CRA INTERNATIONAL INC (CRAI) Stock Fundamental Analysis
NASDAQ:CRAI - Nasdaq - US12618T1051 - Common Stock - Currency: USD
CRAI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. Both the profitability and the financial health of CRAI get a neutral evaluation. Nothing too spectacular is happening here. CRAI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
CRAI had positive earnings in the past year.
CRAI had a positive operating cash flow in the past year.
CRAI had positive earnings in 4 of the past 5 years.
Of the past 5 years CRAI 4 years had a positive operating cash flow.
1.2 Ratios
CRAI has a Return On Assets of 7.38%. This is in the better half of the industry: CRAI outperforms 73.42% of its industry peers.
CRAI's Return On Equity of 21.02% is fine compared to the rest of the industry. CRAI outperforms 72.15% of its industry peers.
CRAI has a Return On Invested Capital of 13.12%. This is in the better half of the industry: CRAI outperforms 75.95% of its industry peers.
CRAI had an Average Return On Invested Capital over the past 3 years of 12.81%. This is in line with the industry average of 13.65%.
The 3 year average ROIC (12.81%) for CRAI is below the current ROIC(13.12%), indicating increased profibility in the last year.
| 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's Profit Margin of 6.39% is fine compared to the rest of the industry. CRAI outperforms 69.62% of its industry peers.
CRAI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.88%, CRAI is doing good in the industry, outperforming 74.68% of the companies in the same industry.
CRAI's Operating Margin has improved in the last couple of years.
CRAI's Gross Margin of 29.81% is on the low side compared to the rest of the industry. CRAI is outperformed by 63.29% of its industry peers.
CRAI's Gross Margin has been stable in the last couple of years.
| 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.
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 4.35. This indicates that CRAI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.35, CRAI is doing good in the industry, outperforming 79.75% of the companies in the same industry.
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.
The Debt to FCF ratio of CRAI (2.50) is better than 67.09% of its industry peers.
CRAI has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.29, CRAI is in line with its industry, outperforming 53.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.45
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CRAI should not have too much problems paying its short term obligations.
The Current ratio of CRAI (1.06) is worse than 70.89% of its industry peers.
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.
CRAI's Quick ratio of 1.06 is on the low side compared to the rest of the industry. CRAI is outperformed by 70.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.25% over the past year.
Measured over the past years, CRAI shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.24% on average per year.
EPS 1Y (TTM)38.25%
EPS 3Y11.47%
EPS 5Y20.24%
EPS Q2Q%24.54%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.17%
3.2 Future
CRAI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.72% yearly.
The Revenue is expected to grow by 1.61% on average over the next years.
EPS Next Y3.3%
EPS Next 2Y4.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.4%
Revenue Next 2Y1.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS 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 26.48, 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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.64 indicates a quite expensive valuation of CRAI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRAI is on the same level as its industry peers.
CRAI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.48 | ||
| Fwd PE | 25.64 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CRAI.
63.29% of the companies in the same industry are cheaper than CRAI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.72 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CRAI does not grow enough to justify the current Price/Earnings ratio.
CRAI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.03
PEG (5Y)1.31
EPS Next 2Y4.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CRAI has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
CRAI's Dividend Yield is a higher than the industry average which is at 1.93.
With a Dividend Yield of 1.03, CRAI pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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 2Y4.72%
EPS Next 3YN/A
200.99
-9.98 (-4.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.05%
Inst Owner Change4.27%
Ins Owners4.12%
Ins Owner Change-2.04%
Market Cap1.36B
Analysts82.5
Price Target215.22 (7.08%)
Short Float %0.78%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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)2.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.48 | ||
| Fwd PE | 25.64 | ||
| P/S | 2.03 | ||
| P/FCF | 56.72 | ||
| P/OCF | 44.81 | ||
| P/B | 6.66 | ||
| P/tB | 13.32 | ||
| EV/EBITDA | 18.08 |
EPS(TTM)7.59
EY3.78%
EPS(NY)7.84
Fwd EY3.9%
FCF(TTM)3.54
FCFY1.76%
OCF(TTM)4.49
OCFY2.23%
SpS99.2
BVpS30.16
TBVpS15.09
PEG (NY)8.03
PEG (5Y)1.31
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 | 4.35 |
F-Score7
WACC9.06%
ROIC/WACC1.45
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)38.25%
EPS 3Y11.47%
EPS 5Y20.24%
EPS Q2Q%24.54%
EPS Next Y3.3%
EPS Next 2Y4.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.17%
Revenue Next Year3.4%
Revenue Next 2Y1.61%
Revenue Next 3YN/A
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%