Crown Holdings Inc. (CCK)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Generates $910 million in annual free cash flow (7.8% yield on market cap)
• High return on equity of 26.3% demonstrating efficient capital deployment
• Established organization with 23,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($62) with negative 69% margin of safety—limited downside protection
• Altman Z-Score of 1.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Crown Holdings Inc. is a mid-cap consumer cyclical company valued at $11.7 billion. The business generates $12.4 billion in annual revenue with a 1.2% net margin and $910 million in free cash flow. From a quality standpoint, Crown shows distressed Altman Z-Score of 1.3 warrants caution and strong 26% ROE. On valuation, the stock is reasonably priced at 16.1x earnings, with trades above its Graham Number with a negative 69% margin. Growth dynamics show revenue growing at 7.7% and profit growth of -58.1%. The 1.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $910 million in annual free cash flow (7.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer