Uncovering Dividend Opportunities with NYSE:CRI.

Last update: Nov 12, 2024

CARTER'S INC (NYSE:CRI) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:CRI scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

How We Gauge 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:

CRI has a Yearly Dividend Yield of 6.12%, which is a nice return.
CRI's Dividend Yield is rather good when compared to the industry average which is at 2.93. CRI pays more dividend than 94.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.21, 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.

A Closer Look at Health for NYSE:CRI

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CRI has received a 6 out of 10:

CRI has an Altman-Z score of 3.52. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
CRI's Altman-Z score of 3.52 is fine compared to the rest of the industry. CRI outperforms 72.00% of its industry peers.
The Debt to FCF ratio of CRI is 1.79, which is an excellent value as it means it would take CRI, only 1.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.79, CRI is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
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 2.21 indicates that CRI has no problem at all paying its short term obligations.

Exploring NYSE:CRI's Profitability

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 7 is noteworthy for profitability:

CRI's Return On Assets of 11.08% is amongst the best of the industry. CRI outperforms 84.00% of its industry peers.
CRI has a Return On Equity of 31.76%. This is amongst the best in the industry. CRI outperforms 88.00% of its industry peers.
The Return On Invested Capital of CRI (14.92%) is better than 82.00% of its industry peers.
CRI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is above the industry average of 11.52%.
CRI's Profit Margin of 7.52% is fine compared to the rest of the industry. CRI outperforms 76.00% of its industry peers.
The Operating Margin of CRI (10.35%) is better than 78.00% 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

Disclaimer

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.