Home Sectors Industrials Present Valuation: Carpenter Technology Corporation (NYSE: CRS)

Present Valuation: Carpenter Technology Corporation (NYSE: CRS)


Carpenter Technology Corporation is part of the industrial products industry and trades as part of the industrials sector. Carpenter Technology Corp manufactures, fabricates and distributes specialty metals that include nickel, cobalt, titanium, and chromium. It operates in two business segments: Specialty Alloys Operations and Performance Engineered Products.

Previous Intraday Trading Performance:

The CRS stock showed a previous change of 3.80% with an open at 41.82 and a close of 42.65. It reached an intraday high of 42.85 and a low of 41.65.

SeekingAlpha:  Universal Stainless & Alloy Products Badly Needs To Regain Momentum With Its Premium Alloy Offerings


The stock has a market cap of $2.0b with 47.4m shares outstanding, of which the float is 44.9m shares. Trading volume reached 330,375 shares compared to its average volume of 290,055 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Carpenter Technology Corporation shares returned 1.79% and in the past 30 trading days it returned -15.51%. Over three months, it changed -10.84%. In one year it has changed -25.45% and within that year its 52-week high was 60.78 and its 52-week low was 32.77. CRS stock is 30.14% above its 52 Week Low.

Our calculations show a 200 day moving average of 47.42 and a 50 day moving average of 47.39. Currently CRS stock is trading -10.06% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Carpenter Technology Undervalued And Making Progress, But Where’s The Spark?


The last annual fiscal EPS for the company was reported at 3.92 that ended on 30th of June 2018, which according to the previous close, that is a PE of 10.88. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.75. The TTM EPS is 2.67, which comes to a TTM PE of 15.97. Historically, the PE high was 215.90 and the PE low was 10.88. If the stock reached its PE low, that would represent a price of 29.06, which is a decrease of -31.87%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/25/2019): 1.05
4thQtr of 2018 (Reported on 01/31/2019): 0.73
3rdQtr of 2018 (Reported on 10/24/2018): 0.65
2ndQtr of 2018 (Reported on 08/02/2018): 0.88
1stQtr of 2018 (Reported on 04/26/2018): 0.63

The dividend per share is currently 0.80, which is a dividend yield of 1.88%. Also, the payout ratio is 29.96%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 53.08, which means it is possibly undervalued and has a margin of safety of 19.66%.

Indicators to Watch:

Short-interest was 1,252,700, which was 2.64% of shares outstanding. The short-interest ratio or days-to-cover ratio was 4.52. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 2.44.

SeekingAlpha:  Carpenter Technology Undervalued And Making Progress, But Where’s The Spark?

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 11.35%, return on assets is 5.34%, profit margin is 7.16%, price-to-sales is 0.83 and price-to-book is 1.25.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 2  :Past Performance Score
 4  :Financial Strength Score
 4  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.