Crane Co (CR) stock analysis

P/E above its 5-year median

Crane's P/E of 36.6 is above its own 5-year median of 30.8.

P/E above the industry

Crane's P/E of 36.6 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 22.3.

EV/EBITDA below its 5-year median

Crane's EV/EBITDA of 22.3 is below its 5-year median of 25.6.

P/B above the industry

Crane's price-to-book of 5.44 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 2.80.

Trading above fair value

The share price of $213.15 is above our fair value estimate of $155.62.

Margin of safety under 20%

The price is 37.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 9.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -3.7% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 21.5% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 11.5%.

Guidance lowered

Crane lowered its 2026 Net non-operating expense outlook on Oct 27, 2026.

Gross margin slipping

Gross margin was 41.5% over the last twelve months, against 42.0% a year earlier.

Return on equity over 15%

Return on equity was 16.2% over the last twelve months and averaged 19.1% over five years.

Return on capital over 10%

Return on invested capital was 16.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Crane's return on equity of 16.2% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 9.0%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 12.4% over the last twelve months, against a 5-year average of 17.4%.

Net margin above the industry

Crane's net margin of 12.4% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 7.8%.

High debt

Debt is 41.0% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 46.0% of total debt.

Interest well covered

Operating income covers interest expense 10.0 times.

Short-term assets cover short-term debts

Current assets are 2.61 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.26; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Crane paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% 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; Crane yields 0.5%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 5 fiscal years.

Covered by earnings

Dividends take 16.8% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.