CARPENTER TECHNOLOGY (CRS)

US1442851036 - Common Stock

71.42  +1.23 (+1.75%)

After market: 71.42 0 (0%)

Fundamental Rating

5

Overall CRS gets a fundamental rating of 5 out of 10. We evaluated CRS against 156 industry peers in the Metals & Mining industry. CRS has only an average score on both its financial health and profitability. CRS is growing strongly while it is still valued neutral. This is a good combination!



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.
Each year in the past 5 years CRS had a positive operating cash flow.

1.2 Ratios

The Return On Assets of CRS (4.54%) is better than 73.72% of its industry peers.
Looking at the Return On Equity, with a value of 9.72%, CRS is in the better half of the industry, outperforming 78.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.98%, CRS is in the better half of the industry, outperforming 72.44% of the companies in the same industry.
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

CRS's Profit Margin of 5.26% is fine compared to the rest of the industry. CRS outperforms 71.15% of its industry peers.
CRS's Profit Margin has declined in the last couple of years.
CRS has a Operating Margin of 8.85%. This is in the better half of the industry: CRS outperforms 64.74% of its industry peers.
CRS's Operating Margin has declined in the last couple of years.
CRS's Gross Margin of 16.86% is in line compared to the rest of the industry. CRS outperforms 53.85% of its industry peers.
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRS is destroying 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
CRS has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.30 indicates that CRS is not in any danger for bankruptcy at the moment.
CRS has a Altman-Z score of 3.30. This is in the better half of the industry: CRS outperforms 63.46% 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.
Looking at the Debt to FCF ratio, with a value of 6.90, CRS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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 75.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 6.9
Altman-Z 3.3
ROIC/WACC0.84
WACC8.33%

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.
CRS has a Current ratio of 2.90. This is comparable to the rest of the industry: CRS outperforms 57.69% of its industry peers.
CRS has a Quick Ratio of 1.26. This is a normal value and indicates that CRS is financially healthy and should not expect problems in meeting 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

CRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1480.95%, which is quite impressive.
Measured over the past years, CRS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.45% on average per year.
CRS shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.44%.
CRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
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

The Earnings Per Share is expected to grow by 64.41% on average over the next years. This is a very strong growth
CRS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.13% yearly.
EPS Next Y247.21%
EPS Next 2Y105.75%
EPS Next 3Y64.41%
EPS Next 5YN/A
Revenue Next Year11.02%
Revenue Next 2Y9.62%
Revenue Next 3Y12.13%
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 24.63, the valuation of CRS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CRS indicates a somewhat cheap valuation: CRS is cheaper than 64.10% of the companies listed in the same industry.
CRS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
CRS is valuated correctly with a Price/Forward Earnings ratio of 14.67.
CRS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRS is cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CRS to the average of the S&P500 Index (22.79), we can say CRS is valued slightly cheaper.
Industry RankSector Rank
PE 24.63
Fwd PE 14.67

4.2 Price Multiples

CRS's Enterprise Value to EBITDA ratio is in line with the industry average.
CRS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CRS is cheaper than 70.51% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.43
EV/EBITDA 11.25

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 64.41% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y105.75%
EPS Next 3Y64.41%

6

5. Dividend

5.1 Amount

CRS has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
CRS's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.34, CRS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.17%

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 Years15

5.3 Sustainability

27.56% 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.
DP27.56%
EPS Next 2Y105.75%
EPS Next 3Y64.41%

CARPENTER TECHNOLOGY

NYSE:CRS (3/28/2024, 8:04:00 PM)

After market: 71.42 0 (0%)

71.42

+1.23 (+1.75%)

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 Cap3.53B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.17%
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)
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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 24.63
Fwd PE 14.67
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)0.1
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 Y247.21%
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