CARRIER GLOBAL CORP (CARR)
US14448C1045 - Common Stock
Overall CARR gets a fundamental rating of 3 out of 10. We evaluated CARR against 42 industry peers in the Building Products industry. Both the profitability and financial health of CARR have multiple concerns. CARR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CARR had positive earnings in the past year.
CARR had a positive operating cash flow in the past year.
In the past 5 years CARR has always been profitable.
CARR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.05%, CARR is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
The Return On Equity of CARR (10.77%) is comparable to the rest of the industry.
CARR has a worse Return On Invested Capital (5.19%) than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARR is below the industry average of 13.55%.
The last Return On Invested Capital (5.19%) for CARR is well below the 3 year average (11.44%), which needs to be investigated, but indicates that CARR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 10.77% | ||
| ROIC | 5.19% |
ROA(3y)8.01%
ROA(5y)8.27%
ROE(3y)28.56%
ROE(5y)26.48%
ROIC(3y)11.44%
ROIC(5y)10.42%
1.3 Margins
Looking at the Profit Margin, with a value of 5.41%, CARR is doing worse than 71.43% of the companies in the same industry.
CARR's Profit Margin has declined in the last couple of years.
CARR has a Operating Margin of 9.52%. This is in the lower half of the industry: CARR underperforms 61.90% of its industry peers.
CARR's Operating Margin has declined in the last couple of years.
CARR has a Gross Margin (29.27%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CARR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.52% | ||
| PM (TTM) | 5.41% | ||
| GM | 29.27% |
OM growth 3Y5.72%
OM growth 5Y-2.32%
PM growth 3Y-18.69%
PM growth 5Y-15.84%
GM growth 3Y-0.47%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
CARR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CARR has been increased compared to 1 year ago.
The number of shares outstanding for CARR has been reduced compared to 5 years ago.
CARR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.24 indicates that CARR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.24, CARR is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
CARR has a debt to FCF ratio of 8.91. This is a slightly negative value and a sign of low solvency as CARR would need 8.91 years to pay back of all of its debts.
CARR has a Debt to FCF ratio of 8.91. This is amonst the worse of the industry: CARR underperforms 83.33% of its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that CARR has dependencies on debt financing.
CARR's Debt to Equity ratio of 1.35 is on the low side compared to the rest of the industry. CARR is outperformed by 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 8.91 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.5
WACC10.42%
2.3 Liquidity
A Current Ratio of 1.36 indicates that CARR should not have too much problems paying its short term obligations.
CARR has a Current ratio of 1.36. This is amonst the worse of the industry: CARR underperforms 80.95% of its industry peers.
CARR has a Quick Ratio of 1.36. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, CARR is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.51% over the past year.
Measured over the past years, CARR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.93% on average per year.
The Revenue has grown by 9.35% in the past year. This is quite good.
The Revenue has been growing slightly by 3.16% on average over the past years.
EPS 1Y (TTM)22.51%
EPS 3Y18.04%
EPS 5Y-12.93%
EPS Q2Q%19.23%
Revenue 1Y (TTM)9.35%
Revenue growth 3Y8.18%
Revenue growth 5Y3.16%
Sales Q2Q%17.24%
3.2 Future
CARR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.15% yearly.
Based on estimates for the next years, CARR will show a small growth in Revenue. The Revenue will grow by 7.59% on average per year.
EPS Next Y6.69%
EPS Next 2Y6.92%
EPS Next 3Y8.69%
EPS Next 5Y8.15%
Revenue Next Year15.55%
Revenue Next 2Y6.17%
Revenue Next 3Y5.7%
Revenue Next 5Y7.59%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.33, CARR is valued on the expensive side.
CARR's Price/Earnings ratio is in line with the industry average.
CARR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
The Price/Forward Earnings ratio is 20.25, which indicates a rather expensive current valuation of CARR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CARR is on the same level as its industry peers.
CARR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 20.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARR is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, CARR is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.01 | ||
| EV/EBITDA | 24.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CARR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.34
PEG (5Y)N/A
EPS Next 2Y6.92%
EPS Next 3Y8.69%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
CARR's Dividend Yield is rather good when compared to the industry average which is at 2.16. CARR pays more dividend than 80.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, CARR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
CARR pays out 50.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP50.2%
EPS Next 2Y6.92%
EPS Next 3Y8.69%
CARRIER GLOBAL CORP
NYSE:CARR (5/31/2024, 7:27:47 PM)
After market: 63.19 0 (0%)63.19
-0.15 (-0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap56.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 20.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 10.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.52% | ||
| PM (TTM) | 5.41% | ||
| GM | 29.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)22.51%
EPS 3Y18.04%
EPS 5Y
EPS Q2Q%
EPS Next Y6.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.35%
Revenue growth 3Y8.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y