Tulsa, Oklahoma – An investment success story unfolds as Carlisle Companies continues to outperform the market. The stock, purchased at $211 in May last year, has surged by 90%, delivering a remarkable return of 117% with dividends included over the past three years, far surpassing the S&P 500’s performance by 90 points.
The company’s recent earnings report reveals impressive growth trends and highlights that Carlisle is a key player in the building materials industry. With a focus on building envelope products and solutions to enhance energy efficiency in buildings, Carlisle operates primarily in the United States, where 90% of its sales originate. The company boasts a market cap of approximately $19 billion and has seen significant success in its commercial sales sector, with over 60% of revenue stemming from replacement and remodeling projects.
Carlisle’s strategic approach includes mergers and acquisitions to enhance its product offerings in a $70 billion addressable market. The recent sale of its Interconnected Technologies business for $2 billion has paved the way for further expansion and acquisitions to solidify its position as a leader in building products.
In its most recent earnings release, Carlisle reported a 23% increase in sales, driven by factors such as strong reroofing activity and a return to normal ordering levels. The company saw notable sales growth of 36% in its Carlisle Construction Materials segment, with an impressive 66% increase in adjusted EBITDA and margin expansion. While the Construction Technologies segment experienced a slight decline in revenue, operational efficiencies and strategic sourcing efforts led to a 20% growth in adjusted EBITDA.
Looking ahead, Carlisle anticipates continued growth momentum, revising its full-year 2024 revenue outlook upwards and aiming to achieve at least $40 in adjusted EPS by 2030. With a focus on shareholder distributions, the company remains committed to rewarding investors through buybacks and dividends, maintaining a healthy balance sheet with a net leverage ratio of 1.4x and ample liquidity to support future growth initiatives.
Despite its stellar performance, Carlisle’s valuation remains attractive, with analysts forecasting significant EPS growth in the coming years. The company’s long-term outlook paints a rosy picture, with a target of doubling by 2030, offering investors the potential for double-digit annual returns over an extended period.
In conclusion, Carlisle Companies’ success story underscores the potential for sustainable growth and compelling returns in the building materials industry. With a track record of consistent dividend increases and a strong financial position, Carlisle presents an enticing opportunity for investors seeking long-term growth and value.
