Crane NXT, Co. (NYSE: CXT)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0000025445
Market Cap 3.05 Bn
P/B 3.17
P/E 13.69
P/S 1.19
ROIC (Qtr) 7.89
Div Yield % 2.38
Rev 1y % (Qtr) 10.31
Total Debt (Qtr) 1.08 Bn
Debt/Equity (Qtr) 0.89
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About

Investment thesis

Bull case

  • Operating cash flow of 216.80M provides exceptional 433.60x coverage of minority interest expenses 500000, showing strong core operations.
  • Operating cash flow of 216.80M provides strong 17.77x coverage of stock compensation 12.20M, indicating sustainable incentive practices.
  • Robust free cash flow of 172.60M exceeds capital expenditure of 44.20M by 3.90x, indicating strong organic growth funding capability.
  • Cash position of 182.40M provides exceptional 364.80x coverage of minority interest expenses 500000, indicating strong liquidity.
  • Robust tangible asset base of 1.18B provides 7.36x coverage of working capital 160.70M, indicating strong operational backing.

Bear case

  • Operating cash flow of 216.80M barely covers its investment activities of (436.30M), with a coverage ratio of -0.50, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 216.80M provides thin coverage of dividend payments of (38.40M) with a -5.65 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 182.40M provide limited coverage of acquisition spending of (391.10M), which is -0.47x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 244.20M show weak coverage of depreciation charges of 101.10M, with a 2.42 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 101.10M relative to operating cash flow of 216.80M, which is 0.47x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.04 2.28
EV to Cash from Ops. EV/CFO 11.78 37.14
EV to Debt EV to Debt 2.80 34.39
EV to EBIT EV/EBIT 8.90 27.71
EV to EBITDA EV/EBITDA 8.10 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF 12.84 133.36
EV to Market Cap EV to Market Cap 0.99 1.04
EV to Revenue EV/Rev 1.18 39.88
Price to Book Value [P/B] P/B 3.17 6.22
Price to Earnings [P/E] P/E 13.69 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.03 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 24.80 15.73
Dividend per Basic Share Div per Share (Qtr) 0.67 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 22.28 82.53
Interest Coverage Int. cover (Qtr) 4.35 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 10.89 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 10.48 118.48
Dividend Growth (1y) % Div 1y % (Qtr) 8.06 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -5.25 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3.80 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -10.65 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) -17.11 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) -12.34 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) 6.61 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.92 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.54 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.10
Cash Ratio Cash Ratio (Qtr) 0.30 3.01
Current Ratio Curr Ratio (Qtr) 1.26 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.89 0.38
Interest Cover Ratio Int Coverage (Qtr) 4.35 12.34
Times Interest Earned Times Interest Earned (Qtr) 4.35 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 21.90 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 15.47 -7,413.30
EBT Margin % EBT Margin % (Qtr) 11.91 -9,015.79
Gross Margin % Gross Margin % (Qtr) 43.20 -32.61
Net Profit Margin % Net Margin % (Qtr) 9.80 -7,962.06