Analyzing NYSE:CRI's Dividend Potential.

Last update: Dec 7, 2023

Consider CARTER'S INC (NYSE:CRI) as a top pick for dividend investors, identified by our stock screening tool. NYSE:CRI shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Analyzing Dividend Metrics

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:CRI has achieved a 7 out of 10:

CRI has a Yearly Dividend Yield of 4.40%, which is a nice return.
Compared to an average industry Dividend Yield of 3.11, CRI pays a better dividend. On top of this CRI pays more dividend than 87.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.59, CRI pays a better dividend.
On average, the dividend of CRI grows each year by 23.76%, which is quite nice.
CRI has paid a dividend for at least 10 years, which is a reliable track record.

Health Insights: NYSE:CRI

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CRI was assigned a score of 6 for health:

An Altman-Z score of 3.94 indicates that CRI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.94, CRI is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
CRI has a debt to FCF ratio of 1.24. This is a very positive value and a sign of high solvency as it would only need 1.24 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.24, CRI is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
Although CRI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
A Current Ratio of 2.30 indicates that CRI has no problem at all paying its short term obligations.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CRI, the assigned 7 is a significant indicator of profitability:

CRI has a Return On Assets of 10.26%. This is amongst the best in the industry. CRI outperforms 81.63% of its industry peers.
CRI has a Return On Equity of 30.31%. This is amongst the best in the industry. CRI outperforms 89.80% of its industry peers.
CRI has a better Return On Invested Capital (15.27%) than 83.67% of its industry peers.
CRI had an Average Return On Invested Capital over the past 3 years of 13.54%. This is above the industry average of 10.76%.
The 3 year average ROIC (13.54%) for CRI is below the current ROIC(15.27%), indicating increased profibility in the last year.
With a decent Profit Margin value of 6.44%, CRI is doing good in the industry, outperforming 67.35% of the companies in the same industry.
Looking at the Operating Margin, with a value of 9.80%, CRI is in the better half of the industry, outperforming 73.47% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of CRI

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.