CARTER'S INC (CRI)
US1462291097 - Common Stock
Taking everything into account, CRI scores 5 out of 10 in our fundamental rating. CRI was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While CRI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRI is valued quite cheap, but it does not seem to be growing. CRI also has an excellent dividend rating. With these ratings, CRI could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
CRI had positive earnings in the past year.
In the past year CRI had a positive cash flow from operations.
Each year in the past 5 years CRI has been profitable.
In the past 5 years CRI always reported a positive cash flow from operatings.
1.2 Ratios
CRI's Return On Assets of 11.08% is amongst the best of the industry. CRI outperforms 84.00% of its industry peers.
With an excellent Return On Equity value of 31.76%, CRI belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
CRI's Return On Invested Capital of 14.92% is amongst the best of the industry. CRI outperforms 82.00% of its industry peers.
CRI had an Average Return On Invested Capital over the past 3 years of 14.99%. This is above the industry average of 11.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 31.76% | ||
| ROIC | 14.92% |
ROA(3y)10.07%
ROA(5y)8.58%
ROE(3y)31.08%
ROE(5y)26.9%
ROIC(3y)14.99%
ROIC(5y)13.55%
1.3 Margins
CRI has a better Profit Margin (7.52%) than 76.00% of its industry peers.
In the last couple of years the Profit Margin of CRI has remained more or less at the same level.
CRI has a Operating Margin of 10.35%. This is in the better half of the industry: CRI outperforms 78.00% of its industry peers.
In the last couple of years the Operating Margin of CRI has remained more or less at the same level.
CRI has a Gross Margin (48.16%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.35% | ||
| PM (TTM) | 7.52% | ||
| GM | 48.16% |
OM growth 3Y3.44%
OM growth 5Y-0.58%
PM growth 3Y29.22%
PM growth 5Y-0.85%
GM growth 3Y2.57%
GM growth 5Y1.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRI is still creating some value.
Compared to 1 year ago, CRI has less shares outstanding
CRI has less shares outstanding than it did 5 years ago.
CRI has a better debt/assets ratio than last year.
2.2 Solvency
CRI has an Altman-Z score of 3.49. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
CRI has a Altman-Z score of 3.49. This is in the better half of the industry: CRI outperforms 68.00% of its industry peers.
The Debt to FCF ratio of CRI is 1.79, which is an excellent value as it means it would take CRI, only 1.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CRI (1.79) is better than 62.00% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that CRI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, CRI is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
Although CRI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.79
WACC8.33%
2.3 Liquidity
A Current Ratio of 2.21 indicates that CRI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.21, CRI is in line with its industry, outperforming 54.00% of the companies in the same industry.
CRI has a Quick Ratio of 2.21. This is a bad value and indicates that CRI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CRI (0.96) is worse than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
CRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.52%, which is quite good.
Measured over the past years, CRI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.35% on average per year.
The Revenue has decreased by -5.19% in the past year.
Measured over the past years, CRI shows a decrease in Revenue. The Revenue has been decreasing by -3.18% on average per year.
EPS 1Y (TTM)8.52%
EPS 3Y14.44%
EPS 5Y-0.35%
EPS Q2Q%-8.7%
Revenue 1Y (TTM)-5.19%
Revenue growth 3Y-0.88%
Revenue growth 5Y-3.18%
Sales Q2Q%-4.19%
3.2 Future
Based on estimates for the next years, CRI will show a decrease in Earnings Per Share. The EPS will decrease by -4.75% on average per year.
CRI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.06% yearly.
EPS Next Y-13.78%
EPS Next 2Y-9.83%
EPS Next 3Y-4.75%
EPS Next 5YN/A
Revenue Next Year-4.62%
Revenue Next 2Y-2.61%
Revenue Next 3Y-1.06%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.40, the valuation of CRI can be described as very reasonable.
CRI's Price/Earnings ratio is rather cheap when compared to the industry. CRI is cheaper than 92.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CRI to the average of the S&P500 Index (28.96), we can say CRI is valued rather cheaply.
The Price/Forward Earnings ratio is 10.37, which indicates a very decent valuation of CRI.
Based on the Price/Forward Earnings ratio, CRI is valued cheaply inside the industry as 82.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. CRI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
CRI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRI is cheaper than 92.00% of the companies in the same industry.
CRI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRI is cheaper than 82.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.81 | ||
| EV/EBITDA | 5.12 |
4.3 Compensation for Growth
The decent profitability rating of CRI may justify a higher PE ratio.
CRI's earnings are expected to decrease with -4.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.83%
EPS Next 3Y-4.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.00%, CRI is a good candidate for dividend investing.
The stock price of CRI dropped by -20.88% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CRI's Dividend Yield is rather good when compared to the industry average which is at 2.92. CRI pays more dividend than 94.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, CRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
5.2 History
On average, the dividend of CRI grows each year by 27.93%, which is quite nice.
CRI has paid a dividend for at least 10 years, which is a reliable track record.
CRI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)27.93%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
43.60% of the earnings are spent on dividend by CRI. This is a bit on the high side, but may be sustainable.
DP43.6%
EPS Next 2Y-9.83%
EPS Next 3Y-4.75%
CARTER'S INC
NYSE:CRI (11/21/2024, 5:06:00 PM)
After market: 52.43 0 (0%)52.43
+1.46 (+2.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 10.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 31.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.35% | ||
| PM (TTM) | 7.52% | ||
| GM | 48.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.21 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.52%
EPS 3Y14.44%
EPS 5Y
EPS Q2Q%
EPS Next Y-13.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.19%
Revenue growth 3Y-0.88%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y