Why the dividend investor may take a look at NYSE:CRI.

Discover CARTER'S INC (NYSE:CRI)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:CRI showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Dividend Insights: 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 6.19%, 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 95.92% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.30, 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.

ChartMill's Evaluation of Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CRI, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 3.50 indicates that CRI is not in any danger for bankruptcy at the moment.
• CRI has a better Altman-Z score (3.50) than 69.39% 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.
• With a decent Debt to FCF ratio value of 1.79, CRI is doing good in the industry, outperforming 67.35% 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.
• 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.

Evaluating Profitability: NYSE:CRI

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:

• With an excellent Return On Assets value of 11.08%, CRI belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
• CRI has a Return On Equity of 31.76%. This is amongst the best in the industry. CRI outperforms 85.71% of its industry peers.
• With a decent Return On Invested Capital value of 14.92%, CRI is doing good in the industry, outperforming 77.55% 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 11.76%.
• With a decent Profit Margin value of 7.52%, CRI is doing good in the industry, outperforming 77.55% of the companies in the same industry.
• CRI has a Operating Margin of 10.35%. This is in the better half of the industry: CRI outperforms 77.55% of its industry peers.
• 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.

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.