Crane Company
Crane Company Fundamental Analysis
Crane Company (CR) shows moderate financial fundamentals with a PE ratio of 32.05, profit margin of 15.90%, and ROE of 19.11%. The company generates $2.3B in annual revenue with strong year-over-year growth of 14.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CR's fundamental strength across five key dimensions:
Efficiency Score
WeakCR struggles to generate sufficient returns from assets.
Valuation Score
ModerateCR shows balanced valuation metrics.
Growth Score
ExcellentCR delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCR maintains a strong and stable balance sheet.
Profitability Score
ExcellentCR achieves industry-leading margins.
Key Financial Metrics
Is CR Expensive or Cheap?
P/E Ratio
CR trades at 32.05 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CR's PEG of 0.32 indicates potential undervaluation.
Price to Book
The market values Crane Company at 5.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.27 times EBITDA. This signals the market has high growth expectations.
How Well Does CR Make Money?
Net Profit Margin
For every $100 in sales, Crane Company keeps $15.90 as profit after all expenses.
Operating Margin
Core operations generate 18.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.11 in profit for every $100 of shareholder equity.
ROA
Crane Company generates $9.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Crane Company produces operating cash flow of $398.58M, showing steady but balanced cash generation.
Free Cash Flow
Crane Company generates strong free cash flow of $345.08M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.99 in free cash annually.
FCF Yield
CR converts 2.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How CR Stacks Against Its Sector Peers
| Metric | CR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.05 | 26.76 | Worse (Expensive) |
| ROE | 19.11% | 1300.00% | Weak |
| Net Margin | 15.90% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.56 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 5.53 | 10.68 | Strong Liquidity |
| ROA | 9.51% | -1545134.00% (disorted) | Weak |
CR outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Crane Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-32.14%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
131.13%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-27.60%
Industry Style: Cyclical, Value, Infrastructure
Declining