Why NYSE:CRI is a Top Pick for Dividend Investors.

Last update: Dec 12, 2024

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.

Dividend Examination 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 5.73%, CRI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.80, 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 2.20, CRI pays a better dividend.
The dividend of CRI is nicely growing with an annual growth rate of 27.93%!
CRI has paid a dividend for at least 10 years, which is a reliable track record.

Assessing Health Metrics 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 3.54. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
CRI's Altman-Z score of 3.54 is fine compared to the rest of the industry. CRI outperforms 68.00% of its industry peers.
CRI has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
CRI has a Debt to FCF ratio of 1.79. This is in the better half of the industry: CRI outperforms 66.00% 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.
CRI has a Current Ratio of 2.21. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.

Analyzing Profitability Metrics

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 7 out of 10:

CRI's Return On Assets of 11.08% is amongst the best of the industry. CRI outperforms 84.00% of its industry peers.
The Return On Equity of CRI (31.76%) is better than 88.00% of its industry peers.
CRI has a Return On Invested Capital of 14.92%. This is amongst the best in the industry. CRI outperforms 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 11.45%.
CRI's Profit Margin of 7.52% is fine compared to the rest of the industry. CRI outperforms 76.00% of its industry peers.
With a decent Operating Margin value of 10.35%, CRI is doing good in the industry, outperforming 78.00% of the companies in the same industry.
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

Disclaimer

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.