Carrier Global Intrinsic Value Calculator – Carrier Global Sells Commercial Refrigeration Business to Haier for $775M
December 14, 2023
🌥️Trending News
Carrier Global ($NYSE:CARR), a provider of energy-efficient solutions for heating, air-conditioning, and refrigeration, recently announced the sale of its global commercial refrigeration business to Haier Group for $775 million. This acquisition was part of Carrier Global’s previously announced plan to divest certain businesses that no longer aligned with their strategic goals. CARRIER GLOBAL is a leading global provider of innovative heating, air-conditioning, and refrigeration solutions, and is a part of UTC Climate, Controls & Security (UTC CCS), a division of United Technologies Corporation (UTC). The company’s innovative products and services enable customers to reduce energy consumption and improve indoor comfort while creating healthier and more productive environments.
Share Price
The news caused the company’s stock to open at $56.5 and close at $55.8, a decrease of 0.9% from its prior closing price of 56.3. This transaction is part of CARRIER GLOBAL‘s ongoing strategy to focus on the residential HVAC and building solutions markets. The company anticipates that this divestiture will help them to better allocate capital and resources towards their core businesses as well as create value for shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Carrier Global. More…
| Total Revenues | Net Income | Net Margin |
| 22.1k | 1.2k | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carrier Global. More…
| Operations | Investing | Financing |
| 2.67k | -731 | -1.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Carrier Global. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 26.54k | 18.04k | 9.75 |
Key Ratios Snapshot
Some of the financial key ratios for Carrier Global are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.4% | 9.0% | 10.1% |
| FCF Margin | ROE | ROA |
| 10.4% | 17.2% | 5.2% |
Analysis – Carrier Global Intrinsic Value Calculator
At GoodWhale, we have conducted an analysis of CARRIER GLOBAL‘s fundamentals. Our proprietary Valuation Line has calculated that the fair value of a CARRIER GLOBAL share is around $50.1. However, at the moment, CARRIER GLOBAL stock is traded at $55.8, which is a fair price that is overvalued by 11.4%. More…
Peers
The competition between Carrier Global Corp and its competitors is fierce. Carrier has a strong brand name and a long history in the industry, but it faces stiff competition from Trane, which has a similar product offering. Johnson Controls is a diversified company that offers a range of HVAC products, but it is not as well known in the industry as Carrier or Trane. Carlisle is a smaller player in the HVAC industry, but it has a strong focus on energy efficiency.
– Johnson Controls International PLC ($NYSE:JCI)
Johnson Controls International PLC is a technology and industrial leader with a market cap of 45.72B as of 2022. The company has a Return on Equity of 7.45%. Johnson Controls focuses on making buildings, automotive interiors, and batteries more energy-efficient and sustainable.
– Trane Technologies PLC ($NYSE:TT)
Trane Technologies PLC is a publicly traded company with a market capitalization of $40.55 billion as of 2022. The company has a return on equity of 24.48%. Trane Technologies is a provider of products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables, and increase industrial productivity and efficiency. The company operates in four business segments: Climate, Industrial, Transport and Food & Beverage.
– Carlisle Companies Inc ($NYSE:CSL)
The company’s market cap is $12.28B as of 2022 with a ROE of 26.49%. The company is engaged in the design, manufacture and sale of products for the commercial truck, automotive and building markets. The company’s products include tires, wheels, brakes, suspension systems, axles, drivetrain components, transmissions, exhaust systems, engine components, aftermarket parts and accessories for trucks, trailers, buses, passenger cars, light and medium duty trucks, SUVs, and motorcycles.
Summary
Carrier Global announced the offloading of its global commercial refrigeration operations to major Chinese appliance manufacturer Haier for a total price tag of $775 million. This is one of the most aggressive steps taken by Carrier in its ongoing effort to restructure its portfolio and divest non-core assets. The move is expected to bring positive returns to investors in the form of greater efficiency, cost savings, and additional cash on hand. Investors should recognize this as a savvy move that should benefit the company’s bottom line in the short and long term.
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