Crown Holdings Valuation With 10% FCF Yield Attracts Carl Icahn

Nov. 09, 2022 11:30 AM ETCrown Holdings, Inc. (CCK)8 Comments

Summary

  • Crown Holdings saw its share price collapse after publishing the Q3 results which were relatively weak.
  • Crown Holdings still is a free cash flow machine, and the reported free cash flow is optically low due to the hundreds of millions being invested in expansion.
  • Crown will be able to push for an inflation-linked price hike in 2023 which should result in an instant margin improvement.
  • The stock is actually pretty cheap.
  • Don't believe me, believe Mr. Icahn.
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Introduction

Crown Holdings (NYSE:CCK) saw its share price crumble when it announced its Q3 results and this appeared to be the apotheosis of a share price that had been moving south for quite a while. I was and still am

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This article was written by

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18.2K Followers
We zoom in on capital gains and dividend income in European small-caps
As I'm a long-term investor, I'll highlight some stockpicks which will have a 5-7 year investment horizon. As I strongly believe a portfolio should consist of a mixture of dividend-paying stocks and growth stocks, my articles will reflect my thoughts on this mixture.

Disclosure: I/we have a beneficial long position in the shares of CCK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I have a long position in CCK. I have also written put options but all options are currently out of the money.

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