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Carlisle Companies (CSL)
NYSE:CSL

Carlisle Companies (CSL) AI Stock Analysis

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Carlisle Companies

(NYSE:CSL)

Rating:72Outperform
Price Target:
$412.00
▲(4.12%Upside)
Carlisle Companies' stock score is driven primarily by its solid financial performance and strategic achievements highlighted in the earnings call, which are offset by technical analysis indicators that suggest mixed market sentiment and a lack of revenue growth. The valuation suggests potential undervaluation, providing opportunities for future appreciation.
Positive Factors
Company Resilience and Innovation
Carlisle is highlighted as a top pick, supported by its roofing leadership, pricing discipline, and strategic growth opportunities.
Growth and Market Positioning
The theme of 'Safety Unlocks Growth' positions Carlisle Companies well, as safety is now a driver of growth, margin defense, and stakeholder commitment.
Negative Factors
Market Competition
SMID industrials may gain from U.S. macro trends like reshoring and tax cuts, boosting investment and M&A.

Carlisle Companies (CSL) vs. SPDR S&P 500 ETF (SPY)

Carlisle Companies Business Overview & Revenue Model

Company DescriptionCarlisle Companies Incorporated (CSL) is a diversified, global portfolio of niche brands and businesses that primarily operate in four segments: Carlisle Construction Materials, Carlisle Interconnect Technologies, Carlisle Fluid Technologies, and Carlisle Brake & Friction. The company is known for delivering innovative, sustainable solutions for its customers. Its core products and services focus on providing high-performance, energy-efficient building products, engineered connectors, industrial fluid handling systems, and friction materials for a wide range of industries.
How the Company Makes MoneyCarlisle Companies generates revenue through the manufacture and sale of its diverse range of products across its four main business segments. The Carlisle Construction Materials segment contributes significantly to the company's income by offering roofing and waterproofing products. The Carlisle Interconnect Technologies segment garners revenue by supplying high-performance wire and cable solutions. The Carlisle Fluid Technologies segment earns through the provision of high-quality finishing and coating equipment. Finally, the Carlisle Brake & Friction segment generates income by producing and selling friction materials and braking systems. The company's earnings are further bolstered by strategic acquisitions and partnerships, which expand its market reach and product offerings.

Carlisle Companies Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 10.24%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of Carlisle's performance with solid revenue and strategic achievements amidst significant challenges such as weather, macroeconomic conditions, and residential market weakness. The company's innovation efforts and capital returns were positive highlights, but these were tempered by declines in adjusted EBITDA margin and pricing pressures.
Q1-2025 Updates
Positive Updates
Solid Revenue Despite Challenges
Carlisle reported revenue of $1.1 billion for Q1 2025, which was essentially flat year-over-year despite unfavorable weather conditions and economic uncertainties.
Strong Reroofing Activity
Reroofing demand, representing 70% of CCM's commercial business, continues to drive resilient performance, offsetting negative macroeconomic conditions.
MTL Acquisition Performance
The MTL acquisition exceeded expectations, contributing to a $50 million increase in revenue and is on track to achieve over $20 million in synergies.
Capital Return to Shareholders
Carlisle repurchased 1.2 million shares for $400 million and increased its dividend by 17.6%, reflecting strong confidence in future growth.
Innovation and Product Development
Carlisle's investment in R&D and new product introductions are expected to contribute significantly to growth, with a goal of generating 25% of revenues from new products by 2030.
Negative Updates
Weather and Macroeconomic Challenges
Unfavorable weather in January and February and economic uncertainty, including US tariff actions, negatively impacted the first quarter of 2025.
Residential Market Weakness
CWT faced headwinds with a 12% decline in organic revenue due to buyer uncertainty, affordability challenges, and higher interest rates in residential markets.
Decline in Adjusted EBITDA Margin
Adjusted EBITDA margin was 21.8%, down 240 basis points from Q1 2024, due to lower volume, negative price cost, and business investments.
Pricing Pressures
Both CCM and CWT experienced low single-digit price declines, impacting overall financial performance.
Company Guidance
In the first quarter of 2025, Carlisle reported revenue of $1.1 billion, which was essentially flat compared to the previous year. The company achieved a diluted EPS of $3.13 and an adjusted EPS of $3.61. Despite challenges such as unfavorable weather and economic uncertainty, the CCM segment showed resilience, with revenues of $799 million, supported by strong reroofing activity and the 2024 MTL acquisition. The CWT segment faced headwinds with revenues of $297 million, down 5% year-over-year due to softness in residential markets. Carlisle reaffirmed its full-year guidance for mid-single-digit revenue growth and an adjusted EBITDA margin expansion of approximately 50 basis points. The company anticipates a year-over-year adjusted EPS growth exceeding 10% and plans to maintain an ROIC above 25% with free cash flow margins above 15%. Carlisle also continued its focus on capital allocation by repurchasing 1.2 million shares for $400 million in the first quarter, with plans to deploy approximately $1 billion into share repurchases in 2025.

Carlisle Companies Financial Statement Overview

Summary
Carlisle Companies presents a solid financial position with strong profitability metrics, efficient cash flow management, and stable balance sheet. However, the flat revenue growth and slight asset decline are potential concerns for future expansion.
Income Statement
85
Very Positive
Carlisle Companies demonstrates robust profitability with a TTM gross profit margin of 51.1% and a net profit margin of 34.5%. The EBIT and EBITDA margins are also strong at 21.9% and 25.0%, respectively. However, the revenue growth is flat, with a slight decrease of 0.01% compared to the previous year, indicating stable but stagnant growth.
Balance Sheet
78
Positive
The company's balance sheet is stable with a favorable equity ratio of 54.4% and a manageable debt-to-equity ratio of 0.64. Return on Equity is impressive at 58.1%, highlighting efficient use of equity. However, total assets have declined slightly, suggesting potential challenges in asset growth.
Cash Flow
82
Very Positive
Carlisle Companies exhibits strong cash flow management with a high operating cash flow to net income ratio of 0.5 and a free cash flow to net income ratio of 0.44. Free cash flow growth is negative due to a decrease in operating cash flow, but overall cash flow generation remains healthy.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.00B5.00B4.59B6.59B4.81B3.97B
Gross Profit1.85B1.89B1.54B2.16B1.31B1.14B
EBITDA1.30B1.36B1.21B1.48B816.10M733.10M
Net Income1.72B1.31B767.40M924.00M421.70M320.10M
Balance Sheet
Total Assets5.45B5.82B6.62B7.22B7.25B5.87B
Cash, Cash Equivalents and Short-Term Investments220.20M753.50M576.70M400.00M324.40M897.10M
Total Debt1.89B1.99B2.32B2.63B2.99B2.08B
Total Liabilities3.28B3.35B3.79B4.20B4.62B3.33B
Stockholders Equity2.17B2.46B2.83B3.02B2.63B2.54B
Cash Flow
Free Cash Flow758.80M917.00M1.06B817.40M286.90M601.20M
Operating Cash Flow868.60M1.03B1.21B1.00B421.70M696.70M
Investing Cash Flow1.18B1.23B352.40M-61.10M-1.49B-122.60M
Financing Cash Flow-2.40B-1.35B-862.00M488.10M-24.70M

Carlisle Companies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price395.69
Price Trends
50DMA
380.28
Positive
100DMA
360.53
Positive
200DMA
390.43
Positive
Market Momentum
MACD
1.34
Negative
RSI
65.72
Neutral
STOCH
86.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSL, the sentiment is Positive. The current price of 395.69 is above the 20-day moving average (MA) of 371.62, above the 50-day MA of 380.28, and above the 200-day MA of 390.43, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 86.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LILII
75
Outperform
$21.24B26.68131.48%0.87%7.78%30.10%
72
Outperform
$14.03B16.4219.62%-5.49%-33.51%
OCOC
72
Outperform
$12.38B52.2611.93%1.90%16.16%-77.11%
CSCSL
72
Outperform
$16.88B22.5433.11%1.02%-0.14%11.31%
68
Neutral
£2.94B10.248.40%3.45%2.87%-9.95%
MAMAS
64
Neutral
$14.15B18.34-118.61%1.85%-2.67%-10.72%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CSL
Carlisle Companies
395.69
-7.24
-1.80%
BLDR
Builders Firstsource
127.89
-4.71
-3.55%
LII
Lennox International
602.10
62.01
11.48%
MAS
Masco
67.28
3.64
5.72%
OC
Owens Corning
145.57
-17.54
-10.75%

Carlisle Companies Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Carlisle Companies Appoints New Vice President & General Counsel
Neutral
May 16, 2025

On May 15, 2025, Carlisle Companies announced the appointment of Christopher B. Gaskill as Vice President & General Counsel, succeeding Scott C. Selbach, who transitions to Executive Vice President, Government Relations. This leadership change aligns with Carlisle’s Vision 2030 objectives, emphasizing investment in talent to support its strategic goals and enhance its market positioning.

The most recent analyst rating on (CSL) stock is a Hold with a $430.00 price target. To see the full list of analyst forecasts on Carlisle Companies stock, see the CSL Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Carlisle Companies Announces Board Changes at Annual Meeting
Positive
May 1, 2025

On April 30, 2025, Carlisle Companies held its annual stockholders’ meeting, where three directors, Robin J. Adams, Robert G. Bohn, and Gregg A. Ostrander, retired from the Board in line with the company’s governance guidelines. The stockholders elected new directors, approved executive compensation for 2024, and ratified Deloitte & Touche LLP as the independent auditor for 2025, indicating a smooth transition and continued confidence in the company’s leadership and financial oversight.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 25, 2025