CARRIER GLOBAL CORPORATION (CARR): what the price assumes
In the published model solve dated 2026-Q2, anchored at $58.79, CARRIER GLOBAL CORPORATION (CARR) is priced for today's economics sustained for ~6.7 years. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-07-25.
Generated: 2026-08-30 · Exported: 2026-08-31 · Source: https://boothcheck.com/report/CARR
Headline
| Field | Value |
|---|---|
| Ticker | CARR |
| Company | CARRIER GLOBAL CORPORATION |
| Sector / Industry | Industrials |
| Current price | $58.79/sh |
| Composition | Climate Solutions Americas - Product 43% / Climate Solutions Americas - Service 5% / Climate Solutions Europe - Product 21% / Climate Solutions Europe - Service 2% / Climate Solutions Asia Pacific, Middle East & Africa - Product 12% / Climate Solutions Asia Pacific, Middle East & Africa - Service 3% / Climate Solutions Transportation - Product 12% / Climate Solutions Transportation - Service 1% |
What The Price Assumes (Inversion)
The assumption today's price embeds, recovered by inverting the valuation.
| Field | Value |
|---|---|
| Inversion basis | whole-company |
| Operating margin (value-band context) | 9.0% |
| Operating margin today | 8.2% |
| Margin expansion (value-band) | +0.8pp |
| Must persist for | 6.7y |
| Multiple paid | 33x operating income |
The operating-margin figure is value-band context at year 12: derived from the framework's value band, a separate calculation — not part of the priced-in solve.
Solve inputs: computed at a 9.2% cost of capital; growth searched up to the 25% self-funding ceiling.
How unusual the bet is: elevated (limited comparison data)
| Reference | Value |
|---|---|
| vs own history | +1.03σ |
| cohort percentile (of 225 peers) | 84 |
Valuation X-Ray
Every valuation family lands below the price. The price therefore sits beyond what those standard frames encode.
How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.
| Family | Median price/FV | Models | Reads |
|---|---|---|---|
| Asset | 3.36x | 4 | expensive |
| Earnings | 5.25x | 4 | expensive |
| Relative | — | 0 | — |
| Growth | 1.67x | 3 | expensive |
Families that call it expensive: Asset, Earnings, Growth
The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 8.2%); the inversion above states its own rate.
Per-Model Detail (n=11)
| Model | Family | FV | Price/FV | Applicable | Methodology |
|---|---|---|---|---|---|
| DCF Perpetual Growth | Growth | $11.02 | 5.33x | yes | FCF base $1.7B, growth -2% (input: historical growth), terminal g 0.5%, WACC 8.2%, 5yr projection |
| DCF Exit Multiple | Growth | $47.45 | 1.24x | yes | Exit EV/EBITDA: 31.3x / 33.3x / 35.3x (bear / base = today's held flat / bull), 5yr |
| Relative Valuation | Relative | — | — | no | P/E 23.78x (blended: static sector reference 18x + trailing (TTM) 37x), scenarios: 20.1x / 23.8x / 27.5x (bear / base = reference held flat / bull), EV/EBITDA 18.39x |
| Simple DDM | Growth | — | — | no | — |
| Two-Stage DDM | Growth | — | — | no | — |
| Simple Excess Return | Asset | $17.05 | 3.45x | yes | BV/sh $16.20, ROE (TTM) 9.7%, ke 9.3% |
| Two-Stage Excess Return | Asset | $17.48 | 3.36x | yes | 5yr excess ROE then converge to ke=9.3% |
| Discounted Future Market Cap | Growth | $35.27 | 1.67x | yes | Rev $21.9B, growth -2% (input: historical growth; tapered), Terminal P/S: 1.9x / 2.2x / 2.6x (bear / base = today's held flat / bull, cap 8x) |
| Growth-Adjusted P/E | Relative | — | — | no | — |
| Margin Trajectory | Growth | — | — | no | — |
| Earnings Power Value | Earnings | $18.79 | 3.13x | yes | Normalized EBIT (5y avg op income, one-time charges added back) $2.77B × (1−21%) / WACC 8.2% → EPV (no growth) |
| Residual Income | Asset | $17.56 | 3.35x | yes | BV $16.20 + 5yr PV of (ROE (TTM) 9.7% − Kₑ 9.3%) × BV; BV grows 6.3%/yr |
| Graham Number | Asset | $23.61 | 2.49x | yes | √(22.5 × EPS $1.53 × BVPS $16.20) — Graham's conservative floor |
| EV/EBITDA Relative | Relative | — | — | no | EBITDA $1.80B × sector EV/EBITDA 12.0x |
| FCF Yield | Earnings | $8.46 | 6.95x | yes | FCF $1686.0M / Kₑ 9.3% — zero-growth perpetuity |
| SBC-Adj FCF Yield | Earnings | $7.51 | 7.83x | yes | SBC-adj FCF $1.61B (FCF $1.69B − SBC $0.07B) capitalized at Kₑ |
| Ben Graham Formula | Earnings | $1.28 | 45.93x | yes | EPS $1.53 × (8.5 + 2×-5.0%) × (4.4 / 5.3%) (excluded from median) |
| ROIC-Justified P/B | Asset | $1.65 | 35.63x | yes | BV $16.20 × (ROIC 0.8% / WACC 8.2%) (excluded from median) |
| P/Sales Sector | Relative | — | — | no | Revenue $21.87B × sector P/S 2.5x |
| PEG Fair Value | Relative | — | — | no | — |
| Earnings Yield | Earnings | $16.54 | 3.55x | yes | EPS $1.53 / required return 9.3% (Rf 4.3% + ERP 5.0%) |
| Funds From Operations Multiple | Relative | — | — | no | — |
| Clinical Phase NPV | Growth | — | — | no | — |
| Merton | Asset | — | — | no | — |
| V5 Mechanical | — | — | — | no | — |
Economic-Unit Decomposition (Sum Of The Parts)
One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.
| Unit | Role | Valuation basis | Revenue | Reported profit | Value evidence | Status |
|---|---|---|---|---|---|---|
| Climate Solutions Americas | operating | enterprise | $10.5b | — | withheld | unresolved no unit value |
| Climate Solutions Europe | operating | enterprise | $5.0b | — | withheld | unresolved no unit value |
| Climate Solutions Asia Pacific, Middle East & Africa | operating | enterprise | $3.3b | — | withheld | unresolved no unit value |
| Climate Solutions Transportation | operating | enterprise | $2.9b | — | withheld | unresolved no unit value |
No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.
Solvency
| Field | Value |
|---|---|
| Net debt | $11.8b |
| Net debt / NOPAT (after-tax) | 8.28x |
| Net debt / operating income (pre-tax) | 6.54x |
| Share count CAGR (buyback) | -0.9% |
| Burning cash | no |
Interest expense is not separately reported in the latest filings, so interest coverage cannot be computed.
Bullet Takeaways
- Carrier sells climate equipment under brands its customers keep for decades, and its FY2025 10-K reports $21.7 billion of net sales producing $2.2 billion of operating profit, roughly half the conversion rate TT and LII pull from comparable equipment.
- The concentrated risk sits in Europe, where the FY2025 10-K discloses that Climate Solutions Europe was the only reporting unit needing a full quantitative goodwill test, and it cleared with a fair value about 14% above its carrying value.
- Watch the gross margin line, which fell 14% in the first quarter of 2026 to 23.3% of net sales even as quarterly net sales rose to $5.34 billion.
Bull Case
The most valuable thing Carrier owns is already installed. Rooftop units, boilers, chillers and container refrigeration boxes sit in service around the world, and every one of them is a claim on parts, maintenance and eventual replacement revenue for as long as it runs. The FY2025 10-K frames the portfolio as industry-leading brands such as Carrier, Viessmann, Toshiba, Automated Logic and Carrier Transicold, and describes equipment built to offer services and aftermarket parts and components over the life of the product. Sell the box once, then sell against it for as long as it runs.
The segment reporting makes that concrete. Each of the four regional businesses reports a product line and a service line separately, and the service lines carry the annuity shape. Service and installation revenue is recognized as the work is performed rather than on shipment, so the money often arrives as an obligation before it arrives as revenue: Carrier recognized $506 million during 2025 from contract liabilities that were already sitting on its balance sheet on the first day of the year. That is customers paying up front for work not yet done, which is a position weak vendors do not get to occupy.
Here is the case in its plainest form. Carrier turned $21.7 billion of 2025 net sales into $2.2 billion of operating profit, close to a tenth of each sales dollar. TT, running a comparable mix of commercial climate equipment and transport refrigeration, converts 18.2%; LII converts 19.7% on a smaller North American base; DOV converts 16.7%. Carrier currently earns closer to what WSO earns at 9.9%, and WSO is a distributor that sells other companies' equipment out of warehouses rather than manufacturing it. The bull case is not that Carrier already has manufacturer margins. It is that a company with these brands and this installed base has no structural reason to sit at distributor economics, and that the gap is an integration problem with an end date.
Evidence sits behind that. The 10-K credits business integration synergies associated with the acquisition of the VCS Business alongside lower selling, general and administrative costs for part of the year's margin improvement, and management is actively removing the revenue that dilutes the mix. Carrier agreed in December 2025 to sell its Riello business to Ariston Group for expected gross proceeds of approximately $430 million. Divestitures took 22 percentage points off the Transportation segment's 2025 net sales while what remained grew 4% organically. Shrinking headline revenue and rising margin are the same event seen from two angles, and both are visible in the filings.
Capital keeps coming back to holders through all of it. Carrier repurchased $2.9 billion of its own stock during 2025, then took 5.0 million more shares off the register for $306 million in the first quarter of 2026, leaving roughly $5.0 billion of authorization unused. Principal came down at the same time, with 1.2 billion dollars of long-term borrowings repaid across 2025. A business that can retire equity and repay principal inside the same twelve months is generating real money, whatever any single quarter's reported earnings line does.
Bear Case
Follow the money out of Carrier and the picture is less tidy than the repurchase headline suggests. The FY2025 10-K itemizes what the company paid for the Viessmann climate business in January 2024: $11,156 million plus common stock. Nothing about the aftermath has been quiet. Long-term borrowings came down $1.2 billion during 2025, and $2.9 billion went into repurchases over the same twelve months. Four years of that effort produced a share count falling at 0.9% a year. For that level of repurchase spending, a decline that shallow means much of the buying has been absorbing stock issued elsewhere rather than concentrating what long-term holders own.
The asset all that money bought is the one management looked at hardest. The FY2025 10-K states that Climate Solutions Europe was the only reporting unit requiring a full quantitative goodwill test rather than a qualitative screen, and on completion the reporting unit had a fair value of approximately 14% above its carrying value. Fourteen percent is headroom, but it is thin headroom on a business whose 2025 net sales grew 1% to $5.0 billion, and the filing names exactly what would close it: a meaningful rise in the discount rate, a fall in the long-term growth rate, or substantial reductions in the forecast. That consideration also keeps arriving through the income statement as amortization, $213 million in the first quarter of 2026 alone, drawn against a customer relationships intangible of 4,787 million dollars that is written off across a 17-year life.
What today's price requires makes that fragility load-bearing. At $68.89 the market is paying for the Transportation business, the cold chain operation that keeps food and medicine cold in transit, to grow operating profit at the fastest pace it can fund from its own cash flow, roughly 25% a year, and to hold that pace for about 14 years. Transportation is the smallest of the four businesses at around 13% of revenue, and its 2025 net sales fell 17% to $2.9 billion, with the underlying business up 4% organically. Trim a single percentage point off the assumed growth rate and the required run stretches by nearly three more years. Of companies that have compounded at that pace, only about one in seven kept it going even a decade. Every family of valuation method lands below the price, so if that requirement mean-reverts toward what peer economics support, the multiple compresses toward roughly half of where the stock trades.
The near-term numbers are moving the wrong way while that clock runs. First-quarter 2026 net sales rose to $5.34 billion, but gross margin fell 14% to $1.24 billion, or 23.3% of net sales, and pre-tax earnings of $170 million landed against a prior-year quarter of $548 million. Rising sales with falling margin is a cost and mix problem, and it is arriving in the same year management says it is still assessing tariff exposure. Net borrowings sit at roughly 5.1 times operating profit against $1.37 billion of liquid assets, with quarterly interest expense of $111 million. None of that is distress. It is a balance sheet with limited capacity to absorb a European writedown, a cost shock it cannot price through, and a fourteen-year compounding requirement all in the same window.
Valuation
Start with what $68.89 asks for. The most demanding assumption embedded in the price does not sit in the big Americas business; it sits in Transportation, the container and truck refrigeration operation that makes up about 13% of revenue. The price implies that segment grows operating profit at the ceiling its own cash flow can fund, roughly 25% a year, and holds that pace for about 14 years. Keep those approximate: they come from a single solve at a 9.5% cost of capital, and shifting the growth assumption by one percentage point moves the required run by nearly three years. The shape of the demand survives the rounding. Fourteen years is a long time to stay at a sprint.
Against that, the methods disagree with the price rather than with each other. Grouped by what they actually look at, none of the four groups reaches $68.89. The forward-growth methods come closest, and the price still sits about 67% above where they land; the peer-multiple methods reach roughly half that far, so the price sits at about double their central estimate; the book-value and earnings-power lenses land further below still. The single method that gets nearest does so by holding today's trading multiple flat through a five-year projection and never letting it compress, which is an assumption rather than a finding. When every family lands under the price, the issue is not that one lens is unflattering. The price sits outside what any of the standard frames encode.
The cohort explains part of the distance. Carrier's FY2025 10-K reports $21.7 billion of net sales and $2.2 billion of operating profit, close to a tenth of every sales dollar reaching operating profit. TT converts 18.2%, PNR 20.6%, LII 19.7% and DOV 16.7%. Carrier's conversion sits nearer WSO at 9.9%, and WSO is a distribution business rather than a manufacturer. Today's price asks a company earning distributor-grade margins to be valued closer to the way manufacturers with a decade of margin discipline are valued, and to grow into that position from here.
The balance sheet sets how long that can take. Gross borrowings of $13.16 billion against $1.37 billion of liquid assets leave the net figure at roughly 5.1 times operating profit, serviceable rather than comfortable. The FY2025 10-K reports interest expense of $458 million for the year, down from $580 million the year before, so the annual carrying cost is falling as principal is repaid. Cash generation is positive, the share count is drifting down, and roughly $5.0 billion of repurchase authorization is still open. The combination buys time. It does not buy much room, because the same balance sheet has to cover the European carrying value, the cost pressure showing up in gross margin, and a fourteen-year growth requirement priced in today.
Catalysts
The first quarter of 2026 gave the clearest recent read on the operating story, and it was not a flattering one. Net sales rose to $5.34 billion from $5.22 billion, but gross margin fell 14% to $1.24 billion, taking it to 23.3% of net sales, and earnings before income taxes came in at $170 million against $548 million in the same quarter of 2025. Sales up with margin down points at cost and mix rather than demand, which makes the next quarterly print the one that shows whether pricing catches up with input costs.
Two portfolio moves are still working through the numbers. Carrier agreed on December 16, 2025 to sell its Riello business to Ariston Group for expected gross proceeds of approximately $430 million, and Riello sits predominantly inside Climate Solutions Europe, the reporting unit already carrying the thinnest goodwill headroom. Separately, divestitures took 22 percentage points off the Transportation segment's 2025 net sales, against 4% organic growth and one point from currency. The Carrier that reports in 2027 will be a materially different collection of businesses from the one that reported in 2024.
Tariffs are the open variable management has flagged in its own words. The company states it fully mitigated the 2025 impact of tariffs implemented that year, pricing actions among the levers used, and that it continues through 2026 to evaluate potential exposure including effects on supply chains and cost structures. On capital return, 5.0 million shares were repurchased for $306 million during the first quarter of 2026, leaving approximately $5.0 billion available under the current authorization. That authorization is the lever most directly under management's control if the operating numbers stay soft.
Peer Cohorts (Per Segment, With Filing Citations)
Climate Solutions Americas (reported)
- JCI (JOHNSON CONTROLS INTERNATIONAL PLC)
- FY2025 10-K: …1, 2025 as part of ongoing initiatives to drive simplification, accelerate growth, better reflect its organizational and operational structure and align with the manner in which the Company's chief operating decision maker assesses performance and makes decisions regarding the allocation of resources following…
- FY2025 10-K: …building products and systems, including commercial heating, ventilating, air-conditioning ("HVAC") equipment, industrial refrigeration systems, controls, security systems, fire-detection systems and fire-suppression solutions. The Company further serves customers by providing technical services, including…
- TT (TRANE TECHNOLOGIES PLC)
- FY2025 10-K: …heating and cooling; and transport refrigeration systems and solutions. • Our EMEA segment innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems and services, energy services and solutions, and transport refrigeration systems and…
- FY2025 10-K: …through acquisitions. Sustaining activities include costs incurred to reduce production costs, improve existing products, create custom solutions for customers and provide support to our manufacturing facilities. Each year, we make investments in new product development and new technology innovation as they are key…
- LII (LENNOX INTERNATIONAL INC)
- FY2025 10-K: …Lennox offers a full spectrum of cooling, heating, indoor air quality and refrigeration products to meet the energy-efficient climate-control needs of residential and commercial customers across North America. We are advancing our market position through a balanced approach that includes organic growth and selective…
- FY2025 10-K: …segment. AES is a company dedicated to service and sustainability in the light commercial markets across North America. We sell our products and services through a combination of direct sales, distributors and company-owned stores. The demand for our products and services is seasonal and can be significantly impacted…
- AAON (AAON, INC.)
- FY2025 10-K: …attempts have been exhausted. 50 Concentration of Credit Risk Our top customers operate primarily in the data center cooling and commercial air conditioning markets. Data centers are purpose-built facilities that enable the processing, storage and distribution of data across both traditional workloads and…
- FY2025 10-K: …deliver heating and cooling products to perform beyond all expectations and to demonstrate our quality and value to our customers. Our equipment is designed with energy efficiency in mind, without sacrificing premium features and options. In addition to our high standard of product performance, is a commitment to…
- WSO (WATSCO INC)
- FY2025 10-K: …customer. We have approximately 1,100 salespeople, averaging 11 years of experience in the HVAC/R distribution industry. The markets we serve are as follows: % of Revenues for the Year Ended December 31, 2025 Number of Locations as of December 31, 2025 United States 90 % 637 Canada 5 % 34 Latin America and the…
- FY2025 10-K: …parts, and supplies to enable a contractor to install or repair a central air conditioner, furnace, or refrigeration system; (ii) maintaining a strong density of warehouse locations for increased customer convenience; (iii) maintaining well-stocked inventories to ensure that customer orders are filled in a timely…
Climate Solutions Europe / Climate Solutions Asia Pacific, Middle East & Africa (reported)
- JCI (JOHNSON CONTROLS INTERNATIONAL PLC)
- FY2025 10-K: …1, 2025 as part of ongoing initiatives to drive simplification, accelerate growth, better reflect its organizational and operational structure and align with the manner in which the Company's chief operating decision maker assesses performance and makes decisions regarding the allocation of resources following…
- FY2025 10-K: …a significant distribution channel for our products, creates a large installed base of our fire and security solutions and HVAC equipment, and creates opportunities for longer term service, monitoring, solutions and retrofit revenue over the lifecycle of the building. If we are unable to maintain or grow this…
- TT (TRANE TECHNOLOGIES PLC)
- FY2025 10-K: …through acquisitions. Sustaining activities include costs incurred to reduce production costs, improve existing products, create custom solutions for customers and provide support to our manufacturing facilities. Each year, we make investments in new product development and new technology innovation as they are key…
- FY2025 10-K: …heating and cooling; and transport refrigeration systems and solutions. • Our EMEA segment innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems and services, energy services and solutions, and transport refrigeration systems and…
- LII (LENNOX INTERNATIONAL INC)
- FY2025 10-K: Joint Ventures Ariston JV . We own a 49.9% interest in a joint venture with Ariston Group that will manufacture and distribute water heaters through Lennox Stores and our direct-to-dealer network. Ariston is reporting in our Home Comfort Solutions segment. Samsung JV . We own a 49.9% interest in a joint venture with…
- FY2025 10-K: …decision to explore strategic alternatives for our European commercial HVAC and refrigeration businesses. We continue to invest in our Heatcraft Worldwide Refrigeration business which is included in the Building Climate Solutions segment. The consolidation of our Heatcraft business within the Building Climate…
- AAON (AAON, INC.)
- FY2025 10-K: …deliver heating and cooling products to perform beyond all expectations and to demonstrate our quality and value to our customers. Our equipment is designed with energy efficiency in mind, without sacrificing premium features and options. In addition to our high standard of product performance, is a commitment to…
- FY2025 10-K: …plc), York Light Commercial (Bosch Home Comfort Group), Johnson Controls (Johnson Controls International PLC), Carrier (Carrier Global Corporation), and Daikin (Daikin Industries). Our thermal management products primarily compete with Vertiv (Vertiv Holdings Co.), STULZ (STULZ Air Technology Systems, Inc.), Munters,…
- GTLS (CHART INDUSTRIES, INC.)
- FY2025 10-K: …the storage, distribution, vaporization, and application of industrial gases and certain hydrocarbons. Our Heat Transfer Systems segment supplies mission critical engineered equipment and systems used in the recovery, separation, liquefaction, and purification of hydrocarbons, LNG and industrial gases that span…
- FY2025 10-K: …& Leasing 819.7 577.1 Intersegment eliminations - (7.8) Consolidated $ 5,886.2 $ 4,845.1 Orders and Backlog for the Year Ended and As of December 31, 2025 Compared to the Year Ended and As of December 31, 2024 Cryo Tank Solutions segment orders for 2025 were $587.8 million, as compared to $582.9 million for 2024, an…
- MIDD (THE MIDDLEBY CORPORATION)
- FY2025 10-K: …while delivering operational efficiencies. The company has identified these issues as key concerns for most of its customers. The company often identifies product improvement opportunities by working closely with customers on specific applications. Most research and development activities are performed by the…
- FY2025 10-K: …climate change impacts have resulted in, and are likely to continue resulting in, increased energy, manufacturing, transportation and raw material costs. Governmental requirements directed at regulating greenhouse gas emissions could cause us to incur expenses that we cannot recover or that will require us to…
- PNR (Pentair plc)
- FY2025 10-K: …and infrastructure flow and industrial solutions businesses have not historically been impacted by seasonal weather trends. This change does not impact the competitive landscape of the Flow segment. Water Solutions The Water Solutions segment aims to provide great tasting, higher-quality water and ice while helping…
- FY2025 10-K: …separation technologies for the oil and gas industry, residential and municipal wells, water treatment, wastewater solids handling, pressure boosting, circulation and transfer, fire suppression, flood control, agricultural irrigation and crop spray. • Water Solutions - The focus of this segment is to provide great…
- WSO (WATSCO INC)
- FY2025 10-K: …parts, and supplies to enable a contractor to install or repair a central air conditioner, furnace, or refrigeration system; (ii) maintaining a strong density of warehouse locations for increased customer convenience; (iii) maintaining well-stocked inventories to ensure that customer orders are filled in a timely…
- FY2025 10-K: …prior to retirement, these grants remain subject to significant risk of forfeiture. Workforce Health and Safety We continuously strive to improve all aspects of our work practices. We actively support a culture of safety and wellness for the benefit of our employees and their families along with our customers.…
Climate Solutions Transportation (reported)
- TT (TRANE TECHNOLOGIES PLC)
- FY2025 10-K: …through acquisitions. Sustaining activities include costs incurred to reduce production costs, improve existing products, create custom solutions for customers and provide support to our manufacturing facilities. Each year, we make investments in new product development and new technology innovation as they are key…
- FY2025 10-K: . The values assigned to individual assets acquired and liabilities assumed are preliminary based on management's current best estimate and subject to change as certain matters are finalized. The fair values of the customer relationship intangible assets were determined using the multi-period excess earnings method…
- DOV (DOVER Corp)
- FY2025 10-K: …with a diverse and fragmented customer base and where there is a significant demand for aftermarket equipment and parts from a large installed base, and the route-to-market is a mix of distribution and direct sales. Our Pumps & Process Solutions segment's products are manufactured primarily in North America, Europe,…
- FY2025 10-K: Climate & Sustainability Technologies. For financial information about our segments and geographic areas, see Note 19 - Segment Information in the consolidated financial statements in Item 8 of this Form 10-K. Engineered Products Our Engineered Products segment provides a wide range of equipment, components, software,…
- LII (LENNOX INTERNATIONAL INC)
- FY2025 10-K: …principles of Six Sigma, a disciplined, data-driven approach and methodology for improving quality. We use numerous metrics to track and manage annual efficiency improvements. Some facilities are impacted by seasonal production demand, and we manufacture a mix of heating, cooling and refrigeration products in those…
- FY2025 10-K: Climate Solutions Distribution 763 Leased Stuttgart, AR Building Climate Solutions Manufacturing 750 Owned Stone Mountain, GA Building Climate Solutions Manufacturing & Business Unit Headquarters 139 Owned Jessup, PA Building Climate Solutions Distribution 130 Leased Norcross, GA Building Climate Solutions…
Methodology Note
- Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
- Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
- Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
- Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
- Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.
Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.
Sources
FY2025 Form 10-K, filed February 2026 · Q1 2026 Form 10-Q, period ended March 31, 2026 · FY2025 Form 10-K · Q1 2026 Form 10-Q