Quality Investor

Carpenter Technology Corporation

Rank #280Hypergrowth

CRS · NYSE · Industrials

Carpenter Technology Corporation (CRS) — Rank #280 by gross profitability (GP/assets 0.25) · ROE 23.8% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0000017843 · all metrics point-in-time as of the filing date.

About

Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally.

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It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as metal powders and parts. It serves the aerospace, defense, medical, transportation, energy, industrial, and consumer markets.

The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.

Industry
Metal Fabrication
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
June 30

Price History

CRS+1308.9% · +69.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$20.17B

P/E (annual)

38.7

P/S (annual)

6.5

P/B

9.1

P/OCF (annual)

33.3

Shareholder Yield

-6.8%

Employees

4,500

Industry

Metal Fabrication

Exchange

NYSE

Signal Flags

2 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.25
Return on equity
23.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.72
Current ratio
3.81×
Net cash
-$297.40M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.8%

Growth

1/2 pass
Revenue growth
73.8%
Piotroski F-Score
8 / 9
Share dilution
7.0%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

21.9%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 7.0% — per-share value needs a total required return of 28.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 20.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

16.8%

r = 10% (base)

21.9%

r = 12%

26.4%

Net debt / market cap: 1.4%

Base FCF: $362.3M3Y mean FCF: $74.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

50.5xFair
14.0xmed 53.6x1078.5x

P / S

Price / revenue per share

1.1xFair
0.5xmed 1.1x1.5x

P / B

Price / book value per share

2.0xFair
0.7xmed 1.7x2.5x

P / GP

Price / gross profit per share

8.4xFair
3.2xmed 8.9x1566.9x

P / FCF

Price / free cash flow per share

N/A
10.5xmed 26.6x83.2x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.25

Primary signal (Novy-Marx).

1st of 6 SIC 33 peers

Return on equity

23.8%

Gross margin

30.6%

2nd of 6 SIC 33 peers

Revenue growth (YoY)

73.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2018202120222023
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

7.0%

Revenue CAGR (5Y)

16.2%

Earnings CAGR (3Y)

111.0%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.72

2nd of 6 SIC 33 peers (best = lowest)

Current ratio

3.81×

1st of 6 SIC 33 peers

Quick ratio

2.11×

Net cash

-$297.40M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$362.30M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.32

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.8%

Stock-based comp intensity.

Dividend safety

Composite score

3.0 / 5

Good
Payout ratio
7.6%5/5 Strong
FCF coverage
8.99×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 0.72 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20162023
Op. Leverage
Decline
Startup
Hypergrowth