CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - NYSE:CARR - US14448C1045 - Common Stock
61.57 USD
+0.85 (+1.4%)
We assign a fundamental rating of 3 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
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
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.
CARR has a Return On Equity of 27.21%. This is amongst the best in the industry. CARR outperforms 82.93% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for CARR is below the industry average of 12.76%.
| 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
CARR has a Profit Margin of 17.81%. This is amongst the best in the industry. CARR outperforms 95.12% of its industry peers.
In the last couple of years the Profit Margin of CARR has grown nicely.
With a Operating Margin value of 11.83%, CARR perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
CARR's Operating Margin has declined in the last couple of years.
The Gross Margin of CARR (27.89%) is worse than 63.41% of its industry peers.
In the last couple of years the Gross Margin of CARR has declined.
| 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 2.60 indicates that CARR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.60, CARR is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
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's Debt to FCF ratio of 12.70 is on the low side compared to the rest of the industry. CARR is outperformed by 70.73% 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 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.7 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.57
WACC9.61%
2.3 Liquidity
CARR has a Current Ratio of 1.17. This is a normal value and indicates that CARR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.17, CARR is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
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 worse Quick ratio (0.80) than 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 -1.03%.
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 for CARR has decreased by -20.82% in the past year. This is quite bad
CARR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.86% yearly.
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.
Based on estimates for the next years, CARR will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y10.42%
EPS Next 2Y12.21%
EPS Next 3Y12.1%
EPS Next 5Y11.5%
Revenue Next Year-0.56%
Revenue Next 2Y2.5%
Revenue Next 3Y3.53%
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.
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
A Price/Earnings ratio of 21.38 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.
Compared to an average S&P500 Price/Earnings ratio of 27.20, CARR is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.47 indicates a rather expensive valuation of CARR.
CARR's Price/Forward Earnings is on the same level as the industry average.
CARR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 17.47 |
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 | 58.15 | ||
| EV/EBITDA | 15.79 |
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.
A more expensive valuation may be justified as CARR's earnings are expected to grow with 12.10% in the coming years.
PEG (NY)2.05
PEG (5Y)1.05
EPS Next 2Y12.21%
EPS Next 3Y12.1%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.44%.
Compared to an average industry Dividend Yield of 1.13, CARR pays a better dividend. On top of this CARR pays more dividend than 82.93% of the companies listed in the same industry.
CARR's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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
CARR pays out 18.25% of its income as dividend. This is a sustainable payout ratio.
DP18.25%
EPS Next 2Y12.21%
EPS Next 3Y12.1%
NYSE:CARR (9/18/2025, 10:34:00 AM)
61.57
+0.85 (+1.4%)
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 Cap52.40B
Analysts78.13
Price Target81.88 (32.99%)
Short Float %1.48%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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)-4.23%
PT rev (3m)-2.68%
EPS NQ rev (1m)-5.26%
EPS NQ rev (3m)-15.01%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-3.31%
Revenue NQ rev (3m)-4.48%
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 17.47 | ||
| P/S | 2.33 | ||
| P/FCF | 58.15 | ||
| P/OCF | 38.84 | ||
| P/B | 3.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.79 |
EPS(TTM)2.88
EY4.68%
EPS(NY)3.53
Fwd EY5.73%
FCF(TTM)1.06
FCFY1.72%
OCF(TTM)1.59
OCFY2.57%
SpS26.4
BVpS17.28
TBVpS-9.09
PEG (NY)2.05
PEG (5Y)1.05
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 | 2.6 |
F-Score5
WACC9.61%
ROIC/WACC0.57
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 Year-0.56%
Revenue Next 2Y2.5%
Revenue Next 3Y3.53%
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%