Crown Story

CCK -  USA Stock  

USD 108.81  3.58  3.19%

It feels like Crown Cork will continue to recover much faster as its share price surged up 0.64% today. The company current daily volatility is 1.89 percent, with a beta of -0.42 and an alpha of 0.22 over DOW. As many baby boomers are still indifferent towards shipping containers, it makes sense to examine Crown Cork Seal. We will evaluate if Crown Cork shares are reasonably priced going into May.
Published over three weeks ago
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Is Crown Cork (NYSE:CCK) stock way too aggressive for baby boomers?
Crown Cork Seal has roughly 1.17 B in cash with 1.32 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.81.
Macroaxis provides advice on Crown Cork Seal to complement and cross-verify current analyst consensus on Crown Cork Seal. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in Crown Cork, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Crown Cork along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Crown Cork's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Crown Cork in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Crown Cork. Your research has to be compared to or analyzed against Crown Cork's peers to derive any actionable benefits. When done correctly, Crown Cork's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Crown Cork Seal.

How important is Crown Cork's Liquidity

Crown Cork financial leverage refers to using borrowed capital as a funding source to finance Crown Cork Seal ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Crown Cork financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Crown Cork's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Crown Cork, but it might be worth checking our own buy vs. sell analysis

Crown Cork Correlation with Peers

Investors in Crown can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Crown Cork Seal. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Crown Cork and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Crown is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Crown for more details

Is Crown Cork valued properly by the market?

Crown Cork appears to be very steady, given 1 month investment horizon. Crown Cork Seal secures Sharpe Ratio (or Efficiency) of 0.14, which signifies that the company had 0.14% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Crown Cork Seal, which you can use to evaluate the future volatility of the firm. Please makes use of Crown Cork's Mean Deviation of 1.33, downside deviation of 1.92, and Risk Adjusted Performance of 0.0794 to double-check if our risk estimates are consistent with your expectations.
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-0.320.780.41-0.38
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0.41-0.250.230.19
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-0.38-0.1-0.640.19
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Crown showing sign of lower volatility

The variance is down to 3.59 as of today. Crown Cork Seal has relatively low volatility with skewness of -0.47 and kurtosis of 4.72. However, we advise all investors to independently investigate Crown Cork Seal to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Crown Cork's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Crown Cork's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Crown Cork

Although some other entities within the packaging & containers industry are still a little expensive, even after the recent corrections, Crown Cork may offer a potential longer-term growth to traders. To conclude, as of the 18th of April 2021, our up-to-date 30 days 'Buy-vs-Sell' recommendation on the firm is Hold. We believe Crown Cork is overvalued with below average chance of bankruptcy for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Crown Cork Seal. Please refer to our Terms of Use for any information regarding our disclosure principles.

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