Crawford & Company (CRD-A)

Crawford & Company (CRD-A) Financial Services Profile

Crawford & Company (CRD-A) is a global provider of claims management and outsourcing solutions, serving insurance carriers, brokers, and corporations. With a history dating back to 1941, the company offers a range of services including loss adjusting, third-party administration, and platform solutions across multiple geographies.

What Is the Investment Thesis for CRD-A?

Crawford & Company presents a compelling investment case based on its established market position and diverse service offerings. The company's global presence and comprehensive claims management solutions cater to a wide range of clients, providing a stable revenue base. With a current P/E ratio of 26.7 and a dividend yield of 3.02%, CRD-A offers a blend of value and income. Growth catalysts include the increasing frequency and severity of natural disasters, driving demand for claims adjusting services. A potential risk is the company's relatively low profit margin of 1.4%, indicating sensitivity to operational costs and competitive pressures. The company's beta of 0.66 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

CRD-A Key Highlights

• Market capitalization of $560.43M reflects the company's current valuation in the market.
• P/E ratio of 26.7 indicates the price investors are willing to pay for each dollar of Crawford & Company's earnings.
• Profit margin of 1.4% highlights the company's efficiency in converting revenue into profit.
• Gross margin of 23.8% demonstrates the company's profitability after deducting the cost of goods sold.
• Dividend yield of 3.02% provides investors with a steady income stream.

Who Are CRD-A's Competitors?

CRD-A is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CRD-A's Key Strengths?

• Global presence and established market position.
• Diverse service offerings across multiple segments.
• Strong relationships with insurance carriers and brokers.
• Experienced management team.

What Are CRD-A's Weaknesses?

• Relatively low profit margin compared to peers.
• Dependence on the insurance industry and economic cycles.
• Potential for increased competition from new entrants.
• Exposure to regulatory changes and compliance costs.

What Could Drive CRD-A Stock Higher?

• Continued expansion of TPA solutions to capture a larger share of the self-insured market.
• Leveraging technology to improve claims processing efficiency and reduce costs.
• Capitalizing on the increasing frequency and severity of natural disasters to drive demand for claims adjusting services.
• Potential acquisitions or strategic alliances to expand geographic reach and service offerings.

What Are the Key Risks for CRD-A?

• Rich valuation — a P/E of 26.7 runs well above the Financial Services sector’s ~18x, leaving little room for a miss.
• Economic downturns impacting insurance spending and claims volume.
• Increased competition from established players and new entrants in the claims management industry.
• Regulatory changes affecting claims management practices and compliance costs.
• Cybersecurity risks and data breaches compromising sensitive customer information.

What Are the Growth Opportunities for CRD-A?

• Expansion of TPA Solutions: Crawford & Company can expand its Third-Party Administration (TPA) services to capture a larger share of the self-insured market. The market for TPA services is growing as corporations seek to outsource claims management and risk mitigation. By offering comprehensive TPA solutions for workers' compensation, auto liability, and disability absence management, Crawford can attract new clients and increase revenue. This expansion can be achieved through strategic partnerships and targeted marketing efforts, with a potential timeline of 2-3 years to realize significant gains.
• Leveraging Technology for Claims Processing: Investing in advanced technologies such as AI and machine learning can enhance the efficiency and accuracy of claims processing. By automating routine tasks and improving fraud detection, Crawford can reduce operational costs and improve customer satisfaction. The market for AI-powered claims processing is expected to grow significantly, driven by the need for faster and more efficient claims resolution. Implementing these technologies can provide a competitive advantage and drive revenue growth within the next 1-2 years.
• Geographic Expansion in Emerging Markets: Expanding into emerging markets such as Asia and Latin America presents a significant growth opportunity for Crawford & Company. These markets are experiencing rapid economic growth and increasing insurance penetration, creating demand for claims management and outsourcing services. By establishing a presence in these regions, Crawford can tap into new revenue streams and diversify its geographic footprint. This expansion can be achieved through acquisitions or strategic alliances, with a timeline of 3-5 years to establish a strong market position.
• Enhancing Contractor Connection Network: Strengthening the Contractor Connection network can drive growth in the Platform Solutions segment. By expanding the network of qualified contractors and improving the efficiency of contractor management services, Crawford can attract more insurance carriers and consumer markets. The market for outsourced contractor management services is growing, driven by the increasing complexity of property repairs and the need for reliable and cost-effective solutions. Enhancements to the network can lead to increased revenue and market share within the next 2 years.
• Capitalizing on Natural Disaster Claims: The increasing frequency and severity of natural disasters such as hurricanes, floods, and wildfires are driving demand for claims adjusting services. Crawford & Company can capitalize on this trend by expanding its capacity to handle large-scale disaster claims and developing specialized expertise in disaster recovery. By providing timely and effective claims management services in the wake of natural disasters, Crawford can strengthen its reputation and attract new clients. This focus can lead to increased revenue and market share in the short to medium term.

What Opportunities Does CRD-A Have?

• Expansion into emerging markets with growing insurance penetration.
• Leveraging technology to improve claims processing efficiency.
• Capitalizing on the increasing frequency of natural disasters.
• Expanding TPA services to capture a larger share of the self-insured market.

What Threats Does CRD-A Face?

• Economic downturns impacting insurance spending.
• Increased competition from established players and new entrants.
• Regulatory changes affecting claims management practices.
• Cybersecurity risks and data breaches.

What Are CRD-A's Competitive Advantages?

• Established reputation and long-standing relationships with insurance carriers.
• Global presence with operations in multiple countries.
• Diverse service offerings covering a wide range of claims types.
• Proprietary technology and processes for efficient claims management.

What Does CRD-A Do?

Founded in 1941 and headquartered in Atlanta, Georgia, Crawford & Company has evolved into a global leader in claims management and outsourcing solutions. The company serves a diverse clientele, including insurance carriers, brokers, and corporations, offering a comprehensive suite of services designed to streamline claims processes and mitigate risk. Crawford's operations span the United States, the United Kingdom, Europe, Canada, Australia, and other international markets. The company operates through three primary segments: Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. Crawford Loss Adjusting provides claims management services for property, public liability, automobile, and marine insurance risks. Crawford TPA Solutions offers claims and risk management services for self-insured or commercially insured entities, including third-party administration for workers' compensation, auto and liability, and disability absence management. Crawford Platform Solutions delivers insurance services through Contractor Connection and Networks, addressing losses from natural and man-made disasters. With over 9,000 employees, Crawford & Company focuses on delivering customer-centric solutions for claims of varying complexity and scale.

What Products and Services Does CRD-A Offer?

• Provides claims management services to insurance companies.
• Offers third-party administration (TPA) for workers' compensation claims.
• Manages auto and liability claims for corporations.
• Administers disability absence and medical management programs.
• Provides claims adjusting services for property and casualty losses.
• Offers contractor management services to insurance carriers.
• Provides solutions for losses caused by natural disasters.

How Does CRD-A Make Money?

• Generates revenue through fees for claims management and outsourcing services.
• Earns income from third-party administration of insurance programs.
• Provides platform solutions connecting insurance carriers with contractors.
• Offers specialized services for handling complex and large-scale claims.

What Industry Does CRD-A Operate In?

Crawford & Company operates within the insurance brokerage industry, which is influenced by factors such as regulatory changes, technological advancements, and macroeconomic conditions. The industry is characterized by intense competition, with companies vying for market share through service differentiation and geographic expansion. Market trends include the increasing adoption of digital technologies for claims processing and the growing demand for specialized claims management services related to natural disasters and cyber risks. Crawford & Company's established presence and diverse service offerings position it to capitalize on these trends.

Who Are CRD-A's Key Customers?

• Insurance carriers seeking claims management expertise.
• Corporations with self-insured programs.
• Brokers requiring claims administration services.
• Consumers needing assistance with property and casualty claims.

ROE 10%Key Financial Metrics

Return on equity for Crawford & Company stands at 10.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.3%, showing how much profit it generates from its asset base. CRD-A trades at a trailing price-to-earnings ratio of 26.67, above the Financial Services sector average of ~18x. Its free cash flow yield is 18.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.14 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.2%, the inverse of the P/E and a quick read on earnings relative to price.

How Crawford & Company Is Valued

Crawford & Company carries a market capitalization of $560.43M, placing it in the small-cap category. Relative to its peer group, CRD-A's quantitative score of 43/100 is below the peer average of 54/100.

F-Score 6/9Financial Health

Crawford & Company's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.94 places it in the grey zone, a middle ground that warrants monitoring.

FY2026 estForward Outlook

Wall Street analysts project Crawford & Company revenue of about $1.28B for fiscal 2026, with EPS near $0.92. The estimate reflects 3 contributing analysts.

CRD-A Financials

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CRD-A Analyst Consensus

CRD-A MoonshotScore

What Investors Ask About Crawford & Company (CRD-A) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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