Now trading at a price of $42.88, Carrier Global has moved -6.2% so far today. In contrast, the S&P 500 index moved -1.0%. Read below for a basic value analysis of Carrier Global.
Carrier Global shares moved 2.6% over the last 52 weeks, with a high of $49.17 and a low of $33.1. During this time, the stock outperformed the S&P 500 index by 11.0%. As of January 2022, the company's 50-day average price is $45.0. Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies worldwide. The large-cap Consumer Discretionary company has 52,000 full time employees and is based in Palm Beach Gardens, FL. Carrier Global has returned a 1.4% dividend yield over the last 12 months.
Exceptional EPS Growth with Healthy Leverage Levels:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $18,608 | $17,456 | $20,613 | $20,421 |
| Revenue Growth | n/a | -6.19% | 18.09% | -0.93% |
| Gross Margins | 29.1% | 29.3% | 29.0% | 26.8% |
| Gross Margins Growth | n/a | 0.69% | -1.02% | -7.59% |
| Operating Margins | 12.1% | 10.7% | 11.4% | 11.8% |
| Operating Margins Growth | n/a | -11.57% | 6.54% | 3.51% |
| Net Margins | 11.37% | 11.35% | 8.07% | 17.31% |
| Net Margins Growth | n/a | -0.18% | -28.9% | 114.5% |
| Earnings Per Share | $2.03 | $2.25 | $1.87 | $4.09 |
| EPS Growth | n/a | 10.84% | -16.89% | 118.72% |
| Diluted Shares (MM) | 873 | 880 | 890 | 835 |
| Free Cash Flow (MM) | $1,759 | $1,380 | $1,893 | $1,390 |
| FCF Growth | n/a | -21.55% | 37.17% | -26.57% |
| Capital Expenditures (MM) | -$243 | -$312 | -$344 | -$353 |
| Net Debt / EBITDA | nan | 2.92 | 2.19 | 1.07 |
Carrier Global Is Currently Fairly Valued:
Compared to the Consumer Discretionary sector's average of 22.33, Carrier Global has a trailing twelve month P/E ratio of 10.5 and, according to its EPS guidance of 2.84, an expected P/E ratio of 15.1. Carrier Global's PEG ratio is 0.51 based on its 20.5% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Carrier Global's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 0.8, which still suggests that company's shares are possibly undervalued.
Carrier Global's P/B ratio is 4.6 compared to its sector average of 3.12. The company is likely overvalued in terms of its equity. The company's shares are currently trading 85.3% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 2.56 * 9.298) = $23.14
Carrier Global's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Carrier Global Is the Subject of Mixed Market Indicators:
19 analysts are following Carrier Global and have set target prices ranging from $40.0 to $55.0 per share. On average, they have given the company a rating of buy. At the current price of $42.88, CARR is trading -13.26% away from its average analyst target price of $49.43 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 1.7% of the company's shares are tied to short positions. Institutions own 87.4% of Carrier Global's shares, while the insider ownership rate stands at 0.1%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $3,988,244,762.
