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

Last update: May 22, 2024

CARTER'S INC (NYSE:CRI) has caught the attention of dividend investors as a stock worth considering. NYSE:CRI excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

A Closer Look at Dividend for NYSE:CRI

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:CRI has been awarded a 7 for its dividend quality:

With a Yearly Dividend Yield of 4.59%, CRI is a good candidate for dividend investing.
CRI's Dividend Yield is rather good when compared to the industry average which is at 2.72. CRI pays more dividend than 94.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, 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.

Assessing Health Metrics for NYSE:CRI

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CRI has achieved a 7 out of 10:

An Altman-Z score of 4.00 indicates that CRI is not in any danger for bankruptcy at the moment.
CRI has a better Altman-Z score (4.00) than 66.00% of its industry peers.
The Debt to FCF ratio of CRI is 1.23, which is an excellent value as it means it would take CRI, only 1.23 years of fcf income to pay off all of its debts.
CRI's Debt to FCF ratio of 1.23 is fine compared to the rest 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.
A Current Ratio of 2.43 indicates that CRI has no problem at all paying its short term obligations.

Profitability Insights: NYSE:CRI

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CRI, the assigned 8 is noteworthy for profitability:

CRI has a Return On Assets of 11.62%. This is amongst the best in the industry. CRI outperforms 86.00% of its industry peers.
CRI has a Return On Equity of 31.56%. This is amongst the best in the industry. CRI outperforms 86.00% of its industry peers.
CRI has a better Return On Invested Capital (15.80%) than 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 10.32%.
The last Return On Invested Capital (15.80%) for CRI is above the 3 year average (14.99%), which is a sign of increasing profitability.
CRI's Profit Margin of 7.36% is fine compared to the rest of the industry. CRI outperforms 80.00% of its industry peers.
CRI has a Operating Margin of 10.49%. This is in the better half of the industry: CRI outperforms 76.00% of its industry peers.
In the last couple of years the Gross Margin of CRI has grown nicely.

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

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.