CCK

Crown Holdings, Inc.

Consumer


Presented:11/29/2022
Price:$80.23
Cap:$9.62B
Current Price:$94.10
Cap:$11.35B

Presented

Date11/29/2022
Price$80.23
Market Cap$9.62B
Ent Value$16.86B
P/E RatioN/A
Book Value$13.89
Div Yield1.1%
Shares O/S119.95M
Ave Daily Vol1,712,911
Short Int3.01%

Current

Price$94.10
Market Cap$11.35B
Crown Holdings, Inc. engages in the design, manufacture, and sale of packaging products and equipment for consumer goods. The firm offers aerosol cans, beverage, promotional, and transit packaging, closures and capping, and food cans. It operates through the following segments: Americas, Europe, Asia Pacific, and Transit Packaging. The Americas segment manufactures beverage, food and aerosol cans and ends, glass bottles, specialty packaging, metal vacuum closures, steel crowns, and aluminum caps. The Europe segment operates in Europe, Middle East, and North Africa. The Asia Pacific segment includes beverage and non-beverage can operations. The Transit Packaging segment provides industrial and protective solutions and equipment and tools businesses. The company was founded by William Painter in 1892 and is headquartered in Philadelphia, PA.

Publicly traded companies mentioned herein: Crown Holdings Inc (CCK)

Highlights

The presenter is long shares of Crown Holdings Inc (CCK) and is bullish on beverage can businesses generally. The industry experienced a large pull-forward of demand during the pandemic that it was unable to fulfill, forcing the major players to import cans and build facilities. However, demand dramatically slowed in recent quarters as these buildouts were in progress. Once the slowdown occurred, the major players shut off capex. Therefore, he expects the industry will tighten up by next year and volumes will eventually recover, creating a growth algorithm for the industry of 4% – 6% on volumes globally. Given these stocks are levered buyback stories, EBITDA should grow a little higher than volume growth, driving low- to mid-teen% EPS growth. 

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Idea Discussion

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