Updated 3/6/25
Carlisle Companies (NYSE: CSL) is a well-established industrial business with a long history of delivering value to shareholders. The company operates across multiple industries, with a strong presence in commercial roofing, aerospace, and specialty coatings. Over the years, it has built a reputation for efficiency, profitability, and shareholder returns.
While it may not be a household name among dividend stocks, CSL has quietly rewarded long-term investors with steady income growth. With nearly five decades of consecutive dividend increases, it stands out as a company committed to rewarding shareholders.
Key Dividend Metrics
📈 Dividend Yield: 1.20%
💰 Annual Dividend: $4.00 per share
📊 Payout Ratio: 20.17%
📅 Dividend Growth Streak: 47 years
🚀 5-Year Dividend Growth Rate: ~13%
🔄 Ex-Dividend Date: February 18, 2025
📆 Next Payment Date: March 3, 2025
Dividend Overview
Carlisle may not offer the highest yield, but it makes up for that with reliability and growth. A forward dividend yield of 1.20% might not seem exciting on the surface, but CSL has been raising its dividend for 47 straight years. That kind of consistency is rare and speaks volumes about management’s commitment to rewarding shareholders.
With a payout ratio of just over 20%, there’s plenty of room for future increases. The company retains a significant portion of its earnings for reinvestment, which helps drive future growth while maintaining its dividend commitments.
For investors looking for a dependable dividend payer with a track record of steady increases, CSL fits the bill.
Dividend Growth and Safety
What Carlisle lacks in yield, it more than makes up for in dividend growth. Over the last five years, the company has increased its dividend at an average rate of around 13% per year. That kind of growth adds up over time and can significantly boost income for long-term shareholders.
A payout ratio of 20% is well below the levels where dividend cuts become a concern. This means the company has plenty of room to keep increasing payouts even if earnings take a temporary hit.
Another factor working in its favor is its strong cash flow. Over the last year, the company generated over $2.27 billion in free cash flow, giving it plenty of flexibility to cover dividends, fund growth, and manage debt.
With a balance sheet that remains in solid shape, CSL’s dividend looks not only safe but positioned for continued growth.
Chart Analysis
Price Action and Trend
Carlisle Companies’ stock has experienced a notable downtrend over the past several months. After reaching a peak above $450, the price has steadily declined, falling below both the 50-day moving average (orange line) and the 200-day moving average (blue line). This indicates a shift in momentum, as the shorter-term moving average has crossed below the longer-term average, a bearish signal often referred to as a death cross.
Currently, the stock is trading around $334.40, staying close to its recent lows. The price seems to be consolidating after an extended decline, but there’s no clear sign of a strong reversal just yet.
Moving Averages
The 50-day moving average has been sloping downward for several months, reflecting sustained selling pressure. The 200-day moving average, which represents longer-term sentiment, has also started to turn downward, signaling potential weakness in the broader trend.
For a potential trend reversal, the price would need to break above the 50-day moving average and ideally reclaim the 200-day moving average. At the moment, the stock is facing resistance around $350, where the 50-day moving average is hovering.
Volume and Market Participation
Volume has remained relatively steady, with occasional spikes, particularly during significant downward moves. There was a noticeable increase in selling volume during the sharp decline from $450 to below $350, suggesting that institutional investors or large sellers may have contributed to the drop.
However, more recently, the volume has been lower, which could indicate that selling pressure is easing. A surge in buying volume would be necessary to confirm any potential reversal or uptrend.
Relative Strength Index (RSI)
The RSI, which measures momentum, has been hovering in the lower range, reflecting weakness in the stock. It previously dipped into oversold territory (below 30) during the sharpest part of the decline but has since recovered slightly.
Currently, RSI is sitting at a neutral level, meaning the stock isn’t extremely overbought or oversold. If RSI starts to climb above 50, it could indicate strengthening momentum, but for now, it’s still in a cautious zone.
Support and Resistance Levels
The stock appears to have some support around the $320-$330 range, as it has bounced off these levels multiple times. A break below this zone could open the door for further downside, potentially testing lower levels not seen in over a year.
On the upside, the $350-$360 zone presents the first major resistance. This is where the 50-day moving average and recent highs are clustering. If the stock can break above this area with strong volume, it could signal a shift in trend. Further up, $400 would be the next key resistance level.
Analyst Ratings
📊 Carlisle Companies Incorporated (NYSE: CSL) has recently received mixed reviews from analysts, reflecting both confidence in its long-term strategy and caution about near-term challenges. The consensus rating currently stands at Moderate Buy, with an average 12-month price target of $476.00.
Recent Upgrades
📈 Robert W. Baird – On October 25, 2024, an analyst maintained an Outperform rating while slightly adjusting the price target from $506.00 to $500.00. This suggests continued optimism about CSL’s operational efficiency and market leadership, even as macroeconomic conditions evolve.
🚀 Oppenheimer – On October 22, 2024, an analyst reiterated an Outperform rating and increased the price target from $480.00 to $505.00. The reasoning behind the upgrade was a strong belief in the company’s ability to execute its long-term growth strategy, particularly in commercial construction and industrial markets.
Recent Downgrades
⚠️ Goldman Sachs – On January 14, 2025, a senior analyst maintained a Buy rating but lowered the price target from $520.00 to $465.00. This adjustment reflects some caution about near-term earnings pressures and potential headwinds in certain business segments.
🔻 Loop Capital – On January 10, 2025, the firm kept a Buy rating while revising its price target downward from $475.00 to $460.00. Analysts pointed to a reassessment of demand trends in key end markets and slightly weaker-than-expected revenue projections.
📌 While some analysts have scaled back their price targets, the overall sentiment remains positive, with the majority still viewing CSL as a solid long-term investment despite recent stock price volatility.
Earnings Report Summary
Carlisle Companies just wrapped up another year, and their latest earnings report gives a clear picture of where things stand. The company had a solid performance overall, but there were a few challenges along the way.
Fourth-Quarter Highlights
Revenue for the quarter came in at $1.1 billion, which was just slightly down by 0.4% compared to last year. While not a huge drop, it does show that demand in some areas may have softened.
Earnings per share landed at $3.56, but on an adjusted basis, it was a record-setting $4.47, a 7% increase year over year. That’s a strong sign that the company is still finding ways to drive profitability, even with some revenue fluctuations.
The operating margin held up well at 19.9%, and the adjusted EBITDA margin hit 25.1%, showing that Carlisle is keeping expenses in check and maintaining healthy profit levels.
Full-Year 2024 Performance
For the full year, revenue grew 9%, totaling $5 billion. That’s a solid number and reflects steady demand across key business segments.
Earnings per share for the year hit $18.34, with adjusted EPS reaching $20.20—a 30% jump from the previous year. That’s an impressive gain and speaks to strong execution by management.
On top of that, Carlisle was busy returning capital to shareholders. The company repurchased $1.6 billion worth of shares in 2024, with $420 million of that happening in the fourth quarter alone.
Business Segments Breakdown
The Construction Materials (CCM) division was a standout, with 9% revenue growth in the fourth quarter. Demand for re-roofing projects remained strong, and the integration of the MTL acquisition helped boost results. The adjusted EBITDA margin for this segment came in at 32.8%, which is a new record.
On the other hand, Carlisle Weatherproofing Technologies (CWT) had a bit of a tougher time. Higher interest rates and affordability issues in the housing market put some pressure on demand, leading to a 3% decline in revenue year over year.
Looking Ahead
Carlisle is pushing forward with its Vision 2030 strategy and is targeting mid-single-digit revenue growth for 2025. They’re also expecting a slight improvement in adjusted EBITDA margin by about 50 basis points.
With the recent Plasti-Fab acquisition, Carlisle is expanding its footprint in energy-efficient building materials, which could be a smart long-term move.
Overall, the company delivered a strong performance in 2024, despite some industry challenges. The focus remains on profitable growth and delivering value to shareholders.
Financial Health and Stability
One of the things that sets Carlisle apart is how efficiently it runs its business. The company boasts a return on equity of nearly 33%, showing that management is making smart use of shareholder capital. A return on assets of 11.25% also reflects strong profitability.
From a liquidity standpoint, CSL appears well-positioned. With a current ratio of 2.89, it has enough short-term assets to cover liabilities comfortably.
Debt levels are something to keep an eye on. The company carries $2.02 billion in total debt, with a debt-to-equity ratio of 81.87%. While that’s not excessive, rising interest rates could make debt servicing more expensive in the future.
Another number that investors may want to monitor is the 20.8% drop in quarterly earnings compared to the previous year. If earnings continue to decline, it could impact future growth plans, but at this point, the company’s financial strength should allow it to manage through short-term challenges.
Valuation and Stock Performance
Carlisle’s stock is currently trading at $334.40, near the lower end of its 52-week range of $321.93 to $481.26.
The company’s price-to-earnings (P/E) ratio of 18.23 suggests that it’s trading at a fair valuation relative to its earnings. On a forward basis, the P/E is even lower at 14.75, which could indicate that investors expect earnings to improve in the coming years.
The price/earnings-to-growth (PEG) ratio of 0.98 suggests that the stock isn’t overpriced relative to its expected growth. It’s not necessarily a bargain, but it’s also not in overly expensive territory.
Recent stock performance has been on the weaker side, with the current price sitting below both the 50-day and 200-day moving averages. This suggests that the stock has been under some selling pressure in recent months, which might provide an opportunity for long-term investors looking to buy at a lower valuation.
Risks and Considerations
Even well-run companies like Carlisle come with some risks. Since it operates in the industrial sector, its business can be sensitive to economic cycles. A slowdown in commercial roofing or aerospace could impact revenue and earnings growth.
The company’s recent earnings decline is another factor worth monitoring. If it turns out to be more than just a short-term blip, it could put pressure on the stock price and limit future dividend increases.
Debt is another area to watch. While CSL generates strong cash flow, higher interest rates could make refinancing more expensive over time. If debt levels increase or profitability weakens, it could affect future capital allocation decisions.
Finally, for investors seeking higher immediate income, CSL may not be the best fit. With a yield of just 1.20%, it’s more suited for those focused on long-term dividend growth rather than current income.
Final Thoughts
Carlisle Companies has built a strong track record of rewarding investors with steady dividend growth. While its yield may not be high, its long history of increases, low payout ratio, and strong cash flow make it an appealing choice for those looking for a reliable dividend payer.
The company’s financials remain solid, and its disciplined approach to capital allocation should allow it to continue growing its dividend in the years ahead.
For those with a long-term perspective, CSL offers a combination of dividend safety, growth potential, and operational strength that can make it a valuable addition to a dividend-focused portfolio.
Recent Comments