NYSE:CRS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued with excellent balance sheet 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

CRS

2.1%

US Metals and Mining

-1.1%

US Market


1 Year Return

-7.2%

CRS

-2.0%

US Metals and Mining

17.9%

US Market

Return vs Industry: CRS underperformed the US Metals and Mining industry which returned -2% over the past year.

Return vs Market: CRS underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

CRSIndustryMarket
7 Day1.5%2.1%-1.1%
30 Day2.3%-1.2%1.4%
90 Day-16.9%0.2%6.9%
1 Year-5.6%-7.2%0.6%-2.0%20.3%17.9%
3 Year14.2%8.8%-0.04%-5.4%47.8%38.3%
5 Year13.3%3.8%21.0%11.6%71.9%53.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRS ($43.98) is trading below our estimate of fair value ($107.53)

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 (11.8x) compared to the Metals and Mining industry average (11.2x).

PE vs Market: CRS is good value based on its PE Ratio (11.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CRS is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: CRS is good value based on its PB Ratio (1.3x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRS's forecast earnings growth (18.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CRS's earnings (18.5% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: CRS's revenue (4.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CRS's revenue (4.2% per year) is forecast to grow slower than 20% 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?

33.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRS has high quality earnings.

Growing Profit Margin: CRS's current net profit margins (7.4%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: CRS's earnings have grown significantly by 33.2% per year over the past 5 years.

Accelerating Growth: CRS's earnings growth over the past year (28.6%) is below its 5-year average (33.2% per year).

Earnings vs Industry: CRS earnings growth over the past year (28.6%) exceeded the Metals and Mining industry -32.4%.


Return on Equity

High ROE: CRS's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


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 ($499.4M).

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 (41.8%) is considered high.

Reducing Debt: CRS's debt to equity ratio has reduced from 43.6% to 41.8% over the past 5 years.

Debt Coverage: CRS's debt is well covered by operating cash flow (31%).

Interest Coverage: CRS's interest payments on its debt are well covered by EBIT (11x 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 2x debt).


Next Steps

Dividend

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

1.82%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: CRS's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CRS's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 (21.5%), 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?

1.6yrs

Average management tenure


CEO

Tony Thene (59yo)

4.6yrs

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 ($USD4.75M) is about average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tony Thene
President4.6yrsUS$4.75m0.33% $7.0m
Timothy Lain
VP & CFO1.4yrsUS$1.06m0.039% $828.1k
James Dee
VP, General Counsel9.4yrsUS$1.17m0.076% $1.6m
Brian Malloy
Chief Commercial Officer & VP3.9yrsUS$1.11m0.043% $903.1k
Michael Murtagh
VP & Group President of Specialty Alloys Operations (SAO)1.6yrsUS$1.26m0.030% $626.7k
Elizabeth Socci
VP, Controller & Chief Accounting Officer1.4yrsno data0.010% $210.6k
David Graf
Chief Technology Officer1.4yrsno datano data
James Johnson
Chief Information Officer & VP6.7yrsno datano data
Stephen Peskosky
Vice President of Corporate Development0yrsno datano data
Rachelle Thompson
Chief Human Resources Officer0.5yrsno datano data

1.6yrs

Average Tenure

53yo

Average Age

Experienced Management: CRS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tony Thene
President4.6yrsUS$4.75m0.33% $7.0m
Steven Karol
Independent Director8yrsUS$221.99k1.19% $25.0m
Gregory Pratt
Independent Chairman10.3yrsUS$390.67k0.0097% $202.9k
Stephen Ward
Independent Director19.1yrsUS$247.87k0.045% $946.8k
Kathleen Ligocki
Independent Director2.3yrsUS$200.34kno data
Robert McMaster
Independent Director12.8yrsUS$220.05k0.0074% $156.4k
Jeffrey Wadsworth
Independent Director14.1yrsUS$232.10k0.00042% $8.8k
I. Inglis
Independent Lead Director0yrsUS$252.24k0.0075% $158.3k
Viola Acoff
Independent Director1yrsUS$156.99kno data
Anastasios Hart
Independent Director1yrsUS$156.99kno data

8.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: CRS's board of directors are considered experienced (8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$2.102b
  • Shares outstanding: 47.80m
  • 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 Analysis2020/02/23 00:27
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.