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NYSE:CRI is probably undervalued for the fundamentals it is displaying.

By Mill Chart

Last update: Jul 9, 2024

Our stock screener has singled out CARTER'S INC (NYSE:CRI) as a stellar value proposition. NYSE:CRI not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

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Understanding NYSE:CRI's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:CRI has received a 7 out of 10:

  • A Price/Earnings ratio of 9.98 indicates a reasonable valuation of CRI.
  • Based on the Price/Earnings ratio, CRI is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 28.45. CRI is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 9.81, which indicates a very decent valuation of CRI.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CRI indicates a somewhat cheap valuation: CRI is cheaper than 79.59% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 20.21, CRI is valued rather cheaply.
  • Based on the Enterprise Value to EBITDA ratio, CRI is valued cheaper than 89.80% 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 85.71% of the companies in the same industry.
  • CRI has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding NYSE:CRI's Profitability

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 8:

  • Looking at the Return On Assets, with a value of 11.62%, CRI belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
  • CRI has a Return On Equity of 31.56%. This is amongst the best in the industry. CRI outperforms 83.67% of its industry peers.
  • The Return On Invested Capital of CRI (15.80%) is better than 85.71% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CRI is above the industry average of 10.34%.
  • The last Return On Invested Capital (15.80%) for CRI is above the 3 year average (14.99%), which is a sign of increasing profitability.
  • CRI has a better Profit Margin (7.36%) than 75.51% of its industry peers.
  • CRI has a better Operating Margin (10.49%) than 75.51% of its industry peers.
  • CRI's Gross Margin has improved in the last couple of years.

Health Insights: NYSE:CRI

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:CRI, the assigned 7 reflects its health status:

  • CRI has an Altman-Z score of 3.92. This indicates that CRI is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.92, CRI is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
  • CRI has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
  • The Debt to FCF ratio of CRI (1.23) is better than 77.55% 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.
  • A Current Ratio of 2.43 indicates that CRI has no problem at all paying its short term obligations.

A Closer Look at Growth for NYSE:CRI

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CRI has achieved a 4 out of 10:

  • Looking at the last year, CRI shows a quite strong growth in Revenue. The Revenue has grown by 15.34% in the last year.
  • The EPS growth rate is accelerating: in the next years the growth will be better 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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of CRI contains the most current fundamental analsysis.


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.