NYSE:CRS

Stock Analysis Report

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Executive Summary

Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide.


Snowflake Analysis

Good value with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CRS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.5%

CRS

0.8%

US Metals and Mining

2.9%

US Market


1 Year Return

-37.8%

CRS

7.2%

US Metals and Mining

8.9%

US Market

Return vs Industry: CRS underperformed the US Metals and Mining industry which returned 7.2% over the past year.

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


Shareholder returns

CRSIndustryMarket
7 Day15.5%0.8%2.9%
30 Day38.6%5.4%10.6%
90 Day-21.7%5.1%5.1%
1 Year-36.4%-37.8%9.8%7.2%11.4%8.9%
3 Year-26.2%-30.0%4.5%-2.2%34.3%25.4%
5 Year-30.0%-36.2%23.5%13.0%60.7%42.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRS ($26.98) is trading below our estimate of fair value ($31.43)

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


Price To Earnings Ratio

PE vs Industry: CRS is good value based on its PE Ratio (7.7x) compared to the Metals and Mining industry average (9.1x).

PE vs Market: CRS is good value based on its PE Ratio (7.7x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: CRS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CRS is good value based on its PB Ratio (0.8x) compared to the US Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Carpenter Technology forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-31.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRS's earnings are forecast to decline over the next 3 years (-31% per year).

Earnings vs Market: CRS's earnings are forecast to decline over the next 3 years (-31% per year).

High Growth Earnings: CRS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CRS's revenue is expected to decline over the next 3 years (-12% per year).

High Growth Revenue: CRS's revenue is forecast to decline over the next 3 years (-12% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CRS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Carpenter Technology performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRS has high quality earnings.

Growing Profit Margin: CRS's current net profit margins (7%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: CRS's earnings have grown significantly by 36.3% per year over the past 5 years.

Accelerating Growth: CRS's earnings growth over the past year (5%) is below its 5-year average (36.3% per year).

Earnings vs Industry: CRS earnings growth over the past year (5%) exceeded the Metals and Mining industry -12.4%.


Return on Equity

High ROE: CRS's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Carpenter Technology's financial position?


Financial Position Analysis

Short Term Liabilities: CRS's short term assets ($1.4B) exceed its short term liabilities ($516.0M).

Long Term Liabilities: CRS's short term assets ($1.4B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: CRS's debt to equity ratio (44.6%) is considered high.

Reducing Debt: CRS's debt to equity ratio has increased from 43.6% to 44.6% over the past 5 years.

Debt Coverage: CRS's debt is well covered by operating cash flow (37.4%).

Interest Coverage: CRS's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CRS's dividend (2.97%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: CRS's dividend (2.97%) is low compared to the top 25% of dividend payers in the US market (4.32%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.9%), CRS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Tony Thene (59yo)

4.92yrs

Tenure

US$4,749,686

Compensation

Mr. Tony R. Thene has been the Chief Executive Officer and President at Carpenter Technology Corp. since July 1, 2015. Mr. Thene served as the Chief Financial Officer and Senior Vice President at Carpenter ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD4.75M) is about average for companies of similar size in the US market ($USD4.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tony Thene
President4.92yrsUS$4.75m0.34% $4.4m
Timothy Lain
VP & CFO1.75yrsUS$1.06m0.046% $597.6k
James Dee
VP, General Counsel9.75yrsUS$1.17m0.083% $1.1m
Brian Malloy
Chief Commercial Officer & VP4.25yrsUS$1.11m0.064% $823.8k
Michael Murtagh
VP & Group President of Specialty Alloys Operations (SAO)1.92yrsUS$1.26m0.030% $384.5k
Elizabeth Socci
VP, Controller & Chief Accounting Officer1.75yrsno data0.010% $129.2k
David Graf
Chief Technology Officer1.75yrsno datano data
James Johnson
Chief Information Officer & VP7yrsno datano data
Stephen Peskosky
Vice President of Corporate Developmentno datano datano data
Rachelle Thompson
Chief Human Resources Officer0.83yrno datano data

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: CRS's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tony Thene
President4.92yrsUS$4.75m0.34% $4.4m
Steven Karol
Independent Director8.33yrsUS$221.99k1.19% $15.4m
Gregory Pratt
Independent Chairman10.67yrsUS$390.67k0.0097% $124.5k
Stephen Ward
Independent Director19.42yrsUS$247.87k0.045% $580.8k
Kathleen Ligocki
Independent Director2.58yrsUS$200.34k0.018% $229.3k
Robert McMaster
Independent Director13.17yrsUS$220.05k0.011% $136.5k
Jeffrey Wadsworth
Independent Director14.42yrsUS$232.10k0.00042% $5.4k
I. Inglis
Independent Lead Directorno dataUS$252.24k0.0075% $97.1k
Viola Acoff
Independent Director1.33yrsUS$156.99kno data
Anastasios Hart
Independent Director1.33yrsUS$156.99kno data

8.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: CRS's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CRS insiders have bought more shares than they have sold 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

Carpenter Technology Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carpenter Technology Corporation
  • Ticker: CRS
  • Exchange: NYSE
  • Founded: 1889
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$1.290b
  • Shares outstanding: 47.81m
  • Website: https://www.carpentertechnology.com

Number of Employees


Location

  • Carpenter Technology Corporation
  • 1735 Market Street
  • 15th Floor
  • Philadelphia
  • Pennsylvania
  • 19103
  • United States

Listings

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

Biography

Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. It operates through two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as drilling tools, and metal powders and parts. It serves the aerospace, defence, transportation, energy, industrial, medical, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 02:01
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/06/30


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.