Crane NXT, Co. (NYSE:CXT) Readies For Near-Term Consolidation Despite Under-Valued Fundamentals

Crane NXT shows a bifurcated picture: fundamental cash generation and an under-valued WMDST appraisal contrast with technical signals that favor short-term consolidation and possible pressure. The next six weeks should resolve whether fundamentals reassert or technical momentum dominates.

Recent News

On February 17, 2026, Crane NXT announced a live webcast of its 2026 Investor Day presentations, scheduled to present strategy and segment priorities to shareholders and analysts.

Technical Analysis

Directional indicators present mixed signals. ADX at 16.61 indicates no established trend; DI+ at 22.15 shows a peak-and-reversal, which reads as bearish, while DI- at 21.61 is decreasing, a bullish sign — the combination supports price consolidation rather than a sustained move away from current levels.

MACD sits at 0.08 with its signal line at -0.16; that crossover constitutes a short-term bullish signal, but the MACD trend shows a peak-and-reversal, signaling weakening momentum. The simultaneous bullish crossover and declining MACD trend point to limited upside follow-through until momentum confirms direction.

MRO registers 16.25 and has been increasing. A positive MRO indicates the price currently sits above the model target and therefore carries downside contraction risk; that risk increases the nearer-term probability of mean reversion despite underlying valuation support.

RSI at 44.79 and rising implies neutral-to-modest upside momentum; the indicator does not support an aggressive breakout and instead aligns with a consolidation bias while momentum indicators sort themselves out.

Price sits below longer-term averages: close $44.30 versus the 200-day average $54.66, and beneath the 20- and 50-day averages ($44.99 and $45.18 respectively). The 12-day EMA shows a peak-and-reversal. Ichimoku components place the cloud’s Senkou A at $47.11 and Senkou B at $48.75, keeping current price below the cloud and reinforcing a medium-term resistance band. Bollinger band positioning places price near the mid-band, consistent with low directional conviction and range-bound trade.

 


Fundamental Analysis

Revenue totaled $445,100,000 with YoY revenue growth of 13.37% but a sharp QoQ decline of -55.14%, indicating sizable seasonality or timing effects that compressed the sequential cadence. WMDST notes total revenue growth remains positive year-over-year while quarter-to-quarter flow requires monitoring.

Profitability shows mixed strength. Gross margin equals 43.27%, slightly above the industry peer mean of 41.73% and the peer median of 42.65%, supporting product-level pricing and mix. Operating margin sits at 19.19% and EBIT margin at 18.60%, below the industry peer mean of 22.64% and the median of 22.44%, indicating operating efficiency lag relative to the peer mean despite healthy gross margin.

Cash generation stands out. Operating cash flow reached $92,000,000 with free cash flow $78,700,000 and a free cash flow yield of 2.18%, above the industry peer mean of 1.31%. Cash and short-term investments total $182,400,000 and the cash conversion cycle equals 94.9 days, shorter than the industry peer mean of 108.49 days, reflecting relatively efficient working capital management versus peers.

Leverage and coverage show caution points. Total debt equals $1,095,300,000 with net debt $899,500,000 and debt-to-EBITDA near 9.8x. Interest coverage runs 5.11x, adequate but not expansive given the leverage multiple. Asset turnover measures 0.1526 (15.26%), slightly below the industry peer mean of 18.41%, suggesting lower asset efficiency.

Earnings and market multiples: EPS actual $1.27 versus estimate $1.26 produced an EPS surprise of 0.79%. Trailing P/E sits near 49.21x while forward P/E equals 52.61x; price-to-book stands at 2.98x. Growth metrics show earnings growth 31.96% and revenue growth YoY 13.37%, while free cash flow growth year-over-year reaches 151.03% (2.51031 as a YoY factor), supporting the cash-generation narrative.

Valuation summary: The current valuation as determined by WMDST rates the stock as under-valued. That view rests on above-peer free cash flow yield and solid gross margins, offset by elevated leverage and operating margins below the industry peer mean. The net picture supports a fundamental case for undervaluation tempered by execution and leverage risk.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-09-30
REPORT DATE: 2026-02-11
NEXT REPORT DATE: 2026-05-13
CASH FLOW  Begin Period Cash Flow 164.5 M
 Operating Cash Flow 92.0 M
 Capital Expenditures -13.30 M
 Change In Working Capital 6.2 M
 Dividends Paid -9.70 M
 Cash Flow Delta 30.3 M
 End Period Cash Flow 194.8 M
 
INCOME STATEMENT REVENUE
 Total Revenue 445.1 M
 Forward Revenue 156.4 M
COSTS
 Cost Of Revenue 252.5 M
 Depreciation 29.0 M
 Depreciation and Amortization 29.0 M
 Research and Development
 Total Operating Expenses 359.7 M
PROFITABILITY
 Gross Profit 192.6 M
 EBITDA 111.8 M
 EBIT 82.8 M
 Operating Income 85.4 M
 Interest Income 300.0 K
 Interest Expense 16.2 M
 Net Interest Income -15.90 M
 Income Before Tax 66.6 M
 Tax Provision 15.7 M
 Tax Rate 23.6 %
 Net Income 50.5 M
 Net Income From Continuing Operations 50.9 M
EARNINGS
 EPS Estimate 1.26
 EPS Actual 1.27
 EPS Difference 0.01
 EPS Surprise 0.794 %
 Forward EPS 1.24
 
BALANCE SHEET ASSETS
 Total Assets 2.9 B
 Intangible Assets 1.7 B
 Net Tangible Assets -520.20 M
 Total Current Assets 770.6 M
 Cash and Short-Term Investments 182.4 M
 Cash 182.4 M
 Net Receivables 300.7 M
 Inventory 195.9 M
 Long-Term Investments 103.7 M
LIABILITIES
 Accounts Payable 114.7 M
 Short-Term Debt 247.6 M
 Total Current Liabilities 609.9 M
 Net Debt 899.5 M
 Total Debt 1.1 B
 Total Liabilities 1.7 B
EQUITY
 Total Equity 1.2 B
 Retained Earnings 336.3 M
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 21.14
 Shares Outstanding 57.422 M
 Revenue Per-Share 7.75
VALUATION
 Market Capitalization 3.6 B
 Enterprise Value 4.5 B
 Enterprise Multiple 40.517
Enterprise Multiple QoQ -28.123 %
Enterprise Multiple YoY 28.48 %
Enterprise Multiple IPRWA high: 150.977
median: 67.118
mean: 63.485
CXT: 40.517
low: -38.456
 EV/R 10.177
CAPITAL STRUCTURE
 Asset To Equity 2.403
 Asset To Liability 1.711
 Debt To Capital 0.474
 Debt To Assets 0.375
Debt To Assets QoQ -4.122 %
Debt To Assets YoY 483.826 %
Debt To Assets IPRWA high: 0.722
CXT: 0.375
median: 0.337
mean: 0.326
low: 0.005
 Debt To Equity 0.902
Debt To Equity QoQ -7.219 %
Debt To Equity YoY 523.161 %
Debt To Equity IPRWA high: 2.787
mean: 1.033
CXT: 0.902
median: 0.75
low: 0.007
PRICE-BASED VALUATION
 Price To Book (P/B) 2.979
Price To Book QoQ 5.708 %
Price To Book YoY -0.565 %
Price To Book IPRWA high: 10.413
mean: 4.733
median: 4.086
CXT: 2.979
low: -4.458
 Price To Earnings (P/E) 49.209
Price To Earnings QoQ -14.467 %
Price To Earnings YoY 1.748 %
Price To Earnings IPRWA high: 179.822
median: 93.28
mean: 92.309
CXT: 49.209
low: -26.477
 PE/G Ratio 1.54
 Price To Sales (P/S) 8.126
Price To Sales QoQ -0.753 %
Price To Sales YoY 2.214 %
Price To Sales IPRWA high: 40.54
median: 18.264
mean: 15.827
CXT: 8.126
low: 0.443
FORWARD MULTIPLES
Forward P/E 52.614
Forward PE/G 1.646
Forward P/S 25.413
EFFICIENCY OPERATIONAL
 Operating Leverage 6.786
ASSET & SALES
 Asset Turnover Ratio 0.153
Asset Turnover Ratio QoQ 0.84 %
Asset Turnover Ratio YoY -9.299 %
Asset Turnover Ratio IPRWA high: 0.337
mean: 0.184
median: 0.169
CXT: 0.153
low: 0.047
 Receivables Turnover 1.461
Receivables Turnover Ratio QoQ 5.243 %
Receivables Turnover Ratio YoY -20.258 %
Receivables Turnover Ratio IPRWA high: 2.214
mean: 1.503
median: 1.461
CXT: 1.461
low: 0.835
 Inventory Turnover 1.308
Inventory Turnover Ratio QoQ -3.261 %
Inventory Turnover Ratio YoY -4.041 %
Inventory Turnover Ratio IPRWA high: 2.264
CXT: 1.308
median: 1.073
mean: 1.02
low: 0.25
 Days Sales Outstanding (DSO) 62.477
CASH CYCLE
 Cash Conversion Cycle Days (CCC) 94.895
Cash Conversion Cycle Days QoQ -8.298 %
Cash Conversion Cycle Days YoY 21.126 %
Cash Conversion Cycle Days IPRWA high: 204.825
mean: 108.494
median: 100.01
CXT: 94.895
low: -29.788
CAPITAL DEPLOYMENT
 Cash Conversion Ratio 2.77
 CapEx To Revenue -0.03
 CapEx To Depreciation -0.459
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 2.0 B
 Net Invested Capital 2.3 B
 Invested Capital 2.3 B
 Net Tangible Assets -520.20 M
 Net Working Capital 160.7 M
LIQUIDITY
 Cash Ratio 0.299
 Current Ratio 1.263
Current Ratio QoQ 5.251 %
Current Ratio YoY -8.554 %
Current Ratio IPRWA high: 5.975
mean: 1.926
median: 1.694
CXT: 1.263
low: 0.206
 Quick Ratio 0.942
Quick Ratio QoQ 5.511 %
Quick Ratio YoY -6.671 %
Quick Ratio IPRWA high: 3.401
mean: 1.308
median: 1.112
CXT: 0.942
low: 0.187
COVERAGE & LEVERAGE
 Debt To EBITDA 9.797
 Cost Of Debt 1.106 %
 Interest Coverage Ratio 5.111
Interest Coverage Ratio QoQ 70.37 %
Interest Coverage Ratio YoY -10.706 %
Interest Coverage Ratio IPRWA high: 29.169
mean: 11.874
median: 11.297
CXT: 5.111
low: -22.023
 Operating Cash Flow Ratio 0.152
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) 42.372
DIVIDENDS
 Dividend Coverage Ratio 5.206
 Dividend Payout Ratio 0.192
 Dividend Rate 0.17
 Dividend Yield 0.003
PERFORMANCE GROWTH
 Asset Growth Rate 0.0 %
 Revenue Growth 10.064 %
Revenue Growth QoQ -55.14 %
Revenue Growth YoY 13.372 %
Revenue Growth IPRWA high: 23.133 %
CXT: 10.064 %
median: 0.148 %
mean: 0.078 %
low: -23.202 %
 Earnings Growth 31.959 %
Earnings Growth QoQ -59.866 %
Earnings Growth YoY 238.764 %
Earnings Growth IPRWA high: 71.429 %
CXT: 31.959 %
median: 4.04 %
mean: 1.149 %
low: -88.608 %
MARGINS
 Gross Margin 43.271 %
Gross Margin QoQ 3.665 %
Gross Margin YoY 1.924 %
Gross Margin IPRWA high: 64.244 %
CXT: 43.271 %
median: 42.651 %
mean: 41.728 %
low: -20.124 %
 EBIT Margin 18.603 %
EBIT Margin QoQ 52.91 %
EBIT Margin YoY -2.136 %
EBIT Margin IPRWA high: 31.134 %
mean: 22.639 %
median: 22.443 %
CXT: 18.603 %
low: -34.411 %
 Return On Sales (ROS) 19.187 %
Return On Sales QoQ 40.564 %
Return On Sales YoY 0.936 %
Return On Sales IPRWA high: 27.728 %
mean: 21.307 %
median: 20.338 %
CXT: 19.187 %
low: -3.602 %
CASH FLOW
 Free Cash Flow (FCF) 78.7 M
 Free Cash Flow Yield 2.176 %
Free Cash Flow Yield QoQ 29.139 %
Free Cash Flow Yield YoY 30.456 %
Free Cash Flow Yield IPRWA high: 7.426 %
CXT: 2.176 %
mean: 1.31 %
median: 1.219 %
low: -5.283 %
 Free Cash Growth 41.039 %
Free Cash Growth QoQ -115.017 %
Free Cash Growth YoY 251.031 %
Free Cash Growth IPRWA high: 251.423 %
median: 54.401 %
CXT: 41.039 %
mean: 36.517 %
low: -623.214 %
 Free Cash To Net Income 1.558
 Cash Flow Margin 20.804 %
 Cash Flow To Earnings 1.834
VALUE & RETURNS
 Economic Value Added 0.03
 Return On Assets (ROA) 1.731 %
Return On Assets QoQ 85.929 %
Return On Assets YoY -11.819 %
Return On Assets IPRWA high: 5.102 %
mean: 2.841 %
median: 2.686 %
CXT: 1.731 %
low: -7.494 %
 Return On Capital Employed (ROCE) 3.588 %
 Return On Equity (ROE) 0.042
Return On Equity QoQ 96.272 %
Return On Equity YoY -5.456 %
Return On Equity IPRWA high: 0.163
mean: 0.048
median: 0.046
CXT: 0.042
low: -0.135
 DuPont ROE 4.228 %
 Return On Invested Capital (ROIC) 2.755 %
Return On Invested Capital QoQ 69.226 %
Return On Invested Capital YoY -100.487 %
Return On Invested Capital IPRWA high: 7.234 %
mean: 4.235 %
median: 3.677 %
CXT: 2.755 %
low: -1.211 %

Six-Week Outlook

Expect range-bound action with a slight downside bias. Technical signals (MACD peak-and-reversal, positive MRO, price below the Ichimoku cloud and long-term averages) favor consolidation or pullback while RSI near mid-range leaves room for oscillation. Fundamental strength in cash flow and an under-valued WMDST appraisal provide a stabilizing floor, but high debt-to-EBITDA and below-peer operating margin increase the probability of episodic weakness if near-term revenues or margins disappoint. For short-term traders, price structure and momentum confirmation should guide timing of any directional bias rather than reliance on valuation alone.

About Crane NXT, Co.

Crane NXT, Co. (NYSE:CXT) develops industrial technology solutions aimed at safeguarding and enhancing the value of critical assets for a global clientele. Based in Waltham, Massachusetts, the company operates through two main segments: Crane Payment Innovations and Crane Currency. The Crane Payment Innovations segment delivers advanced electronic equipment and software solutions, including automation and processing systems. This segment also provides field service solutions, remote diagnostics, and productivity software, ensuring efficient operations for businesses around the world. Crane Currency, the other primary segment, offers advanced security solutions that utilize proprietary technology for the protection of physical products. This includes the production of secure banknotes and the development of authentication solutions for both consumer and industrial goods. Since its incorporation in 2021, Crane NXT has combined innovation with reliability, offering robust solutions to industries that rely on secure transactions and product integrity. The company remains committed to technological advancement, delivering solutions that ensure the security and authenticity of assets in a complex global environment.



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