CARPENTER TECHNOLOGY (CRS)

US1442851036 - Common Stock

78.91  +0.87 (+1.11%)

After market: 78.91 0 (0%)

Fundamental Rating

5

Overall CRS gets a fundamental rating of 5 out of 10. We evaluated CRS against 155 industry peers in the Metals & Mining industry. Both the profitability and the financial health of CRS get a neutral evaluation. Nothing too spectacular is happening here. CRS is not priced too expensively while it is growing strongly. Keep and eye on this one!



4

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.
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 4.54%. This is in the better half of the industry: CRS outperforms 74.19% of its industry peers.
CRS has a Return On Equity of 9.72%. This is in the better half of the industry: CRS outperforms 78.06% of its industry peers.
CRS has a better Return On Invested Capital (6.98%) than 72.26% of its industry peers.
Industry RankSector Rank
ROA 4.54%
ROE 9.72%
ROIC 6.98%
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

With a decent Profit Margin value of 5.26%, CRS is doing good in the industry, outperforming 70.32% of the companies in the same industry.
In the last couple of years the Profit Margin of CRS has declined.
CRS has a better Operating Margin (8.85%) than 64.52% of its industry peers.
CRS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 16.86%, CRS is in line with its industry, outperforming 53.55% of the companies in the same industry.
In the last couple of years the Gross Margin of CRS has declined.
Industry RankSector Rank
OM 8.85%
PM (TTM) 5.26%
GM 16.86%
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%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRS is destroying value.
Compared to 1 year ago, CRS has more shares outstanding
Compared to 5 years ago, CRS has more shares outstanding
Compared to 1 year ago, CRS has an improved debt to assets ratio.

2.2 Solvency

CRS has an Altman-Z score of 3.41. This indicates that CRS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CRS (3.41) is better than 63.87% of its industry peers.
The Debt to FCF ratio of CRS is 6.90, which is on the high side as it means it would take CRS, 6.90 years of fcf income to pay off all of its debts.
CRS's Debt to FCF ratio of 6.90 is fine compared to the rest of the industry. CRS outperforms 69.68% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that CRS is not too dependend on debt financing.
CRS's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. CRS is outperformed by 75.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 6.9
Altman-Z 3.41
ROIC/WACC0.8
WACC8.72%

2.3 Liquidity

CRS has a Current Ratio of 2.90. This indicates that CRS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CRS (2.90) is comparable to the rest of the industry.
A Quick Ratio of 1.26 indicates that CRS should not have too much problems paying its short term obligations.
CRS has a Quick ratio (1.26) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.9
Quick Ratio 1.26

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 1480.95% over the past year.
The earnings per share for CRS have been decreasing by -14.45% on average. This is quite bad
CRS shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.44%.
The Revenue has been growing slightly by 3.40% on average over the past years.
EPS 1Y (TTM)1480.95%
EPS 3Y-19.32%
EPS 5Y-14.45%
EPS growth Q2Q553.85%
Revenue 1Y (TTM)26.44%
Revenue growth 3Y5.35%
Revenue growth 5Y3.4%
Revenue growth Q2Q7.79%

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 78.26% on average per year.
The Revenue is expected to grow by 8.49% on average over the next years. This is quite good.
EPS Next Y244.5%
EPS Next 2Y104.89%
EPS Next 3Y78.26%
EPS Next 5YN/A
Revenue Next Year9.45%
Revenue Next 2Y8.69%
Revenue Next 3Y8.49%
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 accelerating.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 27.21, the valuation of CRS can be described as expensive.
Based on the Price/Earnings ratio, CRS is valued a bit cheaper than 64.52% of the companies in the same industry.
CRS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.75.
The Price/Forward Earnings ratio is 16.34, which indicates a correct valuation of CRS.
Based on the Price/Forward Earnings ratio, CRS is valued a bit cheaper than 69.03% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CRS to the average of the S&P500 Index (21.23), we can say CRS is valued slightly cheaper.
Industry RankSector Rank
PE 27.21
Fwd PE 16.34

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRS is on the same level as its industry peers.
CRS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CRS is cheaper than 70.32% of the companies in the same industry.
Industry RankSector Rank
P/FCF 38.04
EV/EBITDA 12.13

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.
A more expensive valuation may be justified as CRS's earnings are expected to grow with 78.26% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y104.89%
EPS Next 3Y78.26%

6

5. Dividend

5.1 Amount

CRS has a Yearly Dividend Yield of 1.01%.
CRS's Dividend Yield is a higher than the industry average which is at 2.87.
Compared to an average S&P500 Dividend Yield of 2.45, CRS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.01%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.12%
Div Incr Years0
Div Non Decr Years15

5.3 Sustainability

27.56% of the earnings are spent on dividend by CRS. This is a low number and sustainable payout ratio.
CRS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.56%
EPS Next 2Y104.89%
EPS Next 3Y78.26%

CARPENTER TECHNOLOGY

NYSE:CRS (4/22/2024, 3:59:11 PM)

After market: 78.91 0 (0%)

78.91

+0.87 (+1.11%)

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 Cap3.90B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.01%
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)
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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 RankSector Rank
PE 27.21
Fwd PE 16.34
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)0.11
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.54%
ROE 9.72%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.85%
PM (TTM) 5.26%
GM 16.86%
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 RankSector Rank
Debt/Equity 0.48
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.9
Quick Ratio 1.26
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)
Growth
EPS 1Y (TTM)1480.95%
EPS 3Y-19.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y244.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.44%
Revenue growth 3Y5.35%
Revenue growth 5Y
Revenue growth 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