Crown Holdings, Inc. (CCK) stock analysis

P/E below its 5-year median

Crown's P/E of 17.0 is below its own 5-year median of 20.7.

P/E below the industry

Crown's P/E of 17.0 is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 22.3.

EV/EBITDA below its 5-year median

Crown's EV/EBITDA of 11.5 is below its 5-year median of 12.5.

P/B above the industry

Crown's price-to-book of 4.49 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 2.80.

Trading below fair value

The share price of $122.02 is below our fair value estimate of $140.47.

Margin of safety under 20%

The price is 13.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -16.0% over the last twelve months, against a 5-year average of 5.0% a year.

Growing faster than the industry

Revenue grew 13.4% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 10.2%.

Guidance raised

Crown raised its 2026 adjusted diluted earnings per share outlook on Jul 20, 2026.

Gross margin slipping

Gross margin was 20.2% over the last twelve months, against 22.3% a year earlier.

Return on equity under 15%

Return on equity was 26.7% over the last twelve months and averaged 14.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 15.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Crown's return on equity of 26.7% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 9.0%.

Earnings grew over 5 years

Net income grew 5.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 5.8% over the last twelve months, against a 5-year average of 2.8%.

Net margin above the industry

Crown's net margin of 5.8% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 4.5%.

High debt

Debt is 199% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 373% five years ago to 199%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 26.5% of total debt.

Interest not well covered

Operating income covers interest expense 4.2 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.14 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.07; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Crown paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Crown yields 0.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Covered by earnings

Dividends take 18.2% of net income.

Covered by free cash flow

Dividends take 14.4% of free cash flow.