CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARR - US14448C1045 - Common Stock
52.41 USD
+2.05 (+4.07%)
52.41 USD
0 (0%)
Overall CARR gets a fundamental rating of 4 out of 10. We evaluated CARR against 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. 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.
CARR had a positive operating cash flow in the past year.
In the past 5 years CARR has always been profitable.
In the past 5 years CARR always reported a positive cash flow from operatings.
1.2 Ratios
CARR has a better Return On Assets (10.46%) than 70.73% of its industry peers.
Looking at the Return On Equity, with a value of 27.45%, CARR belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
CARR has a worse Return On Invested Capital (5.09%) than 73.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CARR is below the industry average of 12.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROIC | 5.09% |
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 18.05%, CARR belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Profit Margin of CARR has grown nicely.
CARR's Operating Margin of 11.00% is in line compared to the rest of the industry. CARR outperforms 46.34% of its industry peers.
CARR's Operating Margin has declined in the last couple of years.
CARR has a Gross Margin (27.36%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CARR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% |
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
CARR has more shares outstanding than it did 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 2.42. 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 worse Altman-Z score (2.42) than 75.61% of its industry peers.
CARR has a debt to FCF ratio of 8.45. This is a slightly negative value and a sign of low solvency as CARR would need 8.45 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.45, CARR is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.78 indicates that CARR is somewhat dependend on debt financing.
CARR's Debt to Equity ratio of 0.78 is on the low side compared to the rest of the industry. CARR is outperformed by 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.57
WACC8.86%
2.3 Liquidity
A Current Ratio of 1.14 indicates that CARR should not have too much problems paying its short term obligations.
CARR's Current ratio of 1.14 is on the low side compared to the rest of the industry. CARR is outperformed by 87.80% of its industry peers.
CARR has a Quick Ratio of 1.14. 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 (0.75) is worse than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
CARR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.36%.
The Earnings Per Share has been growing by 20.27% on average over the past years. This is a very strong growth
Looking at the last year, CARR shows a very negative growth in Revenue. The Revenue has decreased by -22.93% in the last year.
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)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
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 11.59% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
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 18.85 indicates a rather expensive valuation of CARR.
CARR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.47. CARR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.95 indicates a correct valuation of CARR.
The rest of the industry has a similar Price/Forward Earnings ratio as CARR.
CARR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CARR is valued a bit more expensive than 60.98% of the companies in the same industry.
CARR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.61 | ||
| EV/EBITDA | 14.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y5.08%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.79%, CARR has a reasonable but not impressive dividend return.
In the last 3 months the price of CARR has falen by -22.64%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CARR's Dividend Yield is rather good when compared to the industry average which is at 1.42. CARR pays more dividend than 85.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, CARR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 18.56% of its income as dividend. This is a sustainable payout ratio.
DP18.56%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
52.41
+2.05 (+4.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-0.71%
Ins Owners6.03%
Ins Owner Change1.31%
Market Cap44.60B
Revenue(TTM)22.06B
Net Income(TTM)3.98B
Analysts76.88
Price Target74.11 (41.4%)
Short Float %1.41%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP18.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.53%
Min EPS beat(2)-0.24%
Max EPS beat(2)15.31%
EPS beat(4)3
Avg EPS beat(4)7.55%
Min EPS beat(4)-0.24%
Max EPS beat(4)15.31%
EPS beat(8)6
Avg EPS beat(8)5.54%
EPS beat(12)9
Avg EPS beat(12)4.93%
EPS beat(16)13
Avg EPS beat(16)6.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-2.03%
PT rev (1m)-7.23%
PT rev (3m)-13.24%
EPS NQ rev (1m)-21.32%
EPS NQ rev (3m)-35.67%
EPS NY rev (1m)-1.37%
EPS NY rev (3m)-11.49%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.95 | ||
| P/S | 2.02 | ||
| P/FCF | 31.61 | ||
| P/OCF | 23.61 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.93 |
EPS(TTM)2.78
EY5.3%
EPS(NY)3.09
Fwd EY5.9%
FCF(TTM)1.66
FCFY3.16%
OCF(TTM)2.22
OCFY4.24%
SpS25.92
BVpS17.05
TBVpS-9.08
PEG (NY)N/A
PEG (5Y)0.93
Graham Number32.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROCE | 8% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 23.15% | ||
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% | ||
| FCFM | 6.4% |
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%
ROICexgc growth 3Y11.52%
ROICexgc 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 | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.21% | ||
| Profit Quality | 35.43% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.42 |
F-Score5
WACC8.86%
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)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
EBIT growth 1Y-5.35%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year27.31%
EBIT Next 3Y12.77%
EBIT Next 5Y8.53%
FCF growth 1Y-38.44%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-29.2%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CARR.
What is the valuation status of CARRIER GLOBAL CORP (CARR) stock?
ChartMill assigns a valuation rating of 3 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the valuation of CARRIER GLOBAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARRIER GLOBAL CORP (CARR) is 18.85 and the Price/Book (PB) ratio is 3.07.
Can you provide the expected EPS growth for CARR stock?
The Earnings per Share (EPS) of CARRIER GLOBAL CORP (CARR) is expected to decline by -2.27% in the next year.