CSL - Embedded Expectations Analysis - 2020 09 09
Carlisle Companies Incorporated (CSL:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about roofing delays, Carlisle Brake & Friction organic revenue, and capital allocation strategySpecifically, management may be concerned about further roofing delays and needing to draw from their revolving credit facility again, and they may be exaggerating balance sheet strength. Moreover, they may lack confidence in their ability to grow Carlisle Brake & Friction (CBF) organic revenue amidst the coronavirus environment, continue selling Green Roof systems, and be judicious in their capital allocation. Furthermore, they may have concerns about costs beginning to rise when volume recovers, the continued pressures on aircraft manufacturers, and oil prices
Carlisle Companies designs, manufactures and markets commercial roofing, energy, agriculture, mining, construction, aerospace and defense electronics, medical technology, transportation, among others. The company's segments are: Carlisle Construction Material, which provides ethylene propylene diene monomer rubber, thermoplastic polyolefin and polyvinyl chloride membrane and metal roofing systems; Carlisle Interconnect Technologies, which provides wire, cable, connectors, contacts and cable assemblies, and satellite communication equipment; Carlisle Fluid Technologies, which provides liquid, powder, sealants and adhesives finishing equipment and system components; and Carlisle Brake and Friction.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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