NYSE:CCK

Stock Analysis Report

Executive Summary

Crown Holdings, Inc. designs, manufactures, and sells packaging products and equipment for consumer goods and industrial products in the Americas, Europe, and the Asia Pacific.

Rewards

Trading at 27.3% below its fair value

Earnings are forecast to grow 14.53% per year

Earnings grew by 16.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CCK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

CCK

0.07%

US Packaging

1.5%

US Market


1 Year Return

50.1%

CCK

12.1%

US Packaging

20.1%

US Market

Return vs Industry: CCK exceeded the US Packaging industry which returned 12.1% over the past year.

Return vs Market: CCK exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

CCKIndustryMarket
7 Day1.8%0.07%1.5%
30 Day8.9%-0.4%1.4%
90 Day7.4%3.0%8.7%
1 Year50.1%50.1%14.8%12.1%22.7%20.1%
3 Year51.6%51.6%24.7%16.8%50.1%40.5%
5 Year54.7%54.7%31.8%15.4%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCK ($80) is trading below our estimate of fair value ($109.97)

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


Price To Earnings Ratio

PE vs Industry: CCK is poor value based on its PE Ratio (21x) compared to the Packaging industry average (19.9x).

PE vs Market: CCK is poor value based on its PE Ratio (21x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CCK is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CCK is overvalued based on its PB Ratio (6.2x) compared to the US Packaging industry average (3.2x).


Next Steps

Future Growth

How is Crown Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCK's forecast earnings growth (14.5% per year) is above the savings rate (1.7%).

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

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

Revenue vs Market: CCK's revenue (2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CCK's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCK's Return on Equity is forecast to be high in 3 years time (23.5%)


Next Steps

Past Performance

How has Crown Holdings performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCK has high quality earnings.

Growing Profit Margin: CCK's current net profit margins (4.4%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: CCK's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: CCK's earnings growth over the past year (16.2%) exceeds its 5-year average (1% per year).

Earnings vs Industry: CCK earnings growth over the past year (16.2%) exceeded the Packaging industry -6.5%.


Return on Equity

High ROE: Whilst CCK's Return on Equity (29.88%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Crown Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CCK's short term assets ($4.0B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: CCK's short term assets ($4.0B) do not cover its long term liabilities ($9.5B).


Debt to Equity History and Analysis

Debt Level: CCK's debt to equity ratio (369.9%) is considered high.

Reducing Debt: CCK's debt to equity ratio has reduced from 1349.8% to 369.9% over the past 5 years.

Debt Coverage: CCK's debt is not well covered by operating cash flow (15%).

Interest Coverage: CCK's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: CCK's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

0.089%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years0.09%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CCK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CCK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CCK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CCK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CCK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Tim Donahue (56yo)

4.1yrs

Tenure

US$9,816,741

Compensation

Mr. Timothy J. Donahue, also known as Tim, has been the President of Crown Holdings Inc. since March 4, 2013 and serves as its Chief Executive Officer since January 1, 2016. Mr. Donahue served as Chief Fin ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD9.82M) is about average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Donahue
President4.1yrsUS$9.82m0.47% $50.1m
Thomas Kelly
Senior VP & CFO7.1yrsUS$3.17m0.099% $10.5m
Gerard Gifford
Executive VP & COO2.8yrsUS$4.34m0.13% $13.7m
Robert Bourque
President of Transit Packaging Division3.8yrsUS$3.50m0.044% $4.7m
Didier Sourisseau
President of European Division2.8yrsUS$2.56m0.061% $6.5m
Daniel Abramowicz
Executive Vice President of Corporate Technology & Regulatory Affairs22.1yrsno datano data
Thomas Fischer
Vice President of Investor Relations & Corporate Affairs0yrsno datano data
William Gallagher
Senior VP & General Counsel0yrsno datano data
Carlos Baila
Senior Vice President of Global Procurement2.1yrsno datano data
Sidonie Lécluse
Senior Vice President of Diversity & Inclusion0.2yrsno datano data

3.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CCK's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Donahue
President4.1yrsUS$9.82m0.47% $50.1m
Jim Turner
Independent Director14.3yrsUS$249.00k0.068% $7.3m
John Conway
Non-Executive Chairman19.1yrsUS$315.00k0.77% $82.4m
James Miller
Independent Director9.2yrsUS$242.00k0.017% $1.8m
William Urkiel
Independent Director15.2yrsUS$252.00k0.038% $4.0m
William Little
Presiding Director0yrsUS$287.00k0.029% $3.1m
Hans Löliger
Independent Director19.1yrsUS$262.00k0.058% $6.2m
Rose Lee
Independent Director3.6yrsUS$245.00k0.0062% $660.7k
Josef Müller
Independent Director9yrsUS$252.00k0.017% $1.8m
Caesar Sweitzer
Independent Director6.1yrsUS$260.00k0.011% $1.1m

9.2yrs

Average Tenure

72yo

Average Age

Experienced Board: CCK's board of directors are considered experienced (9.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Crown Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Crown Holdings, Inc.
  • Ticker: CCK
  • Exchange: NYSE
  • Founded: 1927
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: US$10.657b
  • Shares outstanding: 133.21m
  • Website: https://www.crowncork.com

Number of Employees


Location

  • Crown Holdings, Inc.
  • 770 Township Line Road
  • Yardley
  • Pennsylvania
  • 19067
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCKNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
CWNDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0I4XLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
CCK *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968

Biography

Crown Holdings, Inc. designs, manufactures, and sells packaging products and equipment for consumer goods and industrial products in the Americas, Europe, and the Asia Pacific. It offers products for consumer goods, including steel and aluminum cans for food, beverage, household, and other consumer products; glass bottles for beverage product; and metal vacuum closures and steel crowns through its sales organization to the soft drink, food, citrus, brewing, household products, personal care, and various other industries. The company also provides products for industrial products, such as steel and plastic strap consumables and equipment, paper-based protective packaging, and plastic film consumables and equipment to metals, food and beverage, construction, agricultural, corrugated, and general industries. In addition, it offers aerosol cans and ends; and promotional and specialty packaging containers with various lid and closure variations. Further, the company provides industrial film and other related products; transit protection products, such as airbags, edge protectors, and honeycombs; and equipment and tools, such as manual, semi-automatic, and automatic equipment and tools used in end of line manufacturing applications to apply consumables. Crown Holdings, Inc. was founded in 1927 and is headquartered in Yardley, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:38
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.