CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - NYSE:CARR - US14448C1045 - Common Stock
59.8 USD
+0.62 (+1.05%)
59.8 USD
0 (0%)
Taking everything into account, CARR scores 3 out of 10 in our fundamental rating. 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. While showing a medium growth rate, CARR is valued expensive at the moment.
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.
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's Return On Equity of 27.21% is amongst the best of the industry. CARR outperforms 82.93% of its industry peers.
The Return On Invested Capital of CARR (5.51%) is worse than 73.17% 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 12.74%.
| 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 better Profit Margin (17.81%) than 95.12% of its industry peers.
In the last couple of years the Profit Margin of CARR has grown nicely.
CARR has a Operating Margin of 11.83%. This is comparable to the rest of the industry: CARR outperforms 43.90% of its industry peers.
In the last couple of years the Operating Margin of CARR has declined.
CARR has a worse Gross Margin (27.89%) than 63.41% of its industry peers.
CARR's Gross Margin has declined in the last couple of years.
| 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.
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
An Altman-Z score of 2.57 indicates that CARR is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.57, CARR is doing worse than 73.17% of the companies in the same industry.
CARR has a debt to FCF ratio of 12.70. This is a negative value and a sign of low solvency as CARR would need 12.70 years to pay back of all of its debts.
The Debt to FCF ratio of CARR (12.70) is worse than 68.29% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that CARR is somewhat dependend on debt financing.
The Debt to Equity ratio of CARR (0.77) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.7 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.59
WACC9.31%
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.
The Current ratio of CARR (1.17) is worse than 80.49% of its industry peers.
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 Quick ratio of 0.80. This is in the lower half of the industry: CARR underperforms 78.05% 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.
Looking at the last year, CARR shows a very negative growth in Revenue. The Revenue has decreased by -20.82% in the last year.
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 11.59% yearly.
Based on estimates for the next years, CARR will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y5.24%
EPS Next 2Y9.41%
EPS Next 3Y10.23%
EPS Next 5Y11.59%
Revenue Next Year-1.65%
Revenue Next 2Y1.97%
Revenue Next 3Y3.28%
Revenue Next 5Y5%
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.
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
CARR is valuated rather expensively with a Price/Earnings ratio of 20.76.
Compared to the rest of the industry, the Price/Earnings ratio of CARR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CARR to the average of the S&P500 Index (27.91), we can say CARR is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.84 indicates a rather expensive valuation of CARR.
CARR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CARR to the average of the S&P500 Index (23.30), we can say CARR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CARR.
68.29% 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 | 56.48 | ||
| EV/EBITDA | 15.45 |
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)3.96
PEG (5Y)1.02
EPS Next 2Y9.41%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, CARR has a reasonable but not impressive dividend return.
The stock price of CARR dropped by -21.95% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CARR's Dividend Yield is rather good when compared to the industry average which is at 1.18. CARR pays more dividend than 85.37% of the companies in the same industry.
CARR's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 2Y9.41%
EPS Next 3Y10.23%
59.8
+0.62 (+1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change0.05%
Ins Owners6.03%
Ins Owner Change1.31%
Market Cap50.89B
Analysts78.13
Price Target79.89 (33.6%)
Short Float %1.6%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)-6.48%
PT rev (3m)-5.05%
EPS NQ rev (1m)-21.77%
EPS NQ rev (3m)-30.3%
EPS NY rev (1m)-4.69%
EPS NY rev (3m)-4.85%
Revenue NQ rev (1m)-6.64%
Revenue NQ rev (3m)-7.74%
Revenue NY rev (1m)-2.26%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 17.84 | ||
| P/S | 2.27 | ||
| P/FCF | 56.48 | ||
| P/OCF | 37.72 | ||
| P/B | 3.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.45 |
EPS(TTM)2.88
EY4.82%
EPS(NY)3.35
Fwd EY5.6%
FCF(TTM)1.06
FCFY1.77%
OCF(TTM)1.59
OCFY2.65%
SpS26.4
BVpS17.28
TBVpS-9.09
PEG (NY)3.96
PEG (5Y)1.02
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 | 2.57 |
F-Score5
WACC9.31%
ROIC/WACC0.59
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 Y5.24%
EPS Next 2Y9.41%
EPS Next 3Y10.23%
EPS Next 5Y11.59%
Revenue 1Y (TTM)-20.82%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-8.61%
Revenue Next Year-1.65%
Revenue Next 2Y1.97%
Revenue Next 3Y3.28%
Revenue Next 5Y5%
EBIT growth 1Y7.88%
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-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%