# Crane (CR.US)

Canonical: https://gigainvestors.com/s/CR

Analysis as of: 2026-10-16T07:27:42.510Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $205.73 per share; close as of 2026-10-15.

Estimated value: low $83.10 per share, central $93.85 per share, high $108.15 per share. Buy at or below the central value $93.85 per share. Valuation as of 2026-10-16T07:27:42.510Z; scenarios are not confidence intervals.

Expected annual return: 6.0% at the stated quote. About 6.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- FY2022 operating-margin dip fully recovered the next year and stayed recovered; holding that year at the preceding margin meets the existing variation limit. Raw variation still determines the price discount.

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.44×

- One fully recovered margin dip: Yes

- Variation with recovered dip held at prior margin: 0.28

- Recovered dip fiscal year: FY2022

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.13×

- FY2019: 0.06×

- FY2020: 0.09×

- FY2021: 0.11×

- FY2022: 0.00×

- FY2023: 0.13×

- FY2024: 0.17×

- FY2025: 0.18×

- LTM to Mar 2026: 0.17×

### moat: pass

- ROIC, median of available years: 26.0%

- ROIC, second-lowest year: 11.9%

- Typical minus recent gross margin: -4.8 pp

- Typical gross margin (annual median): 36.8%

- Recent gross margin (lower of latest and 3-year median): 41.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.1%

- ROIC including acquisitions, ten-year median: 15.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: >100%

- FY2018: 49.4%

- FY2019: 27.4%

- FY2020: 24.4%

- FY2021: 11.9%

- FY2022: 0.2%

- FY2023: 24.6%

- FY2024: 28.5%

- FY2025: 37.6%

- LTM to Mar 2026: 20.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.01×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.7B

- Net income, five-year total: $1.6B

- Return on incremental invested capital: 200.4%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 7.3 pp

- Working capital / revenue, final three-year average: 28.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.95×

- FY2023: 1.00×

- FY2024: 1.05×

- FY2025: 1.00×

- LTM to Mar 2026: 1.05×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 60.7% vs 28.5%

- Per-share earnings: 2.89 to 5.05 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: 0.0%

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: 0.0%

- Per-share value growth: 7.2%

- Per-share value change: $2.16

- Per-share value, starting three-year median: $2.89

- Per-share value, ending three-year median: $5.05

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.0%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: $789M

- Cumulative net income, 10 years: $2.7B

- ROIC, first three-year median: 60.7%

- ROIC, last three-year median: 28.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.09

- FY2017: $2.89

- FY2018: $5.51

- FY2019: $2.24

- FY2020: $3.09

- FY2021: $7.35

- FY2022: $7.01

- FY2023: $4.45

- FY2024: $5.05

- FY2025: $6.26

### accounting: pass

- Sloan accruals: -0.7%

- Receivables to sales index (DSRI): 0.81×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.08×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.40×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.7%

- FY2017: -4.1%

- FY2018: -1.9%

- FY2019: -5.9%

- FY2020: -2.8%

- FY2021: -1.4%

- FY2022: 12.6%

- FY2023: 1.2%

- FY2024: 0.8%

- FY2025: -0.7%

## Holders

- [Thomas Russo](https://gigainvestors.com/GR): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dennis Hong](https://gigainvestors.com/SP): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 11.2% a year for ten years · sales +6%

Story as of 2026-10-16T09:58:33.921Z; price observation 2026-10-15.

Price needs cash profits to grow 11.2% a year for ten years

- 2025-05-12: CR Q1 Earnings Call: Aerospace Orders and Pricing Drive Outperformance Amid Tariff Uncertainty ([finance.yahoo.com](https://finance.yahoo.com/news/cr-q1-earnings-call-aerospace-140618165.html))

- 2025-07-28: Crane Company Reports Second Quarter 2025 Results and Raises Full Year Adjusted EPS Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/crane-company-reports-second-quarter-201500383.html))

- 2025-10-30: How Stronger Margins and Raised Outlook at Crane (CR) Have Changed Its Investment Story ([finance.yahoo.com](https://finance.yahoo.com/news/stronger-margins-raised-outlook-crane-061020065.html))

- 2026-04-29: CR Q1 Deep Dive: Acquisitions and Segment Strength Offset Margin Pressure, Guidance Raised ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/cr-q1-deep-dive-acquisitions-062055624.html))

### Sales · FY2025–2026

sales +6%; source https://www.sec.gov/Archives/edgar/data/1944013/000194401326000095/cr-20251231.htm; observed 2026-02-26.

- FY2017: $2.8B 

- FY2018: $3.3B 

- FY2019: $3.3B 

- FY2020: $2.9B 

- FY2021: $2.1B 

- FY2022: $1.8B 

- FY2023: $1.9B 

- FY2024: $2.1B 

- FY2025: $2.3B 

- FY2026: $2.4B 

### Gross margin · FY2026

gross margin 41.6%; source https://www.sec.gov/Archives/edgar/data/1944013/000194401326000095/cr-20251231.htm; observed 2026-02-26.

- FY2017: 36.4% 

- FY2018: 35.5% 

- FY2019: 35.9% 

- FY2020: 34.3% 

- FY2021: 33.4% 

- FY2022: 37.2% 

- FY2023: 40.3% 

- FY2024: 40.7% 

- FY2025: 42.2% 

- FY2026: 41.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are USD 2.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1944013/000194401326000095/cr-20251231.htm (filed 2026-02-26); FY2025: revenue 2305000000; grossProfit 972800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CR.US: Crane Company, together with its subsidiaries, engages in the manufacture and sale of engineered industrial products in the United States, Canada, the United Kingdom, Continental Europe, and internationally. The company operates in two segments, Aerospace & Advanced Technologies and Process Flow Technologies. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts for commercial aerospace, as well as the military aerospace, defense, and space markets. This segment also offers pressure sensors for aircraft engine control, aircraft braking systems for commercial aircraft and fighter jets, power conversion solutions for defense, and space applications and lubrication systems. The Process Flow Technologies segment provides process valves and related products, pumps and systems, and commercial valves; valve positioning and control systems, vacuum insulated pipe systems, and valve diagnostic and calibration systems; pumps and systems; and commercial valves. The company was formerly known as Crane Holdings, Co. Crane Company was founded in 1855 and is based in Stamford, Connecticut.

### Why customers stay

Margins ranged from 40.3% to 42.2% during 2023–25; it earns 26% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 40.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 40.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1944013/000194401326000095/cr-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 42.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2017,1.4111794298490776],[2018,0.4942099558357212],[2019,0.27381374722406165],[2020,0.24427156110253456],[2021,0.11892038363686121],[2022,0.0019031584290052116],[2023,0.246484194305744],[2024,0.2848409817575981],[2025,0.37645775668032794],[2026,0.20072902649069116]]; median 0.26014897076490284. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 0.9% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 51500000; owner earnings 138700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 49000000; owner earnings 195500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 108800000; owner earnings 346800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 68800000; owner earnings 178000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 34100000; owner earnings 274400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 51700000; owner earnings 422100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 58400000; owner earnings 382900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 3600000; upkeep 35400000; owner earnings 255900000. Growth capex / owner earnings = 0.01406799531066823.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 36600000; owner earnings 309100000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1944013/000194401326000095/cr-20251231.htm (filed 2026-02-26); FY2025: growth capex 3300000; upkeep 50200000; owner earnings 366600000. Growth capex / owner earnings = 0.00900163666121113.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,77200000],[2017,78400000],[2018,83500000],[2019,93200000],[2020,100400000],[2021,100600000],[2022,105900000],[2023,57300000],[2024,46900000],[2025,52900000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1944013/000194401326000095/cr-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 5200000 USD.

### Are managers owners

Insiders own 14.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CR.US SharesStats.PercentInsiders = 14.46 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/1944013/000194401326000095/cr-20251231.htm (filed 2026-02-26); 2025 compared to 2024

Sales increased by $173.8 million, or 8.2%, to $2,305.0 million in 2025. The year-over-year higher sales included:

•an increase in core sales of $132.7 million, or 6.2%, which was driven primarily by higher pricing;

•an increase in sales related to the CryoWorks, and Technifab acquisitions of $29.1 million, or 1.4%; and

•favorable foreign currency translation of $12.0 million, or 0.6%.

Cost of sales increased by $68.8 million, or 5.4%, to $1,332.2 million in 2025. The increase is primarily related to higher material, labor and other manufacturing costs, inclusive of tariffs of $110.7 million, or 8.8%, the impact from the CryoWorks, and Technifab acquisitions of $19.8 million, or 1.6%, unfavorable foreign currency translation of $6.7 million, or 0.5%, partially offset by strong productivity gains of $53.7 million, or 4.3%, lower volumes of $9.8 million, or 0.8%, and cost savings of $5.2 million, or 0.4%.

Engineering, selling and administrative expenses increased by $36.6 million, or 7.1%, to $548.6 million in 2025, primarily driven by the increase in administrative expenses of $27.0 million, or 5.3%, coupled with higher selling expenses of $5.0 million, or 1.0%. The increase in administrative expenses was primarily driven by investments in core businesses and the acquisitions of CryoWorks and Technifab.

Operating profit increased by $68.4 million, or 19.2%, to $424.2 million in 2025. The increase primarily reflected strong net price, inclusive of tariffs and productivity gains of $66.3 million, or 18.6%.

24

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Comprehensive income

(in millions) For the year ended December 31, 2025 2024 2023

Net income attributable to common shareholders $ 366.6 $ 294.7 $ 255.9

Other comprehensive income (loss), net of tax

Currency translation adjustment 51.4 (30.6) 20.7

Changes in pension and postretirement plan assets and benefit obligation, net of tax 30.5 26.5 10.0

Other comprehensive income (loss), net of tax 81.9 (4.1) 30.7

Comprehensive income before allocation to noncontrolling interests 448.5 290.6 286.6

Less: Noncontrolling interests in comprehensive income — (0.2) (0.1)

Comprehensive income attributable to common shareholders $ 448.5 $ 290.8 $ 286.7

For the year ended December 31, 2025, comprehensive income before allocation to noncontrolling interests was $448.5 million compared to $290.6 million in 2024. The $157.9 million increase was primarily driven by $71.9 million of higher net income before allocation to noncontrolling interests, $82.0 million favorable impact of foreign currency translation adjustments, primarily related to the euro and British pound and a $4.0 million increase primarily due to favorable pension plan asset performance.

25

Table of Contents

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCI

### What the price says

The price assumes cash profits grow 11.2% yearly over ten years; actual growth was 3.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.1479699807482714. Price 205.73; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.366269165247019 → FY2025 6.255972696245734. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2023-03: $74.60 per share

- 2023-04: $72.07 per share

- 2023-05: $72.66 per share

- 2023-06: $89.12 per share

- 2023-07: $93.69 per share

- 2023-08: $91.12 per share

- 2023-09: $88.84 per share

- 2023-10: $97.33 per share

- 2023-11: $105.68 per share

- 2023-12: $118.14 per share

- 2024-01: $124.11 per share

- 2024-02: $121.56 per share

- 2024-03: $135.13 per share

- 2024-04: $140.01 per share

- 2024-05: $149.08 per share

- 2024-06: $144.98 per share

- 2024-07: $160.42 per share

- 2024-08: $158.38 per share

- 2024-09: $158.28 per share

- 2024-10: $157.28 per share

- 2024-11: $182.08 per share

- 2024-12: $151.75 per share

- 2025-01: $170.32 per share

- 2025-02: $162.99 per share

- 2025-03: $153.18 per share

- 2025-04: $160.98 per share

- 2025-05: $171.40 per share

- 2025-06: $189.89 per share

- 2025-07: $195.77 per share

- 2025-08: $185.30 per share

- 2025-09: $184.14 per share

- 2025-10: $190.00 per share

- 2025-11: $183.25 per share

- 2025-12: $184.43 per share

- 2026-01: $182.64 per share

- 2026-02: $200.53 per share

- 2026-03: $171.00 per share

- 2026-04: $177.73 per share

- 2026-05: $183.00 per share

- 2026-06: $223.07 per share

- 2026-07: $213.46 per share

- 2026-08: $205.07 per share

- 2026-09: $204.02 per share

- 2026-10: $205.73 per share

## Annual estimated value (USD per share)

- FY2016: low $55.51 per share, central $62.09 per share, high $70.86 per share

- FY2017: low $50.34 per share, central $55.77 per share, high $63.00 per share

- FY2018: low $50.67 per share, central $57.04 per share, high $65.50 per share

- FY2019: low $48.61 per share, central $55.50 per share, high $63.62 per share

- FY2020: low $46.92 per share, central $52.23 per share, high $59.30 per share

- FY2021: low $42.97 per share, central $47.88 per share, high $54.41 per share

- FY2022: low $42.04 per share, central $46.89 per share, high $53.35 per share

- FY2023: low $53.73 per share, central $60.44 per share, high $69.36 per share

- FY2024: low $62.48 per share, central $70.47 per share, high $81.11 per share

- FY2025: low $97.11 per share, central $106.54 per share, high $119.09 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1944013/000194401326000095/cr-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.