Carel Industries SpA (CRL) AI Stock Analysis

• Market Cap: €2.52B
• Dividend Yield: 0.6%
• Average Volume (3M): 66.25K
• Price to Earnings (P/E): 44.5
• Beta (1Y): 0.91
• Revenue Growth: -8.83%
• EPS Growth: -22.83%
• Country: IT
• Employees: 2,228
• Sector: Industrials
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.09
• Shares Outstanding: 112,500,000
• 10 Day Avg. Volume: 86,295
• 30 Day Avg. Volume: 66,246
• PEG Ratio: 1.39
• Price to Book (P/B): 11.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 54.93
• 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: €20.25
• Price Target Upside: -14.74% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: €27.00 ▲(13.68%Upside)

Carel Industries SpA demonstrates strong financial performance and bullish technical indicators. However, the high P/E ratio suggests potential overvaluation. The lack of earnings call and corporate events data does not impact the overall score, which remains primarily driven by financial health and technical momentum.

Positive Factors

Market Recovery

The EMEA region has been showing tangible signs of recovery together with a confirmed positive trend expected in Americas.

Regional Sales Performance

Refrigeration sales have seen double-digit growth in EMEA and are expected to further accelerate, supported by a recovery in APAC and driven by the F-GAS regulation.

Revenue Growth

The company expects to close the second quarter with year-over-year revenue growth in high single-digit to low double-digit percentages, driven by a solid order backlog and positive market trends.

Negative Factors

Heat Pump Sales

Heat pumps account for approximately 5% of group sales after a significant 70% year-over-year decline in FY24.

Net Profit

The reported group net profit stood at €10.1m, which is a 39% decrease year-over-year and below the estimate of €11.7m.

Sales Decline

4Q24 sales were €146m, reflecting a -4% organic year-over-year decline compared to a market benchmark of -2%.

Carel Industries SpA Business Overview & Revenue Model

Company Description

Carel Industries SpA (CRL) is a leading global provider in the HVAC/R (Heating, Ventilation, Air Conditioning, and Refrigeration) sector, specializing in control and humidification solutions. The company designs and manufactures advanced control systems and components that enhance the efficiency and sustainability of HVAC/R systems. With a strong focus on innovation, Carel offers a comprehensive portfolio that includes programmable controllers, sensors, and connectivity solutions, catering to a wide range of commercial, industrial, and residential applications.

How the Company Makes Money

Carel Industries SpA generates revenue primarily through the sale of its advanced control solutions and components for HVAC/R systems. The company's revenue model is centered around the manufacturing and distribution of its products to HVAC/R equipment manufacturers, installers, and end-users across the globe. Key revenue streams include sales of programmable controllers, sensors, and humidification solutions, which are integral to optimizing energy efficiency and enhancing system performance. Additionally, Carel benefits from strategic partnerships and collaborations with major HVAC/R manufacturers and industry players, which help to expand its market reach and drive sales. The company's focus on research and development also plays a significant role in maintaining a competitive edge and ensuring a steady stream of innovative products that meet evolving customer needs.

Carel Industries SpA Financial Statement Overview

Summary

Carel Industries SpA demonstrates a strong financial profile with consistent revenue growth and solid profitability margins. The company manages its balance sheet prudently and maintains a robust cash flow performance, highlighting operational efficiency. However, there is a need to focus on improving net profit margins and 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: Positive
• Last Price: 23.75
• 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 23.75 is above the 20-day moving average (MA) of 22.14, above the 50-day MA of 20.24, and above the 200-day MA of 19.07, indicating a bullish trend. The MACD of 0.73 indicates Positive momentum. The RSI at 69.85 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 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
CMB	76 Outperform	€950.94M	21.33	20.04%	2.94%	3.42%	12.72%
CRL	75 Outperform	€2.52B	44.52	13.25%	0.60%	-8.83%	-22.83%
BRE	74 Outperform	€3.96B	9.40	12.04%	3.34%	-0.22%	-12.64%
COM	72 Outperform	€863.21M	12.83		2.26%	-23.00%	-28.46%
Sector *	71 Outperform	¥255.65B	12.96	8.49%	3.12%	6.31%	12.92%
IP	70 Outperform	€3.77B	17.48	11.06%	0.82%	-6.36%	-15.46%