NYSE:CR

Stock Analysis Report

Executive Summary

Crane Co. manufactures and sells engineered industrial products in the United States and internationally.

Snowflake

Fundamentals

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Crane's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

CR

3.3%

US Machinery

0.07%

US Market


1 Year Return

-1.0%

CR

15.1%

US Machinery

8.9%

US Market

Return vs Industry: CR underperformed the US Machinery industry which returned 15.1% over the past year.

Return vs Market: CR underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

CRIndustryMarket
7 Day1.1%3.3%0.07%
30 Day1.8%3.5%-0.3%
90 Day-4.5%-0.5%-1.6%
1 Year0.9%-1.0%17.5%15.1%11.3%8.9%
3 Year28.6%22.0%55.1%45.1%46.3%36.8%
5 Year50.1%36.1%56.6%37.5%62.1%44.3%

Price Volatility Vs. Market

How volatile is Crane's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Crane undervalued compared to its fair value and its price relative to the market?

25.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CR ($82.28) is trading below our estimate of fair value ($110.65)

Significantly Below Fair Value: CR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CR is good value based on its PE Ratio (13.6x) compared to the Machinery industry average (20.6x).

PE vs Market: CR is good value based on its PE Ratio (13.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CR is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CR is overvalued based on its PB Ratio (3x) compared to the US Machinery industry average (2.3x).


Next Steps

Future Growth

How is Crane forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CR's forecast earnings growth (9.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CR's earnings (9.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: CR's revenue (2.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CR's revenue (2.1% 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 low in 3 years time (20%).


Next Steps

Past Performance

How has Crane performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CR's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: CR's earnings growth over the past year (90.4%) exceeds its 5-year average (7.6% per year).

Earnings vs Industry: CR earnings growth over the past year (90.4%) exceeded the Machinery industry 16.7%.


Return on Equity

High ROE: CR's Return on Equity (21.5%) is considered high.


Return on Assets

ROA vs Industry: CR has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: CR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Crane's financial position?


Financial Position Analysis

Short Term Liabilities: CR's short term assets ($1.4B) exceeds its short term liabilities ($634.6M)

Long Term Liabilities: CR's short term assets (1.4B) do not cover its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: CR's debt to equity ratio (56.6%) is considered high

Reducing Debt: CR's debt to equity ratio has reduced from 68.1% to 56.6% over the past 5 years.

Debt Coverage: CR's debt is well covered by operating cash flow (35.3%).

Interest Coverage: CR's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet

Inventory Level: CR has a high level of physical assets or inventory.

Debt Coverage by Assets: CR's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CR's dividend (1.9%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CR's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.6%), CR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CR's dividends in 3 years are forecast to be well covered by earnings (22% payout ratio).


Next Steps

Management

What is the CEO of Crane's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Max Mitchell (55yo)

5.8yrs

Tenure

US$6,531,121

Compensation

Mr. Max H. Mitchell has been the Chief Executive Officer and President of Crane Co. since January 31, 2014 and January 28, 2013 respectively. Mr. Mitchell served as the Chief Operating Officer of Crane Co. ...


CEO Compensation Analysis

Compensation vs. Market: Max's total compensation ($USD6.53M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Max's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.4yrs

Average Tenure

50yo

Average Age

Experienced Management: CR's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

65yo

Average Age

Experienced Board: CR's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: CR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyUS$120,15001 Aug 19
Mario Gabelli
EntityIndividual
Shares1,500
Max PriceUS$80.10
BuyUS$001 Aug 19
GAMCO Investors, Inc.
EntityCompany
Shares30,943
Max PriceUS$88.89
SellUS$334,29401 Aug 19
GAMCO Investors, Inc.
EntityCompany
Shares68,355
Max PriceUS$88.79
SellUS$56,13729 Jul 19
James Lavish
EntityIndividual
Role
Head of Human Resources
Vice President of CBS
Shares650
Max PriceUS$86.36
BuyUS$154,76703 Jun 19
James L. Tullis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$78.13
SellUS$437,44320 Feb 19
James Lavish
EntityIndividual
Role
Head of Human Resources
Vice President of CBS
Shares5,150
Max PriceUS$84.94
BuyUS$24,95001 Feb 19
Donald Cook
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares302
Max PriceUS$82.61
SellUS$409,86009 Nov 18
Louis Pinkham
EntityIndividual
Shares4,400
Max PriceUS$93.15
SellUS$279,25508 Nov 18
Kristian Salovaara
EntityIndividual
Shares3,000
Max PriceUS$93.09
BuyUS$36,24907 Nov 18
James L. Tullis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares400
Max PriceUS$90.62

Ownership Breakdown


Management Team

  • Brad Ellis (50yo)

    Senior Vice President

    • Tenure: 4.8yrs
    • Compensation: US$1.44m
  • Rich Maue (48yo)

    Senior VP & CFO

    • Tenure: 6.8yrs
    • Compensation: US$2.29m
  • Max Mitchell (55yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$6.53m
  • Kurt Gallo

    Senior Vice President

    • Tenure: 0.8yrs
  • Edward Switter (44yo)

    VP of Tax & Treasurer

    • Tenure: 3.1yrs
  • Jason Feldman

    Director of Investor Relations

    • Tenure: 0yrs
  • Jim Lavish (51yo)

    Vice President of CBS

    • Tenure: 3.8yrs
  • Anthony D'Iorio (55yo)

    VP, General Counsel & Secretary

    • Tenure: 1.7yrs
    • Compensation: US$1.29m
  • Carey True

    Chief Information Officer

    • Tenure: 0yrs
  • Christina Cristiano (47yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Robert Evans (74yo)

    Non-Executive Chairman

    • Tenure: 18.5yrs
    • Compensation: US$339.41k
  • Marty Benante (67yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$225.46k
  • Mike Dinkins (65yo)

    Director

    • Tenure: 0.5yrs
  • Jim Tullis (72yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$235.72k
  • Chip McClure (65yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$206.72k
  • Max Mitchell (55yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$6.53m
  • Jennifer Pollino (55yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$226.54k
  • Don Cook (72yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$244.72k
  • Ron Lindsay (61yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$202.32k
  • Ellen Haime (54yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$226.54k

Company Information

Crane Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Crane Co.
  • Ticker: CR
  • Exchange: NYSE
  • Founded: 1855
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$4.933b
  • Shares outstanding: 59.95m
  • Website: https://www.craneco.com

Number of Employees


Location

  • Crane Co.
  • 100 First Stamford Place
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
CZNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Crane Co. manufactures and sells engineered industrial products in the United States and internationally. The company's Fluid Handling segment provides on/off valves and related products for application in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:35
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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 here.