Why the dividend investor may take a look at NYSE:CRI.

Our stock screener has spotted CARTER'S INC (NYSE:CRI) as a good dividend stock with solid fundamentals. NYSE:CRI shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Insights: NYSE:CRI

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:CRI has been assigned a 7 for dividend:

• With a Yearly Dividend Yield of 4.01%, CRI is a good candidate for dividend investing.
• CRI's Dividend Yield is rather good when compared to the industry average which is at 2.92. CRI pays more dividend than 91.84% of the companies in the same industry.
• CRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
• The dividend of CRI is nicely growing with an annual growth rate of 23.76%!
• CRI has paid a dividend for at least 10 years, which is a reliable track record.

How do we evaluate the Health for 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 4.00 indicates that CRI is not in any danger for bankruptcy at the moment.
• CRI's Altman-Z score of 4.00 is fine compared to the rest of the industry. CRI outperforms 65.31% of its industry peers.
• 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.
• CRI has a Debt to FCF ratio of 1.24. This is in the better half of the industry: CRI outperforms 71.43% of its industry peers.
• Even though the debt/equity ratio score it not favorable for CRI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• CRI has a Current Ratio of 2.30. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.

Profitability Insights: NYSE:CRI

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CRI scores a 7 out of 10:

• CRI's Return On Assets of 10.26% is amongst the best of 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 87.76% of its industry peers.
• CRI's Return On Invested Capital of 15.27% is amongst the best of the industry. CRI outperforms 83.67% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for CRI is above the industry average of 10.59%.
• The 3 year average ROIC (13.54%) for CRI is below the current ROIC(15.27%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 6.44%, CRI is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
• With a decent Operating Margin value of 9.80%, CRI is doing good in the industry, outperforming 73.47% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of CRI for a complete fundamental analysis.

Disclaimer

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.