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Crane Co T.CR


Primary Symbol: CR Alternate Symbol(s):  CXT

Crane Company is a manufacturer of engineered components for mission-critical applications focused on the aerospace, defense, space and process flow industry end markets. Its segments include Aerospace & Electronics, Process Flow Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace, and the military aerospace, defense and space markets. The Process Flow Technologies segment is a provider of engineered fluid handling equipment for critical applications. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils, primarily for use in the manufacturing of recreational vehicles, truck bodies and trailers (Transportation). It also designs and manufacturers multi-stage lubrication pumps and lubrication system components technology for critical aerospace and defense applications.


NYSE:CR - Post by User

Bullboard Posts
Comment by Poriemonon May 10, 2020 6:00pm
220 Views
Post# 31009849

RE:RE:encouraging day on friday

RE:RE:encouraging day on fridayJust to add on this after doing somew more digging, both have similar levels of debt (when incorporating NWC), but CR's capital structure is a fair amount cheaper due to cheaper debt.   CR also has less "at risk" - although both have a credit faiclity review in June, CR's balance is significantly less than PONY's.

On top of all of that, PONY's hedging program is failing them - it should be protecting them in these markets, but instead because they decided to speculate, they're getting burned, and that will continue to drag on 2020 results. CR's on the other hand is working marvelously, and acting as a proper buffer.

In spite of having much higer production, PNY had lower adjusted cash flow than CR. As both have a similar share count and similar debt levels, and as CR's FCF is higher, CR's market cap should be higher assuming that Q1 market conditinos are the norm.  Unfortunately, we know that Q2 will be worse than Q1 - but that means PONY will be in even worse shape than CR.  The only scenario where PNY ends up the better investment is if NG futures for AECO/STN2 (give Pony's gas market exposures) go up and stay up significantly, which is great news for CR anyways.

In my opinion, PONY is the more levered play. But based on that, I would be hard pressed to pay double for that compared to CR.
Bullboard Posts