CRA INTERNATIONAL INC (CRAI) Stock Fundamental Analysis
NASDAQ:CRAI - Nasdaq - US12618T1051 - Common Stock
We assign a fundamental rating of 6 out of 10 to CRAI. CRAI was compared to 82 industry peers in the Professional Services industry. CRAI has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, CRAI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CRAI had positive earnings in the past year.
In the past year CRAI had a positive cash flow from operations.
Each year in the past 5 years CRAI has been profitable.
Each year in the past 5 years CRAI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.38%, CRAI is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
CRAI's Return On Equity of 21.02% is fine compared to the rest of the industry. CRAI outperforms 73.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.12%, CRAI is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CRAI is in line with the industry average of 13.48%.
The last Return On Invested Capital (13.12%) for CRAI is above the 3 year average (12.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 21.02% | ||
| ROIC | 13.12% |
ROA(3y)7.43%
ROA(5y)6.11%
ROE(3y)19.61%
ROE(5y)16.2%
ROIC(3y)12.81%
ROIC(5y)10.31%
1.3 Margins
CRAI has a better Profit Margin (6.39%) than 72.15% of its industry peers.
In the last couple of years the Profit Margin of CRAI has grown nicely.
CRAI has a better Operating Margin (9.88%) than 73.42% of its industry peers.
CRAI's Operating Margin has improved in the last couple of years.
CRAI has a worse Gross Margin (29.81%) than 63.29% of its industry peers.
In the last couple of years the Gross Margin of CRAI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.88% | ||
| PM (TTM) | 6.39% | ||
| GM | 29.81% |
OM growth 3Y10.45%
OM growth 5Y5.91%
PM growth 3Y8.59%
PM growth 5Y2.76%
GM growth 3Y2.92%
GM growth 5Y-0.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRAI is still creating some value.
CRAI has less shares outstanding than it did 1 year ago.
CRAI has less shares outstanding than it did 5 years ago.
There is no outstanding debt for CRAI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CRAI has an Altman-Z score of 4.08. This indicates that CRAI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CRAI (4.08) is better than 72.15% of its industry peers.
CRAI has a debt to FCF ratio of 2.50. This is a good value and a sign of high solvency as CRAI would need 2.50 years to pay back of all of its debts.
CRAI has a Debt to FCF ratio of 2.50. This is in the better half of the industry: CRAI outperforms 68.35% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that CRAI is not too dependend on debt financing.
CRAI has a Debt to Equity ratio (0.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.4
WACC9.34%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CRAI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, CRAI is doing worse than 70.89% of the companies in the same industry.
CRAI has a Quick Ratio of 1.06. This is a normal value and indicates that CRAI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.06, CRAI is doing worse than 70.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
CRAI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.38%, which is quite impressive.
Measured over the past years, CRAI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.69% on average per year.
CRAI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.73%.
The Revenue has been growing by 8.36% on average over the past years. This is quite good.
EPS 1Y (TTM)42.38%
EPS 3Y17.9%
EPS 5Y13.69%
EPS Q2Q%56.64%
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.07%
Revenue growth 5Y8.36%
Sales Q2Q%13.69%
3.2 Future
Based on estimates for the next years, CRAI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.88% on average per year.
The Revenue is expected to grow by 4.57% on average over the next years.
EPS Next Y33.34%
EPS Next 2Y19.5%
EPS Next 3Y14.88%
EPS Next 5YN/A
Revenue Next Year10.75%
Revenue Next 2Y7.01%
Revenue Next 3Y4.57%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.86, CRAI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CRAI is on the same level as its industry peers.
CRAI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
CRAI is valuated rather expensively with a Price/Forward Earnings ratio of 23.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRAI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, CRAI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 23.72 |
4.2 Price Multiples
CRAI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CRAI is valued a bit more expensive than 60.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.48 | ||
| EV/EBITDA | 15.9 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CRAI may justify a higher PE ratio.
CRAI's earnings are expected to grow with 14.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)1.89
EPS Next 2Y19.5%
EPS Next 3Y14.88%
5. Dividend
5.1 Amount
CRAI has a Yearly Dividend Yield of 1.07%.
CRAI's Dividend Yield is a higher than the industry average which is at 1.82.
Compared to an average S&P500 Dividend Yield of 2.28, CRAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
CRAI has been paying a dividend for over 5 years, so it has already some track record.
As CRAI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)N/A
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
CRAI pays out 27.65% of its income as dividend. This is a sustainable payout ratio.
DP27.65%
EPS Next 2Y19.5%
EPS Next 3Y14.88%
CRA INTERNATIONAL INC
NASDAQ:CRAI (1/21/2025, 8:00:00 PM)
After market: 185.95 0 (0%)185.95
+3.2 (+1.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.05%
Inst Owner Change-0.17%
Ins Owners4.12%
Ins Owner Change-2.5%
Market Cap1.26B
Analysts82.5
Price Target215.22 (15.74%)
Short Float %1.11%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend1.54
Dividend Growth(5Y)N/A
DP27.65%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.72%
Min EPS beat(2)9.83%
Max EPS beat(2)19.61%
EPS beat(4)4
Avg EPS beat(4)27.88%
Min EPS beat(4)9.83%
Max EPS beat(4)44.84%
EPS beat(8)5
Avg EPS beat(8)9.21%
EPS beat(12)9
Avg EPS beat(12)14.31%
EPS beat(16)13
Avg EPS beat(16)21.78%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)-0.1%
Revenue beat(4)2
Avg Revenue beat(4)2.03%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)5.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.83%
Revenue beat(12)4
Avg Revenue beat(12)-0.54%
Revenue beat(16)7
Avg Revenue beat(16)0.76%
PT rev (1m)0%
PT rev (3m)9.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.63%
EPS NY rev (1m)0%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 23.72 | ||
| P/S | 1.87 | ||
| P/FCF | 52.48 | ||
| P/OCF | 41.45 | ||
| P/B | 6.16 | ||
| P/tB | 12.32 | ||
| EV/EBITDA | 15.9 |
EPS(TTM)7.19
EY3.87%
EPS(NY)7.84
Fwd EY4.22%
FCF(TTM)3.54
FCFY1.91%
OCF(TTM)4.49
OCFY2.41%
SpS99.2
BVpS30.16
TBVpS15.09
PEG (NY)0.78
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 21.02% | ||
| ROCE | 21.15% | ||
| ROIC | 13.12% | ||
| ROICexc | 14.04% | ||
| ROICexgc | 19.84% | ||
| OM | 9.88% | ||
| PM (TTM) | 6.39% | ||
| GM | 29.81% | ||
| FCFM | 3.57% |
ROA(3y)7.43%
ROA(5y)6.11%
ROE(3y)19.61%
ROE(5y)16.2%
ROIC(3y)12.81%
ROIC(5y)10.31%
ROICexc(3y)14.96%
ROICexc(5y)11.91%
ROICexgc(3y)23%
ROICexgc(5y)17.95%
ROCE(3y)17.33%
ROCE(5y)13.96%
ROICexcg growth 3Y28.46%
ROICexcg growth 5Y1.97%
ROICexc growth 3Y23.95%
ROICexc growth 5Y6.89%
OM growth 3Y10.45%
OM growth 5Y5.91%
PM growth 3Y8.59%
PM growth 5Y2.76%
GM growth 3Y2.92%
GM growth 5Y-0.82%
F-Score7
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.5 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 56.5% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 17.84 | ||
| Cash Conversion | 39.12% | ||
| Profit Quality | 55.88% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.08 |
F-Score7
WACC9.34%
ROIC/WACC1.4
Cap/Depr(3y)24.24%
Cap/Depr(5y)72.63%
Cap/Sales(3y)0.5%
Cap/Sales(5y)1.71%
Profit Quality(3y)125.19%
Profit Quality(5y)116.67%
High Growth Momentum
Growth
EPS 1Y (TTM)42.38%
EPS 3Y17.9%
EPS 5Y13.69%
EPS Q2Q%56.64%
EPS Next Y33.34%
EPS Next 2Y19.5%
EPS Next 3Y14.88%
EPS Next 5YN/A
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.07%
Revenue growth 5Y8.36%
Sales Q2Q%13.69%
Revenue Next Year10.75%
Revenue Next 2Y7.01%
Revenue Next 3Y4.57%
Revenue Next 5YN/A
EBIT growth 1Y23.73%
EBIT growth 3Y18.25%
EBIT growth 5Y14.77%
EBIT Next Year65.68%
EBIT Next 3Y18.5%
EBIT Next 5YN/A
FCF growth 1Y4.96%
FCF growth 3Y15.38%
FCF growth 5Y22.71%
OCF growth 1Y13.57%
OCF growth 3Y3.2%
OCF growth 5Y10.67%