Crane Company provides products and solutions to customers in the hydrocarbon processing, petrochemical, chemical, power generation, unattended payment, automated merchandising, aerospace, electronics, transportation and other markets. The Company has four business segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics and Engineered Materials. The company was founded in 1855 and is based in Stamford, Connecticut.
CR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Crane Co. To summarize, we found that Crane Co ranked in the 35th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Crane Co, consider:
Interest coverage, a measure of earnings relative to interest payments, is 5.06 -- which is good for besting 56% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
Crane Co's weighted average cost of capital (WACC) is 9%; for context, that number is higher than just 19.7% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CR, try ECHO, HLIO, HQI, VMI, and XYL.
Crane Co. posted lower-than-expected results in the fourth quarter sending its shares down 2.7% in Monday’s extended trading session. The industrial product manufacturer reported a year-over-year decline in earnings and revenue due to the negative impact of the COVID-19 pandemic. Crane’s (CR) 4Q earnings of $1 per share declined 36.7% year-over-year and came in below the Street's estimates of $1.10 per share. Its revenues of $726.4 million missed the consensus estimates of $736.2 million and decreased by 13% year-over-year. The company’s core sales declined by 21%. Meanwhile, acquisition and foreign currency exchange rates positively impacted sales. As for 2021, Crane expects to generate adjusted earnings of between $4.90 - $5.