Crane NXT Co. Common Stock (CXT)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Generates $153 million in annual free cash flow (5.8% yield on market cap)
• Solid return on equity of 12.5% above cost of capital
• Revenue growth of 19.5% demonstrates strong top-line momentum

Concerns

• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Crane NXT Co. Common Stock is a small-cap industrials company valued at $2.6 billion. The business generates $1.7 billion in annual revenue with a 2.9% net margin and $153 million in free cash flow. From a quality standpoint, Crane shows distressed Altman Z-Score of 1.4 warrants caution and adequate 13% ROE. On valuation, the stock is reasonably priced at 18.1x earnings, with trades above its Graham Number with a negative 31% margin. Growth dynamics show revenue growing at 19.5% and profit growth of -16.7%. The 1.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 53/100 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 19% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $153 million in annual free cash flow (5.8% 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 industrials 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