Carpenter Technology Corporation - A Fair Value Report

CRS stock just moved into the S&P SmallCap 600, the Robinhood crowd doesn't hold the stock, and cows really do sleep at night. But what's the stock really worth?

The intent of this report is to provide the reader with a brief overview of my valuations for this company.

What They Do
Carpenter Technology (CRS) is engaged in the manufacturing, fabrication and distribution of specialty metals, producing high-performance specialty alloy-based materials and process solutions for critical applications in the aerospace, defense, medical, transportation, energy, industrial and consumer end-use markets. Listed competitors include Allegheny Technologies (NYSE: ATI) and United States Steel (NYSE: X).

Acquisitions Highlights
The company listed no new business acquisitions in its most recent Annual Report on form 10-K.

Divestitures Highlights
The company listed no new business divestitures in its most recent Annual Report on form 10-K.

Subsequent Events
In July 2020, the company issued $400 million in aggregate principal amount of its 6.375% senior notes due 2028 in an underwritten public offering. The company utilized a portion of the net proceeds from the offering to repay $250 million in principal amount of the company’s senior notes at 5.20% due July 2021.

In September 2020, the company filed form NT 10-K, notifying the SEC of its inability to timely file its Annual Report on Form 10-K. The reason cited was that the company’s independent registered public accounting firm had not completed its audit of the company’s financial statements and internal control over financial reporting. The Annual Report on Form 10-K was subsequently filed three days later.

Short-Term Target
My current short-term target for the stock is $27.31 with an initial trailing stop set at $19.20. Based on a recent price of $19.49, upward price movement will find resistance at $21.90 and again at $24.00, with final resistance found at $25.89. Downward price movement will find support at $18.40 and again at $17.93, with final support found at $16.19.

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Financial statement data was obtained from the company’s most recent Annual Report ...

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