After reviewing Crane’s May 14 investor day presentation, we reiterate our narrow moat rating and raise our fair value estimate to $120 from $110. Our more optimistic midcycle profitability assumptions drive our fair value estimate increase.
Crane owns a portfolio of moatworthy businesses that enjoy leading share in niche end markets.
We expect the company to continue to pursue strategic acquisitions, and poor execution of its M&A strategy could destroy shareholder value.
|
Metric
|
CR
|
EMR
|
ETN
|
|---|---|---|---|
Price/Earnings (Normalized) | 34.25 | 21.86 | 34.29 |
Price/Book Value | 5.92 | 3.09 | 6.85 |
Price/Sales | 3.93 | 3.92 | 5.60 |
Price/Cash Flow | 46.31 | 20.10 | 33.66 |
|
Metric
|
CR
|
EMR
|
ETN
|
|---|---|---|---|
Quick Ratio | 1.17 | 0.68 | 0.93 |
Current Ratio | 2.18 | 1.18 | 1.56 |
Interest Coverage | 12.69 | 8.06 | 31.80 |
|
Metric
|
CR
|
EMR
|
ETN
|
|---|---|---|---|
Return on Assets (Normalized) | 8.67% | 5.56% | 10.37% |
Return on Equity (Normalized) | 16.00% | 12.76% | 21.01% |
Return on Invested Capital (Normalized) | 12.69% | 6.72% | 14.16% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
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ITW
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PH
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EMR
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CMI
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OTIS
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IR
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XYL
| Xylem Inc | Sdnszfnf | Mpdbhm | $34.7 Bil | |
ROK
| Rockwell Automation Inc | Gxgkqxkgs | Jxpnl | $30.8 Bil |
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