Crane Company (CR)
Valuation Overview•Is Crane Company Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
High-quality fundamentals with a strong composite quality score of 75/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
CR demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($514M) and minimal debt risk.
The company demonstrates solid revenue growth (9.1% 3Y CAGR) however, earnings have severely contracted over the same period. The company maintains healthy operational efficiency with a 17.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $696.4M | +8.2% | +9.1% | -4.7% | -1.7% | |
| EBITDA | $128.2M | — | +130.0% | — | — | |
| Net Income | $67.1M | +24.4% | -3.0% | — | +4.8% | |
| EPS (Diluted) | $1.14 | +24.0% | -3.7% | +15.2% | +4.9% | |
| Free Cash Flow | -$143.9M | +44.5% | — | +4.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 41.6% | 41.1% | 38.8% | 37.2% |
| Operating Margin | 17.3% | 16.2% | 11.9% | 10.9% |
| Net Margin | 13.4% | 14.5% | 17.4% | 11.8% |
| FCF Margin | 10.7% | 12.0% | 6.0% | 7.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.44 | $1.65 | +14.6% | ||
| Q1'26 | $1.43 | $1.53 | +7.0% | ||
| Q4'25 | $1.49 | $1.64 | +10.1% | ||
| Q3'25 | $1.34 | $1.49 | +11.2% | ||
| Q2'25 | $1.31 | $1.39 | +6.1% | ||
| Q1'25 | $1.19 | $1.26 | +5.9% | ||
| Q4'24 | $1.32 | $1.38 | +4.5% | ||
| Q3'24 | $1.24 | $1.30 | +4.8% |
Total return is +21.0% (1Y), lagging the benchmark by -4.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +14.9% | +5.6% | — |
| 1Y | +21.0% | -4.0% | +0.5% |
| 3YCAGR | +39.5% | +18.7% | +3.3% |
| 5YCAGR | +20.6% | +7.5% | +6.9% |
| 10YCAGR | +14.5% | +0.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Crane Company (CR) valuation, health, and returns.
Crane Company is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -48.2% downside from DCF intrinsic value of $111.36)
Crane Company has multiple valuation anchors: DCF Intrinsic Value: $111.36 | Peer Relative Fair Value: $191.02 | Wall Street Analyst Target: $226.50 (implying +5.4% upside). A convergence of these signals offers higher conviction.
Crane Company displays good financial health with a composite quality score of 75/100, supported by a Altman Z-Score of 6.0 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 19.9%.
Crane Company pays a 0.4% dividend yield, covered by a 14% payout ratio with 1 years of growth, supplemented by a 0.0% buyback yield.
Crane Company's current growth trajectory is Stable. The company achieved +8.2% 1Y revenue growth and +24.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +9.1%.
Wall Street consensus is Buy based on 28 analysts, beating EPS expectations in 100% of recent quarters with a 21-quarter streak. The consensus price target represents a +5.4% change from current levels.
Investment risks for Crane Company include: -23.5% 1-year max drawdown, high beta (1.33x market volatility). Volatility risk is characterized by a beta of 1.33x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.