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Carlisle Companies (CSL)
NYSE:CSL
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Carlisle Companies
(NYSE:CSL)75Outperform
Positive Factors
Business Strategy
The acquisition of Plasti-Fab aligns well with Carlisle's Vision 2030 strategy, enhancing leadership in building envelope products and solutions.
Market Position
Carlisle Companies has leading market positions in commercial single-ply roofing and insulation systems.
Negative Factors
Market Valuation
The shares of CSL are considered fully valued at current levels, indicating limited potential for significant price increases.
Segment Performance
CWT trends incrementally weakened during Q3 (residential), the primary driver of our lowered 2024E/2025E estimates.
Carlisle Companies (CSL) vs. S&P 500 (SPY)
Market Cap
$15.18B
Dividend Yield1.16%
Average Volume (3M)469.05K
Price to Earnings (P/E)18.8
Beta (1Y)1.47
Revenue Growth-1.76%
EPS Growth176.01%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength66
IndustryConstruction
Share Statistics
EPS (TTM)37.37
Shares Outstanding44,558,132
10 Day Avg. Volume429,301
30 Day Avg. Volume469,053
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)3.03
Price to Cash Flow (P/CF)10.20
P/FCF Ratio10.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$470.00Price Target Upside43.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Carlisle Companies Business Overview & Revenue Model
Company DescriptionCarlisle Companies Incorporated (NYSE: CSL) is a diversified, global company that operates through various business segments, including Carlisle Construction Materials, Carlisle Interconnect Technologies, Carlisle Fluid Technologies, and Carlisle Brake & Friction. The company provides a wide range of products and services, such as roofing and waterproofing systems, highly-engineered connectors and cables, fluid handling solutions, and braking systems. Headquartered in Scottsdale, Arizona, Carlisle Companies focuses on innovation and operational excellence to deliver high-quality products across multiple markets, including construction, aerospace, agriculture, mining, and transportation.
How the Company Makes MoneyCarlisle Companies generates revenue through the sale of its diverse product offerings across its multiple business segments. Carlisle Construction Materials, the largest segment, contributes significantly to revenue by providing roofing and waterproofing systems to commercial and industrial customers. The Carlisle Interconnect Technologies segment generates income from selling high-performance wire and cable assemblies used primarily in aerospace and defense industries. Carlisle Fluid Technologies earns revenue by supplying paint and coating application equipment, serving a range of industries including automotive and industrial. Additionally, Carlisle Brake & Friction adds to the company's earnings through its production of braking systems for heavy-duty applications in mining, construction, and agriculture. The company's earnings are bolstered by strategic partnerships, operational excellence, and a focus on innovation, which help maintain competitive advantages and customer loyalty.
Carlisle Companies Financial Statement Overview
Summary
Carlisle Companies exhibits strong financial health with a high revenue growth rate and improved profitability margins. The company has minimal debt and strong equity. However, there is a slight decline in cash flow and total assets that require monitoring.Income Statement
Carlisle Companies has shown a strong revenue growth rate of approximately 9.08% from 2023 to 2024. The company has an outstanding gross profit margin of 100%, indicating efficient cost management. Additionally, the net profit margin improved significantly from 16.73% in 2023 to 26.22% in 2024, showcasing enhanced profitability. However, the EBIT and EBITDA margins remained stable, suggesting room for improvement in operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position with an equity ratio of 42.36% in 2024. The debt-to-equity ratio is low at 0.0013, indicating minimal reliance on debt financing. The return on equity increased from 27.12% in 2023 to 53.25% in 2024, highlighting strong profitability relative to shareholder equity. Despite these positives, the decline in total assets warrants attention.75
Positive
Cash Flow
Carlisle Companies experienced a decrease in free cash flow from 2023 to 2024, but maintained a strong operating cash flow to net income ratio of 0.79 in 2024. The free cash flow to net income ratio was approximately 0.70, reflecting healthy cash generation. The operating cash flow decreased slightly, which could impact future liquidity if trends continue.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.00B | 4.59B | 6.59B | 4.81B | 3.97B | Gross Profit |
| 1.89B | 1.54B | 2.16B | 1.31B | 1.14B | EBIT |
| 1.14B | 982.80M | 1.28B | 336.60M | 487.80M | EBITDA |
| 1.36B | 1.21B | 1.48B | 816.10M | 733.10M | Net Income Common Stockholders |
| 1.31B | 767.40M | 924.00M | 421.70M | 320.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 753.50M | 576.70M | 400.00M | 324.40M | 897.10M | Total Assets |
| 5.82B | 6.62B | 7.22B | 7.25B | 5.87B | Total Debt |
| 3.20M | 2.32B | 2.63B | 2.99B | 2.08B | Net Debt |
| -750.30M | 1.75B | 2.23B | 2.67B | 1.18B | Total Liabilities |
| 3.35B | 3.79B | 4.20B | 4.62B | 3.33B | Stockholders Equity |
| 2.46B | 2.83B | 3.02B | 2.63B | 2.54B |
| Cash Flow | Free Cash Flow | |||
| 917.00M | 1.06B | 817.40M | 286.90M | 601.20M | Operating Cash Flow |
| 1.03B | 1.21B | 1.00B | 421.70M | 696.70M | Investing Cash Flow |
| 1.23B | 352.40M | -61.10M | -1.49B | -122.60M | Financing Cash Flow |
| -2.11B | -1.35B | -862.00M | 488.10M | -24.70M |
Carlisle Companies Technical Analysis
Negative
326.85
Price Trends
367.89
Negative
405.62
Negative
409.48
Negative
Market Momentum
-12.58
Positive
31.05
Neutral
19.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSL, the sentiment is Negative. The current price of 326.85 is below the 20-day moving average (MA) of 346.22, below the 50-day MA of 367.89, and below the 200-day MA of 409.48, indicating a bearish trend. The MACD of -12.58 indicates Positive momentum. The RSI at 31.05 is Neutral, neither overbought nor oversold. The STOCH value of 19.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSL.
Carlisle Companies Risk Analysis
Carlisle Companies disclosed 10 risk factors in its most recent earnings report. Carlisle Companies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Carlisle Companies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $76.96B | 22.39 | 110.24% | 2.21% | -1.30% | 20.26% | |
77 Outperform | $25.26B | 9.47 | 38.79% | 1.06% | -2.99% | 159.26% | |
75 Outperform | $15.18B | 18.77 | 53.25% | 1.16% | -1.76% | 176.01% | |
74 Outperform | $64.30B | 27.12 | 9.14% | 1.80% | 10.29% | 22.72% | |
68 Neutral | $135.18B | 23.89 | 596.13% | 2.08% | 5.05% | 2.73% | |
64 Neutral | $79.19B | 19.31 | 108.62% | 1.84% | -18.72% | ― | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
CSL
Carlisle Companies
326.85
-30.37
-8.50%
MMM
3M
145.86
70.23
92.86%
DOV
Dover
184.06
14.97
8.85%
EMR
Emerson Electric Company
114.03
6.18
5.73%
HON
Honeywell International
208.00
11.66
5.94%
ITW
Illinois Tool Works
255.32
0.93
0.37%
Carlisle Companies Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -12.90% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Carlisle's strong financial performance in 2024 with record adjusted EPS and successful strategic initiatives. However, the company faced significant market headwinds, particularly in Q4, and has concerns about tariffs and economic uncertainty in 2025. Despite these challenges, Carlisle maintains a positive outlook for 2025, driven by innovation, operational efficiencies, and strategic acquisitions.Highlights
Record Adjusted EPS and Strategic Shift
Carlisle achieved record adjusted EPS of $20.20 in 2024, marking a 30% year-over-year increase. The company completed its pivot to a pure-play building products company with the $2 billion sale of CIT.
Strong Margin Performance
Adjusted EBITDA margins expanded by 150 basis points to a record 26.6% in 2024, despite challenges in the residential markets and a low single-digit price decline in commercial markets.
Successful Acquisitions and Synergies
Carlisle completed synergistic acquisitions of MTL and Plasti-Fab, contributing to its market position. Expected synergies from MTL increased from $13 million to over $20 million.
Positive Outlook for 2025
Carlisle expects double-digit EPS growth in 2025, driven by mid-single-digit revenue growth and a 50 basis point expansion in adjusted EBITDA margin, supported by innovation and operational efficiencies.
Lowlights
Market Headwinds and Challenges
Carlisle faced broad market headwinds in Q4 2024, including higher interest rates, restrictive lending conditions, and unfavorable weather patterns, impacting sales and results.
Impact of Tariffs and Economic Uncertainty
The new administration's tariffs and potential policies on labor and interest rates pose concerns for Carlisle, particularly impacting residential markets and interest rate expectations.
Headwinds in Residential and Commercial New Construction
Higher interest rates, housing affordability issues, and unfavorable weather conditions adversely affected residential and commercial new construction markets in 2024.
Company Guidance
During the Carlisle Company's Fourth Quarter 2024 Earnings Conference Call, the company reported a record adjusted EPS of $20.20 for the year, reflecting a 30% increase year-over-year. The adjusted EBITDA margin expanded by 150 basis points to 26.6%. Key strategic moves included the $2 billion sale of CIT, pivoting Carlisle into a pure-play building products company, and $700 million in acquisitions, notably MTL and Plasti-Fab, which are expected to generate synergies of over $20 million and $14 million, respectively. Looking ahead, Carlisle anticipates mid-single-digit revenue growth in 2025, driven by continued strength in reroofing activity and the full-year benefit from recent acquisitions, while expecting a 50 basis point expansion in adjusted EBITDA margin. They also aim to achieve $1 in EPS growth through recent acquisitions, with plans for disciplined capital deployment, including $800 million in share buybacks.Carlisle Companies Corporate Events
Executive/Board Changes
Carlisle Companies Appoints Sheryl D. Palmer to Board
Positive
Jan 29, 2025
On January 28, 2025, Carlisle Companies announced the election of Sheryl D. Palmer to its Board of Directors. Palmer, who serves as CEO and Chairman of Taylor Morrison Home Corporation, brings over 35 years of experience in the building sector. Her expertise in land acquisition, sales, marketing, and operations management is expected to add significant value to Carlisle as it pursues its Vision 2030 initiatives.
M&A TransactionsBusiness Operations and Strategy
Carlisle Companies Expands with Plasti-Fab Acquisition
Positive
Dec 18, 2024
Carlisle Companies has completed the acquisition of the expanded polystyrene insulation segment of PFB Holdco, Inc., known as Plasti-Fab, for $259.5 million. This acquisition aligns with Carlisle’s Vision 2030 strategy, leveraging its mergers and acquisitions capabilities to enhance growth, achieve cost synergies, and ensure successful integration, thereby strengthening its position in the construction market across Canada and the Midwestern United States.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.