CCK

Crown Holdings, Inc.

Industrial/Transportation


Presented:01/16/2020
Price:$73.70
Cap:$9.99B
Current Price:$94.10
Cap:$11.35B

Presented

Date01/16/2020
Price$73.70
Market Cap$9.99B
Ent Value$17.41B
P/E Ratio20.86x
Book Value$11.95
Div Yield0%
Shares O/S135.53M
Ave Daily Vol1,239,534
Short Int1.84%

Current

Price$94.10
Market Cap$11.35B
Crown Holdings, Inc. engages in the design, manufacture and sale of packaging products for consumer goods. Its products include Beverage Cans and Glass Bottles, Food Cans and Closures, Transit Packaging and Aerosol Cans. The firm operates through the following geographical divisions: Americas, European, and Asia-Pacific. The Americas division includes operations in the U.S., Brazil, Canada, the Caribbean, Colombia and Mexico. The European division refers to the operations in Europe, the Middle East and Africa. The Asia-Pacific division is a reportable segment which primarily consists of beverage can operations in Cambodia, China, Indonesia, Malaysia, Singapore, Thailand and Vietnam and also includes the Company's non-beverage can operations, primarily food cans and specialty packaging in China, Singapore, Thailand and Vietnam. The company was founded by William Painter in 1892 and is headquartered in Philadelphia, PA.

Publicly traded companies mentioned herein: Ball Corp (BLL), Coca-Cola Co/The (KO), Crown Holdings Inc (CCK), PepsiCo Inc (PEP)

Highlights

The presenter is long shares of Crown Holdings Inc (CCK), as he believes the stock has an attractive risk/reward setup. Despite the general understanding that aluminum can manufacturers are performing well and taking share from plastic, his belief is the market underappreciates how early we are in this shift. Between that dynamic and improvements in capital allocation practices, he thinks CCK’s shares are undervalued at ~$73 per share (~13x consensus 2020 EPS, mid- to high-single digit P/E multiple on his 2021 – 2022 numbers). 

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Idea Discussion

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