Company Overview
Crane NXT, Co. operates as an industrial technology company focused on providing technology solutions designed to secure, detect, and authenticate important assets for its customers. The enterprise functions within the Industrials sector, specifically targeting the Specialty Industrial Machinery industry, where it leverages specialized equipment and software to address niche operational needs. This industrial technology firm employs a workforce of 4,800 individuals to execute its strategic initiatives across Crane Payment Innovations and Security and Authentication Technologies segments. With a market capitalization of $2.36B and annual revenue reaching $1.66B, the company demonstrates a substantial financial footprint that positions it as a significant player within its specialized machinery domain. The revenue figure of $1.66B indicates a robust top-line performance that supports its operations, while the market cap of $2.36B reflects the aggregate market valuation assigned to its equity by investors, suggesting a mid-to-large-cap status relative to peers in the specialty industrial machinery space.
Financial Health
The company reported revenue of $1.66B over the trailing twelve months, generating net income of $145.10M and EBITDA of $392.90M during the same period. The significant gap between the $1.66B in revenue and the $145.10M in net income reveals a substantial cost structure that includes operating expenses, interest costs, and taxes which collectively consume a large portion of top-line earnings. Free cash flow stands at $152.55M, indicating that the company generates sufficient cash after capital expenditures to fund operations, repay debt, and potentially return capital to shareholders or pursue strategic acquisitions. Gross margin sits at 42.5%, reflecting a strong ability to price products relative to the cost of goods sold in the industrial machinery sector. Operating margin is recorded at 18.4%, demonstrating efficient management of operating expenses relative to revenue, while profit margin stands at 8.8%, showing the final percentage of revenue that translates into actual net earnings. Total cash holdings of $233.80M are compared against total debt of $1.21B, resulting in a debt-to-equity ratio of 96.25, which suggests the balance sheet carries a moderate level of leverage given the high debt relative to equity. The current ratio of 1.50 indicates that the company possesses 1.50 units of current assets for every 1.00 unit of current liabilities, signaling adequate short-term liquidity to meet its immediate financial obligations. Return on equity is 12.5% and return on assets is 6.5%, metrics that reveal management's effectiveness in generating profits from the shareholders' invested capital and the total asset base, respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 16.46, while the forward P/E is 8.72, implying that the market expects earnings growth that would justify a lower multiple in the future compared to historical performance. The price-to-book ratio is 1.89, indicating that the market values the company at a premium of 89% over its tangible book value, reflecting confidence in intangible assets or future growth potential. The price-to-sales ratio of 1.43 and the EV/EBITDA of 8.51 offer alternative perspectives on valuation, suggesting the company trades at a premium relative to sales but maintains an enterprise value relative to earnings that is comparable to many industrial peers. The 52-week high is $69.00 and the 52-week low is $40.01, and without a specific current price provided in the facts, the trading range highlights the volatility experienced over the last year where the stock has fluctuated between these bounds. The beta value is 1.34, meaning the stock price is expected to be 34% more volatile than the broader market, indicating higher sensitivity to market movements and systematic risk factors.
Growth & Income
Revenue growth year-over-year is 19.5%, while earnings growth year-over-year is -18.0%, indicating that earnings are currently growing significantly slower than revenue, which implies that costs, one-time charges, or margin compression are outpacing top-line expansion in the most recent fiscal period. The company pays a dividend with a yield of 1.8% and maintains a payout ratio of 27.2%, suggesting that the dividend is well-covered by current earnings and appears sustainable given the low percentage of net income required to fund the payout. Because the payout ratio is low at 27.2%, the company retains the majority of its earnings for reinvestment into research, development, or operational improvements rather than distributing all profits as dividends. The overall growth and income profile presents a scenario of strong top-line expansion offset by temporary earnings contraction, supported by a conservative dividend policy that balances income generation with capital retention for future strategic initiatives.