Carel Industries SpA (CRL) AI Stock Analysis

• Market Cap: €2.75B
• Dividend Yield: 0.66%
• Average Volume (3M): 60.26K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 1.01
• Revenue Growth: 3.99%
• EPS Growth: 27.12%
• Country: IT
• Employees: 2,228
• Sector: Industrials
• Sector Strength: 72
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 112,500,000
• 10 Day Avg. Volume: 113,431
• 30 Day Avg. Volume: 60,255
• PEG Ratio: -1.66
• Price to Book (P/B): 4.77
• Price to Sales (P/S): 3.58
• P/FCF Ratio: 32.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €24.20
• Price Target Upside: -1.02% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €27.00 ▲(10.43% Upside)

Carel Industries SpA's strong financial performance and positive technical indicators are offset by its high valuation, resulting in a moderate overall stock score. The company's robust cash flow and stable balance sheet provide a solid foundation, but the high P/E ratio suggests limited room for price appreciation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Carel's products and services, supporting long-term business expansion and market presence.

Cash Flow Generation

Strong cash flow generation enhances Carel's ability to invest in growth opportunities, service debt, and provide financial stability.

Profit Margins

Sustained high profit margins reflect operational efficiency and pricing power, contributing to long-term profitability and competitive advantage.

Negative Factors

Debt Management

While manageable, the reliance on debt requires careful management to avoid potential risks, especially in volatile market conditions.

Cost Pressures

Rising costs could impact margins if not managed effectively, potentially affecting profitability and competitive positioning.

Equity Ratio

A moderate reliance on debt can limit financial flexibility and increase vulnerability to interest rate changes or economic downturns.

Carel Industries SpA Business Overview & Revenue Model

Company Description

Carel Industries SpA (CRL) is a leading global player in the field of control solutions and humidification systems, primarily serving the HVAC/R (Heating, Ventilation, Air Conditioning, and Refrigeration) sectors. The company specializes in designing and manufacturing electronic controllers, sensors, and humidifiers that optimize energy efficiency and improve comfort in indoor environments. With a strong focus on innovation and sustainability, Carel operates in various markets, including commercial refrigeration, residential air conditioning, and industrial applications, offering a comprehensive range of products tailored to meet the diverse needs of its customers.

How the Company Makes Money

Carel Industries generates revenue through multiple key streams, primarily by selling its control systems, sensors, and humidification products to manufacturers and distributors in the HVAC/R industry. The company also benefits from recurring revenue through service contracts and maintenance agreements for its products. Additionally, Carel has established strategic partnerships with leading manufacturers in the sector, allowing it to integrate its solutions into larger systems, which enhances its market position and drives sales. The ongoing trend toward energy efficiency and environmental sustainability in HVAC/R applications further contributes to Carel's earnings, as customers increasingly seek advanced solutions that reduce energy consumption.

Carel Industries SpA Financial Statement Overview

Summary

Carel Industries SpA demonstrates strong financial performance with consistent revenue growth, solid profitability margins, and effective cash flow management. The balance sheet is stable with prudent leverage, though attention to debt levels is advisable.

Income Statement

Carel Industries SpA demonstrates a solid income statement with consistent revenue growth, highlighted by a 2.36% increase in TTM. The company maintains healthy profitability margins, with a gross profit margin of 46.54% and a net profit margin of 10.34% in TTM. The EBIT and EBITDA margins are also strong at 11.63% and 18.53%, respectively. However, the slight decline in net income from the previous year indicates a need for cautious monitoring.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.33 in TTM, indicating prudent leverage. The return on equity remains robust at 14.33%, showcasing effective utilization of shareholder funds. However, the equity ratio of 51.03% suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth of 37.24% in TTM, indicating effective cash management. The operating cash flow to net income ratio of 0.55 suggests efficient conversion of income into cash. The free cash flow to net income ratio of 0.85 further underscores the company's ability to generate cash relative to its net income. Nonetheless, maintaining this trajectory will be crucial for sustaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	609.33M	578.54M	650.25M	548.97M	426.20M	331.61M
Gross Profit	236.77M	263.97M	170.14M	230.60M	186.28M	153.98M
EBITDA	111.72M	104.87M	136.72M	108.41M	83.85M	64.21M
Net Income	65.26M	62.64M	70.94M	62.12M	49.06M	35.11M
Balance Sheet
Total Assets	849.64M	851.02M	920.40M	640.46M	507.80M	414.14M
Cash, Cash Equivalents and Short-Term Investments	119.87M	102.41M	157.17M	107.49M	100.63M	113.09M
Total Debt	134.69M	151.60M	185.85M	195.32M	157.44M	162.10M
Total Liabilities	398.58M	409.49M	524.23M	419.22M	337.92M	254.52M
Stockholders Equity	445.52M	434.94M	376.42M	205.38M	154.95M	159.32M
Cash Flow
Free Cash Flow	109.60M	63.90M	74.62M	42.61M	35.48M	43.76M
Operating Cash Flow	123.73M	85.38M	102.03M	69.41M	54.12M	57.10M
Investing Cash Flow	-21.33M	-27.65M	-197.00M	-79.66M	-41.78M	-13.04M
Financing Cash Flow	-62.77M	-111.94M	153.53M	6.21M	-18.98M	8.09M

Carel Industries SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CRL, the sentiment is Positive. The current price of 24.45 is below the 20-day moving average (MA) of 24.61, above the 50-day MA of 23.20, and above the 200-day MA of 21.78, indicating a bullish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 47.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:CRL.

Carel Industries SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRE	79 Outperform	€4.60B	11.20	―	3.25%	-0.22%	-12.64%
CMB	76 Outperform	€1.14B	25.07	21.53%	2.76%	6.00%	20.37%
IP	76 Outperform	€4.88B	22.27	10.99%	0.71%	-2.00%	2.11%
CRL	71 Outperform	€2.75B	41.70	15.31%	0.66%	3.99%	27.12%
COM	69 Neutral	€1.26B	21.04	―	1.83%	-20.36%	-23.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%