CARPENTER TECHNOLOGY (CRS) Stock Fundamental Analysis
NYSE:CRS - New York Stock Exchange, Inc. - US1442851036 - Common Stock - Currency: USD
CRS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively.
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.
CRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CRS's Return On Assets of 8.07% is amongst the best of the industry. CRS outperforms 87.01% of its industry peers.
CRS has a better Return On Equity (15.63%) than 88.31% of its industry peers.
With an excellent Return On Invested Capital value of 12.94%, CRS belongs to the best of the industry, outperforming 93.51% 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
CRS has a better Profit Margin (9.33%) than 79.87% of its industry peers.
In the last couple of years the Profit Margin of CRS has remained more or less at the same level.
With a decent Operating Margin value of 15.68%, CRS is doing good in the industry, outperforming 70.78% of the companies in the same industry.
CRS's Operating Margin has improved in the last couple of years.
CRS has a Gross Margin of 24.02%. This is in the better half of the industry: CRS outperforms 63.64% of its industry peers.
In the last couple of years the Gross Margin of CRS has grown nicely.
| 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.
The number of shares outstanding for CRS has been increased compared to 1 year ago.
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
CRS has an Altman-Z score of 6.58. This indicates that CRS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.58, CRS is in the better half of the industry, outperforming 77.92% of the companies in the same industry.
CRS has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as CRS would need 2.72 years to pay back of all of its debts.
The Debt to FCF ratio of CRS (2.72) is better than 75.97% 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.
Looking at the Debt to Equity ratio, with a value of 0.40, CRS is doing worse than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 6.58 |
ROIC/WACC1.27
WACC10.2%
2.3 Liquidity
CRS has a Current Ratio of 3.80. This indicates that CRS is financially healthy and has no problem in meeting its short term obligations.
CRS has a better Current ratio (3.80) than 74.68% of its industry peers.
CRS has a Quick Ratio of 1.92. This is a normal value and indicates that CRS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.92, CRS is in line with its industry, outperforming 59.09% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 7.39% in the past year.
Measured over the past years, CRS shows a small growth in Revenue. The Revenue has been growing by 3.00% on average per year.
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
The Earnings Per Share is expected to grow by 23.66% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y55.14%
EPS Next 2Y39.42%
EPS Next 3Y34.91%
EPS Next 5Y23.66%
Revenue Next Year5.49%
Revenue Next 2Y7.46%
Revenue Next 3Y8.85%
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
Based on the Price/Earnings ratio of 32.46, the valuation of CRS can be described as expensive.
62.99% of the companies in the same industry are more expensive than CRS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.82, CRS is valued a bit more expensive.
The Price/Forward Earnings ratio is 24.93, which indicates a rather expensive current valuation of CRS.
CRS's Price/Forward Earnings is on the same level as the industry average.
CRS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 24.93 |
4.2 Price Multiples
CRS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CRS is valued a bit cheaper than 66.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.83 | ||
| EV/EBITDA | 20.06 |
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.
The decent profitability rating of CRS may justify a higher PE ratio.
CRS's earnings are expected to grow with 34.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)4.22
EPS Next 2Y39.42%
EPS Next 3Y34.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, CRS is not a good candidate for dividend investing.
CRS's Dividend Yield is comparable with the industry average which is at 3.00.
With a Dividend Yield of 0.35, CRS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
The dividend of CRS decreases each year by -0.06%.
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)-0.06%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
15.05% of the earnings are spent on dividend by CRS. This is a low number and sustainable payout ratio.
DP15.05%
EPS Next 2Y39.42%
EPS Next 3Y34.91%
230.16
+4.16 (+1.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners94.01%
Inst Owner Change8%
Ins Owners1.45%
Ins Owner Change1.97%
Market Cap11.46B
Analysts80
Price Target241.74 (5.03%)
Short Float %9.02%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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)1.72%
PT rev (3m)22.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.08%
EPS NY rev (1m)2.06%
EPS NY rev (3m)1.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 24.93 | ||
| P/S | 3.98 | ||
| P/FCF | 44.83 | ||
| P/OCF | 31.73 | ||
| P/B | 6.67 | ||
| P/tB | 7.76 | ||
| EV/EBITDA | 20.06 |
EPS(TTM)7.09
EY3.08%
EPS(NY)9.23
Fwd EY4.01%
FCF(TTM)5.13
FCFY2.23%
OCF(TTM)7.25
OCFY3.15%
SpS57.81
BVpS34.49
TBVpS29.67
PEG (NY)0.59
PEG (5Y)4.22
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 | 6.58 |
F-Score9
WACC10.2%
ROIC/WACC1.27
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 Y55.14%
EPS Next 2Y39.42%
EPS Next 3Y34.91%
EPS Next 5Y23.66%
Revenue 1Y (TTM)7.39%
Revenue growth 3Y23.21%
Revenue growth 5Y3%
Sales Q2Q%6.15%
Revenue Next Year5.49%
Revenue Next 2Y7.46%
Revenue Next 3Y8.85%
Revenue Next 5Y7.1%
EBIT growth 1Y87.26%
EBIT growth 3YN/A
EBIT growth 5Y7.96%
EBIT Next Year92.54%
EBIT Next 3Y39.09%
EBIT Next 5Y32.34%
FCF growth 1Y330.06%
FCF growth 3Y6.05%
FCF growth 5Y27.9%
OCF growth 1Y1726.58%
OCF growth 3Y3.22%
OCF growth 5Y3.42%