Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Crane Feeling The Strain

Investors have the very dubious good fortune of having a lot of beaten-down industrial companies to choose from right now. I'm not sure that Crane (NYSE:CR) needs to figure too highly on that list. While the company has been executing on margin improvement efforts, revenue growth was already pretty lackluster before the sector hit the fan. I do believe that the shares are undervalued today, but I think my earlier projections of mid-single digit long-term revenue growth were too ambitious. With low-to-mid single-digit top line growth more likely, driving FCF growth in the 7% range, the shares are undervalued below $50, but not really exciting.

Surprising Margin Strength To Close The Year

Crane's December quarter performance was not

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details