Carrier Global Corp. (CARR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lam Research Corp.

Applied Materials, Inc.

Parker-Hannifin Corp.

Xylem, Inc.

Trane Technologies Plc

Dover Corp.

GE Aerospace

Johnson Controls International Plc

Illinois Tool Works Inc.

Carrier Global Corp.

Ingersoll Rand, Inc.

Why is Carrier Global Corp. ?

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 995 MM
ROCE(HY) Lowest at 10.79%
PRE-TAX PROFIT(Q) At USD 868 MM has Fallen at -38.51%

With ROCE of 12.10%, it has a attractive valuation with a 3.03 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -26.53%, its profits have risen by 145.1% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -26.53% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Carrier Global Corp. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Carrier Global Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Carrier Global Corp.

2.79%

-0.39

34.50%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.49%

EBIT Growth (5y)

2.24%

EBIT to Interest (avg)

7.70

Debt to EBITDA (avg)

2.69

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

0.90

Tax Ratio

39.04%

Dividend Payout Ratio

52.40%

Pledged Shares

Institutional Holding

87.03%

ROCE (avg)

17.74%

ROE (avg)

29.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.31

EV to EBIT

25.75

EV to EBITDA

16.24

EV to Capital Employed

2.31

EV to Sales

2.58

PEG Ratio

0.60

Dividend Yield

83.48%

ROCE (Latest)

8.99%

ROE (Latest)

12.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 6.17

DIVIDEND PAYOUT RATIO(Y)

Highest at 84.63%

-8What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 278 MM has Fallen at -44.98%

ROCE(HY)

Lowest at 9.39%

RAW MATERIAL COST(Y)

Grown by 13.51% (YoY

CASH AND EQV(HY)

Lowest at USD 2,931 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.17 times

Here's what is working for Carrier Global Corp.

Dividend per share

Highest at USD 6.17 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 84.63%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Carrier Global Corp.

Pre-Tax Profit

At USD 278 MM has Fallen at -44.98%

over average net sales of the previous four periods of USD 505.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Cash and Eqv

Lowest at USD 2,931 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 6.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 13.51% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales