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Carlisle Companies (CSL)
NYSE:CSL
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Carlisle Companies
(NYSE:CSL)
75Outperform
Positive Factors
Acquisition Benefits
Plasti-Fab benefits CWT scale and improves segment mix with identified synergies expected to significantly boost EBITDA margins.
Strategic Mergers and Acquisitions
Carlisle Companies is anticipated to enter 2025 with over $1 billion in cash, enabling strategic mergers and acquisitions and aggressive share buyback activities.
Vision 2030 Strategy
Analyst expresses confidence in earnings and cash flow upside for 2024-2025, driven by Vision 2030 value-creation strategies.
Negative Factors
CWT Segment Challenges
CWT segment faces sluggish demand and additional headwinds from SPF pricing, suggesting modest risk against 2024 sales guidance.
Pricing and Margin Risks
Tactical caution is advised due to potential near-term margin risks as pricing traction remains mixed.
Valuation Concerns
The shares of CSL are considered fully valued at current levels, indicating limited potential for significant price increases.
Carlisle Companies (CSL) vs. S&P 500 (SPY)
Market Cap
$15.31B
Dividend Yield1.11%
Average Volume (3M)486.30K
Price to Earnings (P/E)19.2
Beta (1Y)1.41
Revenue Growth-1.76%
EPS Growth176.01%
CountryUS
Employees5,500
SectorIndustrials
Sector Strength67
IndustryConstruction
Share Statistics
EPS (TTM)37.37
Shares Outstanding44,149,406
10 Day Avg. Volume551,090
30 Day Avg. Volume486,302
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)2.99
Price to Cash Flow (P/CF)10.10
P/FCF Ratio10.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$465.00Price Target Upside33.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Carlisle Companies Business Overview & Revenue Model
Company DescriptionCarlisle Companies Incorporated operates as a diversified manufacturer of engineered products in the United States, Europe, Asia, Canada, Mexico, the Middle East, Africa, and internationally. It operates through three segments: Carlisle Construction Materials, Carlisle Interconnect Technologies, and Carlisle Fluid Technologies. The Carlisle Construction Materials segment produces building envelopes for commercial, industrial, and residential buildings, including single-ply roofing products, rigid foam insulations, spray polyurethane foam, architectural metal products, heating, ventilation and air conditioning hardware and sealants, waterproofing products, and air and vapor barrier systems. The Carlisle Interconnect Technologies segment produces wires and cables, including optical fiber for the commercial aerospace, military and defense electronics, medical device, industrial, and test and measurement markets. It also offers sensors, connectors, contacts, cable assemblies, complex harnesses, racks, trays, and installation kits, as well as engineering and certification services. The Carlisle Fluid Technologies segment produces engineered liquid products, powder products, sealants and adhesives finishing equipment, and integrated system solutions for spraying, pumping, mixing, metering, and curing of coatings used in the automotive manufacture, general industrial, protective coating, wood, and specialty and automotive refinishing markets. The company sells its products under the Carlisle, Binks, DeVilbiss, Ransburg, BGK, MS Powder, Thermax, Tri-Star, LHi Technology, Providien, SynTec, Weatherbond, Hunter Panels, Resitrix, Hertalan, Insulfoam, and Versico brands. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.
How the Company Makes MoneyCarlisle Companies generates revenue through the sale of its diverse product offerings across its multiple business segments. Carlisle Construction Materials, the largest segment, contributes significantly to revenue by providing roofing and waterproofing systems to commercial and industrial customers. The Carlisle Interconnect Technologies segment generates income from selling high-performance wire and cable assemblies used primarily in aerospace and defense industries. Carlisle Fluid Technologies earns revenue by supplying paint and coating application equipment, serving a range of industries including automotive and industrial. Additionally, Carlisle Brake & Friction adds to the company's earnings through its production of braking systems for heavy-duty applications in mining, construction, and agriculture. The company's earnings are bolstered by strategic partnerships, operational excellence, and a focus on innovation, which help maintain competitive advantages and customer loyalty.
Carlisle Companies Financial Statement Overview
Summary
Carlisle Companies exhibits strong financial health with a high revenue growth rate and improved profitability margins. The company has minimal debt and strong equity. However, there is a slight decline in cash flow and total assets that require monitoring.Income Statement
Carlisle Companies has shown a strong revenue growth rate of approximately 9.08% from 2023 to 2024. The company has an outstanding gross profit margin of 100%, indicating efficient cost management. Additionally, the net profit margin improved significantly from 16.73% in 2023 to 26.22% in 2024, showcasing enhanced profitability. However, the EBIT and EBITDA margins remained stable, suggesting room for improvement in operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position with an equity ratio of 42.36% in 2024. The debt-to-equity ratio is low at 0.0013, indicating minimal reliance on debt financing. The return on equity increased from 27.12% in 2023 to 53.25% in 2024, highlighting strong profitability relative to shareholder equity. Despite these positives, the decline in total assets warrants attention.75
Positive
Cash Flow
Carlisle Companies experienced a decrease in free cash flow from 2023 to 2024, but maintained a strong operating cash flow to net income ratio of 0.79 in 2024. The free cash flow to net income ratio was approximately 0.70, reflecting healthy cash generation. The operating cash flow decreased slightly, which could impact future liquidity if trends continue.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.00B | 4.59B | 6.59B | 4.81B | 3.97B | Gross Profit |
| 1.89B | 1.54B | 2.16B | 1.31B | 1.14B | EBIT |
| 1.14B | 982.80M | 1.28B | 336.60M | 487.80M | EBITDA |
| 1.36B | 1.21B | 1.48B | 816.10M | 733.10M | Net Income Common Stockholders |
| 1.31B | 767.40M | 924.00M | 421.70M | 320.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 753.50M | 576.70M | 400.00M | 324.40M | 897.10M | Total Assets |
| 5.82B | 6.62B | 7.22B | 7.25B | 5.87B | Total Debt |
| 3.20M | 2.32B | 2.63B | 2.99B | 2.08B | Net Debt |
| -750.30M | 1.75B | 2.23B | 2.67B | 1.18B | Total Liabilities |
| 3.35B | 3.79B | 4.20B | 4.62B | 3.33B | Stockholders Equity |
| 2.46B | 2.83B | 3.02B | 2.63B | 2.54B |
| Cash Flow | Free Cash Flow | |||
| 917.00M | 1.06B | 817.40M | 286.90M | 601.20M | Operating Cash Flow |
| 1.03B | 1.21B | 1.00B | 421.70M | 696.70M | Investing Cash Flow |
| 1.23B | 352.40M | -61.10M | -1.49B | -122.60M | Financing Cash Flow |
| -2.11B | -1.35B | -862.00M | 488.10M | -24.70M |
Carlisle Companies Technical Analysis
Neutral
349.51
Price Trends
357.15
Negative
386.96
Negative
403.47
Negative
Market Momentum
-1.93
Negative
51.83
Neutral
82.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSL, the sentiment is Neutral. The current price of 349.51 is above the 20-day moving average (MA) of 337.63, below the 50-day MA of 357.15, and below the 200-day MA of 403.47, indicating a neutral trend. The MACD of -1.93 indicates Negative momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 82.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CSL.
Carlisle Companies Risk Analysis
Carlisle Companies disclosed 10 risk factors in its most recent earnings report. Carlisle Companies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Carlisle Companies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $24.98B | 9.55 | 24.30% | 1.11% | -2.99% | 159.26% | |
75 Outperform | $15.31B | 19.24 | 32.60% | 1.11% | -1.76% | 176.01% | |
74 Outperform | $138.27B | 24.37 | 33.10% | 2.07% | 5.05% | 2.73% | |
74 Outperform | $75.07B | 21.77 | 110.24% | 2.27% | -1.30% | 20.26% | |
72 Outperform | $65.02B | 27.44 | 9.66% | 1.85% | 10.29% | 22.72% | |
64 Neutral | $82.89B | 20.32 | 97.86% | 1.85% | -18.72% | ― | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% |
* Industrials Sector Average
Performance Comparison
CSL
Carlisle Companies
349.51
-38.63
-9.95%
MMM
3M
148.44
61.73
71.19%
DOV
Dover
179.15
3.85
2.20%
EMR
Emerson Electric Company
112.08
0.68
0.61%
HON
Honeywell International
214.17
13.18
6.56%
ITW
Illinois Tool Works
251.96
-11.71
-4.44%
Carlisle Companies Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -6.86% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Carlisle's strong financial performance in 2024 with record adjusted EPS and successful strategic initiatives. However, the company faced significant market headwinds, particularly in Q4, and has concerns about tariffs and economic uncertainty in 2025. Despite these challenges, Carlisle maintains a positive outlook for 2025, driven by innovation, operational efficiencies, and strategic acquisitions.Highlights
Record Adjusted EPS and Strategic Shift
Carlisle achieved record adjusted EPS of $20.20 in 2024, marking a 30% year-over-year increase. The company completed its pivot to a pure-play building products company with the $2 billion sale of CIT.
Strong Margin Performance
Adjusted EBITDA margins expanded by 150 basis points to a record 26.6% in 2024, despite challenges in the residential markets and a low single-digit price decline in commercial markets.
Successful Acquisitions and Synergies
Carlisle completed synergistic acquisitions of MTL and Plasti-Fab, contributing to its market position. Expected synergies from MTL increased from $13 million to over $20 million.
Positive Outlook for 2025
Carlisle expects double-digit EPS growth in 2025, driven by mid-single-digit revenue growth and a 50 basis point expansion in adjusted EBITDA margin, supported by innovation and operational efficiencies.
Lowlights
Market Headwinds and Challenges
Carlisle faced broad market headwinds in Q4 2024, including higher interest rates, restrictive lending conditions, and unfavorable weather patterns, impacting sales and results.
Impact of Tariffs and Economic Uncertainty
The new administration's tariffs and potential policies on labor and interest rates pose concerns for Carlisle, particularly impacting residential markets and interest rate expectations.
Headwinds in Residential and Commercial New Construction
Higher interest rates, housing affordability issues, and unfavorable weather conditions adversely affected residential and commercial new construction markets in 2024.
Company Guidance
During the Carlisle Company's Fourth Quarter 2024 Earnings Conference Call, the company reported a record adjusted EPS of $20.20 for the year, reflecting a 30% increase year-over-year. The adjusted EBITDA margin expanded by 150 basis points to 26.6%. Key strategic moves included the $2 billion sale of CIT, pivoting Carlisle into a pure-play building products company, and $700 million in acquisitions, notably MTL and Plasti-Fab, which are expected to generate synergies of over $20 million and $14 million, respectively. Looking ahead, Carlisle anticipates mid-single-digit revenue growth in 2025, driven by continued strength in reroofing activity and the full-year benefit from recent acquisitions, while expecting a 50 basis point expansion in adjusted EBITDA margin. They also aim to achieve $1 in EPS growth through recent acquisitions, with plans for disciplined capital deployment, including $800 million in share buybacks.Carlisle Companies Corporate Events
Executive/Board Changes
Carlisle Companies Appoints Sheryl D. Palmer to Board
Positive
Jan 29, 2025
On January 28, 2025, Carlisle Companies announced the election of Sheryl D. Palmer to its Board of Directors. Palmer, who serves as CEO and Chairman of Taylor Morrison Home Corporation, brings over 35 years of experience in the building sector. Her expertise in land acquisition, sales, marketing, and operations management is expected to add significant value to Carlisle as it pursues its Vision 2030 initiatives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.