Crown Holdings (NYSE:CCK) is a tremendously cash-generative business selling at a significant discount to value, as measured by the cash flow that will be available to pay down debt or return to shareholders over the next five years. Management is careful with shareholder's capital, having achieved outstanding incremental returns on capex over the past ten years, and operate the low-cost operation in the industry. Capex in developing beverage can markets, South-East and Brazil, should support future growth whilst the company continues to allocate capital more carefully in North America and Europe. All these attributes are supported by the recently announced acquisition of Mivisa.
High freight costs, relative to product value, and high capital costs create significant barriers...
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