Stock fact sheet · data as of
Carpenter Technology Corporation (CRS): fair value, margin of safety and Wheel Score
Basic Materials · Steel · United States · High Growth
Is CRS undervalued?
Carpenter Technology Corporation (CRS) closed at 380.56 on 16 Oct 2026, 57% above the GLS average fair value of 241.95. 8 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 9 models disagree widely: DDM gives 11.77 while GLS Growth gives 648.69. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files CRS under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for CRS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 272.87 | -28% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 103.06 | -73% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 368.52 | -3% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 143.42 | -62% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 648.69 | +70% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 224.60 | -41% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 286.93 | -25% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 11.77 | -97% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 117.73 | -69% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 7.48 | -98% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 522.00 | +37% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health CRS scores 9/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.4 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 18.2%, ROE 23.8%, ROA 13.8% - with debt at 0.31 times equity and a free-cash-flow yield of 1.9%.
The dividend yield is 0.21% with a payout ratio of 8% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Aerospace And Defense Markets 66%, Industrial And Consumer Markets 14%, Medical Market 8% (quarter Q4 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 6 Oct 2026.
| Piotroski F-score | 9 / 9 | ROIC | 18.2% |
|---|---|---|---|
| GLS Moat | 7.4 / 10 | ROE | 23.8% |
| Debt / equity | 0.31 | ROA | 13.8% |
| Free-cash-flow yield | 1.9% | Payout ratio | 8% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 69: Good
CRS scores 69 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 0/25), Piotroski health (20/20), the GLS moat (11/15), the option premium on offer (20/20) and how easily the stock trades (17/20). Value (0/25) is the part holding the score back.
Implied volatility is 59% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 11,284 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 874k shares a day on a market cap of $18.9B, with a beta of 1.29 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -57% margin of safety | |
| Health | 20 / 20 | Piotroski 9/9 | |
| Moat | 11 / 15 | moat 7.4/10 | |
| Premium | 20 / 20 | implied volatility 59% | |
| Stability | 17 / 20 | 874k shares/day, $18.9B cap, beta 1.29 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Carpenter Technology Corporation reports earnings on 22 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 20 Oct 2026 (0.2000 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Steel
The 12 companies below are the closest to Carpenter Technology Corporation by market cap within the Steel industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PKX POSCO Holdings Inc. | 56.72 | 72,085.14 | +100% | 77Good | $17.2B |
| RS Reliance Steel & Aluminum Co. | 407.07 | 193.13 | -111% | 51Fair | $20.8B |
| TX Ternium S.A. | 58.55 | 38.74 | -51% | 51Fair | $11.5B |
| STLD Steel Dynamics, Inc. | 242.92 | 110.63 | -120% | 56Fair | $34.8B |
| GGB Gerdau S.A. | 5.05 | 14.59 | +65% | 85Prime | $9.9B |
| MT ArcelorMittal S.A. | 63.60 | 48.47 | -31% | 55Fair | $48.0B |
| CMC Commercial Metals Company | 65.37 | 61.15 | -7% | 65Good | $7.2B |
| CLF Cleveland-Cliffs Inc. | 12.15 | 21.10 | +42% | 45Weak | $6.9B |
| NUE Nucor Corporation | 254.69 | 124.55 | -104% | 58Fair | $57.8B |
| SIM Grupo Simec, S.A.B. de C.V. | 26.32 | 198.95 | +87% | 39No options | $4.4B |
| WS Worthington Steel, Inc. | 38.75 | 25.54 | -52% | 42Weak | $2.0B |
| SID Companhia Siderúrgica Nacional | 1.21 | 15.90 | +92% | 45Weak | $1.6B |
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Start free See the Sunday ScanQuestions about CRS
Is CRS undervalued right now?
No: at 380.56 the stock trades 57% above the GLS average fair value of 241.95 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of CRS and what does it mean?
CRS scores 69 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CRS?
241.95 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Carpenter Technology Corporation report earnings next?
The next earnings report is due on 22 Oct 2026 (before the open), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CRS have listed options, and how liquid are they?
Yes. The nightly snapshot found 616 listed contracts with 11,284 open interest across all expiries and implied volatility of 59% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.