CARTER'S INC (CRI)
US1462291097 - Common Stock
Overall CRI gets a fundamental rating of 6 out of 10. We evaluated CRI against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. CRI gets an excellent profitability rating and is at the same time showing great financial health properties. CRI is valued quite cheap, but it does not seem to be growing. Finally CRI also has an excellent dividend rating. These ratings would make CRI suitable 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.
In the past 5 years CRI has always been profitable.
Each year in the past 5 years CRI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.08%, CRI belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
CRI's Return On Equity of 31.76% is amongst the best of the industry. CRI outperforms 88.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.92%, CRI belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CRI is above the industry average of 11.70%.
| 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 Profit Margin of 7.52%. This is in the better half of the industry: CRI outperforms 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.
With a decent Operating Margin value of 10.35%, CRI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
CRI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 48.16%, CRI is in line with its industry, outperforming 48.00% of the companies in the same 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 well above the Cost of Capital (WACC), so CRI is creating value.
The number of shares outstanding for CRI has been reduced compared to 1 year ago.
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 3.56. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
CRI's Altman-Z score of 3.56 is fine compared to the rest 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.
With a decent Debt to FCF ratio value of 1.79, CRI is doing good in the industry, outperforming 68.00% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that CRI is somewhat dependend on debt financing.
CRI's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. CRI is outperformed by 66.00% of its industry peers.
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 | 0.6 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.8
WACC8.31%
2.3 Liquidity
A Current Ratio of 2.21 indicates that CRI has no problem at all paying its short term obligations.
CRI has a Current ratio (2.21) which is in line with its industry peers.
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.
With a Quick ratio value of 0.96, CRI is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| 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.
CRI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.35% yearly.
Looking at the last year, CRI shows a decrease in Revenue. The Revenue has decreased by -5.19% in the last 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
The Earnings Per Share is expected to decrease by -4.75% on average over the next years.
The Revenue is expected to decrease by -1.06% on average over the next years.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.92 indicates a reasonable valuation of CRI.
Compared to the rest of the industry, the Price/Earnings ratio of CRI indicates a rather cheap valuation: CRI is cheaper than 92.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, CRI is valued rather cheaply.
CRI is valuated reasonably with a Price/Forward Earnings ratio of 11.00.
CRI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CRI is cheaper than 86.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, CRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 11 |
4.2 Price Multiples
92.00% of the companies in the same industry are more expensive than CRI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CRI is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 5.52 |
4.3 Compensation for Growth
CRI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CRI's earnings are expected to decrease with -4.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.83%
EPS Next 3Y-4.75%
5. Dividend
5.1 Amount
CRI has a Yearly Dividend Yield of 5.86%, which is a nice return.
CRI's Dividend Yield is rather good when compared to the industry average which is at 2.86. CRI pays more dividend than 94.00% of the companies in the same industry.
CRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
5.2 History
On average, the dividend of CRI grows each year by 27.93%, which is quite nice.
CRI has been paying a dividend for at least 10 years, so it has a reliable track record.
CRI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)27.93%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
CRI pays out 43.60% of its income as dividend. 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 (12/20/2024, 8:04:00 PM)
After market: 55.5 -0.14 (-0.25%)55.64
+1.02 (+1.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners121.17%
Inst Owner Change-6.36%
Ins Owners2.83%
Ins Owner Change-0.07%
Market Cap2.01B
Analysts49.23
Price Target57.38 (3.13%)
Short Float %10.57%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
Dividend Growth(5Y)27.93%
DP43.6%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.24%
Min EPS beat(2)19.02%
Max EPS beat(2)53.46%
EPS beat(4)4
Avg EPS beat(4)27.73%
Min EPS beat(4)4.81%
Max EPS beat(4)53.46%
EPS beat(8)8
Avg EPS beat(8)30.42%
EPS beat(12)10
Avg EPS beat(12)20.82%
EPS beat(16)13
Avg EPS beat(16)54.23%
Revenue beat(2)0
Avg Revenue beat(2)-1.13%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)-0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)2.26%
Revenue beat(8)3
Avg Revenue beat(8)0.84%
Revenue beat(12)5
Avg Revenue beat(12)0%
Revenue beat(16)7
Avg Revenue beat(16)0.33%
PT rev (1m)-4.01%
PT rev (3m)0.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.43%
EPS NY rev (1m)0%
EPS NY rev (3m)6.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 11 | ||
| P/S | 0.57 | ||
| P/FCF | 7.22 | ||
| P/OCF | 5.99 | ||
| P/B | 2.42 | ||
| P/tB | 6.74 | ||
| EV/EBITDA | 5.52 |
EPS(TTM)6.24
EY11.21%
EPS(NY)5.06
Fwd EY9.09%
FCF(TTM)7.7
FCFY13.85%
OCF(TTM)9.29
OCFY16.69%
SpS97.22
BVpS23.01
TBVpS8.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 31.76% | ||
| ROCE | 19.14% | ||
| ROIC | 14.92% | ||
| ROICexc | 16.44% | ||
| ROICexgc | 23.81% | ||
| OM | 10.35% | ||
| PM (TTM) | 7.52% | ||
| GM | 48.16% | ||
| FCFM | 7.92% |
ROA(3y)10.07%
ROA(5y)8.58%
ROE(3y)31.08%
ROE(5y)26.9%
ROIC(3y)14.99%
ROIC(5y)13.55%
ROICexc(3y)20.15%
ROICexc(5y)18.25%
ROICexgc(3y)31.08%
ROICexgc(5y)27.92%
ROCE(3y)19.24%
ROCE(5y)17.39%
ROICexcg growth 3Y1.16%
ROICexcg growth 5Y-4.86%
ROICexc growth 3Y2.13%
ROICexc growth 5Y-3.17%
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%
F-Score7
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 96.26% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.33% | ||
| Profit Quality | 105.4% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.56 |
F-Score7
WACC8.31%
ROIC/WACC1.8
Cap/Depr(3y)65.01%
Cap/Depr(5y)58.81%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.44%
Profit Quality(3y)97.97%
Profit Quality(5y)186.03%
High Growth Momentum
Growth
EPS 1Y (TTM)8.52%
EPS 3Y14.44%
EPS 5Y-0.35%
EPS Q2Q%-8.7%
EPS Next Y-13.78%
EPS Next 2Y-9.83%
EPS Next 3Y-4.75%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.19%
Revenue growth 3Y-0.88%
Revenue growth 5Y-3.18%
Sales Q2Q%-4.19%
Revenue Next Year-4.62%
Revenue Next 2Y-2.61%
Revenue Next 3Y-1.06%
Revenue Next 5YN/A
EBIT growth 1Y0.12%
EBIT growth 3Y2.54%
EBIT growth 5Y-3.74%
EBIT Next Year2.68%
EBIT Next 3Y0.38%
EBIT Next 5YN/A
FCF growth 1Y3414.35%
FCF growth 3Y-5.47%
FCF growth 5Y9.92%
OCF growth 1Y669.34%
OCF growth 3Y-3.48%
OCF growth 5Y8.24%