Is NYSE:CRI suited for dividend investing?

Last update: Jan 29, 2025

Our stock screening tool has identified CARTER'S INC (NYSE:CRI) as a strong dividend contender with robust fundamentals. NYSE:CRI exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Exploring NYSE:CRI's Dividend

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:

CRI has a Yearly Dividend Yield of 5.86%, which is a nice return.
CRI's Dividend Yield is rather good when compared to the industry average which is at 2.78. CRI pays more dividend than 95.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, 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.

ChartMill's Evaluation of 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 7 for health:

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.
CRI's Altman-Z score of 3.53 is fine compared to the rest of the industry. CRI outperforms 67.35% 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's Debt to FCF ratio of 1.79 is fine compared to the rest of the industry. CRI outperforms 67.35% 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.
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 assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:CRI was assigned a score of 7 for profitability:

Looking at the Return On Assets, with a value of 11.08%, CRI belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
With an excellent Return On Equity value of 31.76%, CRI belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
The Return On Invested Capital of CRI (14.92%) is better than 81.63% 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 11.39%.
Looking at the Profit Margin, with a value of 7.52%, CRI is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
With a decent Operating Margin value of 10.35%, CRI is doing good in the industry, outperforming 79.59% of the companies in the same industry.
In the last couple of years the Gross Margin of CRI has grown nicely.

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

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

Keep in mind

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.