| For 38 years the Board of Directors of Carlisle Cos, Inc, has been increasing the company's dividend to its shareholders annually, and recently they've declared a 14% increase in the regular quarterly dividend to $0.25 per share from $0.22 per share. This is an exceptional accomplishment and this dividend consistency puts this company on the list of Dividend Champions. It also puts it in the crosshairs of every Dividend Growth Investor in the market today. If you're a dividend growth investor you might just want to consider adding this security to your account. |  |
The Company
| Carlisle Companies Inc (CSL) operates as a worldwide and diversified manufacturing company. The Construction Materials segment of the company manufactures and sells rubber and thermoplastic polyolefin roofing systems, rigid foam insulation panels for various roofing applications, liquid and spray-applied waterproofing membranes, vapor and air barriers, HVAC duct sealants and hardware for the commercial and residential construction markets, and also markets and sells polyvinyl chloride membrane and accessories. Its Interconnect Technologies segment designs and manufactures wire, cable, contacts, RF/micowave, and fiber optic connectors, specialty cable assemblies, integrated wired racks, trays and airframe subsystem solutions primarily for the aerospace, defense electronics, and test and measurement industries. The company’s Brake & Friction segment provides off highway braking systems and friction products for off highway, on highway, aircraft, and other industrial applications, principally serving the agriculture, construction, aircraft, mining, heavy truck, wind and alternative energy, and performance racing industries. Its FoodService Products segment offers commercial and institutional foodservice permanent ware table coverings, cookware, display pieces, lighting equipment, and supplies to restaurants, hotels, hospitals, nursing homes, schools, and correctional facilities, and industrial brooms, brushes, mops, and rotary brushes for industrial, commercial, and institutional facilities. The company markets its products to original equipment manufacturers, distributors, and directly to end-users. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Charlotte, NC. (Daily Chart) (Weekly Chart) | 25 September 2014 Price $80.00 1yr Target $96.14 Analysts 7 1yr Cap Gain 20.17% Dividend $0.88 Yield 1.10% 1yr Tot Return 21.27% Market Cap $5.13 Bil Beta 1.35 EPS (ttm) $4.74 Payout Ratio 18.56% EPS next yr $4.70 P/E 16.88 PEG 1.05 Forward P/E 17.02 Debt/Equity 0.36 ROA 7.90% ROE 14.00% |
Carlisle has a history which began in 1917, when Charles S. Moomy opened Carlisle Tire and Rubber Company in Carlisle, Pennsylvania, to sell inner tubes to Montgomery Ward and Company.
In 1946, Carlisle purchased a company that produced molded friction products that are used on traditional brake shoes and thus began the starting point of what today is Carlisle Brake & Friction. This also ushered in a new phase for Carlisle as they began growing as a diversified manufacturing company.
Carlisle Brake & Friction is a leading solutions provider for high performance and severe duty brake, clutch and transmission applications to original equipment manufacturers (OEMs) and aftermarket customers in the mining, construction, military, agricultural, motorsports, industrial, and aerospace markets. The company's brands, including Wellman Products Group, Carlisle Brake & Friction, Hawk Performance®, Japan Power Brake, VelveTouch® and Field Pro®, offer a diverse range of the most highly engineered braking and friction products available today. With 10 global manufacturing facilities in the U.S., U.K., Italy, China, Japan and India, Carlisle Brake & Friction serves more than 100 leading OEMs in 55 countries.
During the 1950s and 1960s, Carlisle continued to acquire a variety of other companies further diversifying their product mix to include insulated wire and cable, which today is known as Carlisle Interconnect Technologies.
Carlisle Interconnect Technologies designs and manufactures high performance wire and cable, fiber optic cable, RF/microwave connectors, avionics trays, racks, integrated system and complex cable assemblies for applications in the aerospace, military and defense electronics, medical, and test and measurement industries.
AerospaceFor over 70 years Carlisle Interconnect Technologies has been providing leading-edge designs in wire and cable for commercial and military aircraft, avionics systems, in-flight entertainment systems and communications systems.
On June 1, 1960, Carlisle Companies Inc. became a publicly traded company on the NYSE with a ticker symbol of “CSL.” By the end of the 1960s, Carlisle was producing aerospace and electronic products, recreational tires, automotive accessories and other divergent products.
In the 1970s Carlisle pioneered rubber sheet roofing. Using highly engineered formulation and processing techniques to produce synthetic rubber sheets capable of competing with traditional roofing materials. This established Carlisle as a formidable player in both the new and replacement roof markets. This was the genesis of what today is Carlisle Constructions Materials.
Carlisle Construction Materials manufactures a complete range of roofing and waterproofing products for commercial and industrial buildings including single-ply roofing, insulation, waterproofing and air/vapor barrier systems focused on the weatherproofing and thermal performance of the building envelope. The company is the U.S. market leader in EPDM (rubber), TPO (thermoplastic) membranes and both polyisocyanurate and expanded polystyrene insulation boards. Through recent acquisitions in Germany and the Netherlands, CCM is now the leading European manufacturer and supplier of EPDM roofing systems and is well positioned to fully exploit Europe's anticipated growth in this segment.
In the 1980s Carlisle acquired a company that manufactured compression-molded plastic and melamine dinnerware, and later a company that manufactured foodservice equipment and supplies, which was the beginning of what today is Carlisle FoodService Products.
Carlisle FoodService manufactures and markets professional-grade product solutions for the restaurant, healthcare, and janitorial segments. Products for these three focused markets include an array of foodservice permanentware supplies, table coverings, cookware, displayware, catering equipment and meal delivery systems. In addition, CFS produces the most comprehensive line of janitorial, waste and material handling product lines for both the foodservice and sanitary maintenance industries.
In 2001, Carlisle purchased a manufacturer of transmission belts for industrial applications and, together with Carlisle Tire & Wheel, was the formed what today is known as Carlisle Transportation Products.
In 1946, Carlisle purchased a company that produced molded friction products that are used on traditional brake shoes and thus began the starting point of what today is Carlisle Brake & Friction. This also ushered in a new phase for Carlisle as they began growing as a diversified manufacturing company.
Carlisle Brake & Friction is a leading solutions provider for high performance and severe duty brake, clutch and transmission applications to original equipment manufacturers (OEMs) and aftermarket customers in the mining, construction, military, agricultural, motorsports, industrial, and aerospace markets. The company's brands, including Wellman Products Group, Carlisle Brake & Friction, Hawk Performance®, Japan Power Brake, VelveTouch® and Field Pro®, offer a diverse range of the most highly engineered braking and friction products available today. With 10 global manufacturing facilities in the U.S., U.K., Italy, China, Japan and India, Carlisle Brake & Friction serves more than 100 leading OEMs in 55 countries.
- Mining. Carlise Brake & Friction (CBF) has been the brake supplier of choice in the mining industry for decades, counting the world's largest and most respected mining OEMs as customers, including CAT, Komatsu, Liebherr, Hitachi and Sany. CBF consistently remains in the braking technology forefront by adapting to the changes in the industry, expanding the technology envelope and ultimately providing superior solutions to world class OEMs around the world.
- Construction. The construction machine market has been a cornerstone of CBF for decades. Our products are used by the most recognized construction OEMs in the world in applications around the globe as diverse as articulated dump trucks to backhoe loaders. If you pass a construction site during your day, chances are you've seen a vehicle with a CBF product on it.
- Agriculture. CBF has been a significant brake system and friction component supplier to agriculture and forestry industry for over thirty years. Our customer base is an extensive list of industry leaders, including John Deere, CNH, Same Deutz-Fahr, Clark Hurth, Claas and Mahindra.
- Aerospace. CBF is one of the largest steel brake friction suppliers for the global aerospace market. Original equipment manufacturers including Goodrich, ABS and Parker Hannifin rely on our product quality, heat capacity, consistent performance and exceptional durability to meet the critical demands of today's aircraft.
- Military. CBF products are utilized in virtually every form of military land vehicle including transports, tanks, assault vehicles and construction equipment. CBF is also a primary OEM supplier of brake friction materials for military jets, planes, helicopters and drones.
- Motorsports. CBF is a leading supplier of severe duty and high performance products for the motorsports and performance automotive markets. Over the past decade our friction products have won more motorsports championships than any other friction manufacturer. From NASCAR to the weekend racer, our products provide a true competitive edge.
- Industrial. CBF has been supplying braking systems and friction components to original equipment manufacturers in a diverse range of industrial markets for over 87 years. Our products can be found on material handling vehicles, oil rigs, telehandlers, transit systems, car and truck commercial fleets, cranes, elevators, amusement park rides, motorcycles, ATVs, snowmobiles, and electromagnetic devices.
- Renewable Energy. CBF supplies braking solutions to leading wind OEMs around the globe both for the MegaWatt and KiloWatt class wind markets.
During the 1950s and 1960s, Carlisle continued to acquire a variety of other companies further diversifying their product mix to include insulated wire and cable, which today is known as Carlisle Interconnect Technologies.
Carlisle Interconnect Technologies designs and manufactures high performance wire and cable, fiber optic cable, RF/microwave connectors, avionics trays, racks, integrated system and complex cable assemblies for applications in the aerospace, military and defense electronics, medical, and test and measurement industries.
AerospaceFor over 70 years Carlisle Interconnect Technologies has been providing leading-edge designs in wire and cable for commercial and military aircraft, avionics systems, in-flight entertainment systems and communications systems.
- Test and Measurement/ Automated Test Equipment. Carlisle Interconnect Technologies offers test and measurement solutions specially designed for RF/Microwave and high speed analog & digital equipment including multimeters, oscilloscopes, digital analyzers, logic analyzers and network analyzers.
- Defense Electronics. Since 1944 Carlisle Interconnect Technologies has been engineering products for the harsh and demanding environments of the defense industry. Typical product applications are for radar systems, missiles, satellites, forward looking infra-red systems, communication and electronic warfare systems.
- Medical. Carlisle Interconnect Technologies medical products provide customers a wide range of innovative solutions engineered specifically for the medical equipment industry. Applications include pulse oximetry systems, ECG/EKG monitoring, medical imaging, diagnostic systems including PET scan, MRI, X-ray and ultra sound systems.
- Specialty Applications. With years of experience in building products engineered for specialty applications, Carlisle Interconnect Technologies can solve a variety of product needs including unique cable configurations, custom connectors, specialized harnesses and complete assemblies of any complexity with cost sensitivity in mind.
On June 1, 1960, Carlisle Companies Inc. became a publicly traded company on the NYSE with a ticker symbol of “CSL.” By the end of the 1960s, Carlisle was producing aerospace and electronic products, recreational tires, automotive accessories and other divergent products.
In the 1970s Carlisle pioneered rubber sheet roofing. Using highly engineered formulation and processing techniques to produce synthetic rubber sheets capable of competing with traditional roofing materials. This established Carlisle as a formidable player in both the new and replacement roof markets. This was the genesis of what today is Carlisle Constructions Materials.
Carlisle Construction Materials manufactures a complete range of roofing and waterproofing products for commercial and industrial buildings including single-ply roofing, insulation, waterproofing and air/vapor barrier systems focused on the weatherproofing and thermal performance of the building envelope. The company is the U.S. market leader in EPDM (rubber), TPO (thermoplastic) membranes and both polyisocyanurate and expanded polystyrene insulation boards. Through recent acquisitions in Germany and the Netherlands, CCM is now the leading European manufacturer and supplier of EPDM roofing systems and is well positioned to fully exploit Europe's anticipated growth in this segment.
In the 1980s Carlisle acquired a company that manufactured compression-molded plastic and melamine dinnerware, and later a company that manufactured foodservice equipment and supplies, which was the beginning of what today is Carlisle FoodService Products.
Carlisle FoodService manufactures and markets professional-grade product solutions for the restaurant, healthcare, and janitorial segments. Products for these three focused markets include an array of foodservice permanentware supplies, table coverings, cookware, displayware, catering equipment and meal delivery systems. In addition, CFS produces the most comprehensive line of janitorial, waste and material handling product lines for both the foodservice and sanitary maintenance industries.
In 2001, Carlisle purchased a manufacturer of transmission belts for industrial applications and, together with Carlisle Tire & Wheel, was the formed what today is known as Carlisle Transportation Products.
The Fundamentals
The fundamentals are a mixed bag for Carlisle Companies. The revenues and earnings are somewhat erratic but are generally moving higher over time. Looking at the estimates going forward it appears that revenues and earnings are on the right trajectory. Dividends have obviously been managed in such a manner that despite the variability of revenues and earnings, dividends have maintained a consistent upward momentum. In fact, as can be seen below, the dividend growth rate is actually increasing over time. This trend should actually continue in the future.
| Year 2015 Est 2014 Est 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 | Revenues $3.41 Bil $3.17 Bil $2.94 Bil $2.85 Bil $2.49 Bil $2.52 Bil $2.25 Bil $2.97 Bil $2.87 Bil $2.57 Bil $2.20 Bil $2.22 Bil $2.10 Bil | Earnings $4.70 $4.00 $3.22 $4.22 $2.86 $2.34 $2.34 $0.91 $3.44 $3.46 $1.71 $1.27 $1.44 | Dividends $1.17 $0.97 $0.86 $0.78 $0.71 $0.67 $0.63 $0.61 $0.57 $0.53 $0.49 $0.45 $0.43 | Payout Ratio 24.89% 24.25% 26.70% 18.48% 24.82% 28.63% 26.92% 67.03% 16.56% 15.31% 28.65% 35.43% 29.86% |
| Revenue Growth Rate 1 year = 3.15% 2 year = 8.66% 3 year = 5.21% 4 year = 6.91% 5 year = 0.00% 10 year = 3.42% | Earnings Growth Rate 1 year = -23.70% 2 year = 6.10% 3 year = 11.10% 4 year = 8.30% 5 year = 28.75% 10 year = 8.38% | Dividend Growth Rate 1 year = 10.25% 2 year = 10.05% 3 year = 8.58% 4 year = 8.09% 5 year = 7.11% 10 year = 7.17% |
The Technicals
The shorter term trend from the daily chart is such that it is causing the longer term trend from the weekly chart to flatten out. This can also be seen in the momentum indicators. On the daily chart the RSI shows that there's been downward pressure and the stock is now in oversold territory. The MACD is also falling below the zero line and the ADX is starting to show slight pressure to the downside. All of this downward pressure in the daily chart is starting to show up in the weekly chart in a flattening of the curve. Without continued short term pressure, this stock is likely to move sideways for the near future. From a technical perspective it seems logical to wait for the downward pressure to subside at a short term low. Buying when the indicators have bottomed out and turned up is always a good idea when determining the optimum entry point.
 Daily Chart |  Weekly Chart |
Conclusion
This stock is fairly easy to analyze but somewhat difficult to evaluate. On the positive side I really like the stock's estimated one year capital gain, a P/E ratio well below 20, a PEG near 1, a low dividend payout ratio, a low debt to equity ratio, and a high return on equity. What's not appealing is a dividend yield of 1.10%. Even with a dividend growth rate in excess of 10% it'll be 7 years before the yield on initial investment will exceed 2%.
I also like the diversity of the product mix. It provides a dampening effect on the variability of the economy. I believe that some part of this company will be increasing sales and profits regardless of the state of the economy. That in combination with a low dividend payout ratio and it's easy to see that dividend increases should continue for years to come.
I believe this company has a lot of potential to become a very permanent part of my portfolio at some time in the near future. I just have to convince myself that a company with this much potential while at the same time having this little dividend yield is something worth holding for the long term. And that's going to be a difficult decision since there are so many great companies I'd like to accumulate. A significant pullback in the price of this stock resulting in the yield significantly increasing would easily push me into making a very favorable decision. This could be a great buy at the right price.
I also like the diversity of the product mix. It provides a dampening effect on the variability of the economy. I believe that some part of this company will be increasing sales and profits regardless of the state of the economy. That in combination with a low dividend payout ratio and it's easy to see that dividend increases should continue for years to come.
I believe this company has a lot of potential to become a very permanent part of my portfolio at some time in the near future. I just have to convince myself that a company with this much potential while at the same time having this little dividend yield is something worth holding for the long term. And that's going to be a difficult decision since there are so many great companies I'd like to accumulate. A significant pullback in the price of this stock resulting in the yield significantly increasing would easily push me into making a very favorable decision. This could be a great buy at the right price.
The Live Interactive Chart
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