Crown Holdings Inc – 2021 Packaging Stocks
Think of all the metal packaging that we use in the world. Every time you pop open a beer or a soda, you tend to use an aluminum can. Food items like tuna, olives, and soup are also sold in metal cans. Now think about the different kinds of sprays that we use in our lives. These aerosol products are packaged in metal cans as well. As you may be getting the hint by now, metal cans are big business. One company, Crown Holdings, is the world’s largest when it comes to producing such cans. Just how large? One in three food cans in North America and Europe is believed to be produced by Crown Holdings. One in five beverage cans is also estimated to be produced by Crown Holdings. We are talking about a company that has a presence throughout the world and operates multiple facilities across regions. So, if you are trying to find the top packaging stocks to buy now, then Crown Holdings should be on the list of companies to be analyzed.
Crown Holdings Financials
The strength of Crown Holdings’ business model and the effect of its scale is evident if one looks at the broader financial metrics. Revenues have grown steadily from $8.6 billion in 2011 to $11.5 billion in 2020. However, the gross margins have improved from 15% in 2011 to 20% in 2020. For a company the size of Crown Holdings to improve its gross margins demonstrates that it has a competitive advantage of some sort. Earnings per share have risen from $1.8 in 2011 to $4.3 in 2020. Overall, Crown Holdings looks like an interesting candidate among 2021 packaging stocks.
Top Packaging Stocks To Buy Now
Crown Holdings interestingly does not pay a dividend. However, it generates substantial free cash flow. The number was negative in 2011, but it was over $700 million for the last couple of years in 2019 and 2020. The trajectory of free cash flow, like that of revenue and net income, has also been upward.
