Crane Co. ($CR) PCF of 13.298213 Placed Under the Microscope

Crane Co. (CR) has a Price to sales ratio of 1.322005. Investors may use Price to Book to display how the market portrays the value of a stock. The company also has a Price to Cash Flow ratio of 13.298213, and a current Price to Earnings ratio of 12.590821. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

When conducting stock analysis, investors have a wide array of various classifications to choose from. Growth stocks generally have the potential to produce above average profit growth and revenues. These types of stocks tend to expand quicker than the economy as a whole. Investors also have the option of adding cyclical stocks to the portfolio. Cyclicals are generally companies whose earnings and sales are highly correlated with that of the overall economy. When the economy is doing well, cyclical stocks may be more in favor. Investors may decide to go in another direction when the economy is dragging. When an economic downturn is underway, investors may choose to select defensive stocks. These types of stocks generally stand up well during down periods based on their insulation from the business cycle. Investors also have the option of purchasing foreign stocks to help add some diversity to the portfolio. 

Value Composite Three (VC3) is another adaptation of O’Shaughnessy’s value composite but here he combines the factors used in VC1 with buyback yield. This factor is interesting for investors who’re looking for stocks with the best value characteristics, but are indifferent to whether these companies pay a dividend.

VC3 is the combination of the following factors:

Price-to-Book
Price-to-Earnings
Price-to-Sales
EBITDA/EV
Price-to-Cash flow
Buyback Yield

As with the VC1 and VC2, companies are put into groups from 1 to 100 for each ratio and the individual scores are summed up. This total score is then put into groups again from 1 to 100. 1 is cheap, 100 is expensive.

The scorecard also displays variants of the VC3 where the score is calculated for the selected company compared to peer companies in the same industry, industry group or sector.

Please note that we use Book-to-Market instead of P/B since it allows a more accurate sorting compared to P/B. Stocks with a high B/M show up at the top of the list, stocks with negative B/M are at the bottom of the list. For the same reason we use Earnings-to-Price instead of Price-to-Earnings and Cash flow-to-price instead instead of Price-to-cash flow.

Also important is that we always make sure that companies with the same score get added to the same percentile. For stock universes where the number of stocks is less than 100, we make sure that the stocks are still allocated to percentiles from 0 to 100 instead of 0 to the total number of stocks. This is particularly relevant for the industry, industry group or sector variants where if additional filters are used, the number of stocks often drops below 100.

Crane Co. (CR) has a VC3 of 25.

At the time of writing, Crane Co. (CR) has a Piotroski F-Score of 6. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Enterprise Value

Crane Co. (CR) based out of United States and resides in the Industrials sector, has a market cap of 3996635.513 after recently touching 74.29 on a recent bid. Crane Co. (CR) sees an average of trading volume of 29738.9386. Crane Co. (CR) competes in the Machinery industry.

Free Cash Flow Yield (FCF Yield) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of Crane Co. (CR) is 0.04593. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends. Looking out to the 5 year FCF yield, this gives investors the overall quality of the free cash flow over a longer period of time.

The FCF five year yield for Crane Co. (CR) stands at 0.049074. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

We can now take a quick glance at some historical stock price index data. Crane Co. (CR) presently has a 6 month price index of 0.901251. The price index is calculated by dividing the current share price by the share price six months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.850463 and the five year is 1.160237. Narrowing in a bit closer, the 3 month is 0.870854, and the 1 month is currently 0.893983.

Investing in the stock market can be highly challenging. Most investors have the same intentions of trying to maximize profits from investment capital. Realizing that there are many unknowns in the market, investors will need to make sure that they are constantly staying on top of the current economic scene. As most investors know, the market can see big shifts on a daily basis. Being able to deal with the constant ups and downs can be a huge asset to the individual investor’s psyche. Because stock market investing can get highly emotional at times, investors often have to find a way to keep a clear head and make the best possible decisions even when the market terrain gets rocky. Many successful investors have created a plan that they have been able to adhere to through the thick and thin. 

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