📊 CRS Key Takeaways
Is Carpenter Technology Corp. (CRS) a Good Investment?
Carpenter Technology demonstrates exceptional financial fundamentals with net income doubling while maintaining a fortress balance sheet with minimal leverage (0.33x debt/equity) and robust liquidity (3.73x current ratio). Dramatic profitability improvements and superior margins (30.2% gross, 16.2% net) reflect strong operational execution, though the disconnect between 4.3% revenue growth and 101.6% net income growth raises sustainability questions in a cyclical industry. Strong free cash flow generation ($207.3M) and returns on capital (ROE 17.8%) support financial flexibility for a well-managed business.
Carpenter Technology shows a sharp improvement in earnings quality, with only modest revenue growth translating into much stronger operating and net income, indicating favorable mix, pricing, and operating leverage. The balance sheet is healthy, liquidity is strong, and leverage remains manageable, supporting continued investment and resilience through industrial cycles.
Why Buy Carpenter Technology Corp. Stock? CRS Key Strengths
- Exceptional net income growth (+101.6% YoY) demonstrating significant operating leverage and efficiency gains
- Superior profit margins across all levels (30.2% gross, 21.8% operating, 16.2% net) indicating competitive advantage in specialty materials
- Fortress balance sheet: low leverage (0.33x debt/equity), strong liquidity (3.73x current ratio), excellent interest coverage (12.8x)
- Solid free cash flow generation ($207.3M, 9.1% FCF margin) providing financial flexibility
- Strong returns on invested capital (ROE 17.8%, ROA 10.0%) indicating efficient capital deployment
- High profitability with 29.7% gross margin, 21.1% operating margin, and 15.6% net margin
- Strong financial health with 4.25x current ratio, 2.26x quick ratio, and low 0.35x debt-to-equity
- Earnings momentum is robust, with net income up 101.6% and diluted EPS up 100.5% year over year
CRS Stock Risks: Carpenter Technology Corp. Investment Risks
- Significant margin expansion not accompanied by proportional revenue growth (4.3% YoY) raises sustainability concerns
- High cyclicality exposure as specialty materials/steel company vulnerable to economic downturns and commodity price volatility
- Profit surge appears margin-driven rather than volume-driven, at risk of reversal if pricing or mix deteriorates
- Capital-intensive business model (CapEx 6.8% of revenue) requires consistent investment discipline
- Limited cash position ($294.8M) relative to $3.7B assets constrains strategic flexibility
- Revenue growth is relatively modest at 4.3%, so recent earnings gains may be difficult to sustain without stronger top-line expansion
- Free cash flow margin of 5.6% is solid but materially below accounting profitability, reflecting ongoing capital intensity
- The business remains exposed to cyclical industrial demand, which can pressure margins and cash generation if end markets weaken
Key Metrics to Watch
- Revenue growth trajectory and organic volume trends to confirm sustainable expansion
- Gross margin sustainability amid input cost and commodity price volatility
- Free cash flow conversion rate and management's capital allocation decisions
- Leverage maintenance as cyclical conditions evolve
- Operating margin resilience through economic cycle downturn
- Operating margin and gross margin sustainability
- Free cash flow conversion relative to net income
Carpenter Technology Corp. (CRS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.73x current ratio provides a solid financial cushion.
CRS Profit Margin, ROE & Profitability Analysis
CRS vs Materials Sector: How Carpenter Technology Corp. Compares
How Carpenter Technology Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Carpenter Technology Corp. Stock Overvalued? CRS Valuation Analysis 2026
Based on fundamental analysis, Carpenter Technology Corp. appears fundamentally strong relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Carpenter Technology Corp. Balance Sheet: CRS Debt, Cash & Liquidity
CRS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Carpenter Technology Corp.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.14 reflects profitable operations.
CRS Revenue Growth, EPS Growth & YoY Performance
CRS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $727.0M | $95.4M | $1.88 |
| Q2 2026 | $676.9M | $84.1M | $1.66 |
| Q1 2026 | $717.6M | $84.8M | $1.67 |
| Q3 2025 | $684.9M | $6.3M | $0.12 |
| Q2 2025 | $624.2M | $42.7M | $0.85 |
| Q1 2025 | $651.9M | $43.9M | $0.88 |
| Q3 2024 | $684.9M | $6.3M | $0.12 |
| Q2 2024 | $579.1M | -$600.0K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Carpenter Technology Corp. Dividends, Buybacks & Capital Allocation
CRS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Carpenter Technology Corp. (CIK: 0000017843)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRS
What is the AI rating for CRS?
Carpenter Technology Corp. (CRS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRS's key strengths?
Claude: Exceptional net income growth (+101.6% YoY) demonstrating significant operating leverage and efficiency gains. Superior profit margins across all levels (30.2% gross, 21.8% operating, 16.2% net) indicating competitive advantage in specialty materials. ChatGPT: High profitability with 29.7% gross margin, 21.1% operating margin, and 15.6% net margin. Strong financial health with 4.25x current ratio, 2.26x quick ratio, and low 0.35x debt-to-equity.
What are the risks of investing in CRS?
Claude: Significant margin expansion not accompanied by proportional revenue growth (4.3% YoY) raises sustainability concerns. High cyclicality exposure as specialty materials/steel company vulnerable to economic downturns and commodity price volatility. ChatGPT: Revenue growth is relatively modest at 4.3%, so recent earnings gains may be difficult to sustain without stronger top-line expansion. Free cash flow margin of 5.6% is solid but materially below accounting profitability, reflecting ongoing capital intensity.
What is CRS's revenue and growth?
Carpenter Technology Corp. reported revenue of $2.3B.
Does CRS pay dividends?
Carpenter Technology Corp. pays dividends, with $30.2M distributed to shareholders in the trailing twelve months.
Where can I find CRS SEC filings?
Official SEC filings for Carpenter Technology Corp. (CIK: 0000017843) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRS's EPS?
Carpenter Technology Corp. has a diluted EPS of $7.29.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CRS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Carpenter Technology Corp. has a BUY rating with 81% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CRS stock overvalued or undervalued?
Valuation metrics for CRS: ROE of 17.8% (sector avg: 14%), net margin of 16.2% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy CRS stock in 2026?
Our dual AI analysis gives Carpenter Technology Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CRS's free cash flow?
Carpenter Technology Corp.'s operating cash flow is $364.9M, with capital expenditures of $157.6M. FCF margin is 9.1%.
How does CRS compare to other Materials stocks?
Vs Materials sector averages: Net margin 16.2% (avg: 10%), ROE 17.8% (avg: 14%), current ratio 3.73 (avg: 1.6).