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

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