Carpenter Technology Corp

Industrials
Steel/Iron Ore
www.carpentertechnology.com

Earnings Score
Moat Score
Safety Score

Market Cap $9.18B
PE 40
Debt $694.50M
Cash $150.20M
EV $9.73B
FCF $206.20M

Earnings

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Sales & Net Margins

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Earnings	$227.40M
EBIT	$367.70M
ROE	14%
ROA	11%
FCF	$206.20M
Equity	$1.66B
Growth Stability	-193%
PE	40.39
PEG	2.51
PB	5.53
P/FCF	44.54
P/S	3.25
Price/Cash	0.02
Debt/Equity	0.42
Debt/FCF	3.37
Net Margins	12%
Gross Margins	23%
Op. Margins	13%
Earnings CAGR	3%
Sales Growth YoY	10%
Sales Growth QoQ	-10%
Sales CAGR	3%
FCF CAGR	1%
Equity CAGR	2%
Earnings Stability	0.02
Earnings Growth YoY	93%
Earnings Growth QoQ	-9%
Earnings CAGR 5Y	16%

Sales CAGR 5Y	9%
FCF CAGR 5Y	5%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	25%
Sales CAGR 3Y	25%
FCF CAGR 3Y	52%
Equity CAGR 3Y	9%
Market Cap	$9.18B
Revenue	$2.83B
Dividend Yield	0%
Payout Ratio	18%
Assets	$3.26B
Total Debt	$694.50M
Cash	$150.20M
Shares Outstanding	49.84M
EV	9.73B
Earnings Score	6%
Moat Score	92%
Safety Score	59%
Final Score	53%
Working Capital	1.15B
Current Ratio	3.84
Gross Profit	$636.50M
Shares Growth 3y	1%
Equity Growth QoQ	2%
Equity Growth YoY	16%

Assets & ROA

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Stockholders Equity & ROE

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Carpenter Technology supplies specialty metals to a variety of end markets, including aerospace and defense, industrial machinery and consumer durables, medical, and energy, among others. With regard to materials, the company generates the majority of its revenue from premium alloys, titanium, and stainless steel. Key value-added product lines are frequently used in applications that require stress tolerance as well as corrosion and heat resistance.

SEC Filings

Direct access to Carpenter Technology Corp (CRS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Carpenter Technology Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Carpenter Technology Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 3%

Stability 2%

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Carpenter Technology Corp Discounted Cash Flow

Fully customizable DCF calculator online for Carpenter Technology Corp.

Years

Calculation mode

= $2.1B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$206M	$207M	$209M	$210M	$211M	$212M	$214M	$215M	$216M	$218M	$219M	$2.2B
DCF		$189M	$172M	$158M	$144M	$132M	$121M	$110M	$101M	$92M	$84M	$844M
Value	$2.1B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	3%	1%	3%	9%	7%	0%	-16%	-3%	2%	7%	12%
ROA	-	2%	3%	6%	8%	1%	-8%	-1%	4%	10%	11%
ROE	-	1%	4%	13%	11%	0%	-16%	-4%	4%	11%	14%

Good Net Margins (11.82%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	3.78	21.43	7.35	10.95	11.95	4.65	-8.11	-10.25	3.89	3.37
Debt over Equity	0.46	0.55	0.55	0.37	0.38	0.5	0.5	0.52	0.5	0.43	0.42
Growth Stability	-	-	-	100%	100%	1%	-193%	-	-	-	-193%

Neutral Debt/FCF ratio (3.37)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.42)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-193%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	-19%	-1%	20%	10%	-8%	-32%	24%	39%	8%	9%
Earnings YoY growth	-	-81%	316%	301%	-11%	-99%	-15K%	-79%	-215%	231%	16%
Equity YoY growth	-	-17%	8%	24%	2%	-5%	-4%	-4%	5%	17%	1%
FCF YoY growth	-	44%	-81%	141%	-30%	16%	148%	-157%	-21%	-364%	5%