CRA INTERNATIONAL INC (CRAI) Stock Fundamental Analysis
NASDAQ:CRAI - Nasdaq - US12618T1051 - Common Stock - Currency: USD
Overall CRAI gets a fundamental rating of 5 out of 10. We evaluated CRAI against 81 industry peers in the Professional Services industry. While CRAI has a great profitability rating, there are some minor concerns on its financial health. CRAI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years CRAI has always been profitable.
In the past 5 years CRAI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.61%, CRAI is doing good in the industry, outperforming 76.54% of the companies in the same industry.
The Return On Equity of CRAI (22.36%) is better than 71.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.64%, CRAI belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CRAI is in line with the industry average of 12.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 22.36% | ||
| ROIC | 13.64% |
ROA(3y)7.66%
ROA(5y)6.96%
ROE(3y)20.2%
ROE(5y)18.49%
ROIC(3y)13.88%
ROIC(5y)12.07%
1.3 Margins
Looking at the Profit Margin, with a value of 7.29%, CRAI is in the better half of the industry, outperforming 72.84% of the companies in the same industry.
CRAI's Profit Margin has improved in the last couple of years.
The Operating Margin of CRAI (10.99%) is better than 77.78% of its industry peers.
In the last couple of years the Operating Margin of CRAI has grown nicely.
CRAI's Gross Margin of 30.98% is on the low side compared to the rest of the industry. CRAI is outperformed by 60.49% of its industry peers.
CRAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.99% | ||
| PM (TTM) | 7.29% | ||
| GM | 30.98% |
OM growth 3Y1.5%
OM growth 5Y9.66%
PM growth 3Y-2.64%
PM growth 5Y8.1%
GM growth 3Y0.98%
GM growth 5Y0.39%
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.
Compared to 1 year ago, CRAI has less shares outstanding
The number of shares outstanding for CRAI has been reduced compared to 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
An Altman-Z score of 4.35 indicates that CRAI is not in any danger for bankruptcy at the moment.
CRAI has a better Altman-Z score (4.35) than 74.07% of its industry peers.
CRAI has a debt to FCF ratio of 5.33. This is a neutral value as CRAI would need 5.33 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.33, CRAI perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
CRAI has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.37, CRAI perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.53
WACC8.93%
2.3 Liquidity
CRAI has a Current Ratio of 1.03. This is a normal value and indicates that CRAI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CRAI (1.03) is worse than 71.60% of its industry peers.
CRAI has a Quick Ratio of 1.03. 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 1.03, CRAI is doing worse than 71.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.85% over the past year.
CRAI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.24% yearly.
The Revenue has grown by 8.47% in the past year. This is quite good.
Measured over the past years, CRAI shows a quite strong growth in Revenue. The Revenue has been growing by 8.78% on average per year.
EPS 1Y (TTM)27.85%
EPS 3Y11.47%
EPS 5Y20.24%
EPS Q2Q%13.27%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y6.7%
Revenue growth 5Y8.78%
Sales Q2Q%5.86%
3.2 Future
CRAI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.38% yearly.
The Revenue is expected to grow by 5.67% on average over the next years.
EPS Next Y8.09%
EPS Next 2Y7.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.86%
Revenue Next 2Y5.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 24.90 indicates a rather expensive valuation of CRAI.
CRAI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.28. CRAI is around the same levels.
Based on the Price/Forward Earnings ratio of 22.33, the valuation of CRAI can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRAI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of CRAI to the average of the S&P500 Index (21.76), we can say CRAI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 22.33 |
4.2 Price Multiples
CRAI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CRAI is cheaper than 60.49% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRAI indicates a slightly more expensive valuation: CRAI is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.43 | ||
| EV/EBITDA | 14.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CRAI may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)1.23
EPS Next 2Y7.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CRAI has a Yearly Dividend Yield of 1.05%.
CRAI's Dividend Yield is a higher than the industry average which is at 2.12.
Compared to an average S&P500 Dividend Yield of 2.42, CRAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of CRAI is nicely growing with an annual growth rate of 24.11%!
CRAI has paid a dividend for at least 10 years, which is a reliable track record.
CRAI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)24.11%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
25.01% of the earnings are spent on dividend by CRAI. This is a low number and sustainable payout ratio.
The dividend of CRAI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.01%
EPS Next 2Y7.38%
EPS Next 3YN/A
195.45
+3.5 (+1.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.31%
Inst Owner Change0.07%
Ins Owners3.88%
Ins Owner Change-2.56%
Market Cap1.33B
Analysts82.5
Price Target242.25 (23.94%)
Short Float %2.37%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend1.8
Dividend Growth(5Y)24.11%
DP25.01%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.36%
Min EPS beat(2)11.61%
Max EPS beat(2)23.1%
EPS beat(4)4
Avg EPS beat(4)16.04%
Min EPS beat(4)9.83%
Max EPS beat(4)23.1%
EPS beat(8)7
Avg EPS beat(8)16.09%
EPS beat(12)9
Avg EPS beat(12)13.32%
EPS beat(16)13
Avg EPS beat(16)18.74%
Revenue beat(2)2
Avg Revenue beat(2)2.32%
Min Revenue beat(2)0.94%
Max Revenue beat(2)3.69%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)3.69%
Revenue beat(8)5
Avg Revenue beat(8)0.63%
Revenue beat(12)5
Avg Revenue beat(12)-0.4%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)0.85%
PT rev (3m)0.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)4.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 22.33 | ||
| P/S | 1.91 | ||
| P/FCF | 83.43 | ||
| P/OCF | 40.55 | ||
| P/B | 5.86 | ||
| P/tB | 10.53 | ||
| EV/EBITDA | 14.4 |
EPS(TTM)7.85
EY4.02%
EPS(NY)8.75
Fwd EY4.48%
FCF(TTM)2.34
FCFY1.2%
OCF(TTM)4.82
OCFY2.47%
SpS102.42
BVpS33.38
TBVpS18.55
PEG (NY)3.08
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 22.36% | ||
| ROCE | 23.97% | ||
| ROIC | 13.64% | ||
| ROICexc | 14.56% | ||
| ROICexgc | 19.84% | ||
| OM | 10.99% | ||
| PM (TTM) | 7.29% | ||
| GM | 30.98% | ||
| FCFM | 2.29% |
ROA(3y)7.66%
ROA(5y)6.96%
ROE(3y)20.2%
ROE(5y)18.49%
ROIC(3y)13.88%
ROIC(5y)12.07%
ROICexc(3y)15.53%
ROICexc(5y)13.83%
ROICexgc(3y)23.95%
ROICexgc(5y)21.04%
ROCE(3y)19.28%
ROCE(5y)16.76%
ROICexcg growth 3Y6.51%
ROICexcg growth 5Y24.79%
ROICexc growth 3Y6.14%
ROICexc growth 5Y22.57%
OM growth 3Y1.5%
OM growth 5Y9.66%
PM growth 3Y-2.64%
PM growth 5Y8.1%
GM growth 3Y0.98%
GM growth 5Y0.39%
F-Score7
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 137.18% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 18.32 | ||
| Cash Conversion | 36.89% | ||
| Profit Quality | 31.38% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.35 |
F-Score7
WACC8.93%
ROIC/WACC1.53
Cap/Depr(3y)64.86%
Cap/Depr(5y)69.64%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.45%
Profit Quality(3y)90.22%
Profit Quality(5y)120.14%
High Growth Momentum
Growth
EPS 1Y (TTM)27.85%
EPS 3Y11.47%
EPS 5Y20.24%
EPS Q2Q%13.27%
EPS Next Y8.09%
EPS Next 2Y7.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.47%
Revenue growth 3Y6.7%
Revenue growth 5Y8.78%
Sales Q2Q%5.86%
Revenue Next Year6.86%
Revenue Next 2Y5.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.83%
EBIT growth 3Y8.3%
EBIT growth 5Y19.28%
EBIT Next Year38.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.86%
FCF growth 3Y-23.19%
FCF growth 5Y24.34%
OCF growth 1Y94.09%
OCF growth 3Y-13.07%
OCF growth 5Y12.31%