NYSE:CRS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


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


Market Performance


7 Day Return

-0.5%

CRS

2.0%

US Metals and Mining

0.07%

US Market


1 Year Return

-3.3%

CRS

-5.2%

US Metals and Mining

8.9%

US Market

Return vs Industry: CRS exceeded the US Metals and Mining industry which returned -5.2% over the past year.

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


Shareholder returns

CRSIndustryMarket
7 Day-0.5%2.0%0.07%
30 Day-5.5%-2.2%-0.3%
90 Day5.7%-6.9%-1.6%
1 Year-1.7%-3.3%-2.3%-5.2%11.3%8.9%
3 Year38.1%31.7%9.5%3.8%46.3%36.8%
5 Year12.4%3.0%-0.7%-8.3%62.1%44.3%

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?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRS ($50.78) is trading below our estimate of fair value ($90.39)

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


Price To Earnings Ratio

PE vs Industry: CRS is poor value based on its PE Ratio (14.7x) compared to the Metals and Mining industry average (13.5x).

PE vs Market: CRS is good value based on its PE Ratio (14.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CRS is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CRS is overvalued based on its PB Ratio (1.6x) 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 7 analysts?

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRS's forecast earnings growth (21.2% per year) is above the savings rate (2.7%).

Earnings vs Market: CRS's earnings (21.2% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CRS's revenue (10.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CRS's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRS's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Carpenter Technology performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CRS's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: CRS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CRS had negative earnings growth (-11.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (26.8%).


Return on Equity

High ROE: CRS's Return on Equity (11%) is considered low.


Return on Assets

ROA vs Industry: CRS's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: CRS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Carpenter Technology's financial position?


Financial Position Analysis

Short Term Liabilities: CRS's short term assets ($1.2B) exceeds its short term liabilities ($416.0M)

Long Term Liabilities: CRS's short term assets (1.2B) do not cover its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: CRS's debt to equity ratio (37.5%) is considered satisfactory

Reducing Debt: CRS's debt to equity ratio has reduced from 40.2% to 37.5% over the past 5 years.

Debt Coverage: CRS's debt is well covered by operating cash flow (40.8%).

Interest Coverage: CRS's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: CRS's debt is covered by short term assets (assets are 2.167630x debt).


Next Steps

Dividend

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

1.58%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CRS's dividend (1.58%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CRS's dividend (1.58%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (23.1%), CRS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRS's dividends in 3 years are forecast to be thoroughly covered by earnings (13.9% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Tony Thene (58yo)

4.3yrs

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 ($USD4.75M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

1.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: CRS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

7.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: CRS's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$275,00016 Sep 19
Steven Karol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$55.00

Ownership Breakdown


Management Team

  • James Dee (61yo)

    VP, General Counsel

    • Tenure: 9.1yrs
    • Compensation: US$1.17m
  • James Johnson

    Chief Information Officer & VP

    • Tenure: 6.3yrs
  • Tony Thene (58yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$4.75m
  • Stephen Peskosky

    Vice President of Corporate Development

    • Tenure: 0yrs
  • Mike Murtagh (47yo)

    VP & Group President of Specialty Alloys Operations (SAO)

    • Tenure: 1.3yrs
    • Compensation: US$1.26m
  • Tim Lain (47yo)

    VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$1.06m
  • Brian Malloy

    Chief Commercial Officer & VP

    • Tenure: 3.6yrs
    • Compensation: US$1.11m
  • Betsy Socci

    VP, Controller & Chief Accounting Officer

    • Tenure: 1.1yrs
  • David Graf

    Chief Technology Officer

    • Tenure: 1.1yrs
  • Rachelle Thompson

    Chief Human Resources Officer

    • Tenure: 0.2yrs

Board Members

  • Steven Karol (65yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$221.99k
  • Greg Pratt (70yo)

    Independent Chairman

    • Tenure: 10yrs
    • Compensation: US$390.67k
  • Steve Ward (64yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$247.87k
  • Kathleen Ligocki (63yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$200.34k
  • Bob McMaster (71yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: US$220.05k
  • Jeff Wadsworth (69yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$232.10k
  • I. Inglis (68yo)

    Independent Lead Director

    • Tenure: 0yrs
    • Compensation: US$252.24k
  • Tony Thene (58yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$4.75m
  • Viola Acoff (52yo)

    Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$156.99k
  • Anastasios Hart (40yo)

    Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$156.99k

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$2.420b
  • Shares outstanding: 47.66m
  • Website: https://www.cartech.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 Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:33
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.