CARPENTER TECHNOLOGY (CRS)
US1442851036 - Common Stock
We assign a fundamental rating of 5 out of 10 to CRS. CRS was compared to 157 industry peers in the Metals & Mining industry. CRS has only an average score on both its financial health and profitability. CRS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CRS had positive earnings in the past year.
In the past year CRS had a positive cash flow from operations.
In multiple years CRS reported negative net income over the last 5 years.
Of the past 5 years CRS 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.12%, CRS is in the better half of the industry, outperforming 73.89% of the companies in the same industry.
CRS has a better Return On Equity (8.72%) than 77.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.33%, CRS belongs to the top of the industry, outperforming 80.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 8.72% | ||
| ROIC | 8.33% |
ROA(3y)-2.53%
ROA(5y)-0.47%
ROE(3y)-5.4%
ROE(5y)-1.05%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CRS's Profit Margin of 4.82% is fine compared to the rest of the industry. CRS outperforms 69.43% of its industry peers.
CRS's Profit Margin has declined in the last couple of years.
CRS's Operating Margin of 10.73% is fine compared to the rest of the industry. CRS outperforms 66.88% of its industry peers.
In the last couple of years the Operating Margin of CRS has declined.
With a Gross Margin value of 18.86%, CRS perfoms like the industry average, outperforming 55.41% of the companies in the same industry.
CRS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.73% | ||
| PM (TTM) | 4.82% | ||
| GM | 18.86% |
OM growth 3Y-10.3%
OM growth 5Y-9.66%
PM growth 3Y251.8%
PM growth 5Y-23.99%
GM growth 3Y-7.01%
GM growth 5Y-5.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRS is destroying value.
There is no outstanding debt for CRS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.50 indicates that CRS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CRS (4.50) is better than 70.70% of its industry peers.
CRS has a debt to FCF ratio of 3.84. This is a good value and a sign of high solvency as CRS would need 3.84 years to pay back of all of its debts.
CRS's Debt to FCF ratio of 3.84 is fine compared to the rest of the industry. CRS outperforms 70.70% of its industry peers.
CRS has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CRS (0.46) is worse than 73.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 4.5 |
ROIC/WACC0.97
WACC8.62%
2.3 Liquidity
A Current Ratio of 3.20 indicates that CRS has no problem at all paying its short term obligations.
CRS has a better Current ratio (3.20) than 65.61% of its industry peers.
A Quick Ratio of 1.45 indicates that CRS should not have too much problems paying its short term obligations.
CRS has a Quick ratio (1.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.2 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
CRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 313.04%, which is quite impressive.
CRS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.69% yearly.
EPS 1Y (TTM)313.04%
EPS 3YN/A
EPS 5Y7.69%
EPS Q2Q%133.33%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.36%
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 20.11% on average per year.
Based on estimates for the next years, CRS will show a quite strong growth in Revenue. The Revenue will grow by 11.25% on average per year.
EPS Next Y26.25%
EPS Next 2Y20.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.9%
Revenue Next 2Y11.25%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.64, which means the current valuation is very expensive for CRS.
Compared to the rest of the industry, the Price/Earnings ratio of CRS indicates a somewhat cheap valuation: CRS is cheaper than 62.42% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CRS to the average of the S&P500 Index (24.41), we can say CRS is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 23.48, the valuation of CRS can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as CRS.
CRS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.64 | ||
| Fwd PE | 23.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CRS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRS indicates a somewhat cheap valuation: CRS is cheaper than 68.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.67 | ||
| EV/EBITDA | 17.2 |
4.3 Compensation for Growth
CRS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CRS's earnings are expected to grow with 20.11% in the coming years.
PEG (NY)1.13
PEG (5Y)3.86
EPS Next 2Y20.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, CRS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.66, CRS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, CRS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of CRS has a limited annual growth rate of 2.12%.
CRS has paid a dividend for at least 10 years, which is a reliable track record.
CRS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.12%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
30.38% of the earnings are spent on dividend by CRS. This is a low number and sustainable payout ratio.
The dividend of CRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.38%
EPS Next 2Y20.11%
EPS Next 3YN/A
CARPENTER TECHNOLOGY
NYSE:CRS (7/26/2024, 7:23:36 PM)
After market: 140.78 0 (0%)140.78
+6.02 (+4.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.64 | ||
| Fwd PE | 23.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.13
PEG (5Y)3.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 8.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.73% | ||
| PM (TTM) | 4.82% | ||
| GM | 18.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.2 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)313.04%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y26.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y