Carpenter Technology Corporation (CRS) Company Bio
Carpenter Technology Corporation produces and distributes specialty alloys, including stainless steels, titanium alloys and superalloys, and various engineered products. The company was founded in 1889 and is based in Wyomissing, Pennsylvania.
CRS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Carpenter Technology Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Carpenter Technology Corp ranked in the 63th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 105%. In terms of the factors that were most noteworthy in this DCF analysis for CRS, they are:
Carpenter Technology Corp's effective tax rate, as measured by taxes paid relative to net income, is at 24 -- greater than 86.79% of US stocks with positive free cash flow.
Carpenter Technology Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.89. This coverage rate is greater than that of merely 15.95% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 12. This value is greater than 82.52% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HDS, CBZ, KFY, TPC, and LHX can be thought of as valuation peers to CRS, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Generated $137 million of operating cash flow; free cash flow of $100 millionTotal liquidity of $417 million including $193 million of cash on handExecuted portfolio and cost initiatives expected to deliver $60-$70 million in annual cost savingsPHILADELPHIA, July 30, 2020 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today announced financial results for the fiscal fourth quarter and year ended June 30, 2020. For the quarter, the Company reported a net loss of $118.4 million, or $2.46 loss per diluted share. Excluding special items, adjusted loss per diluted share was $0.31 in the quarter.“We generated strong free cash flow in the quarter which further strengthened our already healthy liquidity position via a significant reduction in inventory,” said T...
Sunrun (NASDAQ: RUN). Well, all three of these stocks are making big moves on the stock market today: IAA and Carpenter are both up more than 10% in early trading, but Sunrun is down more than 10%. At 12:15 p.m. EDT, shares of IAA are continuing to climb -- up 13.7% -- and Carpenter is at least holding onto the majority of its early gains (up 7.4%).
Moody's Investors Service, ("Moody's") assigned a (P)Ba3 rating for senior unsecured debt to Carpenter Technology Corporation's (Carpenter) Well Known Seasoned Issuer (WKSI) shelf registration. All other ratings are unchanged.
Source Trading at price levels not seen since 2010, Carpenter Technology Corporation (CRS) appears to be trading, on paper, at cheap valuation multiples. Carpenter Technology is a manufacturer and distributor of specialty metals, such as specialty alloys, including titanium, nickel, and cobalt, as well as alloys specifically engineered for additive...