| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 17 | 42.0x | 17.8x | Bottom tier | |
Growth | 74 | 8.6% | 7.1% | Top tier | |
Quality | 70 | 20.8% | 4.5% | Top tier | |
Safety | 85 | 0.4x | 2.6x | Top tier | |
Capital Return | 38 | — | 2.12% | Bottom tier | |
Momentum | 71 | 139.3% | 2.9% | Top tier | |
Sentiment | 35 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Carpenter Technology produces specialty alloys and high-performance engineered materials for critical applications requiring stringent specifications and long qualification cycles, selling them primarily to the aerospace and defense, medical, industrial gas turbine, and semiconductor markets. Most operating profit comes from the Specialty Alloys Operations (SAO) segment, which provides more than 95% of segment operating profit, while the Performance Engineered Products (PEP) segment includes titanium products and additive manufacturing businesses used, among other applications, in medical, aerospace, and defense.
In fiscal Q4 2026, SAO sales excluding surcharges were $607.4 million, and PEP sales on the same basis were $98.2 million. The company generated gross profit of $268.9 million, up 26% year over year and 7% sequentially, and record operating profit of $206.9 million, up 37% year over year and 11% sequentially, with diluted earnings per share of $3.23. SAO posted a record adjusted operating margin of 37.8% and operating profit of $229.7 million, compared with operating profit of $7.1 million for PEP.
For fiscal 2026, adjusted operating profit was $702 million, up 34% from fiscal 2025, while cash flow from operations was $605 million and adjusted free cash flow was $362.3 million. The latest available EDGAR data for the twelve-month period ended in fiscal 2026 shows revenue of $3.0 billion, gross profit of $900.5 million, net income of $479.1 million, and earnings per share of approximately $9.52.
The average analyst price target is $550.6, within a wide range of $425 to $620, with a “Buy” consensus; the average is below the 52-week range high of $625.99, while the highest target is close to it. No price-to-earnings ratio is available in the provided data, so the stock's valuation here relies on the breadth of the target range and the 52-week range of $228–625.99, a breadth that reflects valuation sensitivity to the aircraft production trajectory, the sustainability of margin expansion, and execution of the expansion project.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Management identified Boeing and Airbus production rates as the single largest input to the fiscal 2027 outlook. In fiscal Q4 2026, aerospace and defense sales rose 17% year over year, including growth of approximately 30% in aircraft engines and 12% in fasteners. Based on demand, pricing, and productivity, Carpenter Technology expects operating profit of between $850 million and $880 million in fiscal 2027, up 21% to 25% from fiscal 2026.
SAO provides more than 95% of segment operating profit and therefore determines most of Carpenter Technology's performance. In fiscal Q4 2026, its sales excluding surcharges were $607.4 million and its operating profit was $229.7 million. Its adjusted operating margin also reached a record 37.8% after 18 consecutive quarters of improvement.
As of July 30, 2026, the project remained on budget and on schedule, with completion targeted by the beginning of fiscal 2028. The company spent $242.7 million on capital expenditures in fiscal 2026, including $85.1 million in Q4 as installation work accelerated. Management expects the project to support operating profit in fiscal 2028 and add approximately $150 million in operating profit in fiscal 2030.
Automated analysis for informational purposes only — not investment advice.
The company generated $605 million in operating cash flow and $362.3 million in adjusted free cash flow in fiscal 2026. Liquidity was $892.4 million as of June 30, 2026, including $393.3 million in cash and $499.1 million in available borrowings, with net debt to earnings before interest, taxes, depreciation, and amortization well below one time. After repurchasing $179.1 million of shares and paying $40.3 million in dividends in fiscal 2026, a new authorization to repurchase up to $1 billion was announced on August 12, 2026.
The first risk relates to the timing of Boeing and Airbus production rate increases and the return of cautious structural customers to ordering in line with their expected requirements. Medical sales also declined 30% year over year and energy sales 12% year over year in fiscal Q4 2026, despite medical improving 5% sequentially. Additional risks include PEP's year-over-year profit decline from $11.7 million to $7.1 million and the preventive maintenance work underpinning operating profit guidance of $195–200 million for fiscal Q1 2027.
