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Carpenter Technology

NYSE:CRS
Snowflake Description

Undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CRS
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. The last earnings update was 84 days ago. More info.


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CRS Share Price and Events
7 Day Returns
3.1%
NYSE:CRS
1.5%
US Metals and Mining
-0.3%
US Market
1 Year Returns
-18.6%
NYSE:CRS
-16.1%
US Metals and Mining
3.4%
US Market
CRS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Carpenter Technology (CRS) 3.1% 0.5% -9% -18.6% 19.1% -22.9%
US Metals and Mining 1.5% 5% -1.4% -16.1% 3.7% -18.3%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • CRS underperformed the Metals and Mining industry which returned -16.1% over the past year.
  • CRS underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
CRS
Industry
5yr Volatility vs Market

Value

 Is Carpenter Technology undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Carpenter Technology to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Carpenter Technology.

NYSE:CRS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CRS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.056 (1 + (1- 21%) (31.2%))
1.212
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.212 * 5.96%)
9.95%

Discounted Cash Flow Calculation for NYSE:CRS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Carpenter Technology is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CRS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.95%)
2020 169.77 Analyst x3 154.40
2021 253.68 Est @ 49.43% 209.83
2022 343.53 Est @ 35.42% 258.43
2023 431.52 Est @ 25.61% 295.23
2024 512.42 Est @ 18.75% 318.84
2025 583.86 Est @ 13.94% 330.41
2026 645.62 Est @ 10.58% 332.29
2027 698.72 Est @ 8.22% 327.06
2028 744.66 Est @ 6.58% 317.01
2029 785.04 Est @ 5.42% 303.95
Present value of next 10 years cash flows $2,847.44
NYSE:CRS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $785.04 × (1 + 2.73%) ÷ (9.95% – 2.73%)
$11,164.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,164.40 ÷ (1 + 9.95%)10
$4,322.55
NYSE:CRS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,847.44 + $4,322.55
$7,169.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,169.99 / 47.39
$151.31
NYSE:CRS Discount to Share Price
Calculation Result
Value per share (USD) From above. $151.31
Current discount Discount to share price of $45.74
= -1 x ($45.74 - $151.31) / $151.31
69.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Carpenter Technology is available for.
Intrinsic value
>50%
Share price is $45.74 vs Future cash flow value of $151.31
Current Discount Checks
For Carpenter Technology to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Carpenter Technology's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Carpenter Technology's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Carpenter Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Carpenter Technology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CRS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.34
NYSE:CRS Share Price ** NYSE (2019-07-18) in USD $45.74
United States of America Metals and Mining Industry PE Ratio Median Figure of 45 Publicly-Listed Metals and Mining Companies 10.81x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Carpenter Technology.

NYSE:CRS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CRS Share Price ÷ EPS (both in USD)

= 45.74 ÷ 3.34

13.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carpenter Technology is overvalued based on earnings compared to the US Metals and Mining industry average.
  • Carpenter Technology is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Carpenter Technology's expected growth come at a high price?
Raw Data
NYSE:CRS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.68x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
20.9%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 23 Publicly-Listed Metals and Mining Companies 0.65x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:CRS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.68x ÷ 20.9%

0.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carpenter Technology is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Carpenter Technology's assets?
Raw Data
NYSE:CRS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $32.87
NYSE:CRS Share Price * NYSE (2019-07-18) in USD $45.74
United States of America Metals and Mining Industry PB Ratio Median Figure of 106 Publicly-Listed Metals and Mining Companies 1.43x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NYSE:CRS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CRS Share Price ÷ Book Value per Share (both in USD)

= 45.74 ÷ 32.87

1.39x

* Primary Listing of Carpenter Technology.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carpenter Technology is good value based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Carpenter Technology's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Carpenter Technology has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Carpenter Technology expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Carpenter Technology expected to grow at an attractive rate?
  • Carpenter Technology's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Carpenter Technology's earnings growth is expected to exceed the United States of America market average.
  • Carpenter Technology's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CRS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CRS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 20.9%
NYSE:CRS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 9.1%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 18.5%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CRS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CRS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 3,144 296 1
2021-06-30 2,958 268 1
2020-06-30 2,551 315 202 6
2019-06-30 2,384 215 162 6
NYSE:CRS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,357 176 159
2018-12-31 2,319 239 139
2018-09-30 2,250 226 195
2018-06-30 2,158 209 187
2018-03-31 2,047 185 170
2017-12-31 1,949 173 161
2017-09-30 1,888 119 76
2017-06-30 1,798 130 47
2017-03-31 1,748 156 36
2016-12-31 1,730 160 -8
2016-09-30 1,747 220 -4
2016-06-30 1,813 257 11

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Carpenter Technology's earnings are expected to grow significantly at over 20% yearly.
  • Carpenter Technology's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CRS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Carpenter Technology Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CRS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 6.10 6.10 6.10 1.00
2021-06-30 5.53 5.53 5.53 1.00
2020-06-30 4.11 4.69 3.80 5.00
2019-06-30 3.37 3.44 3.17 5.00
NYSE:CRS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.34
2018-12-31 2.92
2018-09-30 4.12
2018-06-30 3.96
2018-03-31 3.60
2017-12-31 3.41
2017-09-30 1.62
2017-06-30 0.99
2017-03-31 0.77
2016-12-31 -0.18
2016-09-30 -0.08
2016-06-30 0.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Carpenter Technology will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Carpenter Technology's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Carpenter Technology has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Carpenter Technology performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Carpenter Technology's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Carpenter Technology's year on year earnings growth rate has been positive over the past 5 years.
  • Carpenter Technology's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Carpenter Technology's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.
Earnings and Revenue History
Carpenter Technology's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Carpenter Technology Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CRS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,356.80 159.10 202.60
2018-12-31 2,319.10 138.50 203.40
2018-09-30 2,250.30 194.80 197.80
2018-06-30 2,157.70 186.80 195.10
2018-03-31 2,047.40 169.80 184.60
2017-12-31 1,948.80 160.50 181.00
2017-09-30 1,888.40 76.10 183.30
2017-06-30 1,797.60 46.70 183.40
2017-03-31 1,747.60 36.10 173.50
2016-12-31 1,730.30 -8.40 167.90
2016-09-30 1,746.80 -3.90 165.20
2016-06-30 1,813.40 11.20 173.80
2016-03-31 1,913.60 18.80 172.00
2015-12-31 2,027.90 41.40 173.50
2015-09-30 2,132.50 54.00 169.00
2015-06-30 2,226.70 58.60 172.60
2015-03-31 2,273.40 74.20 176.60
2014-12-31 2,269.10 106.00 178.30
2014-09-30 2,224.20 111.40 186.40
2014-06-30 2,173.00 132.40 186.90
2014-03-31 2,180.20 135.20 193.30
2013-12-31 2,195.30 137.40 193.10
2013-09-30 2,225.40 140.80 195.10
2013-06-30 2,271.70 145.30 197.90
2013-03-31 2,303.50 145.00 196.30
2012-12-31 2,262.00 144.90 193.10
2012-09-30 2,159.50 135.50 181.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Carpenter Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Carpenter Technology used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Carpenter Technology has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Carpenter Technology's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Carpenter Technology has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Carpenter Technology's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Carpenter Technology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Carpenter Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Carpenter Technology's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Carpenter Technology's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Carpenter Technology Company Filings, last reported 3 months ago.

NYSE:CRS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,557.60 676.20 18.90
2018-12-31 1,505.50 649.60 28.50
2018-09-30 1,490.70 548.90 17.00
2018-06-30 1,485.90 548.60 56.30
2018-03-31 1,371.10 603.60 46.90
2017-12-31 1,336.80 613.50 21.20
2017-09-30 1,231.00 608.10 25.10
2017-06-30 1,198.60 605.00 66.90
2017-03-31 1,161.60 618.30 17.00
2016-12-31 1,130.30 629.00 23.40
2016-09-30 1,120.90 609.60 51.30
2016-06-30 1,104.90 611.30 83.20
2016-03-31 1,187.00 637.90 23.90
2015-12-31 1,228.00 647.90 22.30
2015-09-30 1,277.20 611.00 31.20
2015-06-30 1,325.90 603.80 71.50
2015-03-31 1,399.80 609.80 30.10
2014-12-31 1,476.00 644.10 30.00
2014-09-30 1,485.50 604.40 66.40
2014-06-30 1,504.30 604.30 120.00
2014-03-31 1,425.30 604.30 85.30
2013-12-31 1,376.70 604.30 106.20
2013-09-30 1,342.50 604.20 201.00
2013-06-30 1,303.10 604.20 257.50
2013-03-31 1,218.00 705.40 295.50
2012-12-31 1,187.30 406.20 62.50
2012-09-30 1,175.40 406.60 111.70
  • Carpenter Technology's level of debt (43.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (42.4% vs 43.4% today).
  • Debt is well covered by operating cash flow (26%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.9x coverage).
X
Financial health checks
We assess Carpenter Technology's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Carpenter Technology has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.75%
Current annual income from Carpenter Technology dividends. Estimated to be 1.71% next year.
If you bought $2,000 of Carpenter Technology shares you are expected to receive $35 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Carpenter Technology's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Carpenter Technology's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CRS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CRS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.80 1.00
2021-06-30 0.80 1.00
2020-06-30 0.77 3.00
2019-06-30 0.77 3.00
NYSE:CRS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-17 0.800 1.728
2019-01-24 0.800 1.722
2018-10-10 0.800 1.897
2018-08-15 0.800 1.374
2018-04-18 0.720 1.288
2018-01-24 0.720 1.479
2017-10-10 0.720 1.432
2017-08-09 0.720 1.711
2017-04-20 0.720 1.911
2017-01-25 0.720 1.871
2016-10-12 0.720 1.955
2016-08-10 0.720 1.894
2016-04-20 0.720 2.094
2016-01-27 0.720 2.306
2015-10-14 0.720 2.324
2015-08-25 0.720 2.134
2015-07-30 0.720 1.904
2015-01-28 0.720 1.786
2014-10-15 0.720 1.534
2014-08-13 0.720 1.449
2014-04-30 0.720 1.182
2014-01-29 0.720 1.176
2013-10-16 0.720 1.184
2013-08-14 0.720 1.261
2013-05-01 0.720 1.491
2013-01-30 0.720 1.503
2012-10-09 0.720 1.433
2012-08-15 0.720 1.403
2012-04-18 0.720 1.501
2012-01-18 0.720 1.365
2011-10-11 0.720 1.379
2011-08-17 0.720 1.516
2011-04-20 0.720 1.389
2011-01-19 0.720 1.727
2010-10-12 0.720 1.871
2010-08-18 0.720 2.151
2010-04-21 0.720 1.976
2010-01-20 0.720 2.219
2009-10-12 0.720 2.895
2009-08-19 0.720 3.193
2009-04-22 0.720 3.599
2009-01-20 0.720 4.652
2008-10-14 0.720 4.002
2008-08-20 0.720 2.500

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Carpenter Technology's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.4x coverage).
X
Income/ dividend checks
We assess Carpenter Technology's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Carpenter Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Carpenter Technology has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tony Thene
COMPENSATION $5,313,646
AGE 58
TENURE AS CEO 4 years
CEO Bio

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 Technology Corp. from January 31, 2013 to July 1, 2015. With 27 years of experience, he is a seasoned finance executive having served in plant accounting, controllership, general management, divisional and corporate finance positions throughout his career. Mr. Thene was employed for 23 years by Alcoa Inc., a leading producer of primary and fabricated aluminum, holding various management positions. He has significant mergers, acquisitions and joint venture experience, plus process industry experience, having spent the vast majority of his professional life at a global, publicly traded metals company. Prior to Carpenter, Mr. Thene served as the Chief Financial Officer of Engineered Products & Solutions Business Group at Alcoa Inc. from August 1, 2010 to January 30, 2013 and served as its Principal Accounting Officer. He served as Controller and Vice President of Alcoa Inc. since January 2008 until August 2010. He was responsible for the Alcoa's worldwide accounting systems and records, corporate fiduciary financial processes and the preparation and filing of Alcoa's financial statements and reports. He has been a Director of Neenah Inc. since February 01, 2019. He served as a Director of Ivestor Rlations of the Corporation. During his 18 years with Alcoa, Mr. Thene served in a series of financial management positions including Chief Financial Officer of Global Mill Products and Vice President of Finance for Alcoa World Alumina and Chemicals. He worked as Plant Controller at two locations before being named manufacturing manager for the Alumina Chemicals business in Arkansas. In 1998, he joined the Alcoa Forgings business in Cleveland, Ohio as Division Controller, then in 2001 he moved to New York as manager of the corporate financial analysis and planning group, he was named Vice President of Finance for Alcoa World Alumina and Chemicals in 2002, then Chief Financial Officer of Global Mill Products. He served as a Director of Pittsburgh Mercy Health System, Inc., until March 28, 2016. He has been Director of Carpenter Technology Corp. since July 1, 2015. He is a Certified Public Accountant and received a Bachelor's Degree in Accounting from Indiana State University (1983) and received an MBA Degree from Case Western Reserve University in Cleveland, Ohio in 2001. Mr. Thene is a Certified Public Accountant.

CEO Compensation
  • Tony's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tony's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Carpenter Technology management team in years:

3.3
Average Tenure
59
Average Age
  • The tenure for the Carpenter Technology management team is about average.
Management Team

Tony Thene

TITLE
President
COMPENSATION
$5M
AGE
58
TENURE
4 yrs

James Dee

TITLE
VP, General Counsel
COMPENSATION
$1M
AGE
61
TENURE
8.8 yrs

Joe Haniford

TITLE
Vice President of Business Mgmt. Office
COMPENSATION
$2M
AGE
60
TENURE
1.5 yrs

Tim Lain

TITLE
VP & CFO
COMPENSATION
$666K
AGE
47
TENURE
0.8 yrs

Betsy Socci

TITLE
VP, Controller & Chief Accounting Officer
TENURE
0.8 yrs

David Graf

TITLE
Chief Technology Officer
TENURE
0.8 yrs

James Johnson

TITLE
Chief Information Officer & VP
TENURE
6.1 yrs

Stephen Peskosky

TITLE
Vice President of Corporate Development

John Rice

TITLE
Vice President of Human Resources
TENURE
7.5 yrs

Brian Malloy

TITLE
Chief Commercial Officer & VP
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Carpenter Technology board of directors in years:

9.8
Average Tenure
68
Average Age
  • The tenure for the Carpenter Technology board of directors is about average.
Board of Directors

Greg Pratt

TITLE
Chairman
COMPENSATION
$383K
AGE
70
TENURE
9.8 yrs

Tony Thene

TITLE
President
COMPENSATION
$5M
AGE
58
TENURE
4 yrs

Kathryn Turner

TITLE
Independent Director
COMPENSATION
$250K
AGE
70
TENURE
25.5 yrs

Steve Ward

TITLE
Independent Director
COMPENSATION
$242K
AGE
64
TENURE
18.5 yrs

Jeff Wadsworth

TITLE
Independent Director
COMPENSATION
$228K
AGE
69
TENURE
13.5 yrs

I. Inglis

TITLE
Independent Lead Director
COMPENSATION
$247K
AGE
68

Steven Karol

TITLE
Independent Director
COMPENSATION
$219K
AGE
65
TENURE
7.4 yrs

Kathleen Ligocki

TITLE
Director
COMPENSATION
$179K
AGE
63
TENURE
1.7 yrs

Bob McMaster

TITLE
Independent Director
COMPENSATION
$216K
AGE
71
TENURE
12.3 yrs

Anastasios Hart

TITLE
Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Carpenter Technology's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Carpenter Technology has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Are Analysts Saying About The Future Of Carpenter Technology Corporation's (NYSE:CRS)?

Since Carpenter Technology Corporation (NYSE:CRS) released its earnings in March 2019, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 20% next year against the past 5-year average growth rate of 15%. … To understand the overall trajectory of CRS's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NYSE:CRS Past and Future Earnings, July 18th 2019 From the current net income level of US$187m and the final forecast of US$339m by 2022, the annual rate of growth for CRS’s earnings is 21%.

Simply Wall St -

How Carpenter Technology Corporation (NYSE:CRS) Could Add Value To Your Portfolio

Basically, it is a financially-robust company with a a strong history of dividend payments and a buoyant growth outlook. … Established dividend payer with reasonable growth potential CRS is an attractive stock for growth-seeking investors, with an expected earnings growth of 20% in the upcoming year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to ramp up by 89% next year. … NYSE:CRS Past and Future Earnings, June 27th 2019 Income investors would also be happy to know that CRS is a great dividend company, with a current yield standing at 1.7%.

Simply Wall St -

Why Carpenter Technology Corporation's (NYSE:CRS) High P/E Ratio Isn't Necessarily A Bad Thing

See our latest analysis for Carpenter Technology How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Carpenter Technology: P/E of 13 = $43.48 ÷ $3.34 (Based on the year to March 2019.) Is A High P/E Ratio Good? … NYSE:CRS Price Estimation Relative to Market, June 16th 2019 Its relatively high P/E ratio indicates that Carpenter Technology shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

Is Carpenter Technology Corporation's (NYSE:CRS) Capital Allocation Ability Worth Your Time?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Carpenter Technology: 0.086 = US$234m ÷ (US$3.2b - US$517m) (Based on the trailing twelve months to March 2019.) So, Carpenter Technology has an ROCE of 8.6%. … Carpenter Technology's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Could Carpenter Technology Corporation (NYSE:CRS) Have The Makings Of Another Dividend Aristocrat?

Could Carpenter Technology Corporation (NYSE:CRS) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. While Carpenter Technology's 1.9% dividend yield is not the highest, we think its lengthy payment history is quite interesting. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Carpenter Technology has grown its earnings per share at 4.0% per annum over the past five years. … Conclusion To summarise, shareholders should always check that Carpenter Technology's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Carpenter Technology Corporation (NYSE:CRS): Time For A Financial Health Check

On top of this, CRS has produced US$176m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 26%, signalling that CRS’s current level of operating cash is high enough to cover debt. … Looking at CRS’s US$517m in current liabilities, it seems that the business has been able to meet these obligations given the level of current assets of US$1.3b, with a current ratio of 2.53x. … Next Steps: CRS’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

The Carpenter Technology (NYSE:CRS) Share Price Is Up 49% And Shareholders Are Holding On

For example, the Carpenter Technology Corporation (NYSE:CRS) share price is up 49% in the last three years, slightly above the market return. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Carpenter Technology was able to grow its EPS at 106% per year over three years, sending the share price higher.

Simply Wall St -

Is Carpenter Technology Corporation's (NYSE:CRS) ROE Of 9.3% Concerning?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Carpenter Technology Corporation (NYSE:CRS). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.093 in profit.

Simply Wall St -

Is It Too Late To Buy Carpenter Technology Corporation (NYSE:CRS) At Its April Price?

Carpenter Technology Corporation (NYSE:CRS) is considered a high-growth stock, but its last closing price of $49.76 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Check out our latest analysis for Carpenter Technology? … Carpenter Technology is poised for extremely high earnings growth in the near future

Simply Wall St -

Are Insiders Selling Carpenter Technology Corporation (NYSE:CRS) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Carpenter Technology Corporation (NYSE:CRS). … Carpenter Technology Insider Transactions Over The Last Year. … That means that an insider was selling shares at around the current price of US$47.32.

Simply Wall St -

Company Info

Description

Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. The company operates through two segments, Specialty Alloys Operations and Performance Engineered Products. It 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. The company serves the aerospace, defense, transportation, energy, medical, industrial, and consumer markets. It has collaboration with Israel Aerospace Industries to produce commercial aircraft additive parts. Carpenter Technology Corporation was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.

Details
Name: Carpenter Technology Corporation
CRS
Exchange: NYSE
Founded: 1889
$2,167,449,407
47,386,301
Website: http://www.cartech.com
Address: Carpenter Technology Corporation
1735 Market Street,
15th Floor,
Philadelphia,
Pennsylvania, 19103,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CRS Common Stock New York Stock Exchange US USD 02. Jan 1968
DB XTY Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
Number of employees
Current staff
Staff numbers
4,800
Carpenter Technology employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 23:37
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.