One-glance verdict
Undervalued
$543.83 our estimate vs market $327.92
Wall Street consensus: $411.88 (-24.3% lower than our fair-value estimate)
40% below our estimate, below the bear case
Fundamentals snapshot
Carlisle Companies Incorporated
CSL · NYQ · Industrials · Building Products & Equipment
Current price
$327.92
52-week range
$293.43 - $432.91
Market cap
$13.02B
Balance sheet
Stretched
12.77x Strong cushion
Net debt $2.22B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.5% last year.
- Reward Returns 39.2% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 12.8% above its 5-year average P/E.
What this company does
Carlisle Companies Incorporated
Carlisle Companies makes specialized building materials that create a protective "envelope" for large commercial buildings, with a major focus on roofing and insulation. Most of its sales come from reroofing existing buildings like warehouses and hospitals, rather than relying only on new construction. This provides a more consistent stream of business because older roofs always need replacing, making the company's income potentially more stable over time.
How the company got here
Carlisle began in 1917 as a tire and rubber company in Pennsylvania, originally making inner tubes for bicycles. For many years, it operated as a diversified industrial manufacturer, making a wide range of products from specialty tires to foodservice equipment. Over time, the company shifted its focus, acquiring businesses in the construction materials sector and selling off other parts of its operations. This strategic change has transformed Carlisle into a more focused company primarily centered on products for the building envelope (the outer shell of a building that protects it from the elements).
What it actually does
Carlisle makes and sells products that are used to construct and protect the outer shell of buildings, often called the 'building envelope'. Think of the materials that keep a commercial building like an office or a warehouse waterproof, insulated, and energy-efficient. Their products include large rubber or plastic sheets for roofing, insulation boards, waterproofing membranes, and metal panels for roofs and walls. These are the kinds of essential materials a construction company would buy to build or repair a large building's exterior.
Carlisle Construction Materials (CCM)
This is the company's largest and most established business segment, focused on commercial roofing. It manufactures and sells complete roofing systems, which include the top layer (the membrane that you see), the insulation underneath, and all the related accessories needed to install it. Customers are typically construction contractors and distributors who are building or re-roofing commercial structures like factories, schools, and shopping centers. This segment is the main driver of Carlisle's business.
Carlisle Weatherproofing Technologies (CWT)
This part of the company provides a broader range of products that protect buildings from moisture and air leaks. This includes waterproofing materials that go below ground level, air and vapor barriers that wrap around the building's walls, and specialty coatings and spray foam insulation. These products are used in both commercial and residential buildings to improve durability and energy efficiency. While smaller than the main roofing business, this segment offers products that complement the core construction offerings.
What management is betting on now
The company's main strategy is to be a pure-play building products company, focusing entirely on the building envelope. Management is concentrating on selling more energy-efficient and labor-saving products, capitalizing on the trend of making buildings more environmentally friendly. They are also focused on the re-roofing market, as existing buildings will always need repairs and upgrades. A key part of their plan involves using the 'Carlisle Operating System' (a set of internal processes to improve efficiency) to increase profitability and making strategic, smaller acquisitions to expand their product offerings.
Price history
How the share price has moved
—
Loading price history…
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 $543.83 vs current price $327.92
Wall Street consensus is the average analyst price target: $411.88 (-24.3% lower than our fair-value estimate).
Our most-likely fair value is $543.83 a share — about 65.8% above today's price of $327.92, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $2.2B. Interest coverage 12.8x.
Net debt
$2.22B
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 $5.73B Interest coverage 6.11x -52% vs CSL Carries about 2.1x less debt cushion than CSL.
Total debt $2.95B Interest coverage 8.66x -32% vs CSL Carries about 1.5x 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 $2.80B Interest coverage 5.39x -58% vs CSL Carries about 2.4x 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.
What you should know
The case for and against CSL
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.5% last year.
-
Returns 39.2% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 12.8% above its 5-year average P/E.
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)
18.60x
Forward P/E
13.62x
P/B
8.05x
P/S
2.56x
EV/EBITDA
12.77x
PEG ratio
0.93x
Profitability
How much profit each dollar creates
Gross margin
35.3%
Operating margin
22.8%
Net margin
14.2%
ROE
39.2%
ROA
10.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.79x
Current ratio
2.60x
Quick ratio
1.83x
Total debt
$2.89B
Total cash
$665.30M
Growth
How the business has been compounding
Revenue TTM
$5.10B
Revenue 5Y CAGR
7.0%
EPS TTM
17.63
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
1.5%
Payout ratio
25.0%
Last ex-div date
2026-08-19