For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Carlisle Companies Incorporated’s (NYSE:CSL) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. See our latest analysis for Carlisle Companies
How CSL fared against its long-term earnings performance and its industry
I prefer to use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method allows me to examine many different companies on a similar basis, using new information. For Carlisle Companies, its latest trailing-twelve-month earnings is US$362.20M, which, relative to the previous year’s figure, has climbed up by 45.64%. Since these figures are somewhat myopic, I’ve determined an annualized five-year value for CSL’s net income, which stands at US$244.53M This shows that, on average, Carlisle Companies has been able to steadily improve its net income over the last couple of years as well.How has it been able to do this? Let’s see whether it is solely attributable to an industry uplift, or if Carlisle Companies has experienced some company-specific growth. Over the last couple of years, Carlisle Companies increased its bottom line faster than revenue by efficiently controlling its costs. This brought about a margin expansion and profitability over time. Looking at growth from a sector-level, the US industrials industry has been growing its average earnings by double-digit 11.44% in the previous twelve months, and a flatter -0.73% over the previous five years. This means in the recent industry expansion, Carlisle Companies is capable of leveraging this to its advantage.
What does this mean?
Though Carlisle Companies’s past data is helpful, it is only one aspect of my investment thesis. While Carlisle Companies has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Carlisle Companies to get a more holistic view of the stock by looking at:
- 1. 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.
- 2. Financial Health: Is 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.
- 3. 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.