Is CARTER'S INC (NYSE:CRI) suited for dividend investing?

Last update: Apr 5, 2025

Our stock screener has singled out CARTER'S INC (NYSE:CRI) as a promising choice for dividend investors. CRI not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Evaluating Dividend: 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. CRI scores a 7 out of 10:

CRI has a Yearly Dividend Yield of 7.75%, which is a nice return.
CRI's Dividend Yield is rather good when compared to the industry average which is at 3.46. CRI pays more dividend than 96.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CRI pays a better dividend.
The dividend of CRI is nicely growing with an annual growth rate of 16.75%!
CRI has paid a dividend for at least 10 years, which is a reliable track record.

Health Examination for 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. CRI has earned a 7 out of 10:

An Altman-Z score of 3.22 indicates that CRI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.22, CRI is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
The Debt to FCF ratio of CRI is 2.05, which is a good value as it means it would take CRI, 2.05 years of fcf income to pay off all of its debts.
CRI has a better Debt to FCF ratio (2.05) than 72.00% 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 2.25 indicates that CRI has no problem at all paying its short term obligations.
CRI has a Current ratio of 2.25. This is in the better half of the industry: CRI outperforms 66.00% of its industry peers.

Profitability Assessment of CRI

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 CRI, the assigned 6 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 9.01%, CRI is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.65%, CRI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
CRI's Return On Invested Capital of 13.89% is fine compared to the rest of the industry. CRI outperforms 76.00% of its industry peers.
The last Return On Invested Capital (13.89%) for CRI is above the 3 year average (13.75%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 6.25%, CRI is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
CRI has a Operating Margin of 9.69%. This is in the better half of the industry: CRI outperforms 68.00% 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.

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.