Carel Industries SpA (CRL) AI Stock Analysis

• Market Cap: €2.43B
• Dividend Yield: 0.9%
• Average Volume (3M): 57.95K
• Price to Earnings (P/E): 43.0
• Beta (1Y): 0.96
• Revenue Growth: -8.83%
• EPS Growth: -22.83%
• Country: IT
• Employees: 2,228
• Sector: Industrials
• Sector Strength: 93
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.09
• Shares Outstanding: 112,500,000
• 10 Day Avg. Volume: 70,585
• 30 Day Avg. Volume: 57,947
• PEG Ratio: 1.46
• Price to Book (P/B): 4.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.18
• 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: -6.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: €24.00 ▲(10.60%Upside)

The overall stock score for Carel Industries SpA is driven by strong financial performance and positive technical analysis indicators. However, the high valuation presents a risk of overvaluation, which tempers the overall score.

Positive Factors

Market Recovery

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

Revenue Growth

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

Negative Factors

Net Profit Decline

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 yoy decline vs. MBe -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 exhibits strong financial performance with consistent revenue growth and solid profitability margins. The company maintains a balanced leverage ratio and robust cash flow, though there is room for improvement in net profit margins and equity ratio.

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
	EBIT
66.53M	104.40M	87.31M	64.46M	46.71M
	EBITDA
104.87M	136.72M	108.41M	81.82M	64.21M
	Net Income Common Stockholders
62.64M	70.94M	62.12M	49.06M	35.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
102.41M	157.17M	107.49M	100.63M	105.59M
	Total Assets
851.02M	920.40M	640.46M	507.80M	414.14M
	Total Debt
151.60M	185.85M	155.73M	157.44M	162.10M
	Net Debt
52.48M	31.84M	59.10M	56.81M	56.52M
	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: 21.70
• 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 21.7 is above the 20-day moving average (MA) of 20.61, above the 50-day MA of 18.44, and above the 200-day MA of 18.80, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 67.12 is Neutral, neither overbought nor oversold. The STOCH value of 69.75 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
CRL	71 Outperform	€2.43B	43.03	13.25%	0.90%	-8.83%	-22.83%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
0R8E		€80.92M	32.62	3.39%	―	―	―
SOM		€97.63M	―		―	―	―