How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Carlisle (CSL) ten years ago? It may not have been easy to hold on to CSL for all that time, but if you did, how much would your investment be worth today?
Carlisle's Business In-Depth
With that in mind, let's take a look at Carlisle's main business drivers.
Based in the Scottsdale, AZ, Carlisle Companies Incorporated is a diversified, global portfolio of niche brands and businesses with highly engineered and high margin products. It engages in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment. The company sells its products in the United States, Europe, Asia, Canada, Mexico, Latin America, the Middle East and Africa. Carlisle has restructured its business into four segments, which are discussed below:
Carlisle Construction Materials (CCM: 60.3% of second-quarter 2022 revenues): The segment manufactures a comprehensive range of roofing products, warranted roof systems and accessories for commercial buildings. It sells its products through some market-leading brands like the Carlisle SynTec, WeatherBond Roofing, Versico Roofing, CCM Europe and Hunter Panels.
Carlisle Weatherproofing Technologies (CWT: 24.3%): The segment offers building envelope solutions that help in driving energy efficiency in commercial and residential applications. Products offered by the segment include waterproofing and moisture protection products, sealants/primers and flashing systems, among others. It sells its products through some market-leading brands like the Henry Company, Carlisle Coatings & Waterproofing, Carlisle WIP Products and Carlisle Polyurethane Systems.
Carlisle Interconnect Technologies (CIT: 11.5%): This segment is engaged in designing and manufacturing high-performance wire and cable, fiber optic cable, avionics trays, integrated systems as well as complex cable assemblies for applications in the aerospace industry. Also, it provides engineered products for the defense industry that include applications for radar systems, missiles and electronic warfare systems as well as test and measurement solutions. This apart, the segment offers medical interconnect products for the surgical, electrosurgical, patient monitoring and wire harness applications.
Carlisle Fluid Technologies (CFT: 3.9%): The segment is engaged in providing a comprehensive range of finishing equipment products for the automotive, refinishing, aerospace, construction, agriculture, marine and rail industries.
In August 2021, the company divested its Carlisle Brake & Friction (CBF) segment as part of its portfolio enhancement strategy.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Carlisle a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2012 would be worth $6,033.53, or a 503.35% gain, as of August 12, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 199.26% and gold's return of 5.83% over the same time frame.
Looking ahead, analysts are expecting more upside for CSL. Carlisle’s second-quarter 2022 earnings and revenues beat the Zacks Consensus Estimate by 23.3% and 9.1% each. It is set to gain from strength in the U.S. reroofing end markets besides its acquired assets. Strength in the medical technologies business and the commercial aerospace business is likely to drive its performance. Strength in the reroofing market in the United States and growth in the architectural metals platform will likely benefit its CCM segment. The company’s focus on product launches and the growing backlog will likely benefit it. Owing to these tailwinds, its shares have outperformed its industry in a year. However, high costs might affect the company's margins and profitability. Supply-chain issues, raw material cost inflation and labor crisis are other challenges. Heavy debt load is also worrisome. Over the past four weeks, shares have rallied 24.33%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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Carlisle Companies Incorporated (CSL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
