Carpenter Technology Corporation (CRS) AI Stock Analysis

Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals across the United States, Europe, Asia Pacific, Mexico, Canada, and beyond. It operates two primary segments: Specialty Alloys Operations and Performance Engineered Products. The company produces titanium alloys, powder metals, stainless steels, alloy steels, tool steels, additives, metal powders, and precision parts. These materials serve critical applications in aerospace, defense, medical, transportation, energy, industrial, and consumer sectors where durability and performance are required. Founded in 1889 and based in Philadelphia, Pennsylvania, the company also invests in research and development to expand advanced materials.

Revenue grew from $1.84B in FY2022 to $3.12B in FY2026, reflecting a five-year revenue CAGR of 16.2%. Profitability improved significantly over this span, with gross margin rising from 8.2% in FY2022 to 30.6% in FY2026. Operating margin turned from -1.4% in FY2022 to 22.5% in FY2026, while net income shifted from -$49.1M to $529.8M. For the latest quarter ended June 30, 2026, quarterly revenue grew 12.6% year-over-year, and quarterly earnings grew 46.4% year-over-year, delivering trailing twelve months EPS of $10.52 and an operating margin of 24.1%.

As of June 30, 2026, Carpenter Technology held $393.3M in cash and short-term investments against total debt of $690.7M, yielding net debt of $297.4M. Its debt-to-equity ratio stood at 0.31, with shareholders' equity of $2.23B and a current ratio of 3.81. In FY2026, operating cash flow reached $605.0M. The company directed capital toward $242.7M in capital expenditures, $179.1M in share buybacks, and $40.3M in dividends paid.

At $377.09 per share, Carpenter Technology trades at a trailing P/E of 35.8x and a forward P/E of 23.4x, higher than the median of its US-listed Industrials peers at 24.8x and 17.2x, respectively. Its enterprise value stands at $19.88B, with an EV/EBITDA of 23.5x compared to the peer median of 13.9x. The stock has delivered a 1-year return of 58.7% and a 5-year return of 1086.3%, outperforming the S&P 500 (SPY) returns of 16.8% and 83.0% over the same periods.

Carpenter Technology pays an annual forward dividend of $0.80 per share, representing a dividend yield of 0.21%. The company maintains a payout ratio of 7.4% and has paid dividends for 42 consecutive years. Its five-year annualized dividend growth is 0.0%, and its last ex-dividend date was October 20, 2026.

Wall Street coverage consists of 6 Strong Buy, 1 Buy, and 1 Hold ratings. The mean price target is $536.25, representing 42.2% upside compared to the last close of $377.09. For the current fiscal year ending June 30, 2027, consensus estimates project EPS of $13.44 on revenue of $3.50B. Carpenter Technology beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for October 22, 2026.

This page is an AI-written research summary of Carpenter Technology Corporation (CRS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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