Carlisle Isn't Flashy, But Has Some Dependable Multiyear Growth Drivers

 

It’s been quite a while since I wrote about Carlisle Companies (CSL); at the time I said I saw high single-digit annualized return potential from the company in line with the broader market. That was half-right, as the shares have more or less matched the S&P 500 since then, but have returned closer to 14% a year (or 15% if you reinvested dividends along the way), and have modestly outperformed the broader industrial space as well.

I continue to see Carlisle as a “sector/market-plus” sort of stock. I’d like to see more internal improvement from the Fluid Technologies business (aka CFT), but I like the long-term leverage to greener construction in Construction Materials (or CCM) and aerospace (Carlisle Interconnect Technologies (or CIT)). I don’t think Carlisle is remarkably cheap on its own, but that reflects my broader feelings about the market and industrials in general, and the valuation is at least reasonable or better on a relative basis.

 

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Carlisle Isn't Flashy, But Has Some Dependable Multiyear Growth Drivers