Is NYSE:CRI a Good Fit for Dividend Investing?

Last update: Oct 21, 2024

Unearth the potential of CARTER'S INC (NYSE:CRI) as a dividend stock recommended by our stock screening tool. NYSE:CRI maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Examination for NYSE:CRI

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:CRI scores a 7 out of 10:

CRI has a Yearly Dividend Yield of 4.78%, which is a nice return.
CRI's Dividend Yield is rather good when compared to the industry average which is at 2.84. CRI pays more dividend than 94.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.18, 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.

Assessing Health for NYSE:CRI

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CRI has earned a 8 out of 10:

CRI has an Altman-Z score of 3.42. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.42, CRI is doing good in the industry, outperforming 68.00% of the companies in the same industry.
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 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 2.09 indicates that CRI has no problem at all paying its short term obligations.
The current and quick ratio evaluation for CRI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Exploring NYSE:CRI's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CRI has earned a 8 out of 10:

CRI has a better Return On Assets (9.93%) than 82.00% of its industry peers.
CRI has a Return On Equity of 28.80%. This is amongst the best in the industry. CRI outperforms 86.00% of its industry peers.
With an excellent Return On Invested Capital value of 13.81%, CRI belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
CRI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is above the industry average of 11.90%.
Looking at the Profit Margin, with a value of 8.13%, CRI is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
Looking at the Operating Margin, with a value of 11.27%, CRI belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
CRI's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

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.