Analyzing NYSE:CRI's Dividend Potential.

Last update: Apr 9, 2024

CARTER'S INC (NYSE:CRI) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:CRI demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Dividend Examination for NYSE:CRI

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 4.15%, which is a nice return.
Compared to an average industry Dividend Yield of 2.84, CRI pays a better dividend. On top of this CRI pays more dividend than 94.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CRI pays a better dividend.
On average, the dividend of CRI grows each year by 27.93%, which is quite nice.
CRI has paid a dividend for at least 10 years, which is a reliable track record.

Health Assessment of NYSE:CRI

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CRI has earned a 7 out of 10:

An Altman-Z score of 3.97 indicates that CRI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.97, CRI is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
CRI has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
CRI has a Debt to FCF ratio of 1.06. This is in the better half of the industry: CRI outperforms 74.00% of its industry peers.
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.
CRI has a Current Ratio of 2.15. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.

Profitability Examination for NYSE:CRI

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 8 is a significant indicator of profitability:

CRI's Return On Assets of 11.08% is amongst the best of the industry. CRI outperforms 86.00% of its industry peers.
Looking at the Return On Equity, with a value of 31.19%, CRI belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
CRI has a Return On Invested Capital of 15.85%. This is amongst the best in the industry. CRI outperforms 86.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CRI is above the industry average of 10.10%.
The 3 year average ROIC (14.99%) for CRI is below the current ROIC(15.85%), indicating increased profibility in the last year.
The Profit Margin of CRI (7.24%) is better than 82.00% of its industry peers.
CRI's Operating Margin of 10.43% is fine compared to the rest of the industry. CRI outperforms 76.00% of its industry peers.
CRI's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found 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.