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0.4%
EPS NY rev (3m)2.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.29 | ||
| Fwd PE | 29.78 | ||
| P/S | 4.82 | ||
| P/FCF | 54.25 | ||
| P/OCF | 38.4 | ||
| P/B | 8.08 | ||
| P/tB | 9.39 | ||
| EV/EBITDA | 24.51 |
EPS(TTM)7.09
EY2.55%
EPS(NY)9.35
Fwd EY3.36%
FCF(TTM)5.13
FCFY1.84%
OCF(TTM)7.25
OCFY2.6%
SpS57.81
BVpS34.49
TBVpS29.67
PEG (NY)0.7
PEG (5Y)5.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.07% | ||
| ROE | 15.63% | ||
| ROCE | 15.59% | ||
| ROIC | 12.94% | ||
| ROICexc | 13.7% | ||
| ROICexgc | 15.02% | ||
| OM | 15.68% | ||
| PM (TTM) | 9.33% | ||
| GM | 24.02% | ||
| FCFM | 8.88% |
ROA(3y)1.94%
ROA(5y)-0.38%
ROE(3y)3.92%
ROE(5y)-0.94%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y7.85%
ROICexc growth 3YN/A
ROICexc growth 5Y9.08%
OM growth 3YN/A
OM growth 5Y4.82%
PM growth 3YN/A
PM growth 5Y-0.55%
GM growth 3Y291.66%
GM growth 5Y2.53%
F-Score9
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 77.57% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.48% | ||
| Profit Quality | 95.23% | ||
| Current Ratio | 3.8 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 7.56 |
F-Score9
WACC9.95%
ROIC/WACC1.3
Cap/Depr(3y)68.03%
Cap/Depr(5y)84.74%
Cap/Sales(3y)3.9%
Cap/Sales(5y)5.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.11%
EPS 3YN/A
EPS 5Y7.69%
EPS Q2Q%57.98%
EPS Next Y55.75%
EPS Next 2Y40.33%
EPS Next 3Y35.27%
EPS Next 5Y23.48%
Revenue 1Y (TTM)7.39%
Revenue growth 3Y23.21%
Revenue growth 5Y3%
Sales Q2Q%6.15%
Revenue Next Year5.42%
Revenue Next 2Y7.68%
Revenue Next 3Y8.97%
Revenue Next 5Y7.1%
EBIT growth 1Y87.26%
EBIT growth 3YN/A
EBIT growth 5Y7.96%
EBIT Next Year95.2%
EBIT Next 3Y39.99%
EBIT Next 5Y32.93%
FCF growth 1Y330.06%
FCF growth 3Y6.05%
FCF growth 5Y27.9%
OCF growth 1Y1726.58%
OCF growth 3Y3.22%
OCF growth 5Y3.42%