CRS - Carpenter's Q2: 40% CAGR Operating Growth Expected And Cheap
2024-02-01 11:39:09 ET
Summary
- Carpenter Technology expects 40% CAGR operating income growth from 2023 to 2027 and notes strong demand in the short term.
- The company's business model focuses on specialty metals, with a diverse range of applications in industries such as aerospace, defense, transportation, and energy.
- Carpenter Technology's healthy balance sheet, geographic expansion, and potential for acquisitions contribute to its positive outlook and potential for significant free cash flow growth.
Carpenter Technology Corporation ( CRS ) recently announced expectations of 40% CAGR operating income growth from 2023 to 2027 and noted strong demand in the short term. Besides, given international expansion in almost every jurisdiction and extensive expertise in many different industries, in my view, new products could easily find demand in different markets. Under these assumptions along with inducing risks related to supply chain or higher labor rates, my financial model implied significant undervaluation.
Carpenter Technology's Business Model
With more than 100 years in business, Carpenter Technology is a company dedicated to specialty metals, with design, manufacturing, and distribution capabilities under its control. The main trading product for the company is metals for alloys, which include titanium, powdered metals, and other tools for their application....
Carpenter's Q2: 40% CAGR Operating Growth Expected And Cheap