CRA INTERNATIONAL INC (CRAI)
US12618T1051 - Common Stock
Taking everything into account, CRAI scores 6 out of 10 in our fundamental rating. CRAI was compared to 81 industry peers in the Professional Services industry. While CRAI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRAI is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years CRAI has always been profitable.
CRAI had a positive operating cash flow in each of the past 5 years.
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 71.43% 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 72.73% 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 74.03% of the companies in the same industry.
CRAI had an Average Return On Invested Capital over the past 3 years of 12.81%. This is significantly below the industry average of 17.86%.
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
With a decent Profit Margin value of 6.39%, CRAI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of CRAI has grown nicely.
CRAI has a better Operating Margin (9.88%) than 72.73% of its industry peers.
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 64.94% 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
CRAI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CRAI has been reduced compared to 1 year ago.
Compared to 5 years ago, CRAI has less shares outstanding
CRAI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.07 indicates that CRAI is not in any danger for bankruptcy at the moment.
CRAI has a better Altman-Z score (4.07) than 72.73% 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.
Looking at the Debt to FCF ratio, with a value of 2.50, CRAI is in the better half of the industry, outperforming 67.53% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that CRAI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.29, CRAI perfoms like the industry average, outperforming 55.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.4
WACC9.4%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CRAI should not have too much problems paying its short term obligations.
CRAI has a Current ratio of 1.06. This is in the lower half of the industry: CRAI underperforms 71.43% 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 71.43% 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 42.38% over the past year.
CRAI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.69% yearly.
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
CRAI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.88% yearly.
CRAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.67, which means the current valuation is very expensive for CRAI.
The rest of the industry has a similar Price/Earnings ratio as CRAI.
CRAI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.54, the valuation of CRAI can be described as rather expensive.
CRAI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, CRAI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.67 | ||
| Fwd PE | 23.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRAI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CRAI is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.08 | ||
| EV/EBITDA | 15.78 |
4.3 Compensation for Growth
CRAI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CRAI has a very decent profitability rating, which 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)0.77
PEG (5Y)1.87
EPS Next 2Y19.5%
EPS Next 3Y14.88%
5. Dividend
5.1 Amount
CRAI has a Yearly Dividend Yield of 1.03%.
CRAI's Dividend Yield is a higher than the industry average which is at 1.85.
With a Dividend Yield of 1.03, CRAI pays less dividend than the S&P500 average, which is at 2.36.
| 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.
CRAI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 (12/20/2024, 8:03:51 PM)
After market: 184.55 0 (0%)184.55
-5.41 (-2.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.05%
Inst Owner Change0.65%
Ins Owners4.12%
Ins Owner Change-1.5%
Market Cap1.25B
Analysts82.5
Price Target215.22 (16.62%)
Short Float %0.73%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Dividend Growth(5Y)N/A
DP27.65%
Div Incr Years8
Div Non Decr Years8
Ex-Date
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)9.61%
PT rev (3m)9.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.63%
EPS NY rev (1m)0.73%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.67 | ||
| Fwd PE | 23.54 | ||
| P/S | 1.86 | ||
| P/FCF | 52.08 | ||
| P/OCF | 41.14 | ||
| P/B | 6.12 | ||
| P/tB | 12.23 | ||
| EV/EBITDA | 15.78 |
EPS(TTM)7.19
EY3.9%
EPS(NY)7.84
Fwd EY4.25%
FCF(TTM)3.54
FCFY1.92%
OCF(TTM)4.49
OCFY2.43%
SpS99.2
BVpS30.16
TBVpS15.09
PEG (NY)0.77
PEG (5Y)1.87
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 | 4.07 |
F-Score7
WACC9.4%
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%