Carel Industries SpA (CRL) AI Stock Analysis

• Market Cap: €2.43B
• Dividend Yield: 0.67%
• Average Volume (3M): 60.26K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.97
• Revenue Growth: 3.99%
• EPS Growth: 27.12%
• Country: US
• Employees: 2,228
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 112,499,210
• 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: €25.15
• Price Target Upside: 18.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €23.50 ▲(10.59% 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

Free cash flow generation

Consistent and improving free cash flow provides durable internal funding for R&D, connectivity platform rollouts, and working capital. Strong cash conversion supports capital allocation flexibility, debt servicing and shareholder returns, reducing reliance on external financing over the medium term.

Diverse product and solution mix

A broad portfolio across controllers, sensors, IoT connectivity and humidification spreads revenue across end-markets (HVAC, refrigeration, data centers). This diversification supports cross-selling, recurring service opportunities and resilience to demand swings in any single vertical over the coming months.

Healthy profit margins

High gross margins and solid net profitability indicate structural product differentiation and operational efficiency. Margin strength enhances ability to invest in connectivity/software, buffer input-cost volatility and sustain returns even amid modest top-line growth, supporting long-term competitive positioning.

Negative Factors

Modest revenue growth

Low single-digit revenue growth suggests limited organic expansion or market saturation in core segments. If sustained, this constrains scale benefits and puts pressure on achieving faster profit expansion without either faster top-line growth, share gains, or higher recurring-service penetration.

Moderate reliance on debt

While leverage is manageable, a non-trivial debt load reduces financial flexibility for large capex, M&A or cyclical downturns. Rising interest rates or unexpected cash flow weakness could amplify refinancing risk and constrain strategic investments in platforms or international expansion.

Signs of cost pressure on margins

A recent dip in gross profit points to input-cost or pricing pressure that could erode margins if structural. Sustained cost inflation or competitive pricing could force higher investment in product differentiation or squeeze profitability, challenging margin sustainability absent pricing power or efficiency gains.

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 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, healthy profit margins, and robust cash flow generation. The balance sheet is stable, but careful management of debt is advisable.

Income Statement

Carel Industries SpA has demonstrated consistent revenue growth with a TTM growth rate of 2.72%. The company maintains healthy profit margins, with a gross profit margin of 46.54% and a net profit margin of 10.34% in the TTM period. EBIT and EBITDA margins are also strong, indicating efficient operations. However, the slight decline in gross profit from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.33 in the TTM period, showing improvement from previous years. The return on equity is solid at 14.33%, indicating effective use of equity. However, the equity ratio suggests a moderate reliance on debt, which could pose risks if not managed carefully.

Cash Flow

Carel Industries SpA has shown strong cash flow performance with a significant free cash flow growth rate of 13.17% in the TTM period. The operating cash flow to net income ratio of 0.55 indicates good cash generation relative to net income. The free cash flow to net income ratio of 0.85 further underscores the company's ability to convert earnings into cash, supporting future investments and debt servicing.

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: Negative
• Last Price: 21.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 21.25 is below the 20-day moving average (MA) of 23.54, below the 50-day MA of 24.13, and below the 200-day MA of 22.61, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 27.99 is Positive, neither overbought nor oversold. The STOCH value of 7.57 is Positive, 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
BRE	79 Outperform	€4.88B	11.88	―	3.23%	-0.22%	-12.64%
CMB	76 Outperform	€1.14B	25.11	21.53%	2.75%	6.00%	20.37%
IP	76 Outperform	€5.17B	23.60	10.99%	0.72%	-2.00%	2.11%
CRL	71 Outperform	€2.43B	36.83	15.31%	0.67%	3.99%	27.12%
COM	69 Neutral	€1.45B	24.30	―	1.80%	-20.36%	-23.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%