CARTER'S INC (CRI) Stock Fundamental Analysis
NYSE:CRI - New York Stock Exchange, Inc. - US1462291097 - Common Stock - Currency: USD
Overall CRI gets a fundamental rating of 5 out of 10. We evaluated CRI against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI has an excellent financial health rating, but there are some minor concerns on its profitability. CRI is valued quite cheap, but it does not seem to be growing. Finally CRI also has an excellent dividend rating. These ratings could make CRI a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year CRI was profitable.
In the past year CRI had a positive cash flow from operations.
CRI had positive earnings in each of the past 5 years.
Each year in the past 5 years CRI had a positive operating cash flow.
1.2 Ratios
CRI's Return On Assets of 9.01% is fine compared to the rest of the industry. CRI outperforms 76.00% of its industry peers.
The Return On Equity of CRI (25.65%) is better than 80.00% of its industry peers.
CRI has a better Return On Invested Capital (13.89%) than 76.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CRI is in line with the industry average of 13.61%.
The last Return On Invested Capital (13.89%) for CRI is above the 3 year average (13.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.01% | ||
| ROE | 25.65% | ||
| ROIC | 13.89% |
ROA(3y)9.05%
ROA(5y)8.18%
ROE(3y)26.4%
ROE(5y)25.22%
ROIC(3y)13.75%
ROIC(5y)13.22%
1.3 Margins
Looking at the Profit Margin, with a value of 6.25%, CRI is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
CRI's Profit Margin has declined in the last couple of years.
CRI has a Operating Margin of 9.69%. This is in the better half of the industry: CRI outperforms 68.00% of its industry peers.
CRI's Operating Margin has declined in the last couple of years.
CRI has a Gross Margin of 47.93%. This is comparable to the rest of the industry: CRI outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of CRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| PM (TTM) | 6.25% | ||
| GM | 47.93% |
OM growth 3Y-11.06%
OM growth 5Y-2.63%
PM growth 3Y-12.75%
PM growth 5Y-2.95%
GM growth 3Y0.38%
GM growth 5Y2.29%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRI is creating some value.
Compared to 1 year ago, CRI has less shares outstanding
Compared to 5 years ago, CRI has less shares outstanding
CRI has a better debt/assets ratio than last year.
2.2 Solvency
CRI has an Altman-Z score of 3.23. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
CRI has a better Altman-Z score (3.23) than 66.00% of its industry peers.
CRI has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as CRI would need 2.05 years to pay back of all of its debts.
CRI has a better Debt to FCF ratio (2.05) than 74.00% of its industry peers.
CRI has a Debt/Equity ratio of 0.58. This is a neutral value indicating CRI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, CRI is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for CRI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 3.23 |
ROIC/WACC1.43
WACC9.72%
2.3 Liquidity
CRI has a Current Ratio of 2.25. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.
CRI has a Current ratio of 2.25. This is in the better half of the industry: CRI outperforms 66.00% of its industry peers.
CRI has a Quick Ratio of 1.26. This is a normal value and indicates that CRI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.26, CRI is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for CRI have decreased by -2.41% in the last year.
Measured over the past years, CRI shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.36% on average per year.
Looking at the last year, CRI shows a decrease in Revenue. The Revenue has decreased by -3.73% in the last year.
The Revenue has been decreasing by -4.17% on average over the past years.
EPS 1Y (TTM)-2.41%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-6.16%
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%0.22%
3.2 Future
CRI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.30% yearly.
Based on estimates for the next years, CRI will show a decrease in Revenue. The Revenue will decrease by -0.42% on average per year.
EPS Next Y-36.4%
EPS Next 2Y-20.09%
EPS Next 3Y-15.3%
EPS Next 5YN/A
Revenue Next Year-0.56%
Revenue Next 2Y-0.35%
Revenue Next 3Y-0.42%
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
The Price/Earnings ratio is 5.99, which indicates a rather cheap valuation of CRI.
Based on the Price/Earnings ratio, CRI is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
CRI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
CRI is valuated reasonably with a Price/Forward Earnings ratio of 9.42.
CRI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRI is cheaper than 76.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, CRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
94.00% of the companies in the same industry are more expensive than CRI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRI indicates a rather cheap valuation: CRI is cheaper than 86.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.4 | ||
| EV/EBITDA | 3.51 |
4.3 Compensation for Growth
CRI has a very decent profitability rating, which may justify a higher PE ratio.
CRI's earnings are expected to decrease with -15.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.09%
EPS Next 3Y-15.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.68%, CRI is a good candidate for dividend investing.
In the last 3 months the price of CRI has falen by -32.09%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CRI's Dividend Yield is rather good when compared to the industry average which is at 4.16. CRI pays more dividend than 96.00% of the companies in the same industry.
CRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.68% |
5.2 History
The dividend of CRI is nicely growing with an annual growth rate of 16.75%!
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)16.75%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
53.01% of the earnings are spent on dividend by CRI. This is a bit on the high side, but may be sustainable.
The Dividend Rate of CRI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP53.01%
EPS Next 2Y-20.09%
EPS Next 3Y-15.3%
36.37
+0.94 (+2.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners121.46%
Inst Owner Change0%
Ins Owners1.59%
Ins Owner Change7.4%
Market Cap1.31B
Analysts49.23
Price Target46.67 (28.32%)
Short Float %14.11%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.68% |
Yearly Dividend3.2
Dividend Growth(5Y)16.75%
DP53.01%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.42%
Min EPS beat(2)19.02%
Max EPS beat(2)33.81%
EPS beat(4)4
Avg EPS beat(4)34.98%
Min EPS beat(4)19.02%
Max EPS beat(4)53.46%
EPS beat(8)8
Avg EPS beat(8)30.59%
EPS beat(12)10
Avg EPS beat(12)22.72%
EPS beat(16)14
Avg EPS beat(16)57.01%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)2.26%
Revenue beat(8)3
Avg Revenue beat(8)0.48%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)8
Avg Revenue beat(16)0.88%
PT rev (1m)-2.66%
PT rev (3m)-18.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.6%
EPS NY rev (1m)-22.55%
EPS NY rev (3m)-23.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 9.42 | ||
| P/S | 0.37 | ||
| P/FCF | 5.4 | ||
| P/OCF | 4.38 | ||
| P/B | 1.53 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 3.51 |
EPS(TTM)6.07
EY16.69%
EPS(NY)3.86
Fwd EY10.61%
FCF(TTM)6.74
FCFY18.53%
OCF(TTM)8.3
OCFY22.81%
SpS97.35
BVpS23.73
TBVpS9.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.01% | ||
| ROE | 25.65% | ||
| ROCE | 17.66% | ||
| ROIC | 13.89% | ||
| ROICexc | 17.68% | ||
| ROICexgc | 26.38% | ||
| OM | 9.69% | ||
| PM (TTM) | 6.25% | ||
| GM | 47.93% | ||
| FCFM | 6.92% |
ROA(3y)9.05%
ROA(5y)8.18%
ROE(3y)26.4%
ROE(5y)25.22%
ROIC(3y)13.75%
ROIC(5y)13.22%
ROICexc(3y)16.52%
ROICexc(5y)18.31%
ROICexgc(3y)24.79%
ROICexgc(5y)28.26%
ROCE(3y)17.48%
ROCE(5y)16.81%
ROICexcg growth 3Y-19.15%
ROICexcg growth 5Y0.36%
ROICexc growth 3Y-17.36%
ROICexc growth 5Y-0.7%
OM growth 3Y-11.06%
OM growth 5Y-2.63%
PM growth 3Y-12.75%
PM growth 5Y-2.95%
GM growth 3Y0.38%
GM growth 5Y2.29%
F-Score7
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 96.96% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 11.52 | ||
| Cash Conversion | 75.13% | ||
| Profit Quality | 110.7% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.23 |
F-Score7
WACC9.72%
ROIC/WACC1.43
Cap/Depr(3y)84.08%
Cap/Depr(5y)65.4%
Cap/Sales(3y)1.75%
Cap/Sales(5y)1.49%
Profit Quality(3y)119.52%
Profit Quality(5y)187.79%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.41%
EPS 3Y-8.37%
EPS 5Y-1.36%
EPS Q2Q%-6.16%
EPS Next Y-36.4%
EPS Next 2Y-20.09%
EPS Next 3Y-15.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y-6.56%
Revenue growth 5Y-4.17%
Sales Q2Q%0.22%
Revenue Next Year-0.56%
Revenue Next 2Y-0.35%
Revenue Next 3Y-0.42%
Revenue Next 5YN/A
EBIT growth 1Y-10.53%
EBIT growth 3Y-16.9%
EBIT growth 5Y-6.69%
EBIT Next Year3.01%
EBIT Next 3Y-0.41%
EBIT Next 5YN/A
FCF growth 1Y-48.3%
FCF growth 3Y1.66%
FCF growth 5Y-5.73%
OCF growth 1Y-43.53%
OCF growth 3Y3.65%
OCF growth 5Y-5.05%