Crane NXT, Co. (CXT) stock analysis

P/E above its 5-year median

Crane NXT's P/E of 26.2 is above its own 5-year median of 18.7.

P/E above the industry

Crane NXT's P/E of 26.2 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 22.3.

EV/EBITDA below its 5-year median

Crane NXT's EV/EBITDA of 8.9 is below its 5-year median of 9.4.

P/B below the industry

Crane NXT's price-to-book of 2.58 is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 2.80.

Trading above fair value

The share price of $57.97 is above our fair value estimate of $55.63.

Margin of safety under 20%

The price is 4.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -11.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -17.1% over the last twelve months, against a 5-year average of -4.3% a year.

Growing faster than the industry

Revenue grew 17.5% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 11.5%.

Guidance lowered

Crane NXT lowered its Full Year 2026 Corporate Expense outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 41.2% over the last twelve months, against 43.2% a year earlier.

Return on equity under 15%

Return on equity was 10.2% over the last twelve months and averaged 20.0% 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

Crane NXT's return on equity of 10.2% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 9.0%.

Earnings shrank over 5 years

Net income shrank 4.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.9% over the last twelve months, against a 5-year average of 12.6%.

Net margin below the industry

Crane NXT's net margin of 6.9% is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 7.8%.

Low debt

Debt is 17.9% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 133% five years ago to 17.9%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 126% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.31 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.87; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Crane NXT paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% 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 NXT yields 1.2%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Covered by earnings

Dividends take 31.9% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.