CSL – Market expectations are for Uniform ROA to recover, but management may have concerns about CCM, supply constraints, and inflation
Carlisle Companies (CSL) currently trades above historical and below corporate averages relative to Uniform earnings, with a 19.9x Uniform P/E (Fwd. V/E’).
At these levels, markets are pricing in expectations for Uniform ROA to recover, accompanied by 3% Uniform asset growth.
Meanwhile, analysts expect Uniform ROA to improve to 27% in 2022, accompanied by 4% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $262, representing approximately 11% equity upside for the firm.
However, the firm’s most recent earnings call suggests management may have concerns about CCM, supply constraints, and inflation.