CCK

Crown Holdings, Inc.

Consumer, Event Driven/Special Sit


Presented:01/30/2020
Price:$75.82
Cap:$10.28B
Current Price:$94.10
Cap:$11.35B

Presented

Date01/30/2020
Price$75.82
Market Cap$10.28B
Ent Value$17.41B
P/E Ratio21.46x
Book Value$11.95
Div Yield0%
Shares O/S135.53M
Ave Daily Vol1,093,797
Short Int1.78%

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 (CCK), and believes the aluminum can producer is towards the beginning of a strong secular tailwind in its beverage can end market, as can demand increases and and no additional capacity is being added for the foreseeable future. The stock currently trades at ~$75, or a 8% FCF yield, with double-digit FCF growth. The presenter expects Crown to have growing beverage can demand coupled with higher pricing power, and for the stock to appreciate up to $110 - $115 per share, with the multiple expanding from 10.5x EBITDA to ~14x EBITDA.

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Idea Discussion

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