Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 12 Sep, 25 | CXT | Speculative Buy | USD 61.93 | USD 65.5 | USD 69.0 | 11 days | Closed |
6.39%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Crane NXT, Co. operates as an industrial technology company that provides technology solutions to secure, detect, and authenticate customers' important assets. The company operates through Crane Payment Innovations and Crane Currency segments. The Crane Payment Innovations segment offers electronic equipment and associated software, as well as advanced automation solutions, processing systems, field service solutions, remote diagnostics, and productivity software solutions. The Crane Currency segment provides advanced security solutions based on proprietary technology for securing physical products, including banknotes, consumer goods, and industrial products. The company was incorporated in 2021 and is based in Waltham, Massachusetts.
Strong Revenue Growth: Net sales increased to USD 404.4 million in Q2FY25 from USD 370.6 million in Q2FY24, representing a 9.1% year-over-year growth, primarily supported by acquisitions and foreign exchange gains
Improved Free Cash Flow: Adjusted free cash flow rose to USD 67.4 million in Q2FY25 from USD 53.9 million in Q2FY24, marking an improvement of USD 13.5 million, driven by lower working capital requirements
Margin Compression: Adjusted operating profit margin declined to 21.2% in Q2FY25 from 24.1% in Q2FY24, a reduction of 290 basis points, highlighting rising costs and acquisition-related dilution
Decline in Operating Profit: Operating profit fell to USD 47.9 million in Q2FY25 from USD 67.6 million in Q2FY24, a sharp 29.1% decline, reflecting lower CPI volumes and acquisition-related dilution
Crane NXT faces heightened risk from margin pressures due to acquisition-related dilution, higher debt levels, and dependence on CPI volumes, which could constrain profitability despite top-line growth
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 61.93 | 55.0 | 65.5 | 69.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Financial Performance Overview: Crane NXT, Co. (NYSE: CXT), a leading industrial technology company, reported its financial results for the second quarter ended June 30, 2025. Sales for the quarter stood at USD 404 million, reflecting a 9% year-over-year increase, though core sales declined by 0.8% in line with company expectations. The company delivered GAAP operating profit margin of 11.8% and an adjusted operating profit margin of 21.2%. GAAP earnings per diluted share were USD 0.43, while adjusted EPS reached USD 0.97. Crane NXT reaffirmed its full-year EPS guidance range of USD 4.00 to USD 4.30.
Management Commentary: President and CEO Aaron W. Saak highlighted that the results were consistent with expectations, driven by a 9% sales increase and adjusted segment operating margins of about 24%. He emphasized strong international demand for currency products and positive momentum in CPI gaming orders. Saak added that the company is advancing its leadership in the authentication sector through the integration of De La Rue Authentication Solutions with OpSec Security and expects significant operational synergies in the SAT segment to enhance future margins.
Consolidated Results: Net sales of USD 404.4 million grew USD 33.8 million compared with Q2FY24, largely supported by acquisitions contributing USD 26.7 million and favorable foreign exchange of USD 10.1 million. This growth was partially offset by a USD 3.0 million core sales decline, primarily attributable to lower volumes in Crane Payment Innovations (CPI). Operating profit declined to USD 47.9 million from USD 67.6 million in Q2FY24, while adjusted operating profit slipped by USD 3.7 million to USD 85.7 million.
Segment Performance – Crane Payment Innovations (CPI): CPI recorded net sales of USD 211.4 million, down 5.8% from USD 224.4 million in Q2FY24, driven by a 7.3% core sales decline. Operating profit declined 20.2% to USD 49.0 million, while adjusted operating profit decreased 15.3% to USD 57.0 million. Operating profit margins contracted to 23.2% from 27.4%, while adjusted operating margins declined to 27.0% from 30.0%, largely due to lower volumes despite productivity gains.
Segment Performance – Security and Authentication Technologies (SAT): SAT delivered strong growth with net sales of USD 193.0 million, up 32% from USD 146.2 million in Q2FY24. This increase reflected contributions from acquisitions (+18.3%), core sales growth (+9.1%), and favorable foreign exchange (+4.6%). Adjusted operating profit rose 16.7% to USD 39.8 million. However, reported operating profit declined 25% to USD 18.0 million due to acquisition-related dilution, restructuring costs, and higher manufacturing expenses. Adjusted operating margins fell to 20.6% from 23.3%.
Cash Flow and Balance Sheet: Operating cash flow for Q2FY25 was USD 62.8 million, up from USD 56.8 million in Q2FY24, while adjusted free cash flow improved to USD 67.4 million from USD 53.9 million, mainly due to reduced working capital requirements. As of June 30, 2025, the company reported USD 152.5 million in cash and cash equivalents compared with USD 165.8 million at year-end 2024. Total debt increased significantly to USD 1.13 billion from USD 750.6 million at December 31, 2024.
Guidance and Dividend Declaration: For full-year 2025, Crane NXT reaffirmed its guidance, projecting sales growth of 6% to 8%, adjusted EPS between USD 4.00 and USD 4.30, and adjusted free cash flow conversion between 90% and 110%. The SAT segment is expected to grow 19% to 21%, while CPI sales are projected to remain flat to slightly decline. The company declared a quarterly dividend of USD 0.17 per share, payable on September 10, 2025, to shareholders of record as of August 29, 2025.
Price Action Analysis (on the Daily Chart): CXT's stock price has held firm at crucial support levels and has gradually risen, indicating potential for further gains in the near term. The next significant resistance is at USD 70.59, which the stock is likely to approach within the next 2-4 weeks, possibly prompting a reaction. A successful breakout above USD 70.59 could attract increased buying interest and possibly drive a continued upward movement
Technical Indicators Analysis (On the Daily Chart): On the daily chart, the 14-period RSI is currently above the midpoint at 57.15, indicating a potential positive bias. Furthermore, trading volumes indicate supportive signs for an upcoming upward movement. Additionally, the prices are trading above the 21-period and 50-period SMAs, which are likely to serve as near-term support levels.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Speculative Buy’ recommendation has been given on Crane NXT, Co. (NYSE: CXT) at the closing market price of USD 61.93, as on Sep 11, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Specialty Industrial Machinery
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | ||
|---|---|---|---|---|---|---|---|---|
| CXT Crane NXT Co |
-0.565 1.21% | 46.30 | 7.75 | - | - | - | ||
| SIEGY Siemens AG ADR |
2.08 1.53% | 138.02 | 17.07 | 15.75 | 1.88 | 2.76 | 2.37 | 11.38 |
| SMAWF Siemens AG Class N |
9.67 3.54% | 283.00 | 16.98 | 15.53 | 1.83 | 2.72 | 2.35 | 11.32 |
| GE GE Aerospace |
8.06 2.76% | 300.24 | 12.87 | 26.60 | 1.61 | 4.69 | 1.61 | 8.43 |
| SBGSY Schneider Electric SA |
0.61 1.13% | 54.71 | 25.90 | 20.92 | 3.12 | 3.98 | 3.50 | 17.37 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 11,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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