Long-established in the Construction industry, Carrier Global Corp (CARR, Financial) has enjoyed a stellar reputation. It has recently witnessed a surge of 1.37%, juxtaposed with a three-month change of 30.03%. However, fresh insights from the GuruFocus Score Rating hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Carrier Global Corp.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- 1. Financial strength rank: 6/10
- 2. Profitability rank: 6/10
- 3. Growth rank: 4/10
- 4. GF Value rank: 1/10
- 5. Momentum rank: 6/10
Based on the above method, GuruFocus assigned Carrier Global Corp the GF Score of 66 out of 100, which signals poor future outperformance potential.
Carrier Global Corp Business Overview
Carrier Global Corp, with a market cap of $47.91 billion, is a renowned manufacturer of heating, ventilation, and air conditioning, refrigeration, and fire and security products. The HVAC business serves both residential and commercial markets (HVAC segment sales mix is 60% commercial and 40% residential). Carrier's refrigeration segment consists of its transportation refrigeration, Sensitech supply chain monitoring, and commercial refrigeration businesses. The firm's fire and security business manufactures fire detection and suppression, access controls, and intrusion detection products. In April 2023, Carrier announced that it plans to divest its fire and security and commercial refrigeration businesses. The firm also announced the pending acquisition of Germany-based Viessmann for approximately $13 billion.
Growth Prospects
A lack of significant growth is another area where Carrier Global Corp seems to falter, as evidenced by the company's low Growth rank.
Conclusion
Despite Carrier Global Corp's historical performance and reputation, the company's financial strength, profitability, and growth metrics indicate potential underperformance in the future. The GuruFocus Score Rating highlights the firm's unparalleled position for potential underperformance. It's crucial for investors to consider these factors when making investment decisions.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
