Investment Holding Profile: Carlisle Companies

Investment Holding Profile: Carlisle Companies

It’s easy to get caught up in the extreme headlines of short-term market volatility. But it’s important to remember that when you buy a stock, you don’t own a ticker, you own a piece of a business. To distract you from the market's crazy swings, we are profiling the businesses that make up the largest holdings in our SMID Cap Core Strategy.

Carlisle Companies RoofingToday we’re highlighting Carlisle Companies (CSL), another top holding as of June 30, 2022.

Carlisle Companies (CSL)

Background

Carlisle Companies (CSL) sells, installs, and maintains commercial roofing systems; the product used to reroof commercial buildings (such as a warehouse or an office building) is made by CSL.

Commercial roofing might seem like an odd holding, but this is a better business than one might suspect. CSL innovated its industry, developing products that are faster and easier to install. This innovation saves contractors precious time during roof installations. CSL also has a large base of third-party installers trained specifically on CSL’s catalog of products. 

Investment case

75% of CSL’s demand is for replacement roofing. This means that both the demand for the product and the opportunity for repeat customers might be higher than assumed. Speaking of demand, CSL is poised to offer more energy-efficient roofing options, expanding profits and meeting growing demand for eco-friendly options.

Risks

Possible risks could be excess capacity and a weakening demand for commercial reroofing as Americans explore hybrid and remote work environments. As with other industries, continuing labor and inventory shortages could threaten growth.

If you have additional questions about Carlisle Companies (CSL) or our SMID Cap Core Strategy, please contact us. Next time, we’ll profile our holding FTI Consulting (FCN).


Important Disclosures:
Investments highlighted were selected based on objective, non-performance-based selection criteria. Names are subject to change.

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