📊 CARR Key Takeaways
Is CARRIER GLOBAL Corp (CARR) a Good Investment?
Carrier Global exhibits deteriorating financial fundamentals with declining revenues (-3.3% YoY), weakening profitability (-6.5% net income decline), and critically low interest coverage (0.6x) indicating potential debt servicing challenges. The combination of negative free cash flow, weak liquidity, and sub-2% returns signals structural financial stress.
Carrier Global shows solid underlying cash generation and acceptable balance-sheet health, with $2.12B of free cash flow, a 9.8% FCF margin, and moderate leverage at 0.80x debt-to-equity. However, declining revenue, lower net income, only mid-level operating profitability, and a sharp drop in diluted EPS point to uneven earnings quality and limit the case for a more aggressive rating until margin stability and growth reaccelerate.
Why Buy CARRIER GLOBAL Corp Stock? CARR Key Strengths
- Moderate debt-to-equity ratio of 0.76x provides some leverage headroom relative to its liabilities
- Established $37.2B asset base in defensive HVAC and refrigeration equipment sector
- Positive operating income of $259M demonstrates ongoing profitability despite headwinds
- Strong free cash flow generation relative to revenue supports resilience and internal funding capacity
- Balance sheet appears manageable with a 1.20x current ratio and moderate debt-to-equity of 0.80x
- Positive profitability with $2.17B operating income and 10.5% ROE indicates the business remains fundamentally earnings-generative
CARR Stock Risks: CARRIER GLOBAL Corp Investment Risks
- Interest coverage ratio of 0.6x critically below 1.0 - operating income cannot fully service $10.4B debt; refinancing or debt restructuring risk
- Negative free cash flow (-$15M) with CapEx ($94M) exceeding operating cash flow ($79M) - unsustainable capital structure
- Declining revenues (-3.3%) and net income (-6.5%) with thin margins (4.5% net) and abysmal returns (ROE 1.7%, ROA 0.6%) signal structural challenges
- Revenue declined 3.3% year over year, raising concern about demand softness or portfolio mix pressure
- Net income fell 6.5% and diluted EPS dropped 72.0%, suggesting weaker earnings quality or capital structure effects
- Interest coverage of 4.7x is adequate but not especially strong given $11.37B of long-term debt
Key Metrics to Watch
- Interest coverage ratio - must improve toward 1.5x+ to demonstrate debt sustainability
- Free cash flow conversion - return to positive FCF is critical for long-term viability
- Revenue stabilization - halt to YoY declines would indicate end of deterioration phase
- Organic revenue growth and operating margin trend
- Free cash flow conversion and interest coverage
CARRIER GLOBAL Corp (CARR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
CARRIER GLOBAL Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CARR Profit Margin, ROE & Profitability Analysis
CARR vs Market Sector: How CARRIER GLOBAL Corp Compares
How CARRIER GLOBAL Corp compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is CARRIER GLOBAL Corp Stock Overvalued? CARR Valuation Analysis 2026
Based on fundamental analysis, CARRIER GLOBAL Corp shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
CARRIER GLOBAL Corp Balance Sheet: CARR Debt, Cash & Liquidity
CARR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: CARRIER GLOBAL Corp's revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $1.58 reflects profitable operations.
CARR Revenue Growth, EPS Growth & YoY Performance
CARR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.2B | $238.0M | $0.28 |
| Q3 2025 | $5.6B | $428.0M | $0.49 |
| Q2 2025 | $5.9B | $591.0M | $0.68 |
| Q1 2025 | $5.2B | $269.0M | $0.29 |
| Q3 2024 | $4.9B | $357.0M | $0.42 |
| Q2 2024 | $6.0B | N/A | $0.23 |
| Q1 2024 | $5.3B | N/A | $0.29 |
| Q3 2023 | $5.5B | N/A | $0.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CARRIER GLOBAL Corp Dividends, Buybacks & Capital Allocation
CARR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for CARRIER GLOBAL Corp (CIK: 0001783180)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CARR
What is the AI rating for CARR?
CARRIER GLOBAL Corp (CARR) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CARR's key strengths?
Claude: Moderate debt-to-equity ratio of 0.76x provides some leverage headroom relative to its liabilities. Established $37.2B asset base in defensive HVAC and refrigeration equipment sector. ChatGPT: Strong free cash flow generation relative to revenue supports resilience and internal funding capacity. Balance sheet appears manageable with a 1.20x current ratio and moderate debt-to-equity of 0.80x.
What are the risks of investing in CARR?
Claude: Interest coverage ratio of 0.6x critically below 1.0 - operating income cannot fully service $10.4B debt; refinancing or debt restructuring risk. Negative free cash flow (-$15M) with CapEx ($94M) exceeding operating cash flow ($79M) - unsustainable capital structure. ChatGPT: Revenue declined 3.3% year over year, raising concern about demand softness or portfolio mix pressure. Net income fell 6.5% and diluted EPS dropped 72.0%, suggesting weaker earnings quality or capital structure effects.
What is CARR's revenue and growth?
CARRIER GLOBAL Corp reported revenue of $5.3B.
Does CARR pay dividends?
CARRIER GLOBAL Corp pays dividends, with $201.0M distributed to shareholders in the trailing twelve months.
Where can I find CARR SEC filings?
Official SEC filings for CARRIER GLOBAL Corp (CIK: 0001783180) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CARR's EPS?
CARRIER GLOBAL Corp has a diluted EPS of $0.28.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CARR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, CARRIER GLOBAL Corp has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CARR stock overvalued or undervalued?
Valuation metrics for CARR: ROE of 1.7% (sector avg: 15%), net margin of 4.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CARR stock in 2026?
Our dual AI analysis gives CARRIER GLOBAL Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CARR's free cash flow?
CARRIER GLOBAL Corp's operating cash flow is $79.0M, with capital expenditures of $94.0M. FCF margin is -0.3%.
How does CARR compare to other Market stocks?
Vs Default sector averages: Net margin 4.5% (avg: 12%), ROE 1.7% (avg: 15%), current ratio 1.05 (avg: 1.8).