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

Last update: Jan 3, 2025

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.

Understanding NYSE:CRI's Dividend Score

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:CRI has been assigned a 7 for dividend:

CRI has a Yearly Dividend Yield of 5.73%, which is a nice return.
Compared to an average industry Dividend Yield of 2.83, CRI pays a better dividend. On top of this CRI pays more dividend than 93.75% of the companies listed in the same industry.
CRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
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.

Health Assessment of NYSE:CRI

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:CRI, the assigned 7 reflects its health status:

CRI has an Altman-Z score of 3.53. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.53, CRI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
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 better Debt to FCF ratio (1.79) than 66.67% 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 2.21 indicates that CRI has no problem at all paying its short term obligations.

Evaluating Profitability: NYSE:CRI

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CRI, the assigned 7 is a significant indicator of profitability:

CRI has a better Return On Assets (11.08%) than 85.42% of its industry peers.
The Return On Equity of CRI (31.76%) is better than 89.58% of its industry peers.
The Return On Invested Capital of CRI (14.92%) is better than 83.33% 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 11.25%.
The Profit Margin of CRI (7.52%) is better than 77.08% of its industry peers.
CRI's Operating Margin of 10.35% is fine compared to the rest of the industry. CRI outperforms 79.17% of its industry peers.
CRI's Gross Margin has improved in the last couple of years.

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

Our latest full fundamental report of CRI contains the most current fundamental analsysis.

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.