Company Overview
Carlisle Companies Incorporated functions as a manufacturer and supplier providing comprehensive building envelope products and solutions across the United States, Europe, North America, and various international markets. This operational scope places the firm squarely within the Industrials sector, specifically targeting the Building Products & Equipment industry, where it delivers essential materials required for construction and infrastructure projects. The company demonstrates significant scale with a market capitalization of $13.31B and an annual revenue of $5.02B, supported by a workforce of 5900 employees. These valuation and revenue figures indicate that Carlisle holds a substantial position in the global building materials market, reflecting its capacity to serve a wide range of commercial and residential clients while maintaining a robust operational footprint.
Financial Health
The company reported a total revenue of $5.02B and generated a net income of $741.00M, resulting in an EBITDA of $1.20B. The substantial gap between the $5.02B revenue and the $741.00M net income reveals a cost structure that retains approximately 14.8% of every dollar earned as profit after all expenses, including interest and taxes, are accounted for. Operating from a position of financial flexibility, Carlisle generated free cash flow of $749.57M, which represents the cash remaining after capital expenditures and is available for debt repayment, dividends, or strategic reinvestment. The company's profitability is supported by a gross margin of 35.7%, which indicates strong pricing power or efficient production costs relative to sales, an operating margin of 16.5% that reflects efficient management of overhead and operational expenses, and a profit margin of 14.8% that signifies the final bottom-line efficiency after all obligations. Regarding liquidity and leverage, the firm holds $1.11B in cash against $3.02B in debt, yielding a debt-to-equity ratio of 168.32, which suggests a leveraged balance sheet where debt obligations significantly outweigh equity capitalization. Short-term liquidity is robust, evidenced by a current ratio of 3.09, indicating that the company possesses more than three times the current assets necessary to cover its short-term liabilities. Finally, return metrics show a Return on Equity of 34.9% and a Return on Assets of 10.4%, revealing that management is highly effective at generating returns on shareholder equity and utilizing the asset base to produce earnings.
Valuation Assessment
Valuation metrics for Carlisle Companies Incorporated include a trailing twelve-month P/E ratio of 18.97 and a forward P/E of 13.84. The difference between the trailing P/E of 18.97 and the forward P/E of 13.84 implies that the market expects earnings growth in the future, as the stock is currently priced based on lower expected future earnings rather than past performance. The price-to-book ratio stands at 7.42, indicating that the market values the company at a significant premium over its book value, suggesting high investor confidence in the intangible assets or future growth potential of the business. Alternative valuation perspectives are provided by a price-to-sales ratio of 2.65 and an EV/EBITDA of 12.66, which suggest the company is valued at a moderate multiple relative to its sales and earnings before interest, taxes, depreciation, and amortization. Price momentum is contextualized by a 52-week high of $435.92 and a 52-week low of $293.43, with the current trading price situated within this range relative to the recent volatility. The stock exhibits a beta of 0.89, meaning its price volatility is lower than the broader market, suggesting it may be less sensitive to general market fluctuations than the average stock in the Industrials sector.
Growth & Income
Recent performance data shows a revenue growth rate of 0.4% year-over-year and an earnings growth rate of -14.6% year-over-year. The fact that earnings are declining at a rate of 14.6% while revenue remains flat at 0.4% implies that profitability is under pressure, likely due to rising input costs, margin compression, or one-time charges affecting the bottom line more severely than top-line sales. As a dividend payer, the company offers a dividend yield of 1.3% with a payout ratio of 24.5%, indicating that the payout ratio is sustainable given the company's earnings, as less than a quarter of net income is distributed to shareholders. The low payout ratio suggests that the majority of earnings are retained within the company to fund operations, pay down debt, or invest in the manufacturing capabilities of the Carlisle Construction Materials and Carlisle Weatherproofing Technologies segments. Overall, the growth and income profile presents a mixed picture of stable revenue generation and dividend income tempered by significant year-over-year earnings contraction.