Carrier Global (CARR) AI Stock Analysis

• Market Cap: $60.17B
• Dividend Yield: 1.13%
• Average Volume (3M): 5.40M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.35
• Revenue Growth: 0.14%
• EPS Growth: 202.13%
• Country: US
• Employees: 48,000
• Sector: Industrials
• Sector Strength: 77
• Industry: Construction
• EPS (TTM): 0.65
• Shares Outstanding: 857,309,900
• 10 Day Avg. Volume: 5,969,748
• 30 Day Avg. Volume: 5,397,838
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.03
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $77.50
• Price Target Upside: 10.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Carrier Global's stock is supported by strong financial performance and positive corporate restructuring, positioning it well for growth. However, technical indicators suggest caution due to potential overbought conditions, and the high P/E ratio raises valuation concerns. While the earnings call was largely positive, challenges in specific segments and regions remain. Overall, the stock's strengths in profitability and strategic initiatives are notable, but investors should be cautious of valuation and market momentum factors.

Positive Factors

Earnings

Carrier Global Corp. posted a Q4 EPS of 54 cents, surpassing consensus estimates and internal expectations.

Growth Opportunities

Upcoming investor day is likely to highlight accelerated growth opportunities with C-HVAC, data centers, services and controls.

Negative Factors

Demand Trends

Viessmann is experiencing softer demand trends, with expectations at the lower end of the guided range.

Market Performance

Weakness in some end markets, such as light commercial and North America truck & trailer, influences the maintenance of a neutral rating.

Carrier Global Business Overview & Revenue Model

Company Description

Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies worldwide. It operates through three segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment provides products, controls, services, and solutions to meet the heating, cooling, and ventilation needs of residential and commercial customers. Its products include air conditioners, heating systems, controls, and aftermarket components, as well as aftermarket repair and maintenance services and building automation solutions. The Refrigeration segment offers transport refrigeration and monitoring products and services, as well as digital solutions for trucks, trailers, shipping containers, intermodal applications, food retail, and warehouse cooling; and commercial refrigeration solutions, such as refrigerated cabinets, freezers, systems, and controls. The Fire & Security segment provides various residential, commercial, and industrial technologies, including fire, flame, gas, smoke, and carbon monoxide detection; portable fire extinguishers; fire suppression systems; intruder alarms; access control systems; video management systems; and electronic controls. Its other fire and security service offerings comprise audit, design, installation, and system integration, as well as aftermarket maintenance and repair and monitoring services. The company offers its products under the Autronica, Det-Tronics, Edwards, Fireye, GST, Kidde, LenelS2, Marioff, Onity, and Supra; Carrier, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, and Riello; and Carrier Commercial Refrigeration, Carrier Transicold, and Sensitech brands. The company was incorporated in 2019 and is headquartered in Palm Beach Gardens, Florida.

How the Company Makes Money

Carrier Global makes money primarily through the sale of HVAC, refrigeration, and fire and security products and services. Its revenue streams are diversified across three main segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment generates revenue from the sale of residential and commercial heating and cooling systems. The Refrigeration segment earns through the provision of transport and commercial refrigeration solutions. The Fire & Security segment contributes to revenues through the sale of fire detection, suppression, and security products. Additionally, Carrier Global benefits from aftermarket services, including maintenance and repair offerings, which further bolster its revenue. Strategic partnerships and global distribution networks also play a critical role in reaching a broad customer base and enhancing revenue generation.

Carrier Global Financial Statement Overview

Summary

Carrier Global demonstrates strong financial health with consistent revenue and profit growth, strong profitability margins, and a balanced capital structure. While the income statement reflects robust profitability and growth, the balance sheet indicates manageable leverage and strong returns on equity. Cash flow poses some challenges with lower ratios, though recent improvements are promising. Overall, the company is well-positioned for growth, with some caution advised regarding debt levels.

Income Statement

Carrier Global exhibits strong income statement metrics, highlighted by a consistent growth in revenue and net income over the years. The TTM Gross Profit Margin stands at approximately 27.6%, and the Net Profit Margin is an impressive 26.01%, indicating robust profitability. The company's revenue growth from 2024 to 2025 was 2.46%, showing stable growth. EBIT and EBITDA margins are solid at 12.58% and 17.35% respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet of Carrier Global is stable with a Debt-to-Equity Ratio of 0.81, which is reasonable for the industry. The Return on Equity (ROE) for the TTM is high at 42.21%, reflecting effective use of equity. The Equity Ratio stands at 38.96%, which suggests a balanced capital structure. However, the total debt is significant, which could pose risks if interest rates rise.

Cash Flow

Carrier Global's cash flow statements reveal a moderate position. The TTM Free Cash Flow to Net Income ratio is 0.09, indicating modest cash conversion from profits. The Operating Cash Flow to Net Income ratio is 0.17, showing that operational cash generation is below net income levels. However, there is a significant improvement in free cash flow from 2024 to TTM, showcasing better cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.49B	22.10B	20.42B	20.61B	17.46B
	Gross Profit
5.98B	6.38B	5.46B	5.98B	5.11B
	EBIT
2.65B	2.30B	2.41B	2.65B	2.10B
	EBITDA
4.09B	2.99B	2.90B	2.91B	2.41B
	Net Income Common Stockholders
5.60B	1.35B	3.53B	1.66B	1.98B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.97B	10.02B	3.52B	2.99B	3.12B
	Total Assets
37.40B	32.82B	26.09B	26.17B	25.09B
	Total Debt
12.71B	14.68B	9.37B	10.22B	11.03B
	Net Debt
8.74B	4.67B	5.85B	7.24B	7.92B
	Total Liabilities
23.01B	23.82B	18.01B	19.08B	18.52B
	Stockholders Equity
14.08B	8.68B	7.76B	6.77B	6.25B
Cash Flow		Free Cash Flow
44.00M	2.14B	1.39B	1.89B	1.38B
	Operating Cash Flow
563.00M	2.61B	1.74B	2.24B	1.69B
	Investing Cash Flow
-2.02B	-660.00M	1.75B	-692.00M	1.11B
	Financing Cash Flow
-4.64B	4.61B	-2.93B	-1.56B	-681.00M

Carrier Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARR, the sentiment is Positive. The current price of 69.99 is above the 20-day moving average (MA) of 62.60, above the 50-day MA of 63.77, and above the 200-day MA of 69.65, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 87.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CARR.

Carrier Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSL	81 Outperform	$16.67B	10.52	33.11%	1.00%	-0.14%	135.52%
JCI	79 Outperform	$58.63B	34.11	14.92%	1.67%	-8.39%	51.56%
TT	76 Outperform	$90.70B	33.52	38.45%	0.85%	11.43%	28.49%
LII	74 Outperform	$19.93B	25.03	131.48%	0.82%	7.78%	30.10%
AAON	72 Outperform	$7.93B	51.97	19.85%	0.43%	8.24%	-11.66%
CARR	71 Outperform	$60.17B	16.25	25.69%	1.13%	0.14%	202.13%
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%

Carrier Global Corporate Events

Carrier Global Announces Segment Restructuring and Growth

On May 1, 2025, Carrier Global announced a restructuring of its reportable segments to better align with its business management and performance assessment, introducing four new segments focused on climate solutions across different regions and transportation. The company also reported strong financial results for the first quarter of 2025, with a notable increase in adjusted earnings per share and operating margins despite a slight decline in net sales. This restructuring and financial performance position Carrier for accelerated growth, supported by increased orders and backlogs, and an updated full-year guidance.

Spark’s Take on CARR Stock

According to Spark, TipRanks’ AI Analyst, CARR is a Neutral.

Carrier Global shows a positive trajectory in financial performance with strong revenue growth and improved margins, but faces challenges in cash flow and operational volatility. Technical indicators suggest weak momentum, and a high P/E ratio raises valuation concerns. Despite positive earnings guidance, potential risks in the HVAC market and external headwinds could impact future performance.

To see Spark’s full report on CARR stock, click here.

Carrier Global Announces Resignation of Key Executive

On April 16, 2025, Carrier Global Corporation announced the resignation of Kyle Crockett, Vice President, Controller, and Chief Accounting Officer, effective around May 2, 2025. Patrick Goris, the Senior Vice President and Chief Financial Officer, will serve as interim Controller starting May 2, 2025, while the company searches for a permanent replacement.

Spark’s Take on CARR Stock

According to Spark, TipRanks’ AI Analyst, CARR is a Outperform.

Carrier Global’s overall score reflects its strong financial growth and strategic improvements, offset by technical weaknesses and cash flow challenges. The company’s successful portfolio transformation and positive corporate events support future growth, though concerns over cash generation and market conditions remain significant.

To see Spark’s full report on CARR stock, click here.

Carrier Global Holds Annual Meeting, Elects Directors

Carrier Global held its Annual Meeting on April 9, 2025, where a quorum of 788,861,687 shares was present. During the meeting, directors were elected, executive compensation was approved, an amendment to the Long-Term Incentive Plan was passed, and PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025. However, a proposal for a lobbying transparency report was not approved.

Spark’s Take on CARR Stock

According to Spark, TipRanks’ AI Analyst, CARR is a Outperform.

Carrier Global’s overall score reflects its strong financial growth and strategic improvements, offset by technical weaknesses and cash flow challenges. The company’s successful portfolio transformation and positive corporate events support future growth, though concerns over cash generation and market conditions remain significant.

To see Spark’s full report on CARR stock, click here.