Why NYSE:CRI provides a good dividend, while having solid fundamentals.

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.

How do we evaluate the Dividend for NYSE:CRI?

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:CRI earns a 7 out of 10:

• CRI has a Yearly Dividend Yield of 4.57%, which is a nice return.
• CRI's Dividend Yield is rather good when compared to the industry average which is at 2.89. CRI pays more dividend than 94.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.40, 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.

How We Gauge Health for NYSE:CRI

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CRI, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 3.88 indicates that CRI is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.88, CRI is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
• The Debt to FCF ratio of CRI is 1.06, which is an excellent value as it means it would take CRI, only 1.06 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 1.06, CRI is doing good in the industry, outperforming 74.00% 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.
• 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.

Looking at the Profitability

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 8 out of 10:

• CRI's Return On Assets of 11.08% is amongst the best of the industry. CRI outperforms 86.00% of its industry peers.
• CRI's Return On Equity of 31.19% is amongst the best of the industry. CRI outperforms 86.00% of its industry peers.
• 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 10.08%.
• The 3 year average ROIC (14.99%) for CRI is below the current ROIC(15.85%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 7.24%, CRI belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 10.43%, CRI is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
• CRI's Gross Margin has improved in the last couple of years.

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

Our latest full fundamental report of CRI contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.