CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
NYSE:CARR - New York Stock Exchange, Inc. - US14448C1045 - Common Stock - Currency: USD
Taking everything into account, CARR scores 4 out of 10 in our fundamental rating. 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 valied quite expensively at the moment, while 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.
Each year in the past 5 years CARR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.51%, CARR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
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.
With a Return On Invested Capital value of 6.34%, CARR is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for CARR is below the industry average of 12.98%.
| 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
With an excellent Profit Margin value of 21.72%, CARR belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
CARR's Profit Margin has improved in the last couple of years.
CARR has a Operating Margin of 10.59%. This is comparable to the rest of the industry: CARR outperforms 42.86% of its industry peers.
In the last couple of years the Operating Margin of CARR has declined.
CARR has a worse Gross Margin (26.96%) than 66.67% of its industry peers.
CARR's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CARR is destroying value.
Compared to 1 year ago, CARR has more shares outstanding
The number of shares outstanding for CARR has been increased compared to 5 years ago.
The debt/assets ratio for CARR has been reduced compared to a year ago.
2.2 Solvency
CARR has an Altman-Z score of 3.18. This indicates that CARR is financially healthy and has little risk of bankruptcy at the moment.
CARR's Altman-Z score of 3.18 is in line compared to the rest of the industry. CARR outperforms 50.00% of 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.
The Debt to FCF ratio of CARR (13.67) is worse than 76.19% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that CARR is somewhat dependend on debt financing.
CARR's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. CARR is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.67 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.69
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.20 indicates that CARR should not have too much problems paying its short term obligations.
The Current ratio of CARR (1.20) is worse than 85.71% of its industry peers.
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.
The Quick ratio of CARR (0.83) is worse than 76.19% 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.
Looking at the last year, CARR shows a very strong growth in Revenue. The Revenue has grown by 20.42%.
CARR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.86% yearly.
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
CARR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.19% yearly.
The Revenue is expected to grow by 4.99% on average over the next years.
EPS Next Y10.29%
EPS Next 2Y11.64%
EPS Next 3Y11.51%
EPS Next 5Y9.19%
Revenue Next Year0.39%
Revenue Next 2Y2.9%
Revenue Next 3Y3.94%
Revenue Next 5Y4.99%
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 decreasing.
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 25.47, which means the current valuation is very expensive for CARR.
CARR's Price/Earnings ratio is a bit more expensive when compared to the industry. CARR is more expensive than 64.29% of the companies in the same industry.
CARR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
A Price/Forward Earnings ratio of 20.66 indicates a rather expensive valuation of CARR.
The rest of the industry has a similar Price/Forward Earnings ratio as CARR.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, CARR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 20.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARR is valued a bit more expensive than 61.90% of the companies in the same industry.
CARR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CARR is more expensive than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.14 | ||
| EV/EBITDA | 17.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.48
PEG (5Y)1.26
EPS Next 2Y11.64%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.16, CARR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CARR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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
11.79% 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%
72.09
-2.86 (-3.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.34%
Inst Owner Change-1.67%
Ins Owners6.9%
Ins Owner Change13.59%
Market Cap62.29B
Analysts78.71
Price Target80.07 (11.07%)
Short Float %1.5%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP11.79%
Div Incr Years3
Div Non Decr Years3
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)-2.29%
PT rev (3m)-4.13%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)1.45%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 20.66 | ||
| P/S | 2.25 | ||
| P/FCF | 76.14 | ||
| P/OCF | 48.06 | ||
| P/B | 4.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.28 |
EPS(TTM)2.83
EY3.93%
EPS(NY)3.49
Fwd EY4.84%
FCF(TTM)0.95
FCFY1.31%
OCF(TTM)1.5
OCFY2.08%
SpS32.07
BVpS16.04
TBVpS-8.77
PEG (NY)2.48
PEG (5Y)1.26
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 | 3.18 |
F-Score6
WACC9.25%
ROIC/WACC0.69
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 5Y9.19%
Revenue 1Y (TTM)20.42%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-15.59%
Revenue Next Year0.39%
Revenue Next 2Y2.9%
Revenue Next 3Y3.94%
Revenue Next 5Y4.99%
EBIT growth 1Y33.44%
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-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%