CARRIER GLOBAL CORP (CARR)
US14448C1045 - Common Stock
CARR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 43 industry peers in the Building Products industry. CARR has a bad profitability rating. Also its financial health evaluation is rather negative. 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
The Return On Assets of CARR (3.05%) is worse than 74.42% of its industry peers.
With a Return On Equity value of 10.77%, CARR perfoms like the industry average, outperforming 41.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.19%, CARR is doing worse than 74.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CARR is below the industry average of 13.72%.
The last Return On Invested Capital (5.19%) for CARR is well below the 3 year average (11.44%), which needs to be investigated, but indicates that CARR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 10.77% | ||
| ROIC | 5.19% |
ROA(3y)8.01%
ROA(5y)8.27%
ROE(3y)28.56%
ROE(5y)26.48%
ROIC(3y)11.44%
ROIC(5y)10.42%
1.3 Margins
With a Profit Margin value of 5.41%, CARR is not doing good in the industry: 65.12% of the companies in the same industry are doing better.
CARR's Profit Margin has declined in the last couple of years.
CARR has a worse Operating Margin (9.52%) than 60.47% of its industry peers.
In the last couple of years the Operating Margin of CARR has declined.
CARR has a Gross Margin (29.27%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CARR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.52% | ||
| PM (TTM) | 5.41% | ||
| GM | 29.27% |
OM growth 3Y5.72%
OM growth 5Y-2.32%
PM growth 3Y-18.69%
PM growth 5Y-15.84%
GM growth 3Y-0.47%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CARR is still creating some value.
Compared to 1 year ago, CARR has more shares outstanding
Compared to 5 years ago, CARR has less shares outstanding
The debt/assets ratio for CARR is higher compared to a year ago.
2.2 Solvency
CARR has an Altman-Z score of 2.20. 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.
The Altman-Z score of CARR (2.20) is worse than 76.74% of its industry peers.
CARR has a debt to FCF ratio of 8.91. This is a slightly negative value and a sign of low solvency as CARR would need 8.91 years to pay back of all of its debts.
CARR has a worse Debt to FCF ratio (8.91) than 81.40% of its industry peers.
CARR has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CARR (1.35) is worse than 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 8.91 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.49
WACC10.7%
2.3 Liquidity
A Current Ratio of 1.36 indicates that CARR should not have too much problems paying its short term obligations.
CARR has a worse Current ratio (1.36) than 81.40% of its industry peers.
CARR has a Quick Ratio of 1.36. 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 0.99 is on the low side compared to the rest of the industry. CARR is outperformed by 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
CARR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.51%, which is quite impressive.
CARR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.93% yearly.
Looking at the last year, CARR shows a quite strong growth in Revenue. The Revenue has grown by 9.35% in the last year.
CARR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.16% yearly.
EPS 1Y (TTM)22.51%
EPS 3Y18.04%
EPS 5Y-12.93%
EPS growth Q2Q19.23%
Revenue 1Y (TTM)9.35%
Revenue growth 3Y8.18%
Revenue growth 5Y3.16%
Revenue growth Q2Q17.24%
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 8.29% yearly.
Based on estimates for the next years, CARR will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y5.98%
EPS Next 2Y7.36%
EPS Next 3Y8.93%
EPS Next 5Y8.29%
Revenue Next Year17.91%
Revenue Next 2Y8.06%
Revenue Next 3Y6.66%
Revenue Next 5Y5.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 21.60, which indicates a rather expensive current valuation of CARR.
The rest of the industry has a similar Price/Earnings ratio as CARR.
Compared to an average S&P500 Price/Earnings ratio of 24.55, CARR is valued at the same level.
With a Price/Forward Earnings ratio of 19.42, CARR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CARR is on the same level as its industry peers.
CARR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 19.42 |
4.2 Price Multiples
CARR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CARR is more expensive than 74.42% of the companies in the same industry.
69.77% of the companies in the same industry are cheaper than CARR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29 | ||
| EV/EBITDA | 24.37 |
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)3.61
PEG (5Y)N/A
EPS Next 2Y7.36%
EPS Next 3Y8.93%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
CARR's Dividend Yield is rather good when compared to the industry average which is at 1.30. CARR pays more dividend than 81.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, CARR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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
50.20% of the earnings are spent on dividend by CARR. This is a bit on the high side, but may be sustainable.
DP50.2%
EPS Next 2Y7.36%
EPS Next 3Y8.93%
CARRIER GLOBAL CORP
NYSE:CARR (5/1/2024, 5:30:00 PM)
After market: 61 -0.12 (-0.2%)61.12
-0.37 (-0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap55.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 19.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 10.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.52% | ||
| PM (TTM) | 5.41% | ||
| GM | 29.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.51%
EPS 3Y18.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.35%
Revenue growth 3Y8.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y