CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
NYSE:CARR - New York Stock Exchange, Inc. - US14448C1045 - Common Stock - Currency: USD
Overall CARR gets a fundamental rating of 4 out of 10. We evaluated CARR against 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. While showing a medium growth rate, CARR is valued expensive at the moment.
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.
CARR had positive earnings in each of the past 5 years.
Each year in the past 5 years CARR had a positive operating cash flow.
1.2 Ratios
CARR has a better Return On Assets (15.70%) than 85.37% of its industry peers.
Looking at the Return On Equity, with a value of 41.71%, CARR belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
CARR has a Return On Invested Capital of 6.34%. This is in the lower half of the industry: CARR underperforms 68.29% of its industry peers.
CARR had an Average Return On Invested Capital over the past 3 years of 8.06%. This is significantly below the industry average of 13.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.7% | ||
| ROE | 41.71% | ||
| ROIC | 6.34% |
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
CARR has a Profit Margin of 20.49%. This is amongst the best in the industry. CARR outperforms 97.56% of its industry peers.
CARR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.26%, CARR is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
CARR's Operating Margin has declined in the last couple of years.
CARR has a Gross Margin of 27.00%. This is in the lower half of the industry: CARR underperforms 68.29% of its industry peers.
CARR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.26% | ||
| PM (TTM) | 20.49% | ||
| GM | 27% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CARR is destroying value.
Compared to 1 year ago, CARR has more shares outstanding
Compared to 5 years ago, CARR has more shares outstanding
CARR has a better debt/assets ratio than last year.
2.2 Solvency
CARR has an Altman-Z score of 2.91. 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.
CARR has a Altman-Z score (2.91) which is in line with its industry peers.
The Debt to FCF ratio of CARR is 33.73, which is on the high side as it means it would take CARR, 33.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 33.73, CARR is doing worse than 78.05% of the companies in the same industry.
CARR has a Debt/Equity ratio of 0.78. This is a neutral value indicating CARR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, CARR is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 33.73 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.66
WACC9.57%
2.3 Liquidity
CARR has a Current Ratio of 1.25. This is a normal value and indicates that CARR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CARR (1.25) is worse than 82.93% of its industry peers.
CARR has a Quick Ratio of 1.25. 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 0.96, CARR is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
CARR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.56%.
Measured over the past years, CARR shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.27% on average per year.
The Revenue has grown by 29.73% in the past year. This is a very strong growth!
Measured over the past years, CARR shows a small growth in Revenue. The Revenue has been growing by 3.86% on average per year.
EPS 1Y (TTM)2.56%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%1.89%
Revenue 1Y (TTM)29.73%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%0.9%
3.2 Future
Based on estimates for the next years, CARR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.19% on average per year.
CARR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
EPS Next Y8.71%
EPS Next 2Y11.67%
EPS Next 3Y11.6%
EPS Next 5Y9.19%
Revenue Next Year-0.88%
Revenue Next 2Y2.4%
Revenue Next 3Y3.72%
Revenue Next 5Y4.99%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 22.34, CARR is valued on the expensive side.
63.41% of the companies in the same industry are cheaper than CARR, based on the Price/Earnings ratio.
CARR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.88.
A Price/Forward Earnings ratio of 20.55 indicates a rather expensive valuation of CARR.
60.98% of the companies in the same industry are cheaper than CARR, based on the Price/Forward Earnings ratio.
CARR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 20.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARR is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
CARR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CARR is more expensive than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 148.44 | ||
| EV/EBITDA | 14.94 |
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)2.57
PEG (5Y)1.1
EPS Next 2Y11.67%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, CARR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.25, CARR pays a better dividend. On top of this CARR pays more dividend than 82.93% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, CARR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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
11.41% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP11.41%
EPS Next 2Y11.67%
EPS Next 3Y11.6%
62.54
+1.72 (+2.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.34%
Inst Owner Change0.21%
Ins Owners6.9%
Ins Owner Change13.59%
Market Cap54.03B
Analysts78.06
Price Target77.45 (23.84%)
Short Float %1.63%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP11.41%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.1%
Min EPS beat(2)-8.31%
Max EPS beat(2)6.11%
EPS beat(4)3
Avg EPS beat(4)4.6%
Min EPS beat(4)-8.31%
Max EPS beat(4)19.59%
EPS beat(8)7
Avg EPS beat(8)4.54%
EPS beat(12)10
Avg EPS beat(12)5.27%
EPS beat(16)14
Avg EPS beat(16)7.61%
Revenue beat(2)0
Avg Revenue beat(2)-6.63%
Min Revenue beat(2)-8.93%
Max Revenue beat(2)-4.33%
Revenue beat(4)0
Avg Revenue beat(4)-5.75%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)-3.42%
Revenue beat(8)2
Avg Revenue beat(8)-3.59%
Revenue beat(12)3
Avg Revenue beat(12)-2.66%
Revenue beat(16)6
Avg Revenue beat(16)-1.05%
PT rev (1m)-6.18%
PT rev (3m)-9.63%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-3.76%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-4.93%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 20.55 | ||
| P/S | 1.88 | ||
| P/FCF | 148.44 | ||
| P/OCF | 61.19 | ||
| P/B | 3.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.94 |
EPS(TTM)2.8
EY4.48%
EPS(NY)3.04
Fwd EY4.87%
FCF(TTM)0.42
FCFY0.67%
OCF(TTM)1.02
OCFY1.63%
SpS33.18
BVpS16.3
TBVpS-8.05
PEG (NY)2.57
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.7% | ||
| ROE | 41.71% | ||
| ROCE | 9.96% | ||
| ROIC | 6.34% | ||
| ROICexc | 7.32% | ||
| ROICexgc | 41.48% | ||
| OM | 10.26% | ||
| PM (TTM) | 20.49% | ||
| GM | 27% | ||
| FCFM | 1.27% |
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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 33.73 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 42.13% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 4.82 | ||
| Cash Conversion | 21.16% | ||
| Profit Quality | 6.2% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.91 |
F-Score6
WACC9.57%
ROIC/WACC0.66
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)2.56%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%1.89%
EPS Next Y8.71%
EPS Next 2Y11.67%
EPS Next 3Y11.6%
EPS Next 5Y9.19%
Revenue 1Y (TTM)29.73%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%0.9%
Revenue Next Year-0.88%
Revenue Next 2Y2.4%
Revenue Next 3Y3.72%
Revenue Next 5Y4.99%
EBIT growth 1Y37.51%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year33.56%
EBIT Next 3Y16.24%
EBIT Next 5Y8.53%
FCF growth 1Y-82.42%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-64.82%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%