Carel Industries SpA (CRL) AI Stock Analysis

• Market Cap: €2.51B
• Dividend Yield: 0.67%
• Average Volume (3M): 60.26K
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.97
• Revenue Growth: 3.99%
• EPS Growth: 27.12%
• Country: IT
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): €683.24M

• Rating: 71 Outperform
• Price Target: €23.00 ▲(6.73% Upside)
• Action: Upgraded Date: 12/11/25
• Date: Action: Upgraded 12/11/25

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

Strong Cash Generation

Material free cash flow growth (13.17%) and a high FCF-to-net-income ratio (0.85) show the company reliably converts earnings to cash. This fuels sustained capex and R&D for IoT platforms, supports dividends and debt service, and preserves long-term financial flexibility.

Healthy Profitability

Gross margin of 46.54% and net margin of 10.34% indicate solid pricing and operational efficiency in control and refrigeration components. Sustained margins provide a cushion against cyclical demand and enable reinvestment into connectivity and supervision products, supporting durable returns.

Strong Product & Market Position

Carel’s portfolio—controllers, sensors, gateways, humidification and supervision systems—serves supermarkets, cold chain, data centers and OEMs. Regulatory energy-efficiency trends and OEM embedding create structural demand and higher switching costs, supporting recurring component placement over time.

Negative Factors

Modest Revenue Growth

A TTM revenue growth rate near 2.7% reflects only modest top-line expansion. In capex-driven HVAC/refrigeration markets, limited organic growth constrains operating leverage and scalability, meaning the company may need margin expansion, aftermarket services, or M&A to materially lift long-term earnings.

Cost Pressure on Gross Profit

The reported slight decline in gross profit year-over-year signals rising input or supply pressures. If persistent, such cost headwinds can erode margins and free cash flow, requiring price pass-through, efficiency programs, or shifts to higher-value product mix to sustain profitability over time.

Moderate Reliance on Debt

While absolute leverage (debt/equity ~0.33) is manageable, the balance sheet note of 'moderate reliance on debt' implies constrained headroom. In cyclical end-markets, even modest leverage can limit flexibility for acquisitions or absorbing downturns without increasing financing costs and strategic risk.

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: 21.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 21.55 is below the 20-day moving average (MA) of 21.73, below the 50-day MA of 22.89, and below the 200-day MA of 23.02, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 73.22 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
BRE	79 Outperform	€4.85B	12.23	―	3.23%	-0.22%	-12.64%
CMB	76 Outperform	€1.23B	27.65	21.53%	2.75%	6.00%	20.37%
CRL	71 Outperform	€2.51B	39.56	15.31%	0.67%	3.99%	27.12%
COM	69 Neutral	€1.37B	23.39	―	1.80%	-20.36%	-23.31%
IP	69 Neutral	€4.07B	20.00	10.99%	0.72%	-2.00%	2.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%