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Assessing Carlisle Companies Incorporated's (NYSE:CSL) performance as a company requires looking at more than just a years' earnings data. Below, I will run you through a simple sense check to build perspective on how Carlisle Companies is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its industrials industry peers.
Were CSL's earnings stronger than its past performances and the industry?
CSL's trailing twelve-month earnings (from 31 March 2019) of US$379m has jumped 13% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 8.6%, indicating the rate at which CSL is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is solely attributable to industry tailwinds, or if Carlisle Companies has seen some company-specific growth.
In terms of returns from investment, Carlisle Companies has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. Furthermore, its return on assets (ROA) of 8.1% is below the US Industrials industry of 11%, indicating Carlisle Companies's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Carlisle Companies’s debt level, has declined over the past 3 years from 16% to 12%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 37% to 63% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Carlisle Companies gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Carlisle Companies to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CSL’s future growth? Take a look at our free research report of analyst consensus for CSL’s outlook.
- Financial Health: Are CSL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.