Carel Industries SpA (CRL) AI Stock Analysis

• Market Cap: €2.45B
• Dividend Yield: 0.67%
• Average Volume (3M): 60.26K
• Price to Earnings (P/E): 39.9
• Beta (1Y): 1.05
• 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: -2.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €27.00 ▲(9.09% Upside)

Carel Industries SpA's strong financial performance and bullish technical indicators are offset by its high valuation, resulting in a moderate overall stock score. The company's ability to maintain growth and manage leverage will be crucial for future success.

Positive Factors

Cash Generation

Strong free cash flow growth indicates effective cash management, enhancing liquidity and providing flexibility for investments and debt management.

Profitability Margins

Healthy profitability margins reflect efficient cost management and pricing power, supporting sustainable earnings and competitive positioning.

Market Position

Strong market position in HVAC/R sectors underscores competitive advantages and potential for continued growth in energy-efficient solutions.

Negative Factors

Revenue Growth Decline

Declining revenue growth may indicate challenges in market expansion or competitive pressures, potentially impacting future earnings potential.

Debt Levels

Moderate reliance on debt financing could pose risks if not managed carefully, potentially affecting financial stability and flexibility.

Net Income Decline

A decline in net income suggests potential operational challenges or cost pressures, necessitating strategic adjustments to maintain profitability.

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 and solid profitability margins. The company shows effective cash flow management and a stable balance sheet with prudent leverage. However, attention to debt levels is advisable to mitigate potential risks.

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	593.19M	578.54M	650.25M	548.97M	426.20M	331.61M
Gross Profit	276.04M	263.97M	170.14M	230.60M	186.28M	153.98M
EBITDA	109.94M	104.87M	136.72M	108.41M	83.85M	64.21M
Net Income	61.32M	62.64M	70.94M	62.12M	49.06M	35.11M
Balance Sheet
Total Assets	840.70M	851.02M	920.40M	640.46M	507.80M	414.14M
Cash, Cash Equivalents and Short-Term Investments	103.05M	102.41M	157.17M	107.49M	100.63M	113.09M
Total Debt	142.56M	151.60M	185.85M	195.32M	157.44M	162.10M
Total Liabilities	405.06M	409.49M	524.23M	419.22M	337.92M	254.52M
Stockholders Equity	429.06M	434.94M	376.42M	205.38M	154.95M	159.32M
Cash Flow
Free Cash Flow	96.84M	63.90M	74.62M	42.61M	35.48M	43.76M
Operating Cash Flow	114.17M	85.38M	102.03M	69.41M	54.12M	57.10M
Investing Cash Flow	-23.08M	-27.65M	-197.00M	-79.66M	-41.78M	-13.04M
Financing Cash Flow	-60.20M	-111.94M	153.53M	6.21M	-18.98M	8.09M

Carel Industries SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.75
• 50DMA: Positive
• 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 Positive. The current price of 24.75 is above the 20-day moving average (MA) of 22.99, above the 50-day MA of 22.70, and above the 200-day MA of 21.49, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 61.86 is Neutral, neither overbought nor oversold. The STOCH value of 66.35 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	€4.52B	10.99	―	3.29%	-0.22%	-12.64%
IP	72 Outperform	€4.70B	21.96	10.99%	0.76%	-2.00%	2.11%
COM	71 Outperform	€1.12B	18.73	―	2.07%	-20.36%	-23.31%
CMB	70 Outperform	€1.03B	23.30	21.53%	2.87%	6.00%	20.37%
CRL	66 Neutral	€2.45B	39.86	15.31%	0.67%	3.99%	27.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%