Carel Industries SpA (CRL) AI Stock Analysis

• Market Cap: €2.62B
• Dividend Yield: 0.72%
• Average Volume (3M): 35.48K
• Price to Earnings (P/E): 42.6
• Beta (1Y): 1.06
• Revenue Growth: -2.99%
• EPS Growth: 1.31%
• Country: IT
• Employees: 2,228
• Sector: Industrials
• Sector Strength: 72
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.14
• Shares Outstanding: 112,500,000
• 10 Day Avg. Volume: 35,218
• 30 Day Avg. Volume: 35,484
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €24.63
• Price Target Upside: 8.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: €24.50 ▲(8.17% Upside)

Carel Industries SpA's strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and solid profitability margins. However, technical indicators suggest short-term bearish momentum, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and notable corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Profitability Margins

Sustained profitability margins reflect operational efficiency and competitive pricing, enhancing the company's financial resilience.

Cash Flow Performance

Strong cash flow performance supports reinvestment and debt reduction, ensuring financial flexibility and growth potential.

Negative Factors

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or financial pressures, potentially impacting future profitability.

Moderate Reliance on Liabilities

Reliance on liabilities could pose risks if market conditions change unfavorably, affecting financial stability.

Revenue Growth Trend

Negative revenue growth trend suggests potential challenges in market demand or competitive pressures, impacting future earnings.

Carel Industries SpA Business Overview & Revenue Model

Company Description

Carel Industries S.p.A., together with its subsidiaries, designs, manufactures, markets, and distributes control and humidification solutions for the commercial, industrial, and residential heating, ventilation, and air-conditioning (HVAC); and refrigeration markets in Europe, the Middle East, Africa, North America, South America, and the Asia Pacific. It offers programmable controllers, room and unit terminals, HVAC and refrigeration parametric controls, isothermal and adiabatic humidifiers, water treatment systems, IoT digital services, remote management and monitoring systems, connectivity products, sensors and protection devices, food retail products, electronic expansion valves and drivers, speed controllers and investors, obsolete products, and power solutions, as well as temperature, humidity, and pressure control solutions. The company also provides technical support, field, digital, and repair services, as well as spare parts. In addition, it offers system and unit control solutions. Carel Industries S.p.A. was founded in 1973 and is headquartered in Brugine, Italy.

How the Company Makes Money

Carel Industries SpA generates revenue primarily through the sale of its advanced control solutions and related products in the HVAC (Heating, Ventilation, and Air Conditioning) and refrigeration markets. The company's revenue model is centered around product sales, including electronic control systems, humidifiers, and IoT-enabled solutions that enhance efficiency and sustainability in various applications. Additionally, Carel collaborates with OEMs (Original Equipment Manufacturers) and other key partners to integrate its products into broader system solutions, thereby expanding its market reach. The company also invests in research and development to innovate and maintain a competitive edge, which contributes to its revenue by attracting new customers and retaining existing ones with state-of-the-art technology offerings.

Carel Industries SpA Financial Statement Overview

Summary

Carel Industries SpA exhibits a strong financial profile with consistent revenue growth and solid profitability margins. The balance sheet is managed prudently with a healthy leverage ratio. The cash flow performance is commendable, reflecting operational efficiency. However, there is a need for improvement in net profit margins and the equity ratio to enhance financial resilience.

Income Statement

Carel Industries SpA has demonstrated a strong revenue growth trajectory over recent years, particularly between 2020 and 2023. The gross profit margin and EBIT margin have remained solid, indicating efficient cost management and operational profitability. However, the net profit margin has slightly declined in the latest year, suggesting rising costs or other financial pressures.

Balance Sheet

The company maintains a relatively stable debt-to-equity ratio, reflecting a balanced approach to leverage. The return on equity shows an upward trend, highlighting efficient equity utilization. However, the equity ratio indicates a moderate reliance on liabilities, which could pose risks if market conditions change unfavorably.

Cash Flow

Carel Industries SpA has experienced robust operating cash flow levels, supporting its net income effectively. Despite fluctuations, the free cash flow growth rate is promising, indicating potential for reinvestment or debt reduction. The company's ability to convert income into free cash flow showcases sound financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	578.54M	650.25M	548.97M	426.20M	333.93M
Gross Profit	263.97M	285.19M	230.60M	186.28M	153.98M
EBITDA	104.87M	136.72M	108.41M	81.82M	64.21M
Net Income	62.64M	70.94M	62.12M	49.06M	35.11M
Balance Sheet
Total Assets	851.02M	920.40M	640.46M	507.80M	414.14M
Cash, Cash Equivalents and Short-Term Investments	102.41M	157.17M	107.49M	100.63M	105.59M
Total Debt	151.60M	185.85M	155.73M	157.44M	162.10M
Total Liabilities	409.49M	524.23M	419.22M	337.92M	254.52M
Stockholders Equity	434.94M	376.42M	205.38M	154.95M	159.32M
Cash Flow
Free Cash Flow	63.90M	74.62M	42.61M	35.48M	43.76M
Operating Cash Flow	85.38M	102.03M	69.41M	54.12M	57.10M
Investing Cash Flow	-27.65M	-197.00M	-79.66M	-41.78M	-13.04M
Financing Cash Flow	-111.94M	153.53M	6.21M	-18.98M	594.00K

Carel Industries SpA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 22.65 is below the 20-day moving average (MA) of 23.06, below the 50-day MA of 23.88, and above the 200-day MA of 20.68, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 34.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:CRL.

Carel Industries SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COM	78 Outperform	1.02B	17.00	12.35%	2.27%	-20.36%	-23.31%
BRE	74 Outperform	4.73B	12.36	11.45%	3.31%	-2.54%	-20.53%
CMB	67 Neutral	868.91M	19.49	19.38%	3.55%	3.42%	12.72%
IP	66 Neutral	4.21B	19.67	10.70%	0.86%	-4.26%	-9.37%
CRL	64 Neutral	€2.62B	42.59	14.83%	0.72%	-2.99%	1.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%