Morningstar Rating

Stock Research and Analysis

by Daniel Rohr, CFA

Bulls Say

Crown has the best geographic profile in the beverage can industry and will benefit from a large and growing footprint in emerging markets.
Unlike its competitors, Crown doesn't pay a significant dividend, so it has more financial flexibility to add capacity where it sees growth opportunities.
Crown is making its food can operations more efficient, and the higher margins will help fuel free cash flow generation in coming years. Read more 

Bears Say

Crown continues to make a large bet on continued beverage can volume growth in the emerging markets of Southeast Asia. If volume grows slower than expected, Crown will have installed too much capacity and margins will contract.
Beverage companies may opt to use more glass or plastic packaging in lieu of metal packaging. If this were to happen, it would affect metal container volume and constrain Crown's revenue and profitability.
Crown paid up for Mivisa and will struggle to generate economic profits from the investment. Read more 

Management

We assign Crown a Standard stewardship rating. On July 23, Crown announced that CEO John W. Conway has decided to retire. Tim Donahue, who had served as chief operating officer since 2013, will replace Conway. Crown's CFO, Thomas Kelly, has been with   Read more 

Profile

Crown Holdings is one of the world's largest producers of metal packaging. The company manufactures beverage cans, metal food cans, and closures as well as aerosol cans.  Read more 

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