Briefing From The Editor -- CARR Stock

Now trading at a price of $44.2, Carrier Global has moved -2.7% so far today on a volume of 1,957,836, compared to its average of 3,776,073. In contrast, the S&P 500 index moved -0.8%.

Carrier Global shares moved -6.9% over the last 52 weeks, with a high of $50.29 and a low of $33.1. During this time, the stock outperformed the S&P 500 index by 5.1%. As of January 2022, the company's 50-day average price is $43.0. Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies worldwide. The large-cap Industrials company has 58,000 full time employees and is based in Palm Beach Gardens, FL. Carrier Global has returned a 1.3% dividend yield over the last 12 months.

Snapshot of the Company's Consistent Operating Margins with a Stable Trend:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $18,608 $17,456 $20,613
Revenue Growth n/a -6.19% 18.09%
Gross Margins 29.1% 29.3% 29.0%
Gross Margins Growth n/a 0.69% -1.02%
Operating Margins 12.1% 10.7% 11.4%
Operating Margins Growth n/a -11.57% 6.54%
Earnings Per Share $2.03 $2.25 $1.87
EPS Growth n/a 10.84% -16.89%
Free Cash Flow (MM) $1,759 $1,380 $1,893
FCF Growth n/a -21.55% 37.17%
Capital Expenditures (MM) -$243 -$312 -$344
Net Debt / EBITDA -0.3 2.98 2.19

Carrier Global Is Reasonably Priced:

Compared to the Industrials sector's average of 21.46, Carrier Global has a trailing twelve month P/E ratio of 10.7 and, according to its EPS guidance of 2.53, an expected P/E ratio of 17.5. Carrier Global's PEG ratio is 1.1 based on its 9.67% average growth rate of historical and projected earnings per share. This implies that the company's shares are fairly valued.

Carrier Global's P/B ratio is 5.2 compared to its sector average of 3.7. The company is likely overvalued in terms of its equity. The company's shares are currently trading 122.6% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 2.05 * 8.553) = $19.86

Carrier Global Is the Subject of Mixed Market Indicators:

19 analysts are following Carrier Global and have set target prices ranging from $40 to $55 per share. On average, they have given the company a rating of buy. At the current price of $44.2, CARR is trading -5.75% away from its average analyst target price of $46.9 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.3% of the company's shares are tied to short positions. Institutions own 87.9% of Carrier Global's shares, while the insider ownership rate stands at 0.09%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $4,100,252,803.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.