CCK

Crown Holdings Inc.

Consumer


Presented:02/06/2015
Price:$47.14
Cap:$6.55B
Current Price:$94.10
Cap:$11.35B

Presented

Date02/06/2015
Price$47.14
Market Cap$6.55B
Ent Value$11.89B
P/E Ratio16.21x
Book Value$0.86
Div YieldN/A
Shares O/S138.92M
Ave Daily Vol860,000
Short Int2.51%

Current

Price$94.10
Market Cap$11.35B
Crown Holdings, Inc. designs, manufactures, and sells packaging products for consumer goods worldwide. The company’s products include aluminum beverage cans and ends, and other packaging products to beverage and beer companies; food cans and ends, including two-and three-piece cans in various shapes and sizes for food marketers; and aerosol cans and ends for manufacturers of personal care, food, household, and industrial products. It also provides metal and composite closures, and capping systems and services, as well as various specialty containers comprising lid and closure variations. Crown Holdings, Inc. was founded in 1927 and is headquartered in Philadelphia, Pennsylvania.

Publicly traded companies mentioned herein: Ball Corp (BLL), Blackstone Group LP (BX), Crown Holdings Inc (CCK), Heineken NV (HEIA NA), Rexam PLC (REX LN)

Highlights

With shares of Crown Holdings (CCK) trading in the high $40s (~$48), the presenter sees a favorable risk/ reward for a bearish play on the global manufacturer of packaging products for consumer goods. Metal cans for beverage (mostly CSD) and beer companies make up ~60% of the business, and packaging for food is ~35%. 80% of CCK’s EBIT is earned in international markets, and the company just made two potentially risky acquisitions that expand its global footprint. Fundamental headwinds are accelerating in 50% of CCK’s end markets, and in the regions where fundamentals are “OK” there are stiff FX headwinds, he explained.

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Idea Discussion

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