Carlisle Companies

Carlisle Companies Inc is assigned a 5-star quantitative star rating, indicating our belief that this share class offers a compelling opportunity for investors. The stock currently trades at a 15% discount to our quantitative fair value estimate of $377.81 per share; however, some caution is warranted due to this estimate's medium uncertainty rating.

The firm's profitability increases our quantitative valuation. Highly profitable companies are often more resilient in recessions and are likely to generate stronger future cash flows for shareholders. Reflecting the firm's profitability is its earnings yield of 6.2%, which lies in the top 40% compared with global peers. This suggests that it is generating substantial earnings relative to its share price, which contributes to our view that shares are cheap.

On a different note, the company's valuation metrics are potentially concerning. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. The firm's enterprise value to EBITDA ratio of 12.2, for example, sits in the bottom 50% compared with global peers. This could be a sign of poor growth prospects or bankruptcy risk. Despite our favorable price/fair value ratio, this characteristic is a negative attribute.

The company's narrow quantitative moat rating indicates it could outearn its cost of capital and maintain robust margins for 10 years or longer. In addition, the company's moderate financial health score is decent and doesn't seriously concern us with regard to financial distress.