CARTER'S INC (CRI) Stock Fundamental Analysis
NYSE:CRI - New York Stock Exchange, Inc. - US1462291097 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CRI. CRI was compared to 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. CRI also has an excellent dividend rating. These ratings would make CRI suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year CRI was profitable.
CRI had a positive operating cash flow in the past year.
CRI had positive earnings in each of the past 5 years.
In the past 5 years CRI always reported a positive cash flow from operatings.
1.2 Ratios
CRI has a better Return On Assets (11.08%) than 83.67% of its industry peers.
CRI has a Return On Equity of 31.76%. This is amongst the best in the industry. CRI outperforms 87.76% of its industry peers.
CRI has a better Return On Invested Capital (14.92%) than 81.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CRI is above the industry average of 11.39%.
| 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
Looking at the Profit Margin, with a value of 7.52%, CRI is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
In the last couple of years the Profit Margin of CRI has remained more or less at the same level.
CRI has a better Operating Margin (10.35%) than 79.59% of its industry peers.
CRI's Operating Margin has been stable in the last couple of years.
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 well above the Cost of Capital (WACC), so CRI is creating value.
Compared to 1 year ago, CRI has less shares outstanding
The number of shares outstanding for CRI has been reduced compared to 5 years ago.
The debt/assets ratio for CRI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.52 indicates that CRI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.52, CRI is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
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.
CRI has a Debt to FCF ratio of 1.79. This is in the better half of the industry: CRI outperforms 67.35% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that CRI is somewhat dependend on debt financing.
CRI has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: CRI underperforms 65.31% of its industry peers.
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 | 3.52 |
ROIC/WACC1.83
WACC8.14%
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 of 2.21. This is comparable to the rest of the industry: CRI outperforms 57.14% of 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: 63.27% 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.
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.
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
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 -1.03% yearly.
EPS Next Y-13.78%
EPS Next 2Y-9.83%
EPS Next 3Y-4.75%
EPS Next 5YN/A
Revenue Next Year-4.56%
Revenue Next 2Y-2.51%
Revenue Next 3Y-1.03%
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
The Price/Earnings ratio is 8.78, which indicates a very decent valuation of CRI.
Based on the Price/Earnings ratio, CRI is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.28. CRI is valued rather cheaply when compared to this.
CRI is valuated reasonably with a Price/Forward Earnings ratio of 10.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRI indicates a rather cheap valuation: CRI is cheaper than 87.76% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CRI to the average of the S&P500 Index (91.29), we can say CRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRI is valued cheaper than 93.88% 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 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.11 | ||
| EV/EBITDA | 5.31 |
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 -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
CRI has a Yearly Dividend Yield of 5.86%, which is a nice return.
Compared to an average industry Dividend Yield of 2.78, CRI pays a better dividend. On top of this CRI pays more dividend than 95.92% of the companies listed in the same industry.
CRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| 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 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 Years1
Div Non Decr Years4
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 (1/30/2025, 4:10:02 PM)
After market: 54.81 0 (0%)54.81
+1.62 (+3.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners121.17%
Inst Owner Change4.52%
Ins Owners2.83%
Ins Owner Change0.28%
Market Cap1.98B
Analysts49.23
Price Target57.38 (4.69%)
Short Float %13.36%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
Yearly Dividend3.02
Dividend Growth(5Y)27.93%
DP43.6%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
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)0%
PT rev (3m)-4.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.24%
EPS NY rev (1m)0%
EPS NY rev (3m)6.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 10.84 | ||
| P/S | 0.56 | ||
| P/FCF | 7.11 | ||
| P/OCF | 5.9 | ||
| P/B | 2.38 | ||
| P/tB | 6.64 | ||
| EV/EBITDA | 5.31 |
EPS(TTM)6.24
EY11.38%
EPS(NY)5.06
Fwd EY9.23%
FCF(TTM)7.7
FCFY14.05%
OCF(TTM)9.29
OCFY16.94%
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 | 3.52 |
F-Score7
WACC8.14%
ROIC/WACC1.83
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-4.56%
Revenue Next 2Y-2.51%
Revenue Next 3Y-1.03%
Revenue Next 5YN/A
EBIT growth 1Y0.12%
EBIT growth 3Y2.54%
EBIT growth 5Y-3.74%
EBIT Next Year1.81%
EBIT Next 3Y0.55%
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%