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

Last update: Aug 15, 2024

Discover CARTER'S INC (NYSE:CRI)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:CRI showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

What does the Dividend looks like for NYSE:CRI

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:CRI was assigned a score of 7 for dividend:

With a Yearly Dividend Yield of 5.14%, CRI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.98, CRI pays a better dividend. On top of this CRI pays more dividend than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, CRI pays a better dividend.
The dividend of CRI is nicely growing with an annual growth rate of 27.93%!
CRI has been paying a dividend for at least 10 years, so it has a reliable track record.

Exploring NYSE:CRI's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CRI was assigned a score of 6 for health:

CRI has an Altman-Z score of 3.36. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
The Debt to FCF ratio of CRI is 1.41, which is an excellent value as it means it would take CRI, only 1.41 years of fcf income to pay off all of its debts.
CRI has a Debt to FCF ratio of 1.41. This is in the better half of the industry: CRI outperforms 72.55% 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 2.09 indicates that CRI has no problem at all paying its short term obligations.

Evaluating Profitability: 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's Return On Assets of 9.93% is amongst the best of the industry. CRI outperforms 80.39% of its industry peers.
CRI has a better Return On Equity (28.80%) than 82.35% of its industry peers.
CRI's Return On Invested Capital of 13.81% is amongst the best of the industry. CRI outperforms 80.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRI is above the industry average of 11.98%.
CRI has a better Profit Margin (8.13%) than 78.43% of its industry peers.
CRI has a Operating Margin of 11.27%. This is amongst the best in the industry. CRI outperforms 82.35% of its industry peers.
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.

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

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.