📊 CRS Key Takeaways
Is Carpenter Technology Corp. (CRS) a Good Investment?
Carpenter Technology demonstrates exceptional profitability improvement with net income doubling YoY and strong operational margins of 21.1%, supported by solid revenue growth and excellent balance sheet health. The company generates robust free cash flow (82.5M) with conservative leverage (0.35x debt/equity), indicating strong financial stability and capacity for shareholder returns or reinvestment.
Carpenter Technology shows a sharp improvement in earnings quality, with only modest revenue growth translating into much stronger operating and net income, indicating favorable mix, pricing, and operating leverage. The balance sheet is healthy, liquidity is strong, and leverage remains manageable, supporting continued investment and resilience through industrial cycles.
Why Buy Carpenter Technology Corp. Stock? CRS Key Strengths
- Outstanding earnings growth with net income up 101.6% YoY and EPS doubling
- Strong operational efficiency with 21.1% operating margin and 15.6% net margin
- Excellent liquidity position with 4.25x current ratio and 231.9M cash balance
- Conservative capital structure with 0.35x debt/equity and 8.0x interest coverage
- Solid free cash flow generation of 82.5M providing financial flexibility
- High profitability with 29.7% gross margin, 21.1% operating margin, and 15.6% net margin
- Strong financial health with 4.25x current ratio, 2.26x quick ratio, and low 0.35x debt-to-equity
- Earnings momentum is robust, with net income up 101.6% and diluted EPS up 100.5% year over year
CRS Stock Risks: Carpenter Technology Corp. Investment Risks
- Cyclical industry exposure in specialty steel with sensitivity to economic downturns
- Modest revenue growth of 4.3% YoY suggests limited top-line expansion despite strong profitability
- Capital intensive business requiring sustained capex (88.9M annually) that could pressure cash flow
- ROE of 11.5% and ROA of 6.5% indicate moderate asset utilization efficiency
- Concentrated customer base risk typical of specialty materials suppliers serving aerospace/defense sectors
- Revenue growth is relatively modest at 4.3%, so recent earnings gains may be difficult to sustain without stronger top-line expansion
- Free cash flow margin of 5.6% is solid but materially below accounting profitability, reflecting ongoing capital intensity
- The business remains exposed to cyclical industrial demand, which can pressure margins and cash generation if end markets weaken
Key Metrics to Watch
- Quarterly revenue trends and organic growth rate sustainability
- Operating margin maintenance as input costs and market conditions evolve
- Free cash flow conversion and capital expenditure levels relative to revenue
- Debt reduction trajectory and leverage ratio stability
- Order book indicators and customer demand signals in aerospace and industrial markets
- Operating margin and gross margin sustainability
- Free cash flow conversion relative to net income
Carpenter Technology Corp. (CRS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.25x current ratio provides a solid financial cushion.
CRS Profit Margin, ROE & Profitability Analysis
CRS vs Materials Sector: How Carpenter Technology Corp. Compares
How Carpenter Technology Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Carpenter Technology Corp. Stock Overvalued? CRS Valuation Analysis 2026
Based on fundamental analysis, Carpenter Technology Corp. appears fundamentally strong relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Carpenter Technology Corp. Balance Sheet: CRS Debt, Cash & Liquidity
CRS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Carpenter Technology Corp.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.14 reflects profitable operations.
CRS Revenue Growth, EPS Growth & YoY Performance
CRS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $676.9M | $84.1M | $1.66 |
| Q1 2026 | $717.6M | $84.8M | $1.67 |
| Q3 2025 | $684.9M | $6.3M | $0.12 |
| Q2 2025 | $624.2M | $42.7M | $0.85 |
| Q1 2025 | $651.9M | $43.9M | $0.88 |
| Q3 2024 | $684.9M | $6.3M | $0.12 |
| Q2 2024 | $579.1M | -$600.0K | $-0.02 |
| Q1 2024 | $522.9M | -$6.9M | $-0.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Carpenter Technology Corp. Dividends, Buybacks & Capital Allocation
CRS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Carpenter Technology Corp. (CIK: 0000017843)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRS
What is the AI rating for CRS?
Carpenter Technology Corp. (CRS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRS's key strengths?
Claude: Outstanding earnings growth with net income up 101.6% YoY and EPS doubling. Strong operational efficiency with 21.1% operating margin and 15.6% net margin. ChatGPT: High profitability with 29.7% gross margin, 21.1% operating margin, and 15.6% net margin. Strong financial health with 4.25x current ratio, 2.26x quick ratio, and low 0.35x debt-to-equity.
What are the risks of investing in CRS?
Claude: Cyclical industry exposure in specialty steel with sensitivity to economic downturns. Modest revenue growth of 4.3% YoY suggests limited top-line expansion despite strong profitability. ChatGPT: Revenue growth is relatively modest at 4.3%, so recent earnings gains may be difficult to sustain without stronger top-line expansion. Free cash flow margin of 5.6% is solid but materially below accounting profitability, reflecting ongoing capital intensity.
What is CRS's revenue and growth?
Carpenter Technology Corp. reported revenue of $1.5B.
Does CRS pay dividends?
Carpenter Technology Corp. pays dividends, with $20.1M distributed to shareholders in the trailing twelve months.
Where can I find CRS SEC filings?
Official SEC filings for Carpenter Technology Corp. (CIK: 0000017843) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRS's EPS?
Carpenter Technology Corp. has a diluted EPS of $4.52.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CRS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Carpenter Technology Corp. has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CRS stock overvalued or undervalued?
Valuation metrics for CRS: ROE of 11.5% (sector avg: 14%), net margin of 15.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CRS stock in 2026?
Our dual AI analysis gives Carpenter Technology Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CRS's free cash flow?
Carpenter Technology Corp.'s operating cash flow is $171.4M, with capital expenditures of $88.9M. FCF margin is 5.6%.
How does CRS compare to other Materials stocks?
Vs Materials sector averages: Net margin 15.6% (avg: 10%), ROE 11.5% (avg: 14%), current ratio 4.25 (avg: 1.6).