NYSE:CRI is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jun 18, 2024

CARTER'S INC (NYSE:CRI) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:CRI showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Looking at the Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:CRI has achieved a 8 out of 10:

A Price/Earnings ratio of 10.22 indicates a reasonable valuation of CRI.
CRI's Price/Earnings ratio is rather cheap when compared to the industry. CRI is cheaper than 88.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CRI to the average of the S&P500 Index (28.66), we can say CRI is valued rather cheaply.
A Price/Forward Earnings ratio of 10.04 indicates a reasonable valuation of CRI.
CRI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CRI is cheaper than 86.00% of the companies in the same industry.
CRI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.15.
Based on the Enterprise Value to EBITDA ratio, CRI is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CRI is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
CRI has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: 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 8 out of 10:

CRI has a Return On Assets of 11.62%. This is amongst the best in the industry. CRI outperforms 84.00% of its industry peers.
With an excellent Return On Equity value of 31.56%, CRI belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
The Return On Invested Capital of CRI (15.80%) is better than 84.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRI is above the industry average of 10.76%.
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.
The Profit Margin of CRI (7.36%) is better than 78.00% of its industry peers.
CRI has a better Operating Margin (10.49%) than 76.00% of its industry peers.
In the last couple of years the Gross Margin of CRI has grown nicely.

Assessing Health for NYSE:CRI

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:CRI has earned a 7 out of 10:

CRI has an Altman-Z score of 3.94. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
CRI's Altman-Z score of 3.94 is fine compared to the rest of the industry. CRI outperforms 66.00% of its industry peers.
CRI has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
CRI's Debt to FCF ratio of 1.23 is fine compared to the rest of the industry. CRI outperforms 76.00% 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.
A Current Ratio of 2.43 indicates that CRI has no problem at all paying its short term obligations.

Deciphering NYSE:CRI's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CRI has achieved a 4 out of 10:

The Revenue has grown by 15.34% in the past year. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.