CIRCOR International, Inc.

NYSE:CIR Stock Report

Market Cap: US$1.1b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

CIRCOR International Past Earnings Performance

Past criteria checks 2/6

CIRCOR International has been growing earnings at an average annual rate of 8.4%, while the Machinery industry saw earnings growing at 8.8% annually. Revenues have been declining at an average rate of 5.5% per year. CIRCOR International's return on equity is 18.2%, and it has net margins of 3.4%.

Key information

8.39%

Earnings growth rate

8.66%

EPS growth rate

Machinery Industry Growth8.77%
Revenue growth rate-5.49%
Return on equity18.25%
Net Margin3.40%
Last Earnings Update02 Jul 2023

Recent past performance updates

Recent updates

Seeking Alpha • Aug 28

Circor International, Inc.: Buyout Is Almost A Done Deal Awaiting Regulatory Approvals

Summary Private equity firm KKR is set to acquire global pump-and-valve manufacturer Circor International in a $1.7 billion deal. Circor's Q2 2023 revenue beat estimates and was up 9.11% YoY, indicating strong growth. KKR's offer of $56 per share, along with a ticking fee, was accepted over a rival bid from Arcline Investment firm. Read the full article on Seeking Alpha
Seeking Alpha • May 30

Circor International: Undervalued Stock With Solid Upside Potential

Summary CIRCOR International's Q1 FY23 financial performance showed solid growth, with net revenues rising 9.3% compared to Q1 FY22 and gross profit margin improving to 36.4%. The company's stock price is undervalued compared to industry standards, and technical analysis indicates a potential trend reversal, making it an attractive investment opportunity. Risks include uncertainty in U.S.-China trade relations and potential tariff increases, which could impact CIRCOR's industrial segment. I assign a buy rating on CIR. Read the full article on Seeking Alpha
Analysis Article • Feb 28

Is CIRCOR International (NYSE:CIR) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...
Seeking Alpha • Feb 23

CIRCOR reports preliminary Q4 orders of $248.8M

CIRCOR (NYSE:CIR) said Wednesday it anticipates fourth quarter orders of $248.8 million, up 13% on a reported basis and 19% higher on an organic basis. For 2022, CIRCOR expects orders of $907.2 million, an increase of 7% as reported and 12% higher on an organic basis. Q4 aerospace & defense orders are expected to be $70.8 million, down 4% as reported and down 1% on an organic basis. For full year 2022, CIRCOR expects A&D orders of $308.2 million, up 21% as reported and 24% higher on an organic basis. Q4 industrial segment orders are expected to be $178.1 million, up 22% on a reported basis and 29% higher on an organic basis, primarily driven by value pricing, pumps aftermarket and downstream. For full year 2022, the company expects industrial orders of $599.0 million. Press Release.
Seeking Alpha • Feb 07

Circor gains amid report of sales process

Circor International (NYSE:CIR) rose 1.8% amid a report that the maker of flow and motion control products officially started a sales process. Cir (CIRC) has reached out to a group of private equity and strategic firms, according to a Dealreporter item, which cited sources familiar. The company is expected to sign up possible buyers for the sales process later this week. The maker of flow and motion control products for the aerospace and defense and industrial sectors announced in March that it was reviewing strategic alternatives, including a possible sale of some assets or the entire company, after receiving multiple inquiries from third parties about a potential deal. Crane Holdings (CR) attempted to acquire Circor (CIR) in 2019, but ended its pursuit after Circor rebuffed its advances.
Seeking Alpha • Jan 31

Circor International: Moving To The Sidelines Post Recent Outperformance

Summary Circor International should see healthy demand, especially in its Aerospace and Defense segment. The value-based pricing initiative and strong backlog level should also help the company's revenue. The simplification initiatives and value-based pricing of the company should help in margin expansion. Valuation is at a premium to historical levels. Investment Thesis Circor International, Inc.'s (CIR) stock price is up ~34.19%, meaningfully outperforming S&P 500’s (SPY) 4.89% gains, since we recommended buying it in October. Looking forward, the company should see healthy demand, especially in its Aerospace and Defense (A&D) segment. This coupled with pricing increases and a healthy backlog should help the company's revenue growth in the coming years. Further, the value-based pricing initiative and simplification of cost structure should continue to help the company drive margin expansion. However, the stock is now trading at a premium versus its 5-year historical average P/E and I believe these growth prospects are getting appropriately reflected in the stock price at the current levels. Hence, I'm moving to the sidelines and changing my rating to neutral. Revenue Analysis and Outlook The COVID-19-related restrictions negatively impacted the demand for Circor’s products in FY20 and FY21. However, normalization in the aviation industry and strong industrial aftermarket growth helped the company generate good organic revenue growth in the first nine months of FY2022, despite supply chain constraints and labor shortage issues. The company also saw good growth in its orders and backlog. In the third quarter of FY2022, the orders were up 18% Y/Y (or 26% Y/Y organically), and the company’s backlog increased by 14% Y/Y helped by the strong order growth. Segment-wise, the order rate in the Aerospace and Defense segment grew 67% Y/Y (or 74% organically). This exceptionally strong growth was driven by the strong aftermarket in defense, new product launches, and continued commercial aerospace recovery. The order rate in the industrial segment was down 1% Y/Y. However, excluding the foreign currency translation impact, organic order growth was up 8% Y/Y driven by strong aftermarket and pricing growth. One should note that the company exited its loss-making European pipeline business earlier in 2022. If we exclude its impact, the growth rate would have been even better. Looking forward, this strong backlog growth coupled with healthy demand in the Aerospace and Defense business, strong aftermarket business, new product launches, and the company's value-based pricing initiatives should help drive revenue growth in 2023. The commercial aerospace industry continues to recover after the COVID-19-related restrictions were revoked. The Revenue Passenger Miles ((RPM)) are still slightly below the pre-pandemic levels. This coupled with pent-up demand for travel post-reopening bodes well for future growth prospects. The recovery in the commercial aerospace industry should increase the MRO requirements, creating better growth opportunities for CIR in the coming future. The defense business of Circor should continue to benefit from the heightened geopolitical tension due to the Russia-Ukraine war. The company is also benefiting from the targeted growth initiatives and new product developments in its defense business. Two examples of these targeted growth initiatives are - the Mechanical kinetic switches that are used in missile and bomb fusing applications, and the Brushless DC motors that are used in the missile control actuation system (a core part of the missile guidance & control system.) The company generated ~$17 million in orders from these products in the first nine months of 2022, up 40% Y/Y. In order to further accelerate the growth, the company is also adding new features to its Mechanical switches to address their applications in hypersonic missiles and bomb fuses. Considering the healthy demand in the defense end market and the company's targeted growth initiatives, I see a good long-term growth opportunity in Circor's defense business. The demand environment in the company's industrial business is not that encouraging and if we look at the current Purchasing Managers Index (PMI) reading below 50, it indicates declining demand in the coming quarters. However, the end market slowdown should be partially offset by Circor's value-based pricing initiative in the aftermarket business. The company derives 40-45% of its industrial sales from aftermarket business and has a strong position in this market given its large installed base. The company has strong insights into its customer's needs and, to drive revenue growth in the aftermarket business, it is implementing a value-based pricing initiative where it charges a customer based on the value Circor is providing. For example, if something is urgent and the customer needs it quickly, Circor plans to charge a premium for that. The company should also benefit from easing supply chain constraints and labor shortages that have affected the company’s ability to convert the backlog to sales in the past few quarters. These constraints are now easing which should help the company's revenue growth in the coming quarters by improving the backlog-to-sales conversion rate. Overall, I believe the company can post modest growth in FY23 with strong growth in the A&D segment offsetting slight weakness in the Industrial business. Margin Outlook CIR’s focus on value-based pricing, simplification, the 80/20 principle, factory modernization, and low-cost countries sourcing initiative helped its operating margins in the third quarter of FY2022. Circor's Adjusted Operating margins (Company data, GS Analytics Research) As discussed before, Circor’s continued focus on maximizing value from its products and services under its value-based pricing initiatives is enabling it to charge higher prices for its offerings. The company is also evaluating and identifying opportunities to simplify its cost structure by reducing overhead costs, eliminating redundancies, and aligning its team closer to the customers. Management has reduced the structural cost of Circor's downstream oil & gas business through these initiatives and has identified a similar opportunity to simplify the cost structure in its pump businesses as well. Looking forward, I believe these initiatives should continue to drive margin expansion in the coming quarters. Management expects that the value-based initiative should deliver about $35 million of pricing benefit in 2022, heavily driven by the core Industrial segment and this should continue in FY2023 as well. This pricing increase bodes well for the margins.
Seeking Alpha • Nov 14

CIRCOR Non-GAAP EPS of $0.69 beats by $0.35, revenue of $195.4M beats by $5.35M

CIRCOR press release (NYSE:CIR): Q3 Non-GAAP EPS of $0.69 beats by $0.35. Revenue of $195.4M (+3.0% Y/Y) beats by $5.35M. Adjusted operating income of $27.3M, up 70% Y/Y. Orders up 18% reported and 26% organically. Backlog of $497M, up 14% driven by strong demand in both Aerospace & Defense and Industrial segments.
Seeking Alpha • Oct 26

Circor International: Good Growth Prospects At Attractive Valuation

Summary The organic growth rate improvement in the second quarter of 2022 and a large pipeline of projects indicate a positive demand which should support the company’s revenue growth. The recent supply chain challenges have led to an increased backlog. However, as the situation eases, the increased backlog to sales conversion rate should also improve the revenue growth rate. In line with its margin expansion strategy, the company has increased its adjusted operating margin through price increases and structural cost reductions. Investment Thesis CIRCOR International, Inc. (CIR) recorded a healthy sales volume and improved orders from its Aerospace & Defence segment in Q2 2022. The Industrial segment's revenue grew 5% year-over-year organically, though its orders were 11% less than the prior year due to a large Navy order in the prior year and the Pipeline Engineering exit. Nevertheless, new business activities in China and a strong pipeline of projects in this segment should help the company improve its revenue growth rate in the upcoming years. The company's value-based pricing, simplification, and best-cost country initiatives are contributing to margin improvement. Some of the initiatives are in their early stages, and proper implementation of them should help the company to offset the cost inflation in future years. The company is trading at a discount to its historical level, making it a decent buy for a medium to long-term investment. Last Quarter Earnings CIRCOR reported its Q2 2022 results late last month. In Q2 2022, CIRCOR's revenue stood at $191 million, which was 8% Y/Y organic growth. Overall orders for this quarter were 1% lower than the previous year but were up 5% Y/Y organically. The organic revenue growth of the aerospace and defence segment was 15% year on year while the organic growth of the industrial segment increased by 5% Y/Y. The adjusted earnings per share were $0.32, which was a substantial increase of 60% year-over-year. Strong execution across the business led to an adjusted operating margin of 8.7%, which was an increase of 280bps from the prior year. CIRCOR Revenue Outlook With the increased demand in the market for its products and services, the company generated 8% organic growth in its revenue year-over-year. Let us see, in detail, the major factors that affected the company's revenue in the past few years. Impact of COVID-19 During the initial phases of COVID-19, CIRCOR was adversely affected due to the restrictions imposed during the lockdown. However, as restrictions in the commercial aerospace and industrial sectors loosen, increased demand for CIRCOR's products and services can be seen from the last few quarters. Government spending on spare parts in the defence sector was also initially impacted by COVID-19, which is now offset by US government defence programmes such as Joint Strike Fighter and Columbia class submarines. Impact of supply chain constraints The global supply chain constraints and disruptions were the headwinds to the revenue growth rate in the second quarter of 2022. These disruptions are estimated to have cost the company $6 million in revenue in this quarter as the conversion of sales to backlog was delayed. This also resulted in a 9% Y/Y increase in the total backlog of CIRCOR. The robust backlog in both the segments (up 4% Y/Y in A&D and up 12% Y/Y in Industrial) indicates an opportunity for the company because when the global supply chain disruptions ease, the company's backlog to sales conversion rate will also improve, which should increase the revenue growth rate in upcoming years. A&D (Aerospace and Defence) segment In the second quarter of 2022, defence orders grew by 37%, driven by orders for the Columbia submarine, aircraft carrier, and fighter jet. The organic order in commercial aviation grew by 50%, driven by the Airbus A220 and Boeing 737 platforms. Such a significant increase in the orders for its products and services indicates strong demand in that sector, which will result in increased revenue for CIRCOR in the coming years. Industrial and downstream markets segments While demand remained robust in the industrial aftermarket and downstream segments, the overall organic order growth rate was down by 4% year-over-year. This happened due to approximately 10 percentage points of headwind from the timing of a large Navy order booked in the prior year and 3 percentage points of headwind from exiting the Pipeline Engineering business. But these issues were partly offset by organic growth across the industrial end market, which saw the second consecutive quarter of mid-20s growth while there was a 17% growth in the downstream segment. For the future outlook, I believe an increase in the number of orders from new business activities in China for lithium battery manufacturing coupled with a strong pipeline of industrial projects in North America, India, and the Middle East should contribute to improving revenue in the next few years. New areas of growth In line with its growth strategy, the company has taken advantage of two growth opportunities by leveraging its core technologies and manufacturing capabilities in new and adjacent markets. First is the fast-growing hydrogen market where the company introduced two critical products, which are balanced isolation value and dome regulators. From their launch in late 2021 till date, the management has been able to capture over $8 million in orders from these products. The second is in the medical sector, where the company has generated $24 million in orders year-to-date through its design and manufacturing capabilities. Looking forward, I believe the company should generate an increased number of orders from both sectors in upcoming years, leading to an improved revenue growth rate. Pricing strategy CIRCOR has also taken advantage of its value-based pricing initiative. The management has strong insight into the needs of the company's current and prospective customers, which enables them to escalate prices through new and technologically advanced products. This can be seen in a 100 bps improvement in price in the A&D segment and a 330 bps improvement in the industrial segment. The initiative of value-based pricing should continue to offset inflation and drive an improved revenue growth rate in the future. Looking ahead, I believe that continued robust demand from its A&D segment as well as improved prospects for the Industrial segment, coupled with its value-based pricing initiative to offset the inflation and strong backlog, should help the company to improve its revenue growth rate in the upcoming years. Margin Outlook The adjusted operating margin for the second quarter of 2022 stood at 8.7%, a substantial increase of 280 bps year-over-year. This improvement was due to the company's initiative of Margin Expansion, which is driving three key areas: value-based pricing, simplification, and best-cost country manufacturing. Value-based pricing
Seeking Alpha • Sep 30

CIRCOR Non-GAAP EPS of $0.32, revenue of $191.38M

CIRCOR press release (NYSE:CIR): Q2 Non-GAAP EPS of $0.32. Revenue of $191.38M (+2.0% Y/Y).
Seeking Alpha • Aug 24

CIRCOR receives NYSE notice for non-compliance

CIRCOR International (NYSE:CIR) received a notice from the NYSE indicating that the company is not in compliance due to its failure to timely file its quarterly report for the period ended July 3, 2022. Company has six months from August 18, 2022 to file the Q2 Quarterly Report with SEC.
Analysis Article • Oct 28

CIRCOR International (NYSE:CIR) Seems To Be Using A Lot Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Analysis Article • Jun 18

An Intrinsic Calculation For CIRCOR International, Inc. (NYSE:CIR) Suggests It's 50% Undervalued

In this article we are going to estimate the intrinsic value of CIRCOR International, Inc. ( NYSE:CIR ) by taking the...

Revenue & Expenses Breakdown

How CIRCOR International makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

NYSE:CIR Revenue, expenses and earnings (USD Millions)
DateRevenueEarningsG+A ExpensesR&D Expenses
02 Jul 23822282028
02 Apr 23804401998
31 Dec 22787192028
02 Oct 22777-142048
03 Jul 22772-512078
03 Apr 22768-732128
31 Dec 21759-632118
03 Oct 21754-812148
04 Jul 21751-1352118
04 Apr 21749-1072088
31 Dec 20765-1832108
27 Sep 20808-1342128
28 Jun 20858-1032228
29 Mar 20918-1142348
31 Dec 19957-302398
29 Sep 19988-442529
30 Jun 19999-212609
31 Mar 19977-152599
31 Dec 181,013-332709
30 Sep 18952-222526
01 Jul 18865-152236
01 Apr 18792-101966
31 Dec 17505111415
01 Oct 17614151466
02 Jul 17590161446
02 Apr 17585111426
31 Dec 16590101546
02 Oct 16596191346
03 Jul 1662171376
03 Apr 1664151426
31 Dec 15656101446
04 Oct 15711121618
05 Jul 15755351648
05 Apr 15796451658
31 Dec 14841501718
28 Sep 14837501667
29 Jun 14848531717
30 Mar 14864541767
31 Dec 13858471767
29 Sep 13845481768
30 Jun 13840321748
31 Mar 13837301728
31 Dec 12846311718

Quality Earnings: CIR has a large one-off gain of $15.6M impacting its last 12 months of financial results to 2nd July, 2023.

Growing Profit Margin: CIR became profitable in the past.

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: CIR has become profitable over the past 5 years, growing earnings by 8.4% per year.

Accelerating Growth: CIR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CIR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (23.5%).

Return on Equity

High ROE: CIR's Return on Equity (18.2%) is considered low.

Return on Assets

Return on Capital Employed

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/10/19 14:40
End of Day Share Price 2023/10/17 00:00
Earnings2023/07/02
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

CIRCOR International, Inc. is covered by 11 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher BammanAscendiant Capital Markets LLC
Michael SchneiderBaird
Charles BradyBMO Capital Markets Equity Research