Crane Company Common Stock (CR)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 17.9% above cost of capital
• Altman Z-Score of 5.0 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 49.9% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($68) with negative 173% margin of safety—limited downside protection

AI Analysis

Crane Company Common Stock is a mid-cap industrials company valued at $10.6 billion. The business generates $2.3 billion in annual revenue with a 3.5% net margin. From a quality standpoint, Crane shows Altman Z-Score of 5.0 confirms fortress-level solvency and adequate 18% ROE. On valuation, the stock is trading at a premium 31.9x earnings, with trades far above its Graham Number ($68) with no margin of safety. Growth dynamics show revenue growing at 49.9% and profit growth of 0.9%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Crane's 50% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 32x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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