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.

ChartMill's Evaluation of Dividend

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:

• With a Yearly Dividend Yield of 5.13%, CRI is a good candidate for dividend investing.
• 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 2.29, 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

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 3.87. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of CRI (3.87) is better than 64.00% 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 has a better Debt to FCF ratio (1.23) than 78.00% 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.

Assessing Profitability for 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:

• The Return On Assets of CRI (11.62%) is better than 82.00% of its industry peers.
• Looking at the Return On Equity, with a value of 31.56%, CRI belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
• CRI has a better Return On Invested Capital (15.80%) than 86.00% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for CRI is above the industry average of 10.62%.
• 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.
• Looking at the Profit Margin, with a value of 7.36%, CRI is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
• 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.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Keep in mind

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.