Breaking Down Crane Holdings, Co. (CR) Financial Health: Key Insights for Investors

Are you looking to understand the financial health of Crane Holdings, Co. (CR) and make informed investment decisions? In 2024, Crane Holdings demonstrated solid financial performance, with full year GAAP EPS from continuing operations of $4.60, compared to $3.06 in 2023. Adjusted EPS from continuing operations reached $4.88, a notable increase from $3.80 the previous year. Sales also saw a significant rise of 14%, driven by 8% core sales growth and a 6% contribution from acquisitions. How can these figures guide your investment strategy? Keep reading to find out more.

Crane Holdings, Co. (CR) Revenue Analysis

Crane Holdings, Co. (CR) operates as a global manufacturer of engineered industrial products. A detailed look into their revenue streams provides key insights for investors. Analyzing the sources, growth, and segment contributions offers a comprehensive understanding of the company’s financial health. Here’s a breakdown:

Crane Holdings, Co. reported total net sales of $3.57 billion for the fiscal year 2024. This showcases the overall revenue generated by the company across its various business segments.

Breakdown of Primary Revenue Sources:

Crane Holdings, Co.'s revenue is derived from several key business segments. These include:

• Aerospace & Electronics: This segment focuses on providing critical components and systems for the aerospace, defense, and electronics industries.
• Process Flow Technologies: This segment offers highly engineered products and solutions for fluid handling applications.
• Engineered Materials: This segment specializes in manufacturing various engineered materials used in diverse applications.

Year-over-Year Revenue Growth Rate:

Crane Holdings, Co. experienced a revenue increase of 10.4% in 2024, with sales reaching $3.57 billion compared to $3.23 billion in the prior year.

Contribution of Different Business Segments to Overall Revenue:

For fiscal year 2024, the contributions from different segments are as follows:

• Aerospace & Electronics: Sales were $1.24 billion in 2024, up 14% compared to 2023.
• Process Flow Technologies: Sales were $1.41 billion in 2024, up 12% compared to 2023.
• Engineered Materials: Sales were $918.4 million in 2024, up 3.4% compared to 2023.

A table summarizing the revenue contributions by segment for the year 2024 is provided below:

Analysis of Significant Changes in Revenue Streams:

The increase in revenue for Crane Holdings, Co. can be attributed to several factors, including organic growth and strategic acquisitions. The Aerospace & Electronics segment saw substantial growth due to increased demand in the aerospace and defense sectors. The Process Flow Technologies segment benefited from strong performance in key markets, while the Engineered Materials segment experienced steady growth driven by diverse applications.

For further insights into Crane Holdings, Co.'s mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Crane Holdings, Co. (CR).

Crane Holdings, Co. (CR) Profitability Metrics

Analyzing Crane Holdings, Co.'s financial health involves a detailed look at its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets.

Here's a breakdown of key profitability aspects:

• Gross Profit Margin: This ratio shows the percentage of revenue remaining after deducting the cost of goods sold (COGS). A higher gross profit margin indicates that Crane Holdings, Co. is efficient in managing its production costs.
• Operating Profit Margin: The operating profit margin reveals the percentage of revenue remaining after deducting both COGS and operating expenses. It reflects the company's efficiency in managing its core business operations.
• Net Profit Margin: This is the percentage of revenue that remains as net income after all expenses, including interest and taxes, are deducted. It represents the overall profitability of Crane Holdings, Co..

To assess Crane Holdings, Co.'s profitability effectively, it's essential to examine these margins over several periods to identify trends. Increasing margins generally suggest improving efficiency and profitability, while declining margins may signal operational challenges.

A comparison against industry averages provides context for Crane Holdings, Co.'s profitability. If its margins are higher than the industry average, it indicates a competitive advantage. Conversely, lower margins may suggest areas needing improvement.

Operational efficiency is crucial for profitability. Effective cost management and favorable gross margin trends are indicators of strong operational performance. Monitoring these aspects helps in understanding how well Crane Holdings, Co. controls its expenses and maximizes its revenue.

Crane Holdings, Co. reported the following key financial figures for the fiscal year 2024:

In 2024, Crane Holdings' net sales from continuing operations totaled $3.38 billion. The operating profit was reported at $437.1 million, yielding an operating margin of 12.9%. Net income from continuing operations reached $275.9 million, or $4.76 per diluted share. Adjusted net income from continuing operations was $325.6 million, or $5.62 per diluted share.

Here is an overview of Crane Holdings, Co.'s financial performance in 2024:

For more insights into the company's strategic direction, see Mission Statement, Vision, & Core Values of Crane Holdings, Co. (CR).

Crane Holdings, Co. (CR) Debt vs. Equity Structure

Understanding how Crane Holdings, Co. (CR) manages its debt and equity is crucial for assessing its financial strategy and risk profile. This involves looking at the company's debt levels, key ratios, and financing activities.

Crane Holdings, Co. (CR) reported total debt of $1.35 billion as of December 31, 2024. This includes both:

• Long-term debt: $1.33 billion
• Short-term debt: $20 million

The debt-to-equity ratio is a vital metric for understanding a company's financial leverage. For Crane Holdings, Co. (CR), the debt-to-equity ratio as of December 31, 2024, was approximately 0.71. This ratio indicates that for every dollar of equity, the company has $0.71 of debt. Compared to the industry average, which varies, this ratio provides insight into whether Crane Holdings, Co. (CR) is more or less leveraged than its peers.

Recent financial activities provide insight into Crane Holdings, Co. (CR)'s debt management strategy. For example, in 2024, Crane Holdings, Co. (CR) issued $500 million in senior notes due 2034. These notes carry an interest rate of 5.25% and are used for general corporate purposes, including repaying existing debt and funding acquisitions. The company's credit ratings are also essential to consider. As of the latest reports, Crane Holdings, Co. (CR)'s credit rating is Baa3 from Moody's and BBB- from Standard & Poor's, both with a stable outlook. These ratings reflect the agencies' assessment of Crane Holdings, Co. (CR)'s ability to meet its financial obligations.

Crane Holdings, Co. (CR) strategically balances debt and equity to finance its operations and growth. While debt can provide leverage and potentially increase returns on equity, it also introduces financial risk. Equity financing, on the other hand, is generally less risky but can dilute ownership. Crane Holdings, Co. (CR)'s approach involves:

• Maintaining a mix of debt and equity to optimize its capital structure.
• Issuing debt when interest rates are favorable.
• Using equity to strengthen its balance sheet and fund strategic initiatives.

For a deeper dive into Crane Holdings, Co. (CR)'s financial health, check out: Breaking Down Crane Holdings, Co. (CR) Financial Health: Key Insights for Investors

Crane Holdings, Co. (CR) Liquidity and Solvency

Analyzing Crane Holdings, Co.'s financial health involves a close examination of its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations.

Assessing Crane Holdings, Co.'s Liquidity:

To assess Crane Holdings, Co.'s liquidity, the following key metrics and financial statements are analyzed:

• Current and Quick Ratios: These ratios provide insights into Crane Holdings, Co.'s ability to cover its short-term liabilities with its short-term assets.
• Analysis of Working Capital Trends: Monitoring the trends in Crane Holdings, Co.'s working capital (the difference between current assets and current liabilities) can reveal potential liquidity issues.
• Cash Flow Statements Overview: A review of Crane Holdings, Co.'s cash flow statements, specifically focusing on operating, investing, and financing cash flow trends, is essential for understanding the company's liquidity position.

Current and Quick Ratios (Liquidity Positions)

As of the fiscal year 2023, Crane Holdings, Co. reported a current ratio of 1.7 and a quick ratio of 1.1. These ratios indicate the company's capacity to cover short-term liabilities with its current assets. The current ratio, calculated by dividing current assets by current liabilities, shows that Crane Holdings has $1.70 in current assets for every $1.00 of current liabilities. The quick ratio, which excludes inventories from current assets, is 1.1, suggesting that the company has $1.10 in readily convertible assets for each dollar of current liabilities.

Analysis of Working Capital Trends

Crane Holdings, Co.'s working capital, which is the difference between its current assets and current liabilities, was $723.8 million as of December 31, 2023. This indicates a strong short-term financial position. Monitoring the trends in working capital provides insights into the company's operational efficiency and liquidity management.

Cash Flow Statements Overview

The cash flow statement is crucial for understanding the movement of cash both into and out of Crane Holdings, Co. Here’s a snapshot for the fiscal year 2023:

• Net Cash from Operating Activities: $366.1 million, showing the cash generated from Crane Holdings, Co.'s core business operations.
• Net Cash used for Investing Activities: $148.8 million, reflecting investments made by the company.
• Net Cash from Financing Activities: $18.1 million, indicating how Crane Holdings, Co. funds its operations and returns capital to investors.

Potential Liquidity Concerns or Strengths

Crane Holdings, Co. exhibits a strong liquidity position, supported by healthy current and quick ratios, substantial working capital, and positive cash flow from operating activities. These indicators suggest that the company is well-equipped to meet its short-term obligations. However, it is important to monitor these metrics over time and in relation to industry peers to ensure continued financial health.

Navigate through comprehensive insights and analysis on Crane Holdings, Co.'s financial health: Breaking Down Crane Holdings, Co. (CR) Financial Health: Key Insights for Investors

Crane Holdings, Co. (CR) Valuation Analysis

Determining whether Crane Holdings, Co. (CR) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Let's delve into these critical areas to provide a clearer picture for investors.

One of the primary methods for assessing valuation involves examining ratios such as the price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA). These ratios offer insights into how the market values Crane Holdings, Co. relative to its earnings, book value, and operational cash flow. Comparing these metrics against industry peers and Crane Holdings, Co.'s historical averages can reveal potential overvaluation or undervaluation.

Analyzing stock price trends over the last 12 months (or longer) provides a historical context. Significant price appreciation might suggest overvaluation, while a declining price could indicate undervaluation, assuming the company's fundamentals remain strong. Consider external factors like market conditions and industry trends that may influence stock performance.

If applicable, dividend yield and payout ratios are important for income-focused investors. A high dividend yield might make the stock attractive, but it's crucial to ensure the payout ratio is sustainable. An unsustainably high payout ratio could signal potential dividend cuts, impacting investor confidence.

Finally, assessing analyst consensus on Crane Holdings, Co.'s stock valuation offers another perspective. A consensus of 'buy' ratings suggests analysts believe the stock is undervalued, while 'hold' or 'sell' ratings may indicate overvaluation or potential downside risks. It is important to consider the source and rationale behind these ratings.

Here's a simplified example of how these elements might be considered. (Note: This is a hypothetical example and not based on live data):

Keep in mind that this is just an illustrative example. A comprehensive valuation analysis requires real-time data, in-depth research, and a thorough understanding of Crane Holdings, Co.'s business model and competitive landscape.

For more insights into Crane Holdings, Co. (CR) and its investors, check out: Exploring Crane Holdings, Co. (CR) Investor Profile: Who’s Buying and Why?

Crane Holdings, Co. (CR) Risk Factors

Investing in Crane Holdings, Co. (CR) involves navigating a complex landscape of potential risks, both internal and external. Understanding these factors is crucial for investors aiming to make informed decisions.

Industry Competition: Crane Holdings, Co. (CR) faces significant competition across its various business segments. This competition can put pressure on pricing and margins, potentially impacting profitability. Competitors may emerge with disruptive technologies or business models, further intensifying the competitive environment.

Regulatory Changes: Changes in regulations, both domestically and internationally, can pose a risk to Crane Holdings, Co. (CR)'s operations. These changes may relate to environmental standards, safety requirements, or trade policies, and could increase compliance costs or restrict market access.

Market Conditions: Economic downturns or shifts in market demand can adversely affect Crane Holdings, Co. (CR)'s financial performance. Fluctuations in commodity prices, currency exchange rates, and interest rates can also introduce volatility and uncertainty.

Operational Risks: Operational risks encompass a range of potential disruptions, including supply chain disruptions, production inefficiencies, and cybersecurity threats. These risks can impact Crane Holdings, Co. (CR)'s ability to meet customer demand and maintain operational stability.

Financial Risks: Financial risks include factors such as debt levels, access to capital, and creditworthiness. Crane Holdings, Co. (CR)'s ability to manage its debt obligations and maintain access to funding is critical for its financial health.

Strategic Risks: Strategic risks relate to Crane Holdings, Co. (CR)'s ability to execute its business strategy and adapt to changing market conditions. These risks may involve acquisitions, divestitures, or investments in new technologies. Unsuccessful strategic initiatives can lead to financial losses and missed opportunities.

Crane Holdings, Co. (CR) discusses risk factors in its filings with the Securities and Exchange Commission (SEC). For example, the 2024 10-K filing highlights various risks that could affect the company’s future results. These risks are categorized and discussed in detail to provide investors with a comprehensive understanding of potential challenges.

Mitigation strategies often involve diversification, hedging, and compliance programs. Crane Holdings, Co. (CR) may also implement risk management systems to identify, assess, and mitigate potential risks across its operations.

Investors can stay informed about these risks by regularly reviewing Crane Holdings, Co. (CR)'s SEC filings, earnings reports, and investor presentations. Monitoring industry trends and macroeconomic developments can also provide valuable insights into potential risks and opportunities.

Here's a brief overview of potential risks:

• Economic Downturns: Reduced demand in key markets.
• Regulatory Hurdles: Increased compliance costs.
• Cybersecurity Threats: Potential data breaches and operational disruptions.
• Supply Chain Issues: Disruptions affecting production and delivery.

Investors are encouraged to consider these risks carefully when evaluating Crane Holdings, Co. (CR) as an investment.

Learn more about Crane Holdings, Co. (CR) investor profile: Exploring Crane Holdings, Co. (CR) Investor Profile: Who’s Buying and Why?

Crane Holdings, Co. (CR) Growth Opportunities

Crane Holdings, Co. (CR) is focusing on several key areas to drive future growth. These include product innovations, strategic market expansions, and acquisitions that complement their existing portfolio. Analysis of these drivers provides insights into the company's potential for revenue and earnings growth.

Key growth drivers for Crane Holdings, Co. (CR) include:

• Product Innovation: Crane Holdings, Co. (CR) consistently invests in research and development to launch new and improved products.
• Market Expansion: Expanding into new geographic markets and industries represents a significant growth opportunity.
• Strategic Acquisitions: Acquisitions of companies with complementary technologies or market positions enhance Crane Holdings, Co. (CR)'s overall capabilities.

Future revenue growth projections and earnings estimates suggest a positive outlook, supported by these strategic initiatives. Specifically, analysts project continued growth in key segments, contributing to overall financial performance. These projections consider various factors, including market trends, competitive landscape, and company-specific strategies.

Strategic initiatives and partnerships are essential components of Crane Holdings, Co. (CR)'s growth strategy. These collaborations enhance the company's ability to innovate and expand its market reach. For instance, partnerships with technology providers can accelerate the development of new products, while distribution agreements can facilitate entry into new markets.

Crane Holdings, Co. (CR) possesses several competitive advantages that position it for sustained growth:

• Strong Brand Reputation: A well-established brand builds trust and customer loyalty.
• Technological Expertise: Proprietary technologies and innovative solutions differentiate Crane Holdings, Co. (CR) from competitors.
• Global Presence: A diversified geographic footprint reduces reliance on any single market and provides access to growth opportunities worldwide.

Here's a look at Crane Holdings, Co. (CR)'s recent financial highlights:

These factors collectively contribute to Crane Holdings, Co. (CR)'s growth prospects, making it an interesting company for investors. For more detailed insights, read Breaking Down Crane Holdings, Co. (CR) Financial Health: Key Insights for Investors.