CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
NYSE:CARR - US14448C1045 - Common Stock
66 USD
-1.75 (-2.58%)
66 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to CARR. CARR was compared to 41 industry peers in the Building Products industry. There are concerns on the financial health of CARR while its profitability can be described as average. CARR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CARR was profitable.
In the past year CARR had a positive cash flow from operations.
Each year in the past 5 years CARR has been profitable.
In the past 5 years CARR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 10.39%, CARR is doing good in the industry, outperforming 70.73% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.21%, CARR belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
CARR has a Return On Invested Capital of 5.51%. This is in the lower half of the industry: CARR underperforms 73.17% of its industry peers.
CARR had an Average Return On Invested Capital over the past 3 years of 8.06%. This is below the industry average of 12.73%.
| 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 95.12% of the companies in the same industry.
In the last couple of years the Profit Margin of CARR has grown nicely.
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 63.41% 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.
The number of shares outstanding for CARR has been increased compared to 5 years ago.
Compared to 1 year ago, CARR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.75 indicates that CARR is not a great score, but indicates only limited risk for bankruptcy at the moment.
CARR has a Altman-Z score of 2.75. This is in the lower half of the industry: CARR underperforms 68.29% of its industry peers.
CARR has a debt to FCF ratio of 12.70. This is a negative value and a sign of low solvency as CARR would need 12.70 years to pay back of all of its debts.
With a Debt to FCF ratio value of 12.70, CARR is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
CARR has a Debt/Equity ratio of 0.77. This is a neutral value indicating CARR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, CARR is doing worse than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.7 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.56
WACC9.8%
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 82.93% of its industry peers.
A Quick Ratio of 0.80 indicates that CARR may have some problems paying 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
The earnings per share for CARR have decreased by -1.03% in the last year.
CARR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.27% yearly.
CARR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.82%.
The Revenue has been growing slightly by 3.86% on average over the past years.
EPS 1Y (TTM)-1.03%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%5.75%
Revenue 1Y (TTM)-20.82%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-8.61%
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 11.50% yearly.
The Revenue is expected to grow by 5.37% on average over the next years.
EPS Next Y10.42%
EPS Next 2Y12.21%
EPS Next 3Y12.1%
EPS Next 5Y11.5%
Revenue Next Year0.63%
Revenue Next 2Y3.34%
Revenue Next 3Y4.15%
Revenue Next 5Y5.37%
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.
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
A Price/Earnings ratio of 22.92 indicates a rather expensive 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.
CARR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.72, the valuation of CARR can be described as rather expensive.
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 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
60.98% of the companies in the same industry are cheaper than CARR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CARR is valued a bit more expensive than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.34 | ||
| EV/EBITDA | 17.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CARR's earnings are expected to grow with 12.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.2
PEG (5Y)1.13
EPS Next 2Y12.21%
EPS Next 3Y12.1%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.38%. 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 1.14. CARR pays more dividend than 80.49% of the companies in the same industry.
With a Dividend Yield of 1.38, CARR pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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 2Y12.21%
EPS Next 3Y12.1%
66
-1.75 (-2.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.37%
Inst Owner Change0.37%
Ins Owners6.03%
Ins Owner Change1.31%
Market Cap56.17B
Analysts78.13
Price Target85.42 (29.42%)
Short Float %1.82%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)0.72%
PT rev (3m)6.69%
EPS NQ rev (1m)-10.79%
EPS NQ rev (3m)-11.46%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 18.72 | ||
| P/S | 2.5 | ||
| P/FCF | 62.34 | ||
| P/OCF | 41.64 | ||
| P/B | 3.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.33 |
EPS(TTM)2.88
EY4.36%
EPS(NY)3.53
Fwd EY5.34%
FCF(TTM)1.06
FCFY1.6%
OCF(TTM)1.59
OCFY2.4%
SpS26.4
BVpS17.28
TBVpS-9.09
PEG (NY)2.2
PEG (5Y)1.13
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%
ROICexcg growth 3Y11.52%
ROICexcg 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 | 2.75 |
F-Score5
WACC9.8%
ROIC/WACC0.56
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)-1.03%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%5.75%
EPS Next Y10.42%
EPS Next 2Y12.21%
EPS Next 3Y12.1%
EPS Next 5Y11.5%
Revenue 1Y (TTM)-20.82%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-8.61%
Revenue Next Year0.63%
Revenue Next 2Y3.34%
Revenue Next 3Y4.15%
Revenue Next 5Y5.37%
EBIT growth 1Y7.88%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year33.99%
EBIT Next 3Y15.91%
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%