CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - NYSE:CARR - US14448C1045 - Common Stock
59.49 USD
+0.64 (+1.09%)
59.786 USD
+0.3 (+0.5%)
We assign a fundamental rating of 4 out of 10 to CARR. CARR was compared to 41 industry peers in the Building Products industry. CARR has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year CARR had a positive cash flow from operations.
Each year in the past 5 years CARR has been profitable.
CARR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.39%, CARR is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
With an excellent Return On Equity value of 27.21%, CARR belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.51%, CARR is doing worse than 73.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CARR is below the industry average of 12.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 27.21% | ||
| ROIC | 5.51% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
Looking at the Profit Margin, with a value of 17.81%, CARR belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
CARR's Profit Margin has improved in the last couple of years.
CARR has a Operating Margin (11.83%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CARR has declined.
CARR has a Gross Margin of 27.89%. This is in the lower half of the industry: CARR underperforms 60.98% of its industry peers.
CARR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.83% | ||
| PM (TTM) | 17.81% | ||
| GM | 27.89% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
CARR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CARR has more shares outstanding than it did 1 year ago.
CARR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CARR has an improved debt to assets ratio.
2.2 Solvency
CARR has an Altman-Z score of 2.58. This is not the best score and indicates that CARR is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.58, CARR is doing worse than 75.61% of the companies in the same industry.
The Debt to FCF ratio of CARR is 12.70, which is on the high side as it means it would take CARR, 12.70 years of fcf income to pay off all of its debts.
CARR has a worse Debt to FCF ratio (12.70) than 68.29% of its industry peers.
CARR has a Debt/Equity ratio of 0.77. This is a neutral value indicating CARR is somewhat dependend on debt financing.
CARR has a worse Debt to Equity ratio (0.77) than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.7 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.61
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.17 indicates that CARR should not have too much problems paying its short term obligations.
CARR has a worse Current ratio (1.17) than 80.49% of its industry peers.
CARR has a Quick Ratio of 1.17. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
CARR has a Quick ratio of 0.80. This is amonst the worse of the industry: CARR underperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
CARR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.36%.
The Earnings Per Share has been growing by 20.27% on average over the past years. This is a very strong growth
Looking at the last year, CARR shows a quite strong growth in Revenue. The Revenue has grown by 18.65% in the last year.
The Revenue has been growing slightly by 3.86% on average over the past years.
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)18.65%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
3.2 Future
The Earnings Per Share is expected to grow by 11.59% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-0.92%
EPS Next 2Y7.48%
EPS Next 3Y8.54%
EPS Next 5Y11.59%
Revenue Next Year-2.7%
Revenue Next 2Y1.38%
Revenue Next 3Y2.76%
Revenue Next 5Y5%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.40, which indicates a rather expensive current valuation of CARR.
Compared to the rest of the industry, the Price/Earnings ratio of CARR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.11. CARR is around the same levels.
Based on the Price/Forward Earnings ratio of 18.39, the valuation of CARR can be described as rather expensive.
CARR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, CARR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.4 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
CARR's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARR indicates a slightly more expensive valuation: CARR is more expensive than 68.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.19 | ||
| EV/EBITDA | 15.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y7.48%
EPS Next 3Y8.54%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.53%. 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 1.27. CARR pays more dividend than 85.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, CARR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 Years4
Div Non Decr Years4
5.3 Sustainability
18.25% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP18.25%
EPS Next 2Y7.48%
EPS Next 3Y8.54%
59.49
+0.64 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-0.27%
Ins Owners6.03%
Ins Owner Change1.31%
Market Cap50.63B
Revenue(TTM)22.49B
Net Income(TTM)4.00B
Analysts78.13
Price Target76.54 (28.66%)
Short Float %1.62%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP18.25%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.39%
Min EPS beat(2)-0.24%
Max EPS beat(2)9.02%
EPS beat(4)2
Avg EPS beat(4)1.64%
Min EPS beat(4)-8.31%
Max EPS beat(4)9.02%
EPS beat(8)6
Avg EPS beat(8)4.87%
EPS beat(12)9
Avg EPS beat(12)4.08%
EPS beat(16)13
Avg EPS beat(16)5.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-1.31%
Revenue beat(4)0
Avg Revenue beat(4)-4.06%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-4.35%
Revenue beat(12)2
Avg Revenue beat(12)-2.88%
Revenue beat(16)4
Avg Revenue beat(16)-2.08%
PT rev (1m)-6.53%
PT rev (3m)-9.76%
EPS NQ rev (1m)-10.5%
EPS NQ rev (3m)-32.65%
EPS NY rev (1m)-5.86%
EPS NY rev (3m)-10.66%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-9.13%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.4 | ||
| Fwd PE | 18.39 | ||
| P/S | 2.25 | ||
| P/FCF | 56.19 | ||
| P/OCF | 37.53 | ||
| P/B | 3.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.52 |
EPS(TTM)2.78
EY4.67%
EPS(NY)3.23
Fwd EY5.44%
FCF(TTM)1.06
FCFY1.78%
OCF(TTM)1.59
OCFY2.66%
SpS26.4
BVpS17.28
TBVpS-9.09
PEG (NY)N/A
PEG (5Y)1.06
Graham Number32.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 27.21% | ||
| ROCE | 8.66% | ||
| ROIC | 5.51% | ||
| ROICexc | 5.86% | ||
| ROICexgc | 26.31% | ||
| OM | 11.83% | ||
| PM (TTM) | 17.81% | ||
| GM | 27.89% | ||
| FCFM | 4.01% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
ROICexc(3y)10.45%
ROICexc(5y)9.61%
ROICexgc(3y)34.91%
ROICexgc(5y)29.9%
ROCE(3y)12.67%
ROCE(5y)12.04%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y4.64%
ROICexc growth 3Y-15.42%
ROICexc growth 5Y-8.97%
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.7 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 36.51% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.73% | ||
| Profit Quality | 22.52% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.58 |
F-Score5
WACC9.05%
ROIC/WACC0.61
Cap/Depr(3y)74.81%
Cap/Depr(5y)83.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.96%
Profit Quality(3y)66.45%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
EPS Next Y-0.92%
EPS Next 2Y7.48%
EPS Next 3Y8.54%
EPS Next 5Y11.59%
Revenue 1Y (TTM)18.65%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
Revenue Next Year-2.7%
Revenue Next 2Y1.38%
Revenue Next 3Y2.76%
Revenue Next 5Y5%
EBIT growth 1Y7.88%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year27.31%
EBIT Next 3Y12.77%
EBIT Next 5Y8.53%
FCF growth 1Y-55.88%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-44.19%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CARR.
What is the valuation status of CARRIER GLOBAL CORP (CARR) stock?
ChartMill assigns a valuation rating of 1 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the valuation of CARRIER GLOBAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARRIER GLOBAL CORP (CARR) is 21.4 and the Price/Book (PB) ratio is 3.44.
Can you provide the expected EPS growth for CARR stock?
The Earnings per Share (EPS) of CARRIER GLOBAL CORP (CARR) is expected to decline by -0.92% in the next year.