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:
We started the process of determining a valid price forecast for Crane Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Crane Co ranked in the 51th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 15.83%. The most interesting components of our discounted cash flow analysis for Crane Co ended up being:
Crane Co's weighted average cost of capital (WACC) is 9%; for context, that number is higher than 56.25% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 57.45% of stocks in its sector (Industrials).
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 FCN, KEX, HII, KNX, and NOC.
I’ve had my ups and downs with Smiths Group (OTCPK:SMGZY) over the years. While I’ve liked the company’s decision to cull less competitive businesses, refocus on free cash flow, and reinvest in R&D, operating leverage has been wobbly and repeated attempts to sell the Medical business have gone nowhere due...
Stephen Simpson, CFA on Seeking Alpha | September 28, 2020
STAMFORD, Conn.--(BUSINESS WIRE)--Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported second quarter 2020 GAAP earnings per diluted share (EPS) of $0.25, compared to $1.50 in the second quarter of 2019. Excluding Special Items, second quarter 2020 EPS was $0.64, compared to $1.58 in the second quarter of 2019. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.) Second
STAMFORD, Conn.--(BUSINESS WIRE)--Crane Co., a diversified manufacturer of highly engineered industrial products, today announced its regular quarterly dividend of $0.43 per share for the third quarter of 2020. The dividend is payable on September 9, 2020 to shareholders of record as of the close of business on August 31, 2020. Crane Co. is a diversified manufacturer of highly engineered industrial products. Founded in 1855, Crane Co. provides products and solutions to customers in the chemical