Oct. 25 at 3:47 PM
$CXT Article:
Crane NXT: Resorting To M&A Amidst A Softer Organic Performance
Concluding Remarks
With the acquisition of the assets of the De La Rue set to add about 10% to pro forma sales, Crane NXT will continue to grow, yet the same kind of growth will likely not be seen in earnings.
Trading around 13 times adjusted earnings, multiples have been coming down a bit again, but the aggressiveness of the M&A efforts, full prices paid, and higher leverage employed, makes me a bit cautious to buy the dip just yet. From here, I am keen to keep a close eye on the M&A and general trends going forward.
Given the adjusted earnings metrics and leverage employed, I require a more compelling Crane NXT, Co. earnings yield before considering a position. Subsequently, I am looking to potentially get involved if shares might fall further to the
$40S from here onwards.
Courtesy of Value Investor, SA author.
