Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Carpenter Technology Corporation (CRS)

Company Dividend Discount ModelIndustry: Manufacturing - Metal FabricationSector: Industrials

Valuation Snapshot

Stable Growth$77.27 - $119.10$96.72
Multi-Stage$102.75 - $112.78$107.67
Blended Fair Value$102.19
Current Price$245.54
Upside-58.38%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.76%0.62%0.800.790.780.770.770.770.760.680.670.69
YoY Growth--0.75%1.52%0.51%0.26%0.77%0.52%12.21%0.88%-2.01%-8.18%
Dividend Yield--0.32%0.50%1.16%2.49%2.36%4.22%1.48%1.16%1.40%1.67%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)413.70
(-) Cash Dividends Paid (M)40.30
(=) Cash Retained (M)373.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)82.7451.7131.03
Cash Retained (M)373.40373.40373.40
(-) Cash Required (M)-82.74-51.71-31.03
(=) Excess Retained (M)290.66321.69342.37
(/) Shares Outstanding (M)50.6050.6050.60
(=) Excess Retained per Share5.746.366.77
LTM Dividend per Share0.800.800.80
(+) Excess Retained per Share5.746.366.77
(=) Adjusted Dividend6.547.157.56
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate0.60%1.60%2.60%
Fair Value$77.27$96.72$119.10
Upside / Downside-68.53%-60.61%-51.50%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)413.70420.30427.01433.82440.75447.78461.21
Payout Ratio9.74%25.79%41.84%57.90%73.95%90.00%92.50%
Projected Dividends (M)40.30108.41178.68251.17325.92403.00426.62

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate0.60%1.60%2.60%
Year 1 PV (M)98.3899.36100.33
Year 2 PV (M)147.15150.09153.06
Year 3 PV (M)187.71193.36199.12
Year 4 PV (M)221.04229.96239.15
Year 5 PV (M)248.02260.60273.68
PV of Terminal Value (M)4,296.774,514.634,741.23
Equity Value (M)5,199.065,447.995,706.57
Shares Outstanding (M)50.6050.6050.60
Fair Value$102.75$107.67$112.78
Upside / Downside-58.15%-56.15%-54.07%

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