Why NYSE:CRI is a Top Pick for Dividend Investors.

CARTER'S INC (NYSE:CRI) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:CRI scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

How do we evaluate the Dividend for NYSE:CRI?

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:CRI was assigned a score of 7 for dividend:

• With a Yearly Dividend Yield of 4.08%, CRI is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 2.99, CRI pays a better dividend. On top of this CRI pays more dividend than 91.84% 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 2.45.
• 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.

Health Analysis for NYSE:CRI

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CRI has achieved a 6 out of 10:

• CRI has an Altman-Z score of 3.99. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 3.99, CRI is doing good in the industry, outperforming 65.31% of the companies in the same industry.
• 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's Debt to FCF ratio of 1.24 is fine compared to the rest of the industry. CRI outperforms 71.43% 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.

Understanding NYSE:CRI's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CRI, the assigned 7 is noteworthy for profitability:

• CRI has a better Return On Assets (10.26%) than 81.63% of its industry peers.
• CRI's Return On Equity of 30.31% is amongst the best of the industry. CRI outperforms 87.76% of its industry peers.
• CRI's Return On Invested Capital of 15.27% is amongst the best of the industry. CRI outperforms 83.67% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for CRI is above the industry average of 10.60%.
• 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.
• CRI has a Profit Margin of 6.44%. This is in the better half of the industry: CRI outperforms 67.35% of its industry peers.
• CRI has a Operating Margin of 9.80%. This is in the better half of the industry: CRI outperforms 73.47% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.