Crown Holdings, Inc. (CCK): A Bull Case Theory

We came across a bullish thesis on Crown Holdings, Inc.  on Valueinvestorsclub.com by Hal. In this article, we will summarize the bulls’ thesis on CCK. Crown Holdings, Inc. 's share was trading at $103.50 as of June 27^th. CCK’s trailing and forward P/E were 22.31 and 15.50 respectively according to Yahoo Finance.

Crown Holdings, named after the iconic “crown cork” bottle cap invented in 1892, has evolved into a leading global producer of aluminium beverage cans, which now account for 80% of its profit contribution. Operating 70 can factories globally, Crown supplies major beverage segments including soda, beer, energy drinks, and seltzers.

Despite the commodity-like nature of cans, Crown earns robust 14% EBITA margins and a 35% pre-tax return on tangible capital, thanks to a durable moat built on geographic advantages and rational industry behavior. The high logistical costs of transporting empty cans over long distances, combined with high upfront capital costs and local market saturation, discourage new entrants and protect market share. The industry is also highly consolidated, with Crown, Ball, and Ardagh dominating North America.

Competitors like Ball adhere to disciplined capital allocation frameworks, ensuring rational growth and limited oversupply. Crown’s customer relationships are sticky, with 90%+ retention supported by multi-year contracts and embedded operational linkages. The shift back to aluminium—driven by recyclability and premium positioning—has revived can volume growth after decades of stagnation, especially with rising demand for energy drinks and seltzers.

Crown’s positioning in high-growth regions like Southeast Asia further strengthens its outlook. Despite recent demand fluctuations post-COVID and softness in Asia, Crown is shedding underperforming assets and sharpening its focus on cans. Valuation appears attractive with a 13.5–14x forward P/E and 6.5% FCF yield, trading at a discount to peers. While not reliant on a specific catalyst, Crown offers a compelling case for re-rating based on fundamentals and market structure.

Previously, we covered a bullish thesis on PepsiCo, Inc. by Kroker Equity Research in October 2024, which highlighted the company’s strong brand portfolio, pricing power, and strategic partnership with Celsius as key growth drivers. The company’s stock price has depreciated by approximately 25% since our coverage. This is because the thesis hasn’t played out amid sector-wide headwinds. Hal shares a similar view on industry resilience but emphasizes the upstream opportunity in aluminium beverage cans through Crown Holdings.

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Disclosure: None. This article was originally published at Insider Monkey.