# Carpenter Technology (CRS.US)

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

Analysis as of: 2026-10-16T07:27:46.073Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $380.56 per share; close as of 2026-10-15.

Estimated value: low $70.57 per share, central $90.07 per share, high $104.21 per share. Buy at or below the central value $90.07 per share. Valuation as of 2026-10-16T07:27:46.073Z; scenarios are not confidence intervals.

Expected annual return: 4.6% at the stated quote. About 4.6% 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: fail

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 2

- Operating margin variation: 1.57×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.07×

- FY2018: 0.09×

- FY2019: 0.10×

- FY2020: 0.01×

- FY2021: -0.17×

- FY2022: -0.01×

- FY2023: 0.05×

- FY2024: 0.12×

- FY2025: 0.18×

- FY2026: 0.22×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.2%

- ROIC, second-lowest year: -1.2%

- Typical minus recent gross margin: -9.5 pp

- Typical gross margin (annual median): 17.2%

- Recent gross margin (lower of latest and 3-year median): 26.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.9%

- ROIC including acquisitions, ten-year median: 6.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.5%

- FY2018: 11.1%

- FY2019: 10.7%

- FY2020: 0.9%

- FY2021: -12.5%

- FY2022: -1.2%

- FY2023: 5.7%

- FY2024: 14.7%

- FY2025: 20.2%

- FY2026: 24.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.12×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.2B

- Net income, five-year total: $1.1B

- Return on incremental invested capital: 96.1%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -2.5 pp

- Working capital / revenue, final three-year average: 38.2%

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

- FY2022: 0.18×

- FY2023: 1.86×

- FY2024: 1.20×

- FY2025: 1.00×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 10.7% vs 20.2%

- Per-share earnings: 1.00 to 7.42 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.4%

- Ordinary dilution, 5-year annual growth: 0.9%

- Market cap gain: $29B

- Cumulative retained earnings: $878M

- Diluted shares, 10-year annual growth: 0.4%

- Diluted shares, 5-year annual growth: 0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 28.5%

- Per-share value change: $6.42

- Per-share value, starting three-year median: $1.00

- Per-share value, ending three-year median: $7.42

- Buybacks concentrated in cheaper years (correlation): -0.29

- Average buyback yield: 0.3%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: $86M

- Cumulative net income, 10 years: $1.3B

- ROIC, first three-year median: 10.7%

- ROIC, last three-year median: 20.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.00

- FY2018: $3.96

- FY2019: $3.47

- FY2020: $0.03

- FY2021: -$4.75

- FY2022: -$1.01

- FY2023: $1.15

- FY2024: $3.71

- FY2025: $7.42

- FY2026: $10.51

### accounting: pass

- Sloan accruals: -2.0%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.14×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.10×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.9%

- FY2018: -0.7%

- FY2019: -2.1%

- FY2020: -7.1%

- FY2021: -16.1%

- FY2022: -1.9%

- FY2023: 1.4%

- FY2024: -2.7%

- FY2025: -1.8%

- FY2026: -2.0%

## Holders

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

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

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

## Price story

Down 38% since Jun 2026 · sales +8.6%

Story as of 2026-10-16T09:58:34.741Z; price observation 2026-10-15.

Price needs cash profits to grow 23.6% a year for ten years

- 2025-04-25: CRS Tops Q3 Earnings Estimates, Raises FY25 Operating Profit View ([finance.yahoo.com](https://finance.yahoo.com/news/crs-tops-q3-earnings-estimates-145000926.html))

- 2025-10-28: Results: Carpenter Technology Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts ([finance.yahoo.com](https://finance.yahoo.com/news/results-carpenter-technology-corporation-beat-104519924.html))

- 2026-01-30: Carpenter Technology (CRS) Valuation Check After Record Earnings And Higher 2026 Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/carpenter-technology-crs-valuation-check-191501816.html))

- 2026-05-01: Carpenter Technology (CRS) Valuation Check After Record Earnings Beat And Raised Operating Income Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/carpenter-technology-crs-valuation-check-050435005.html))

- 2026-06-03: Carpenter Technology Gains on Record Earnings, Profits ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/carpenter-technology-gains-record-earnings-110156148.html))

### Sales · FY2025–2026

sales +8.6%; source https://www.sec.gov/Archives/edgar/data/17843/000001784326000034/crs-20260630.htm; observed 2026-08-12.

- FY2017: $1.8B 

- FY2018: $2.2B 

- FY2019: $2.4B 

- FY2020: $2.2B 

- FY2021: $1.5B 

- FY2022: $1.8B 

- FY2023: $2.6B 

- FY2024: $2.8B 

- FY2025: $2.9B 

- FY2026: $3.1B 

### Gross margin · FY2026

gross margin 30.6%; source https://www.sec.gov/Archives/edgar/data/17843/000001784326000034/crs-20260630.htm; observed 2026-08-12.

- FY2017: 16.7% 

- FY2018: 17.7% 

- FY2019: 18.7% 

- FY2020: 15.1% 

- FY2021: 0.1% 

- FY2022: 8.2% 

- FY2023: 13.2% 

- FY2024: 21.2% 

- FY2025: 26.7% 

- FY2026: 30.6% 

## Owner memo

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

### How it makes money

Operates in metal fabrication; annual sales are USD 3.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/17843/000001784326000034/crs-20260630.htm (filed 2026-08-12); FY2026: revenue 3124200000; grossProfit 955500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CRS.US: Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as metal powders and parts. It serves the aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.

### Why customers stay

Margins ranged from 21.2% to 30.6% during 2024–26; it earns 8.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2024: grossProfit / revenue = 21.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2025: grossProfit / revenue = 26.7%.

- Source: https://www.sec.gov/Archives/edgar/data/17843/000001784326000034/crs-20260630.htm (filed 2026-08-12); FY2026: grossProfit / revenue = 30.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); 10-year return on capital observations [[2017,0.055191094271086136],[2018,0.1108248931561384],[2019,0.10744845305870061],[2020,0.009419750257761485],[2021,-0.1253312061263561],[2022,-0.01171380932531412],[2023,0.057133267499671785],[2024,0.1465036864824051],[2025,0.2016095631490345],[2026,0.2466718073041702]]; median 0.0822908602791862. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 18% of cash earnings on expansion; earns 96.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2017: growth capex 0; upkeep 98500000; owner earnings 66300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2018: growth capex 18400000; upkeep 116600000; owner earnings 188500000. Growth capex / owner earnings = 0.09761273209549072.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2019: growth capex 58800000; upkeep 121500000; owner earnings 167000000. Growth capex / owner earnings = 0.3520958083832335.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2023: growth capex 0; upkeep 82300000; owner earnings 105100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2024: growth capex 0; upkeep 96600000; owner earnings 224500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); FY2025: growth capex 15100000; upkeep 139200000; owner earnings 376000000. Growth capex / owner earnings = 0.04015957446808511.

- Source: https://www.sec.gov/Archives/edgar/data/17843/000001784326000034/crs-20260630.htm (filed 2026-08-12); FY2026: growth capex 95600000; upkeep 147100000; owner earnings 529800000. Growth capex / owner earnings = 0.18044545111362778.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); Incremental return on capital 0.960961996112438, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); Dividend observations: [[2017,34100000],[2018,34400000],[2019,38600000],[2020,38800000],[2021,39100000],[2022,39200000],[2023,39400000],[2024,40000000],[2025,40300000],[2026,40300000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/17843/000001784326000034/crs-20260630.htm (filed 2026-08-12); FY2026: cash repurchases 179100000 USD.

### Are managers owners

Insiders own 2.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CRS.US SharesStats.PercentInsiders = 2.474 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 23.6% yearly over ten years; actual growth was 30.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-12); Ten-year compound average after fade. Initial solved rate 0.3317359898115636. Price 380.56; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.7344398340248963 → FY2026 10.511904761904763. Closing-price date 2026-10-15.

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

- 2016-10: $31.61 per share

- 2016-11: $35.77 per share

- 2016-12: $36.17 per share

- 2017-01: $40.02 per share

- 2017-02: $40.56 per share

- 2017-03: $37.30 per share

- 2017-04: $40.60 per share

- 2017-05: $36.47 per share

- 2017-06: $37.43 per share

- 2017-07: $40.43 per share

- 2017-08: $40.53 per share

- 2017-09: $48.03 per share

- 2017-10: $49.79 per share

- 2017-11: $49.43 per share

- 2017-12: $50.99 per share

- 2018-01: $51.40 per share

- 2018-02: $50.94 per share

- 2018-03: $44.12 per share

- 2018-04: $53.26 per share

- 2018-05: $59.94 per share

- 2018-06: $52.57 per share

- 2018-07: $54.77 per share

- 2018-08: $59.67 per share

- 2018-09: $58.95 per share

- 2018-10: $43.61 per share

- 2018-11: $43.08 per share

- 2018-12: $35.61 per share

- 2019-01: $47.26 per share

- 2019-02: $46.94 per share

- 2019-03: $45.85 per share

- 2019-04: $49.67 per share

- 2019-05: $40.56 per share

- 2019-06: $47.98 per share

- 2019-07: $45.01 per share

- 2019-08: $48.64 per share

- 2019-09: $51.66 per share

- 2019-10: $49.02 per share

- 2019-11: $52.57 per share

- 2019-12: $49.78 per share

- 2020-01: $39.74 per share

- 2020-02: $36.75 per share

- 2020-03: $19.50 per share

- 2020-04: $22.17 per share

- 2020-05: $23.37 per share

- 2020-06: $24.28 per share

- 2020-07: $22.36 per share

- 2020-08: $21.03 per share

- 2020-09: $18.16 per share

- 2020-10: $17.48 per share

- 2020-11: $24.44 per share

- 2020-12: $29.12 per share

- 2021-01: $31.24 per share

- 2021-02: $40.66 per share

- 2021-03: $41.15 per share

- 2021-04: $37.87 per share

- 2021-05: $47.92 per share

- 2021-06: $40.22 per share

- 2021-07: $38.15 per share

- 2021-08: $33.35 per share

- 2021-09: $32.74 per share

- 2021-10: $30.88 per share

- 2021-11: $27.48 per share

- 2021-12: $29.19 per share

- 2022-01: $28.72 per share

- 2022-02: $38.39 per share

- 2022-03: $41.98 per share

- 2022-04: $38.18 per share

- 2022-05: $35.23 per share

- 2022-06: $27.91 per share

- 2022-07: $32.14 per share

- 2022-08: $33.97 per share

- 2022-09: $31.14 per share

- 2022-10: $37.40 per share

- 2022-11: $41.06 per share

- 2022-12: $36.94 per share

- 2023-01: $48.29 per share

- 2023-02: $48.33 per share

- 2023-03: $44.76 per share

- 2023-04: $52.74 per share

- 2023-05: $45.61 per share

- 2023-06: $56.13 per share

- 2023-07: $59.86 per share

- 2023-08: $62.63 per share

- 2023-09: $67.21 per share

- 2023-10: $62.72 per share

- 2023-11: $70.81 per share

- 2023-12: $70.80 per share

- 2024-01: $61.59 per share

- 2024-02: $64.65 per share

- 2024-03: $71.42 per share

- 2024-04: $85.70 per share

- 2024-05: $110.87 per share

- 2024-06: $109.58 per share

- 2024-07: $145.87 per share

- 2024-08: $144.77 per share

- 2024-09: $159.58 per share

- 2024-10: $149.50 per share

- 2024-11: $194.04 per share

- 2024-12: $169.71 per share

- 2025-01: $193.06 per share

- 2025-02: $207.07 per share

- 2025-03: $181.18 per share

- 2025-04: $195.61 per share

- 2025-05: $235.00 per share

- 2025-06: $276.38 per share

- 2025-07: $249.39 per share

- 2025-08: $240.88 per share

- 2025-09: $245.54 per share

- 2025-10: $315.90 per share

- 2025-11: $318.54 per share

- 2025-12: $314.84 per share

- 2026-01: $317.83 per share

- 2026-02: $398.07 per share

- 2026-03: $394.15 per share

- 2026-04: $428.20 per share

- 2026-05: $468.98 per share

- 2026-06: $616.84 per share

- 2026-07: $519.66 per share

- 2026-08: $476.42 per share

- 2026-09: $388.82 per share

- 2026-10: $380.56 per share

## Annual estimated value (USD per share)

- FY2017: low $7.92 per share, central $8.93 per share, high $10.26 per share

- FY2018: low $9.95 per share, central $11.28 per share, high $13.06 per share

- FY2019: low $22.16 per share, central $28.16 per share, high $32.89 per share

- FY2020: low $21.75 per share, central $24.82 per share, high $28.36 per share

- FY2021: low $17.66 per share, central $19.35 per share, high $21.61 per share

- FY2025: low $32.63 per share, central $38.99 per share, high $44.63 per share

- FY2026: low $69.39 per share, central $88.56 per share, high $102.47 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/17843/000001784326000034/crs-20260630.htm); period 2026-06-30, filed 2026-08-12.

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.