Balancing Dividends and Fundamentals: The Case of NYSE:CRI.

Take a closer look at CARTER'S INC (NYSE:CRI), a stock of interest to dividend investors uncovered by our stock screener. NYSE:CRI excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Evaluating Dividend: NYSE:CRI

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:CRI scores a 7 out of 10:

• CRI has a Yearly Dividend Yield of 4.36%, which is a nice return.
• Compared to an average industry Dividend Yield of 3.38, CRI pays a better dividend. On top of this CRI pays more dividend than 87.76% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.71, CRI pays a better dividend.
• On average, the dividend of CRI grows each year by 23.76%, which is quite nice.
• CRI has paid a dividend for at least 10 years, which is a reliable track record.

Evaluating Health: NYSE:CRI

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:CRI scores a 6 out of 10:

• An Altman-Z score of 3.88 indicates that CRI is not in any danger for bankruptcy at the moment.
• CRI has a Altman-Z score of 3.88. This is in the better half of the industry: CRI outperforms 71.43% of its industry peers.
• CRI has a debt to FCF ratio of 1.24. This is a very positive value and a sign of high solvency as it would only need 1.24 years to pay back of all of its debts.
• CRI has a Debt to FCF ratio of 1.24. This is in the better half of the industry: CRI outperforms 75.51% 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.
• CRI has a Current Ratio of 2.30. This indicates that CRI is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Profitability for NYSE:CRI

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CRI has achieved a 7:

• Looking at the Return On Assets, with a value of 10.26%, CRI belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
• The Return On Equity of CRI (30.31%) is better than 91.84% of its industry peers.
• CRI has a Return On Invested Capital of 15.27%. This is amongst the best in the industry. CRI outperforms 83.67% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for CRI is above the industry average of 10.71%.
• The last Return On Invested Capital (15.27%) for CRI is above the 3 year average (13.54%), which is a sign of increasing profitability.
• The Profit Margin of CRI (6.44%) is better than 67.35% of its industry peers.
• With a decent Operating Margin value of 9.80%, CRI is doing good in the industry, outperforming 69.39% of the companies in the same industry.

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Check the latest full fundamental report of CRI for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.