Crown Holdings, Inc.
Crown Holdings, Inc. Fundamental Analysis
Crown Holdings, Inc. (CCK) shows moderate financial fundamentals with a PE ratio of 17.72, profit margin of 5.96%, and ROE of 25.41%. The company generates $12.5B in annual revenue with weak year-over-year growth of -1.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CCK's fundamental strength across five key dimensions:
Efficiency Score
WeakCCK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCCK trades at attractive valuation levels.
Growth Score
WeakCCK faces weak or negative growth trends.
Financial Health Score
ModerateCCK shows balanced financial health with some risks.
Profitability Score
ModerateCCK maintains healthy but balanced margins.
Key Financial Metrics
Is CCK Expensive or Cheap?
P/E Ratio
CCK trades at 17.72 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CCK's PEG of -0.84 indicates potential undervaluation.
Price to Book
The market values Crown Holdings, Inc. at 4.36 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.00 times EBITDA. This is generally considered low.
How Well Does CCK Make Money?
Net Profit Margin
For every $100 in sales, Crown Holdings, Inc. keeps $5.96 as profit after all expenses.
Operating Margin
Core operations generate 13.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.41 in profit for every $100 of shareholder equity.
ROA
Crown Holdings, Inc. generates $5.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Crown Holdings, Inc. produces operating cash flow of $1.53B, showing steady but balanced cash generation.
Free Cash Flow
Crown Holdings, Inc. produces free cash flow of $1.11B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.66 in free cash annually.
FCF Yield
CCK converts 8.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.99
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How CCK Stacks Against Its Sector Peers
| Metric | CCK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.72 | 25.25 | Better (Cheaper) |
| ROE | 25.41% | 1170.00% | Weak |
| Net Margin | 5.96% | 742.00% | Weak |
| Debt/Equity | 1.99 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.03 | 9.19 | Neutral |
| ROA | 5.16% | -6467.00% (disorted) | Weak |
CCK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Crown Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.63%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-6.62%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
15.12%
Industry Style: Cyclical, Growth, Discretionary
High Growth