Is Carpenter Technology (NYSE:CRS) A Risky Investment?
Is Carpenter Technology (NYSE:CRS) A Risky Investment?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that Carpenter Technology Corporation (NYSE:CRS) does have debt on its balance sheet. But is this debt a concern to shareholders?
禾倫·巴菲特曾經說過:“波動性與風險遠非同義詞。” 在考慮一家公司有多大的風險時,考慮到它的資產負債表是很自然的,因爲當公司破產時常常會涉及到債務。我們注意到卡朋特科技股份有限公司(紐交所:CRS)在其資產負債表上確實有債務。 但是這些債務是否令股東擔憂呢?
When Is Debt A Problem?
什麼時候負債才是一個問題?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. If things get really bad, the lenders can take control of the business. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we think about a company's use of debt, we first look at cash and debt together.
債務是幫助企業增長的一種工具,但如果一個企業無法償還債務,那麼它就完全受制於債權人。如果情況變得非常糟糕,債權人可以接管企業。然而,一個更常見的(但仍然痛苦的)情況是,企業不得不以低價籌集新的股權資本,從而永久性地稀釋股東的股份。當然,債務可以成爲企業的重要工具,特別是重資產的企業。當我們考慮一個公司的債務使用時,首先看的是現金和債務的總和。
What Is Carpenter Technology's Debt?
卡朋特科技的債務是多少?
You can click the graphic below for the historical numbers, but it shows that Carpenter Technology had US$693.9m of debt in March 2024, down from US$801.3m, one year before. However, because it has a cash reserve of US$53.5m, its net debt is less, at about US$640.4m.
您可以點擊下面的圖表查看歷史數據,但它顯示卡朋特科技在2024年3月有693.9百萬美元的債務,比一年前的801.3百萬美元下降。 然而,由於保有5,350萬美元的現金儲備,其淨債務較少,約爲640.4百萬美元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240711/0-38f755db4576fc698f23c6918ca8adff-0-47988de22bf0b0801e53f4320f19bf76.png/big)
How Healthy Is Carpenter Technology's Balance Sheet?
卡朋特科技的資產負債表健康狀況怎麼樣?
We can see from the most recent balance sheet that Carpenter Technology had liabilities of US$453.4m falling due within a year, and liabilities of US$1.22b due beyond that. On the other hand, it had cash of US$53.5m and US$521.2m worth of receivables due within a year. So it has liabilities totalling US$1.10b more than its cash and near-term receivables, combined.
我們可以從最近的資產負債表上看到,卡朋特科技有4,534百萬美元的短期負債和12.2億美元的長期負債到期。 另一方面,它有5,350萬美元的現金和5,212百萬美元的應收賬款到一年內到期。 因此,它的負債比現金和短期應收賬款總和多11億美元。
Carpenter Technology has a market capitalization of US$5.32b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
卡朋特科技的市值爲53.2億美元,因此,如果需要,它很可能籌集資金以改善其資產負債表。 但很明顯,我們應該密切關注它是否可以管理其債務而不進行稀釋。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
爲了對公司的債務相對於其收益進行規模適應,我們計算其淨債務與利息、稅、折舊和攤銷前收益(EBITDA)之比及其稅前收益(EBIT)與利息支出之比(利息保障倍數)。因此,我們既考慮到不包括折舊和攤銷費用在內的收益,又包括折舊和攤銷費用的收益相對於債務。
Carpenter Technology has net debt worth 1.6 times EBITDA, which isn't too much, but its interest cover looks a bit on the low side, with EBIT at only 5.4 times the interest expense. While that doesn't worry us too much, it does suggest the interest payments are somewhat of a burden. Pleasingly, Carpenter Technology is growing its EBIT faster than former Australian PM Bob Hawke downs a yard glass, boasting a 216% gain in the last twelve months. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Carpenter Technology can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
卡朋特科技的淨負債爲EBITDA的1.6倍,這並不算太高,但是它的利息覆蓋率看起來有點低,因爲EBIT僅爲利息支出的5.4倍。 雖然這並不太讓人擔憂,但它確實表明利息支付有些負擔。 令人高興的是,卡朋特科技的EBIT增長速度比澳大利亞前總理鮑勃·霍克喝啤酒還快,過去十二個月增長了216%。 在分析債務水平時,資產負債表是明顯的起點。 但最終,業務未來的盈利能力將決定卡朋特科技能否隨時間加強其資產負債表。 因此,如果您關注未來,可以查看此免費報告,其中顯示了分析師的利潤預測。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Over the last two years, Carpenter Technology reported free cash flow worth 12% of its EBIT, which is really quite low. For us, cash conversion that low sparks a little paranoia about is ability to extinguish debt.
最後,雖然國稅局可能喜歡會計利潤,但貸款人只接受冰冷的現金。 因此,我們需要清楚地看到,這份利潤是否導致相應的自由現金流。 在過去的兩年中,卡朋特科技報告的自由現金流只相當於其EBIT的12%,這實在是相當低的。 對於我們來說,這麼低的現金轉換率對其熄滅債務的能力引發了一些擔憂。
Our View
我們的觀點
On our analysis Carpenter Technology's EBIT growth rate should signal that it won't have too much trouble with its debt. However, our other observations weren't so heartening. For instance it seems like it has to struggle a bit to convert EBIT to free cash flow. Considering this range of data points, we think Carpenter Technology is in a good position to manage its debt levels. But a word of caution: we think debt levels are high enough to justify ongoing monitoring. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. To that end, you should be aware of the 4 warning signs we've spotted with Carpenter Technology .
根據我們的分析,卡朋特科技的EBIt增長率應該表明它在應對債務方面不會有太多麻煩。然而,我們的其他觀察並沒有那麼令人振奮。例如,它似乎有一點困難將EBIt轉化爲自由現金流。考慮到這些數據點的範圍,我們認爲卡朋特科技處於管理其債務水平的良好位置。但是,需要注意的是:我們認爲債務水平已經足夠高,以證明需要持續監測。當分析債務時,資產負債表顯然是需要重點關注的區域。但最終,每個公司都可能包含存在於資產負債表之外的風險。爲此,您應該注意我們在卡朋特科技中發現的4個警告信號。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
說到底,有時更容易關注那些甚至不需要債務的公司。讀者可以免費查看零淨債務增長股票列表,立即獲得。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
對本文有反饋?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。