Crawford & Company: A Shareholder Value Analysis

Crawford & Company (NYSE:CRD.B) is a global leader in claims management solutions, serving clients in the insurance and self-insured industries. This article examines whether Crawford & Company creates value for shareholders by analyzing key financial metrics, dividend policy, strategic acquisitions, and earnings growth.

Crawford & Company's earnings per share (EPS) and dividend payout have evolved positively over the past five years. EPS increased from $0.82 in 2018 to $1.06 in 2021, while the dividend payout grew from $0.36 to $0.50 per share during the same period. This indicates a consistent focus on shareholder value creation through both earnings growth and dividend distribution.

The company's return on equity (ROE) and return on assets (ROA) have also shown improvement, with ROE increasing from 8.7% in 2018 to 11.4% in 2021, and ROA rising from 2.7% to 3.9% during the same period. These metrics compare favorably to industry averages, indicating strong profitability and efficient use of shareholder capital.

Crawford & Company's stock price performance has outpaced its peers and the broader market over the past decade. The company's stock price has grown by approximately 120% since 2012, compared to a 70% increase in the S&P 500 Insurance Index and a 90% increase in the broader S&P 500. This strong performance highlights the company's ability to create shareholder value.

Key drivers of Crawford & Company's revenue and earnings growth include its expanding global presence, innovative technology solutions, and strategic acquisitions. The company's acquisition of Broadspire in 2017, for example, significantly enhanced its capabilities in workers' compensation and other specialty lines. These strategic moves have contributed to the company's growth and sustainability.

In conclusion, Crawford & Company has demonstrated a strong track record of creating value for shareholders through earnings growth, dividend distribution, and strategic acquisitions. The company's focus on profitability, efficient use of capital, and global expansion has resulted in superior stock price performance compared to its peers and the broader market. As the company continues to innovate and expand its offerings, investors can expect Crawford & Company to maintain its position as a leading provider of claims management solutions and a strong creator of shareholder value.