CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
NYSE:CARR - New York Stock Exchange, Inc. - US14448C1045 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CARR. CARR was compared to 42 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
CARR had positive earnings in the past year.
In the past year CARR had a positive cash flow from operations.
In the past 5 years CARR has always been profitable.
Each year in the past 5 years CARR had a positive operating cash flow.
1.2 Ratios
CARR has a Return On Assets of 16.51%. This is amongst the best in the industry. CARR outperforms 95.24% of its industry peers.
With an excellent Return On Equity value of 43.41%, CARR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
CARR's Return On Invested Capital of 6.34% is on the low side compared to the rest of the industry. CARR is outperformed by 69.05% 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 12.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.51% | ||
| ROE | 43.41% | ||
| 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's Profit Margin of 21.72% is amongst the best of the industry. CARR outperforms 97.62% of its industry peers.
In the last couple of years the Profit Margin of CARR has grown nicely.
CARR has a Operating Margin (10.59%) which is comparable to the rest of the industry.
CARR's Operating Margin has declined in the last couple of years.
CARR's Gross Margin of 26.96% is on the low side compared to the rest of the industry. CARR is outperformed by 66.67% of its industry peers.
In the last couple of years the Gross Margin of CARR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.59% | ||
| PM (TTM) | 21.72% | ||
| GM | 26.96% |
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.
CARR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CARR has more shares outstanding
Compared to 1 year ago, CARR has an improved debt to assets ratio.
2.2 Solvency
CARR has an Altman-Z score of 3.15. This indicates that CARR is financially healthy and has little risk of bankruptcy at the moment.
CARR has a Altman-Z score (3.15) which is in line with its industry peers.
The Debt to FCF ratio of CARR is 13.67, which is on the high side as it means it would take CARR, 13.67 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.67, CARR is doing worse than 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that CARR is somewhat dependend on debt financing.
CARR has a worse Debt to Equity ratio (0.80) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.46
WACC13.67%
2.3 Liquidity
A Current Ratio of 1.20 indicates that CARR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.20, CARR is doing worse than 85.71% of the companies in the same industry.
CARR has a Quick Ratio of 1.20. 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's Quick ratio of 0.83 is on the low side compared to the rest of the industry. CARR is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for CARR have decreased by 0.00% in the last year.
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.
CARR shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.42%.
The Revenue has been growing slightly by 3.86% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%4.84%
Revenue 1Y (TTM)20.42%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-15.59%
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 10.34% on average per year.
The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y10.29%
EPS Next 2Y11.64%
EPS Next 3Y11.51%
EPS Next 5Y10.34%
Revenue Next Year0.39%
Revenue Next 2Y2.97%
Revenue Next 3Y4.35%
Revenue Next 5Y5.46%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 25.17, CARR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CARR indicates a slightly more expensive valuation: CARR is more expensive than 61.90% of the companies listed in the same industry.
CARR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 20.41, the valuation of CARR can be described as rather expensive.
CARR's Price/Forward Earnings ratio is in line with the industry average.
CARR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 20.41 |
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 73.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.66 | ||
| EV/EBITDA | 16.99 |
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)2.45
PEG (5Y)1.24
EPS Next 2Y11.64%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, CARR has a reasonable but not impressive dividend return.
CARR's Dividend Yield is a higher than the industry average which is at 1.20.
Compared to an average S&P500 Dividend Yield of 2.40, CARR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
11.79% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP11.79%
EPS Next 2Y11.64%
EPS Next 3Y11.51%
71.24
-1.24 (-1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners85.57%
Inst Owner Change-1.66%
Ins Owners5.99%
Ins Owner Change13.59%
Market Cap61.07B
Analysts79.35
Price Target84.13 (18.09%)
Short Float %2.02%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP11.79%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.56%
Min EPS beat(2)6.11%
Max EPS beat(2)9.02%
EPS beat(4)3
Avg EPS beat(4)1.96%
Min EPS beat(4)-8.31%
Max EPS beat(4)9.02%
EPS beat(8)7
Avg EPS beat(8)4.99%
EPS beat(12)10
Avg EPS beat(12)4.93%
EPS beat(16)14
Avg EPS beat(16)6.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.82%
Min Revenue beat(2)-4.33%
Max Revenue beat(2)-1.31%
Revenue beat(4)0
Avg Revenue beat(4)-5.22%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)-1.31%
Revenue beat(8)1
Avg Revenue beat(8)-4.04%
Revenue beat(12)2
Avg Revenue beat(12)-2.84%
Revenue beat(16)5
Avg Revenue beat(16)-1.48%
PT rev (1m)5.08%
PT rev (3m)1.91%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 20.41 | ||
| P/S | 2.2 | ||
| P/FCF | 74.66 | ||
| P/OCF | 47.13 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.99 |
EPS(TTM)2.83
EY3.97%
EPS(NY)3.49
Fwd EY4.9%
FCF(TTM)0.95
FCFY1.34%
OCF(TTM)1.51
OCFY2.12%
SpS32.32
BVpS16.17
TBVpS-8.84
PEG (NY)2.45
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.51% | ||
| ROE | 43.41% | ||
| ROCE | 9.96% | ||
| ROIC | 6.34% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 29.62% | ||
| OM | 10.59% | ||
| PM (TTM) | 21.72% | ||
| GM | 26.96% | ||
| FCFM | 2.95% |
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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.67 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 39.15% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.2% | ||
| Profit Quality | 13.6% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.15 |
F-Score6
WACC13.67%
ROIC/WACC0.46
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%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%4.84%
EPS Next Y10.29%
EPS Next 2Y11.64%
EPS Next 3Y11.51%
EPS Next 5Y10.34%
Revenue 1Y (TTM)20.42%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-15.59%
Revenue Next Year0.39%
Revenue Next 2Y2.97%
Revenue Next 3Y4.35%
Revenue Next 5Y5.46%
EBIT growth 1Y33.44%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year35.36%
EBIT Next 3Y16.27%
EBIT Next 5Y8.53%
FCF growth 1Y-51.83%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-37.24%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%