Carrier Global Corporation
Carrier Global Corporation Fundamental Analysis
Carrier Global Corporation (CARR) shows moderate financial fundamentals with a PE ratio of 35.71, profit margin of 6.87%, and ROE of 10.50%. The company generates $21.7B in annual revenue with strong year-over-year growth of 18.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CARR's fundamental strength across five key dimensions:
Efficiency Score
WeakCARR struggles to generate sufficient returns from assets.
Valuation Score
ModerateCARR shows balanced valuation metrics.
Growth Score
ModerateCARR shows steady but slowing expansion.
Financial Health Score
ExcellentCARR maintains a strong and stable balance sheet.
Profitability Score
WeakCARR struggles to sustain strong margins.
Key Financial Metrics
Is CARR Expensive or Cheap?
P/E Ratio
CARR trades at 35.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CARR's PEG of -0.58 indicates potential undervaluation.
Price to Book
The market values Carrier Global Corporation at 3.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.29 times EBITDA. This signals the market has high growth expectations.
How Well Does CARR Make Money?
Net Profit Margin
For every $100 in sales, Carrier Global Corporation keeps $6.87 as profit after all expenses.
Operating Margin
Core operations generate 9.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.50 in profit for every $100 of shareholder equity.
ROA
Carrier Global Corporation generates $4.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Carrier Global Corporation produces operating cash flow of $2.48B, showing steady but balanced cash generation.
Free Cash Flow
Carrier Global Corporation produces free cash flow of $2.09B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.50 in free cash annually.
FCF Yield
CARR converts 3.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CARR Stacks Against Its Sector Peers
| Metric | CARR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.71 | 26.49 | Worse (Expensive) |
| ROE | 10.50% | 1307.00% | Weak |
| Net Margin | 6.87% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.92 | 0.81 | Neutral |
| Current Ratio | 1.20 | 10.48 | Neutral |
| ROA | 4.01% | -1549793.00% (disorted) | Weak |
CARR outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Carrier Global Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.54%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
155.41%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-73.68%
Industry Style: Cyclical, Value, Infrastructure
Declining