CRS Carpenter Technology

Carpenter Technology manufactures high-performance alloys and specialty metals used in aerospace, medical, energy, and industrial applications. Sector: Materials.

Carpenter Technology (CRS) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 20.66%, WACC is 11.37%, and the economic spread is 9.29%. On balance, the company marginally exceed their cost of capital, suggesting modest but present value creation. Supporting metrics show ROE at 26.02% and ROA at 13.33%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Turning to how the market is pricing the underlying earnings, trailing P/E of 36.78, forward P/E of 28.54, PEG of 1.36. A moderate trailing-to-forward spread implies earnings growth is anticipated, though the scale of expected improvement is not dramatic. A sub-1.5 PEG is a positive signal, indicating the company's earnings growth expectations are more than adequate to justify current prices. The current ratio of 3.81 indicates the company is well-positioned to meet near-term obligations. The combined picture across P/E, forward P/E, PEG, and current ratio suggests a company that is priced for continued execution — where disappointment would be costly and outperformance would likely require positive earnings surprises.

On the margin front: gross margin sits at 30.62%, operating margin at 22.40%, and free cash flow margin at 11.60%. At this level, gross margins suggest a more competitive or capital-intensive operating environment across the the company. Operating margins sit in a healthy range — not exceptional, but indicating reasonable operational efficiency. Moderate free cash flow margins suggest the company that generate cash but rely on continued revenue growth to sustain reinvestment capacity. The combined margin read is functional rather than exceptional, which can increase sensitivity to cost pressure or slower demand.

The two main inputs to the near-term picture — TTM revenue growth of 12.63% reflecting consistent if unspectacular revenue expansion. Consensus EPS estimates point to 28.9% earnings growth over the next 12 months — a compelling near-term earnings catalyst that, if delivered, changes the valuation conversation materially. Analyst price targets suggest street expectations point to meaningful upside if execution holds on a 12-month view. Revenue momentum establishes the baseline; analyst price targets reveal how much the market is already paying for future execution on top of that baseline. Delivered returns will ultimately be shaped by the gap — or lack thereof — between operating execution and the expectations embedded in current prices. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Across the metrics reviewed, the evidence is consistently constructive — quality, growth, and valuation are pulling in the same direction.

This assessment is based solely on the quantitative metrics presented above and does not constitute financial advice. Investors should consider their own risk tolerance and conduct independent research before making investment decisions.