Crown Holdings (CCK) AI Stock Analysis

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Crown Holdings

(NYSE:CCK)

73Outperform

Crown Holdings demonstrates a solid financial foundation with strong profitability and an improving balance sheet. Technical indicators are favorable but caution is warranted due to potential overbought conditions. Valuation is reasonable, and the positive earnings outlook further supports the stock's potential. However, challenges remain in certain segments and external factors like tariffs could pose risks.

Positive Factors

Earnings

Crown Holdings reported better-than-expected earnings across most segments, with 'robust' volumes in Brazil and Europe, and increased volumes and manufacturing efficiencies in the food can business.

Financial Performance

Crown Holdings raised its 2025 adjusted EPS guidance to a range that is ahead of consensus expectations.

Negative Factors

Industry Headwinds

There is concern about rising medium-term headwinds in the beverage can space, such as struggling consumers, global trade, and MAHA.

Segment Performance

Transit Packaging EBIT declined 21% on lower volumes as industrial activity remains sluggish.

Crown Holdings (CCK) vs. S&P 500 (SPY)

Market Cap

$11.34B

Dividend Yield1.04%

Average Volume (3M)1.50M

Price to Earnings (P/E)20.8

Beta (1Y)0.57

Revenue Growth0.87%

EPS Growth34.41%

CountryUS

Employees23,000

SectorConsumer Cyclical

Sector Strength59

IndustryPackaging & Containers

Share Statistics

EPS (TTM)4.65

Shares Outstanding116,964,035

10 Day Avg. Volume1,661,441

30 Day Avg. Volume1,502,778

Financial Highlights & Ratios

PEG Ratio0.61

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.46

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit6.53

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$110.00

Price Target Upside13.47% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering12

Crown Holdings Business Overview & Revenue Model

Company DescriptionCrown Holdings, Inc. is a global leader in the design, manufacture, and sale of packaging products for consumer goods. Specializing in metal packaging for food, beverage, household, and personal care products, Crown Holdings operates across various sectors with a strong emphasis on sustainability and innovation. The company serves a diverse customer base, including some of the world's leading brands, by providing high-quality and environmentally friendly packaging solutions.

How the Company Makes MoneyCrown Holdings makes money primarily through the production and sale of metal packaging products. Its revenue streams are diversified across several sectors, with a significant portion coming from the beverage can segment, which serves the global beverage industry. The company also generates income through its food can and closures business, providing packaging solutions to food manufacturers. Crown Holdings' revenue model is supported by long-term contracts with major consumer goods companies, strategic global manufacturing facilities, and a focus on innovation to meet customer demands for sustainable and efficient packaging solutions.

Crown Holdings Financial Statement Overview

Summary

Crown Holdings exhibits strong financial fundamentals with good profitability margins and an improving balance sheet structure. While cash flow generation is robust, revenue fluctuations pose a challenge. Overall, the company maintains a stable financial position with potential for growth.

Income Statement

Positive

The company has demonstrated a stable gross profit margin and an improvement in net profit margin on a TTM basis, indicating enhanced operational efficiency. However, revenue growth has been inconsistent, showing a decline over the past years. EBIT and EBITDA margins are relatively strong, reflecting efficient cost management despite fluctuating revenues.

Balance Sheet

Positive

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging while maintaining a solid equity position. The equity ratio is reasonable, suggesting a stable financial structure. Return on equity has improved, highlighting better returns for shareholders.

Cash Flow

Positive

Cash flow analysis reveals positive free cash flow growth and a healthy operating cash flow to net income ratio. The company has managed to convert a significant portion of its earnings into cash, although fluctuations in free cash flow indicate potential volatility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
11.80B	12.01B	12.94B	11.39B	11.57B
	Gross Profit
2.54B	2.46B	2.30B	2.37B	2.39B
	EBIT
1.42B	1.27B	1.34B	-171.00M	1.26B
	EBITDA
1.64B	1.73B	1.75B	281.00M	1.45B
	Net Income Common Stockholders
424.00M	450.00M	727.00M	-362.00M	579.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
918.00M	1.31B	550.00M	531.00M	1.17B
	Total Assets
13.85B	15.03B	14.30B	13.88B	16.67B
	Total Debt
6.42B	7.70B	6.98B	6.26B	8.21B
	Net Debt
5.50B	6.39B	6.43B	5.73B	7.04B
	Total Liabilities
10.62B	12.17B	12.01B	11.55B	14.07B
	Stockholders Equity
2.76B	2.41B	1.85B	1.91B	2.20B
Cash Flow		Free Cash Flow
789.00M	660.00M	-36.00M	89.00M	728.00M
	Operating Cash Flow
1.19B	1.45B	803.00M	905.00M	1.31B
	Investing Cash Flow
-12.00M	-804.00M	-642.00M	1.51B	-535.00M
	Financing Cash Flow
-1.53B	116.00M	-25.00M	-2.94B	-239.00M

Crown Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price96.94

Price Trends

50DMA

88.15

Positive

100DMA

86.79

Positive

200DMA

88.52

Positive

Market Momentum

MACD

2.33

Negative

RSI

68.30

Neutral

STOCH

86.35

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCK, the sentiment is Positive. The current price of 96.94 is above the 20-day moving average (MA) of 87.25, above the 50-day MA of 88.15, and above the 200-day MA of 88.52, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 68.30 is Neutral, neither overbought nor oversold. The STOCH value of 86.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCK.

Crown Holdings Risk Analysis

Crown Holdings disclosed 35 risk factors in its most recent earnings report. Crown Holdings reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Crown Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLGN	74 Outperform	$5.87B	21.26	14.52%	1.40%	1.99%	-5.28%
CCK	73 Outperform	$11.34B	20.83	21.30%	1.04%	0.87%	34.41%
BERY	67 Neutral	$7.83B	16.83	21.42%	1.73%	-5.35%	-13.51%
GPK	64 Neutral	$6.58B	10.11	20.62%	1.88%	-6.28%	-7.43%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
AMCR	56 Neutral	$21.49B	16.91	20.71%	5.42%	-2.29%	24.05%
BALL	48 Neutral	$14.59B	―	8.80%	1.55%	-15.64%	-186.66%

* Consumer Cyclical Sector Average

Performance Comparison

CCK

Crown Holdings

96.94

14.63

17.77%

BALL

Ball

51.66

-16.35

-24.04%

GPK

Graphic Packaging

21.81

-4.99

-18.62%

SLGN

Silgan Holdings

54.85

8.91

19.39%

BERY

Berry Global Group

67.58

13.33

24.57%

AMCR

Amcor

9.32

-0.29

-3.02%

Crown Holdings Earnings Call Summary

Earnings Call Date:Apr 28, 2025

(Q1-2025)

% Change Since: 7.98%|

Next Earnings Date:Jul 28, 2025

Earnings Call Sentiment Positive

Crown Holdings delivered a strong first quarter with significant improvements in earnings and segment income, driven by increased beverage and food can volumes. The company achieved record EBITDA and continued shareholder returns. However, challenges in the transit packaging segment and potential tariff impacts present areas of concern.

Q1-2025 Updates

Positive Updates

Strong Earnings Improvement

Earnings for the quarter were $1.65 per share compared to $0.56 per share in the prior year quarter. Adjusted earnings per share were $1.67 compared to $1.02 in the prior year quarter.

Record Segment Income

Segment income was $398 million in the quarter, up from $308 million in the prior year, reflecting a 29% increase over the prior year.

Increased Beverage Can Volumes

Beverage Cans segment income improved 24% over the prior year, led by higher than expected shipments in the Americas and Europe.

North American Food Can Volume Surge

North American food can volumes increased 16% due to increased demand from vegetable and pet food customers.

Return to Shareholders

The company returned $233 million to shareholders in the first quarter of 2025, including $203 million of share repurchases.

EBITDA Milestone

Trailing 12 months EBITDA is now above $2 billion for the first time with EBITDA margins up 260 basis points in the quarter.

Negative Updates

Transit Packaging Challenges

Subdued industrial demand continues in the transit packaging segment, most notably impacting the higher margin equipment and tools business.

Potential Tariff Impacts

Potential impact of tariffs could create a slowdown in consumer industrial activities, with a potential income exposure below $30 million for the year.

Company Guidance

In the first quarter of 2025, Crown Holdings experienced significant financial growth, with earnings per share rising to $1.65 from $0.56 in the previous year, and adjusted earnings per share increasing to $1.67 from $1.02. Net sales grew by 3.7%, driven by a 1% rise in global beverage can volumes and a 16% increase in North American food can volumes, despite lower volumes in transit packaging. Segment income surged to $398 million from $308 million the prior year, supported by higher beverage can volumes and improved manufacturing performance. Crown Holdings returned $233 million to shareholders, including $203 million in share repurchases. Anticipating strong demand, the company raised its full-year adjusted EPS guidance to $6.70-$7.10, with a second quarter EPS projection of $1.80-$1.90. The guidance accounts for potential impacts of tariffs, with expectations for net interest expense at $360 million, a €108 exchange rate to the dollar, and non-controlling interest expenses at $160 million. The company maintains a full-year tax rate of 25% and adjusted free cash flow of $800 million after $450 million in capital spending, with an end-of-year net leverage target of approximately 2.5 times.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.