CARPENTER TECHNOLOGY (CRS) Stock Fundamental Analysis
USA - NYSE:CRS - US1442851036 - Common Stock
239.83 USD
-6.91 (-2.8%)
238.04 USD
-1.79 (-0.75%)
We assign a fundamental rating of 6 out of 10 to CRS. CRS was compared to 156 industry peers in the Metals & Mining industry. CRS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CRS has a correct valuation and a medium growth rate. With these ratings, CRS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year CRS was profitable.
CRS had a positive operating cash flow in the past year.
In multiple years CRS reported negative net income over the last 5 years.
In the past 5 years CRS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.77%, CRS belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
With an excellent Return On Equity value of 19.91%, CRS belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Return On Invested Capital of CRS (14.75%) is better than 93.59% of its industry peers.
CRS had an Average Return On Invested Capital over the past 3 years of 9.88%. This is below the industry average of 12.92%.
The last Return On Invested Capital (14.75%) for CRS is above the 3 year average (9.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.77% | ||
| ROE | 19.91% | ||
| ROIC | 14.75% |
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
CRS has a Profit Margin of 13.06%. This is in the better half of the industry: CRS outperforms 77.56% of its industry peers.
In the last couple of years the Profit Margin of CRS has grown nicely.
CRS has a Operating Margin of 18.26%. This is in the better half of the industry: CRS outperforms 71.15% of its industry peers.
CRS's Operating Margin has improved in the last couple of years.
The Gross Margin of CRS (26.71%) is better than 64.74% of its industry peers.
In the last couple of years the Gross Margin of CRS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.26% | ||
| PM (TTM) | 13.06% | ||
| GM | 26.71% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRS is creating some value.
CRS has about the same amout of shares outstanding than it did 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 7.06. This indicates that CRS is financially healthy and has little risk of bankruptcy at the moment.
CRS has a Altman-Z score of 7.06. This is in the better half of the industry: CRS outperforms 76.28% of its industry peers.
The Debt to FCF ratio of CRS is 2.43, which is a good value as it means it would take CRS, 2.43 years of fcf income to pay off all of its debts.
CRS has a Debt to FCF ratio of 2.43. This is in the better half of the industry: CRS outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CRS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.37, CRS is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for CRS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 7.06 |
ROIC/WACC1.53
WACC9.63%
2.3 Liquidity
A Current Ratio of 3.65 indicates that CRS has no problem at all paying its short term obligations.
CRS has a Current ratio of 3.65. This is in the better half of the industry: CRS outperforms 70.51% of its industry peers.
A Quick Ratio of 2.01 indicates that CRS has no problem at all paying its short term obligations.
CRS has a Quick ratio of 2.01. This is comparable to the rest of the industry: CRS outperforms 59.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
CRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.47%, which is quite impressive.
CRS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.85% yearly.
Looking at the last year, CRS shows a small growth in Revenue. The Revenue has grown by 4.26% in the last year.
CRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.70% yearly.
EPS 1Y (TTM)57.47%
EPS 3YN/A
EPS 5Y27.85%
EPS Q2Q%21.43%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y16.15%
Revenue growth 5Y5.7%
Sales Q2Q%-5.4%
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 14.22% on average per year.
The Revenue is expected to grow by 5.85% on average over the next years.
EPS Next Y32.39%
EPS Next 2Y26.69%
EPS Next 3Y21.24%
EPS Next 5Y14.22%
Revenue Next Year7.41%
Revenue Next 2Y8.67%
Revenue Next 3Y7.66%
Revenue Next 5Y5.85%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.06, CRS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CRS is valued a bit cheaper than the industry average as 67.31% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CRS to the average of the S&P500 Index (27.38), we can say CRS is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.22, CRS is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as CRS.
The average S&P500 Price/Forward Earnings ratio is at 22.86. CRS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.06 | ||
| Fwd PE | 24.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CRS.
Based on the Price/Free Cash Flow ratio, CRS is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.79 | ||
| EV/EBITDA | 19.08 |
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.
The excellent profitability rating of CRS may justify a higher PE ratio.
CRS's earnings are expected to grow with 21.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)1.15
EPS Next 2Y26.69%
EPS Next 3Y21.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, CRS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.51, CRS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.33, CRS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
The dividend of CRS decreases each year by -0.08%.
CRS has been paying a dividend for at least 10 years, so it has 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)-0.08%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
10.73% of the earnings are spent on dividend by CRS. This is a low number and sustainable payout ratio.
DP10.73%
EPS Next 2Y26.69%
EPS Next 3Y21.24%
239.83
-6.91 (-2.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change-3.05%
Ins Owners1.57%
Ins Owner Change4.56%
Market Cap11.96B
Analysts80
Price Target300.61 (25.34%)
Short Float %5.45%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend0.81
Dividend Growth(5Y)-0.08%
DP10.73%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.55%
Min EPS beat(2)5.81%
Max EPS beat(2)7.28%
EPS beat(4)4
Avg EPS beat(4)5.93%
Min EPS beat(4)2.34%
Max EPS beat(4)8.27%
EPS beat(8)7
Avg EPS beat(8)10.46%
EPS beat(12)11
Avg EPS beat(12)10.85%
EPS beat(16)15
Avg EPS beat(16)17.15%
Revenue beat(2)0
Avg Revenue beat(2)-3.49%
Min Revenue beat(2)-5.61%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-4.6%
Min Revenue beat(4)-7.04%
Max Revenue beat(4)-1.38%
Revenue beat(8)1
Avg Revenue beat(8)-4.71%
Revenue beat(12)4
Avg Revenue beat(12)-2.21%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)1.42%
PT rev (3m)24.35%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)6.27%
EPS NY rev (1m)5.87%
EPS NY rev (3m)7.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)-1.73%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.06 | ||
| Fwd PE | 24.22 | ||
| P/S | 4.16 | ||
| P/FCF | 41.79 | ||
| P/OCF | 27.15 | ||
| P/B | 6.34 | ||
| P/tB | 7.24 | ||
| EV/EBITDA | 19.08 |
EPS(TTM)7.48
EY3.12%
EPS(NY)9.9
Fwd EY4.13%
FCF(TTM)5.74
FCFY2.39%
OCF(TTM)8.83
OCFY3.68%
SpS57.72
BVpS37.85
TBVpS33.1
PEG (NY)0.99
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.77% | ||
| ROE | 19.91% | ||
| ROCE | 17.49% | ||
| ROIC | 14.75% | ||
| ROICexc | 16.48% | ||
| ROICexgc | 18.07% | ||
| OM | 18.26% | ||
| PM (TTM) | 13.06% | ||
| GM | 26.71% | ||
| FCFM | 9.94% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 110.85% | ||
| Cap/Sales | 5.36% | ||
| Interest Coverage | 10.85 | ||
| Cash Conversion | 66.28% | ||
| Profit Quality | 76.15% | ||
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 7.06 |
F-Score8
WACC9.63%
ROIC/WACC1.53
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)57.47%
EPS 3YN/A
EPS 5Y27.85%
EPS Q2Q%21.43%
EPS Next Y32.39%
EPS Next 2Y26.69%
EPS Next 3Y21.24%
EPS Next 5Y14.22%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y16.15%
Revenue growth 5Y5.7%
Sales Q2Q%-5.4%
Revenue Next Year7.41%
Revenue Next 2Y8.67%
Revenue Next 3Y7.66%
Revenue Next 5Y5.85%
EBIT growth 1Y48.39%
EBIT growth 3YN/A
EBIT growth 5Y27.21%
EBIT Next Year54.96%
EBIT Next 3Y29.51%
EBIT Next 5Y26.52%
FCF growth 1Y60.46%
FCF growth 3YN/A
FCF growth 5Y36.49%
OCF growth 1Y60.2%
OCF growth 3Y318.7%
OCF growth 5Y13.7%