One-glance verdict
Undervalued
$601.18 our estimate vs market $352.02
Wall Street consensus: $410.00 (-31.8% lower than our fair-value estimate)
41% below our estimate, below the bear case
Fundamentals snapshot
Carlisle Companies Incorporated
CSL · NYQ · Industrials · Building Products & Equipment
Current price
$352.02
52-week range
$293.43 - $432.91
Market cap
$14.24B
Balance sheet
Stretched
12.77x Strong cushion
Net debt $2.12B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.5% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 21.3% above its 5-year average P/E.
- Risk Insider ownership is only 1.1% (peer median: 1.5%).
What this company does
Carlisle Companies Incorporated
Carlisle Companies makes and sells specialty products that protect the outer shell of buildings, primarily focusing on roofing and waterproofing for large commercial properties. The company generates most of its sales from reroofing projects, which creates more predictable, recurring revenue (income that is likely to continue in the future) because existing roofs always need repair and replacement over time. This makes their business less dependent on the unpredictable cycles of new building construction.
How the company got here
Founded in 1917 as a tire and inner tube maker, Carlisle began a long journey of transformation. For much of its history, it operated as a diversified industrial company, acquiring businesses in various sectors like aerospace, foodservice, and specialty tires. A key turning point came in the 1980s with the booming popularity of its rubber roofing products, which became a major source of profit. More recently, the company has deliberately shifted its focus, selling off unrelated businesses to concentrate on becoming a specialized manufacturer for the building products industry.
What it actually does
Carlisle makes products that protect the outside of buildings, often called the 'building envelope,' from the weather. Think of the materials that keep a large commercial building like a warehouse or a hospital dry, insulated, and energy-efficient. Their products include the rubbery membranes you might see on a flat roof, the insulation boards underneath, and the coatings and sealants that prevent leaks and drafts. These are not typically items you'd buy at a hardware store, but are sold to professional contractors and distributors for large construction projects.
Carlisle Construction Materials (CCM)
This is the company's largest and core business segment. It focuses on making and selling complete roofing systems for big, often flat-roofed commercial buildings. This includes the main roofing material itself, which is a durable, single-ply membrane (a sheet of rubber-like material), as well as the rigid insulation boards that go underneath it to help control the building's temperature. This segment is the biggest contributor to the company's revenue (the total money it brings in from sales).
Carlisle Weatherproofing Technologies (CWT)
This division provides a wider range of products that protect the entire building from weather, not just the roof. It makes solutions for waterproofing foundations, sealing walls to prevent air and moisture leaks, and spray foam insulation that helps keep buildings warm or cool. These products are used on everything from huge skyscrapers to residential homes to make them more durable and energy-efficient. This segment complements the main roofing business by offering a more complete package of protective systems for a building's exterior.
What management is betting on now
The company's leadership is focused on being a pure-play building products company, meaning they are concentrating solely on this market. A major priority is developing innovative products that save labor for construction crews and improve energy efficiency for building owners, tapping into the growing demand for 'green' buildings. They are also focused on the reroofing cycle (the recurring need to replace old roofs), which provides a steady stream of business. Management aims to grow the company through strategic acquisitions (buying other companies that fit well with their business) and by increasing profitability.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$293.50M
FY2024 Q4
$334.00M
FY2025 Q1
$-27.20M
FY2025 Q2
$258.30M
FY2025 Q3
$393.40M
FY2025 Q4
$346.10M
FY2026 Q1
$-73.00M
FY2026 Q2
$200.10M
Revenue
$1.57B
Net income
$255.20M
Diluted EPS
6.30
Operating cash flow
$241.80M
Free cash flow
$200.10M
Fetching…
Sources
Revenue
$1.05B
Net income
$127.70M
Diluted EPS
3.10
Operating cash flow
$-44.70M
Free cash flow
$-73.00M
Fetching…
Sources
Revenue
$1.13B
Net income
$127.40M
Diluted EPS
3.06
Operating cash flow
$386.00M
Free cash flow
$346.10M
Fetching…
Sources
Revenue
$1.35B
Net income
$214.20M
Diluted EPS
4.98
Operating cash flow
$426.90M
Free cash flow
$393.40M
Fetching…
Sources
Revenue
$1.45B
Net income
$255.80M
Diluted EPS
5.88
Operating cash flow
$287.10M
Free cash flow
$258.30M
Fetching…
Sources
Revenue
$1.10B
Net income
$143.30M
Diluted EPS
3.20
Operating cash flow
$1.80M
Free cash flow
$-27.20M
Fetching…
Sources
Revenue
$1.12B
Net income
$162.80M
Diluted EPS
3.76
Operating cash flow
$370.60M
Free cash flow
$334.00M
Fetching…
Sources
Revenue
$1.33B
Net income
$244.30M
Diluted EPS
5.25
Operating cash flow
$312.80M
Free cash flow
$293.50M
Fetching…
Sources
Is it cheap or expensive?
Fair value $601.18 vs current price $352.02
Wall Street consensus is the average analyst price target: $410.00 (-31.8% lower than our fair-value estimate).
Our most-likely fair value is $601.18 a share — about 70.8% above today's price of $352.02, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $2.1B. Interest coverage 12.8x.
Net debt
$2.12B
Interest coverage
12.77x
Carlisle Companies Incorporated's profit covers its interest bill about 12.8 times over. which is stronger than every peer shown here.
Stretched
Worse cushion
Baseline
Better cushion
CSL
BASELINE
Carlisle Companies Incorporated
Total debt $2.89B Interest coverage 12.77x This is the baseline the peer rows are being compared against.
Total debt $6.02B Interest coverage 6.11x -52% vs CSL Carries about 2.1x less debt cushion than CSL.
Total debt $580.00M Interest coverage 9.67x -24% vs CSL Carries about 1.3x less debt cushion than CSL.
Total debt $1.85B Interest coverage 6.80x -47% vs CSL Carries about 1.9x less debt cushion than CSL.
Total debt $3.49B Interest coverage 12.41x -3% vs CSL Has roughly the same debt cushion as CSL.
Total debt $5.24B Interest coverage 2.87x -78% vs CSL Carries about 4.4x less debt cushion than CSL.
What you should know
The case for and against CSL
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.5% last year.
-
Free cash flow was positive in 10/10 years.
-
Trades at 20.0x P/E vs peer median 24.4x (18.1% cheaper).
Risks
-
Stock trades 21.3% above its 5-year average P/E.
-
Insider ownership is only 1.1% (peer median: 1.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.99x
Forward P/E
14.72x
P/B
8.02x
P/S
2.79x
EV/EBITDA
14.03x
PEG ratio
1.09x
Profitability
How much profit each dollar creates
Gross margin
35.3%
Operating margin
22.4%
Net margin
14.2%
ROE
—
ROA
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Health
Liquidity and balance-sheet strength
Debt / equity
1.75x
Current ratio
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Quick ratio
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Total debt
$2.89B
Total cash
$771.30M
Growth
How the business has been compounding
Revenue TTM
$5.10B
Revenue 5Y CAGR
7.0%
EPS TTM
17.61
EPS 5Y CAGR
-0.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.01B
Free CF TTM
$970.60M
FCF margin
19.0%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
25.0%
Last ex-div date
2026-05-18