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1. Company Snapshot

1.a. Company Description

Crown Holdings, Inc.designs, manufactures, and sells packaging products and equipment for consumer goods and industrial products in the Americas, Europe, and the Asia Pacific.It offers products for consumer goods, including steel and aluminum cans for food and beverage industries.


The company also provides products for industrial products, such as steel and plastic strap consumables and equipment, paper-based protective packaging, and plastic film consumables and equipment to metals, food and beverage, construction, agricultural, corrugated, and general industries.In addition, it offers other consumer products, glass bottles for beverage products, steel crowns, aluminum caps, steel strap, plastic strap, industrial film, and other related products, as well as equipment and tools, such as manual, semi-automatic, and automatic equipment and tools used in end of line manufacturing applications to apply industrial solutions consumables.Crown Holdings, Inc.


was founded in 1892 and is headquartered in Yardley, Pennsylvania.

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1.b. Last Insights on CCK

Crown Holdings, Inc.'s recent performance was negatively impacted by various factors. Despite beating earnings estimates with Q3 earnings of $2.24 per share, up from $1.99 a year ago, and revenue surpassing estimates, concerns surrounding customer concentration and high interest expenses may have affected investor sentiment. The company's industrial products segment faced challenges, and its dividend-paying peer, Crown Castle, had a 32% dividend cut, potentially influencing investor perceptions. However, an upgrade to a Zacks Rank #2 (Buy) indicates growing optimism about Crown's earnings prospects.

1.c. Company Highlights

2. Crown Holdings Delivers Strong Q3 Earnings, Raises Full-Year Guidance

Crown Holdings reported a significant improvement in its Q3 earnings, with adjusted earnings per share (EPS) of $2.24, surpassing the estimated $1.98. The company's net sales rose 4.2% year-over-year, driven by a 12% increase in European beverage shipments and the pass-through of higher raw material costs. Segment income was $490 million, up from $472 million in the prior year. The actual EPS came out at $1.85, compared to a loss of $1.47 per share in the prior year quarter. The company's free cash flow generation was strong, with $887 million generated in the nine months ended September 30, up from $668 million in the prior year.

Publication Date: Oct -21

📋 Highlights
  • Q3 Earnings Improvement:: Earnings per share surged from a $1.47 loss to $1.85, with adjusted EPS rising to $2.24 from $1.99 YoY.
  • Free Cash Flow Growth:: Generated $887 million in free cash flow YTD, up from $668 million in 2023, with $314 million spent on share repurchases.
  • Net Sales Growth:: Sales rose 4.2% YoY, driven by 12% higher European beverage shipments and higher raw material cost pass-through.
  • Guidance Revision:: Full-year adjusted EPS guidance raised to $7.7-$7.8 (prior: $7.5-$7.6), with Q4 expected at $1.65-$1.75.
  • European Expansion:: Plans to add capacity via modernizing a Greek facility, with two new can lines to launch in 2024, supporting 4-5% long-term growth.

Segment Performance

The company's European business delivered a strong performance, with beverage volumes growing 12% in the quarter. The growth was driven by underlying demand and substitution. In North America, volumes were down 3% in the quarter but rebounded in September and October. The company expects to return to growth in North American beverage volumes in 2026. The aerosol can plant closure last year resulted in a lower cost structure, contributing to the improved performance.

Guidance and Outlook

Crown Holdings raised its full-year adjusted EPS guidance to $7.7-$7.8 and expects the fourth quarter adjusted EPS to be $1.65-$1.75. The company expects its global operations to continue improving, with a goal of continuous improvement in manufacturing. The European business is expected to continue growing in volume and income, driven by increasing can penetration across Southern Europe and substrate shift available across the continent.

Valuation and Cash Flow

The company's valuation metrics indicate a reasonable price for its shares. The P/E Ratio is 12.13, and the EV/EBITDA is 8.19. The Free Cash Flow Yield is 8.7%, indicating a strong ability to generate cash. The company's net debt to EBITDA ratio is 2.54, which is in line with its target leverage level. With a ROIC of 10.77% and ROE of 33.32%, the company is generating strong returns on its investments.

Share Repurchase and Capital Allocation

Crown Holdings repurchased $105 million of common stock in the quarter and $314 million year-to-date. The company has allocated $450-$500 million for capital expenditures in 2026, which includes funding for new lines in Greece, modernization of the German plant, and a third line in Brazil. The company's strong cash flow generation and reasonable valuation metrics make it an attractive investment opportunity.

3. NewsRoom

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Crown Reserve Acquisition Corp. I Announces the Separate Trading of Its Class A Ordinary Shares, Warrants, and Rights, Commencing on or About December 9, 2025

Dec -04

Source: globenewswire.com

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Crown Point Announces Management Changes

Dec -03

Source: globenewswire.com

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Crown Point Acquires Additional Interest in El Tordillo, La Tapera and Puesto Quiroga Hydrocarbon Exploitation Concessions in Chubut, Argentina

Dec -01

Source: globenewswire.com

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Crown Castle to Present at the UBS Global Media and Communications Conference

Dec -01

Source: globenewswire.com

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Bonds Taking the Crown From Cash? Thornburg Explains

Nov -26

Source: etftrends.com

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Goldstorm Metals Provides High-Grade Gold-Silver-Copper Results from Surface Sampling on the Crown Property, and Drilling Results from the Electrum Property, located in the Golden Triangle of British Columbia.

Nov -25

Source: newsfilecorp.com

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CROWN ANNOUNCES FINAL RESULTS AND EXPIRATION OF CASH TENDER OFFER FOR DEBT SECURITIES

Nov -19

Source: prnewswire.com

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CROWN ANNOUNCES PRICING TERMS OF CASH TENDER OFFER FOR DEBT SECURITIES

Nov -18

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.24%)

6. Segments

Americas Beverage

Expected Growth: 2.5%

Crown Holdings' Americas Beverage segment growth of 2.5% is driven by increasing demand for sustainable and specialty packaging, particularly in the craft beer and soft drink markets. Additionally, the company's focus on innovation, such as its Orbit closure system, and strategic acquisitions have contributed to its growth.

Transit Packaging

Expected Growth: 1.8%

Crown Holdings' Transit Packaging segment growth of 1.8% is driven by increasing demand for sustainable and eco-friendly packaging solutions, growth in e-commerce and online shopping, and rising need for protective packaging in the transportation of goods. Additionally, the company's focus on innovation and expansion into new markets also contributes to the segment's growth.

European Beverage

Expected Growth: 2.2%

Crown Holdings' European Beverage segment growth of 2.2% is driven by increasing demand for sustainable packaging, premiumization of beer and soft drinks, and expansion in emerging markets. Additionally, the segment benefits from the company's innovative product offerings, such as slim cans and specialty packaging, which appeal to environmentally conscious consumers.

Other

Expected Growth: 1.5%

Crown Holdings, Inc.'s 1.5% growth in 'Other' segment is driven by increasing demand for specialty packaging, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on sustainability and innovative products has contributed to its growth. Furthermore, the 'Other' segment's diversification into adjacent markets, such as food and beverage, has also supported its growth momentum.

Asia Pacific

Expected Growth: 2.8%

Crown Holdings, Inc.'s 2.8% growth in Asia Pacific is driven by increasing demand for beverage packaging in China and Southeast Asia, fueled by a growing middle class and rising consumption of soft drinks and beer. Additionally, the region's expanding e-commerce market and increasing adoption of sustainable packaging solutions also contribute to this growth.

7. Detailed Products

Food and Beverage Packaging

Crown Holdings provides a wide range of packaging solutions for the food and beverage industry, including cans, bottles, and containers for soft drinks, beer, and food products.

Aerosol Packaging

Crown Holdings offers a variety of aerosol packaging solutions for personal care, household, and industrial products, including spray cans and dispensers.

Promotional Packaging

Crown Holdings provides custom and specialty packaging solutions for promotional and specialty products, including tins, containers, and gift boxes.

Equipment and Tooling

Crown Holdings offers a range of equipment and tooling solutions for the packaging industry, including can making machinery and tooling systems.

Services

Crown Holdings provides a range of services, including packaging design, testing, and logistics, to support customers' packaging needs.

8. Crown Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Crown Holdings, Inc. operates in the packaging industry, where substitutes are available, but they are not a significant threat. The company's focus on innovation and sustainability helps to differentiate its products and reduce the threat of substitutes.

Bargaining Power Of Customers

Crown Holdings, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. The company's strong relationships with its customers and its ability to provide customized solutions also help to mitigate the bargaining power of customers.

Bargaining Power Of Suppliers

Crown Holdings, Inc. relies on a network of suppliers for raw materials, but it has a diversified supply chain and is not heavily dependent on any single supplier. The company's scale and global presence also give it bargaining power over its suppliers.

Threat Of New Entrants

The packaging industry has high barriers to entry, including significant capital requirements and regulatory hurdles. Crown Holdings, Inc.'s established brand and global presence also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The packaging industry is highly competitive, with several large players competing for market share. Crown Holdings, Inc. faces intense competition from companies such as Ball Corporation and Ardagh Group, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.73%
Debt Cost 7.86%
Equity Weight 24.27%
Equity Cost 8.34%
WACC 7.97%
Leverage 312.03%

11. Quality Control: Crown Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Greif

A-Score: 5.6/10

Value: 6.9

Growth: 4.2

Quality: 4.2

Yield: 7.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Crown Holdings

A-Score: 5.5/10

Value: 6.2

Growth: 5.0

Quality: 5.0

Yield: 2.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Sealed Air

A-Score: 5.2/10

Value: 5.3

Growth: 4.3

Quality: 4.9

Yield: 4.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Berry Global

A-Score: 5.1/10

Value: 6.0

Growth: 5.8

Quality: 4.3

Yield: 2.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Silgan

A-Score: 4.4/10

Value: 4.5

Growth: 5.2

Quality: 3.9

Yield: 3.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
WestRock

A-Score: 3.4/10

Value: 4.9

Growth: 2.7

Quality: 2.7

Yield: 2.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

97.95$

Current Price

97.95$

Potential

-0.00%

Expected Cash-Flows