Crane Holdings (NYSE:CR) - Share price, News & Analysis

Q: What is the Fair Price of CR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CR ($87.85) is trading below our estimate of [[fair value]] ($205.1)

CR fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	6/6
Financial Health	5/6
Dividends	5/6

CR Stock Overview

Crane Holdings Co., together with its subsidiaries, manufactures and sells engineered industrial products in the Americas, Europe, the Middle East, Asia, and Australia.

Rewards

Trading at 57.2% below our estimate of its fair value

Earnings are forecast to grow 10.65% per year

Earnings grew by 84.7% over the past year

Pays a reliable dividend of 2.14%

Risk Analysis

No risks detected for CR from our risk checks.

Crane Holdings Competitors

RBC Bearings

NasdaqGS:ROLL

US$5.3b

ITT

NYSE:ITT

US$5.8b

Flowserve

NYSE:FLS

US$3.8b

John Bean Technologies

NYSE:JBT

US$3.6b

Price History & Performance

Summary of all time highs, changes and price drops for Crane Holdings
Historical stock prices
Current Share Price	US$87.85
52 Week High	US$114.87
52 Week Low	US$82.14
Beta	1.62
1 Month Change	-7.96%
3 Month Change	-20.17%
1 Year Change	-2.78%
3 Year Change	4.10%
5 Year Change	9.66%
Change since IPO	682.82%

Recent News & Updates

Jun 27

Returns At Crane Holdings (NYSE:CR) Appear To Be Weighed Down

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Jun 05

Crane Holdings Co: Now Worth Considering

Crane Holdings Co has held up well relative to the market in recent months as revenue continues growing, but as its bottom line has been mixed. This comes off of a solid 2021 fiscal year and some changes in the company's plans. Overall, shares now look appealing moving forward and investors should consider taking a stake in the firm.

May 19

Should You Investigate Crane Co. (NYSE:CR) At US$94.17?

While Crane Co. ( NYSE:CR ) might not be the most widely known stock at the moment, it received a lot of attention from...

Shareholder Returns

	CR	US Machinery	US Market
7D	3.6%	-1.1%	1.7%
1Y	-2.8%	-20.6%	-20.4%

Return vs Industry: CR exceeded the US Machinery industry which returned -19.8% over the past year.

Return vs Market: CR exceeded the US Market which returned -18.8% over the past year.

Price Volatility

Is CR's price volatile compared to industry and market?
CR volatility
CR Average Weekly Movement	5.2%
Machinery Industry Average Movement	6.0%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CR's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1855	11,000	Max Mitchell	https://www.craneco.com

Crane Holdings Co., together with its subsidiaries, manufactures and sells engineered industrial products in the Americas, Europe, the Middle East, Asia, and Australia. The company has four business segments: Aerospace & Electronics, Process Flow Technologies, Payment & Merchandising Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace, and the military aerospace, defense and space markets.

Crane Holdings Fundamentals Summary

How do Crane Holdings's earnings and revenue compare to its market cap?
CR fundamental statistics
Market Cap	US$4.93b
Earnings (TTM)	US$385.60m
Revenue (TTM)	US$3.20b

12.8x

P/E Ratio

1.5x

P/S Ratio

Is CR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CR income statement (TTM)
Revenue	US$3.20b
Cost of Revenue	US$1.94b
Gross Profit	US$1.26b
Other Expenses	US$873.60m
Earnings	US$385.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	6.88
Gross Margin	39.33%
Net Profit Margin	12.04%
Debt/Equity Ratio	54.8%

How did CR perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

27%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CR. This is calculated by dividing CR's market cap by their current preferred multiple.
What is CR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$4.93b

CR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	9.5x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does CR's PE Ratio compare to its peers?

CR PE Ratio vs Peers

The above table shows the PE ratio for CR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	47x
ROLL RBC Bearings	99.3x	53.3%	US$5.3b
ITT ITT	18.7x	11.8%	US$5.8b
FLS Flowserve	39.6x	54.2%	US$3.8b
JBT John Bean Technologies	30.6x	18.5%	US$3.6b
CR Crane Holdings	12.8x	10.6%	US$4.9b

Forward PE

Price-To-Earnings vs Peers: CR is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (47x).

Price to Earnings Ratio vs Industry

How does CR's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: CR is good value based on its Price-To-Earnings Ratio (12.8x) compared to the US Machinery industry average (21.5x)

Price to Earnings Ratio vs Fair Ratio

What is CR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.8x
Fair PE Ratio	19.2x

Price-To-Earnings vs Fair Ratio: CR is good value based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

Share Price vs Fair Value

What is the Fair Price of CR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CR ($87.85) is trading below our estimate of fair value ($205.1)

Significantly Below Fair Value: CR is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: CR is poor value based on its PEG Ratio (1.2x)

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Future Growth

How is Crane Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CR's forecast earnings growth (10.6% per year) is above the savings rate (1.9%).

Earnings vs Market: CR's earnings (10.6% per year) are forecast to grow slower than the US market (13.8% per year).

High Growth Earnings: CR's earnings are forecast to grow, but not significantly.

Revenue vs Market: CR's revenue (2.4% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: CR's revenue (2.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CR's Return on Equity is forecast to be high in 3 years time (22.8%)

Discover growth companies

Past Performance

How has Crane Holdings performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CR has high quality earnings.

Growing Profit Margin: CR's current net profit margins (12%) are higher than last year (7.5%).

Past Earnings Growth Analysis

Earnings Trend: CR's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: CR's earnings growth over the past year (84.7%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: CR earnings growth over the past year (84.7%) exceeded the Machinery industry 24%.

Return on Equity

High ROE: CR's Return on Equity (22.3%) is considered high.

Discover strong past performing companies

Financial Health

How is Crane Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CR's short term assets ($1.7B) exceed its short term liabilities ($797.8M).

Long Term Liabilities: CR's short term assets ($1.7B) do not cover its long term liabilities ($1.8B).

Debt to Equity History and Analysis

Debt Level: CR's net debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: CR's debt to equity ratio has reduced from 60.4% to 54.8% over the past 5 years.

Debt Coverage: CR's debt is well covered by operating cash flow (41.3%).

Interest Coverage: CR's interest payments on its debt are well covered by EBIT (10.9x coverage).

Balance Sheet

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Dividend

What is Crane Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CR's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: CR's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

Stable Dividend: CR's dividends per share have been stable in the past 10 years.

Growing Dividend: CR's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.5%), CR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.8%), CR's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure

CEO

Max Mitchell (57 yo)

9.42yrs

Tenure

US$9,484,490

Compensation

Mr. Max H. Mitchell has been the Chief Executive Officer and President of Crane Holdings Co. (formerly known as Crane Co.) since January 31, 2014 and January 28, 2013 respectively. Mr. Mitchell served as t...

CEO Compensation Analysis

Compensation vs Market: Max's total compensation ($USD9.48M) is about average for companies of similar size in the US market ($USD8.23M).

Compensation vs Earnings: Max's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: CR's management team is considered experienced (3.2 years average tenure).

Board Members

Experienced Board: CR's board of directors are considered experienced (8.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31